Enron Reborn as AEI's $800 Million IPO Tests Investor Appetite for Power Oct 29, 2009
Enrons assets were sold after the Houston-based energy trader declared what was then the largest U.S. bankruptcy in December 2001 amid allegations of accounting fraud. AEI earned 73 cents a share in net income from continuing operations in the six months ended in June, which implies a valuation of 10. (Bloomberg -- US)
Trial Begins Anew for McKesson Execs -- but With a Defense Witness From the Other Side Oct 29, 2009
The accounting fraud case against former McKesson HBOC executives has taken on an "Alice in Wonderland" hue, as the government's main cooperator is now officially a defense witness. In opening statements Tuesday, Theodore Wells Jr., the Paul, Weiss, Rifkind, Wharton & Garrison lawyer representing former CEO Charles McCall, told the jury he will call Albert Bergonzi to the stand. (Law.com)
Defense Tries to Shift Blame as Broadcom Trial Gets Under Way Oct 27, 2009
Ruehle, who was chief financial officer of the chip manufacturer until his resignation in 2006, faces charges of conspiracy to commit securities and accounting fraud, honest services mail fraud, filing false reports with the SEC and lying to accountants. During the opening statements, Ruehle, 67, displayed little emotion and took notes while seated between his lawyers. (Law.com)
HealthSouth Plans to Fund Dissident Nominees' Expenses: Report Oct 26, 2009
9 billion after a judge found him responsible for an accounting fraud that nearly brought down the hospital chain. HealthSouth's action may encourage other companies, especially those under pressure from activist investors, to follow suit, Patrick McGurn, special counsel for the proxy-advisory firm RiskMetrics told the paper. (ABC News -- Business)
CFO Workman resigns from HealthSouth Oct 24, 2009
Along with CEO Jay Grinney, Workman led a turnaround of the embattled firm, which was on the verge of bankruptcy dealing with the aftermath of the accounting fraud scandal during former CEO and founder Richard Scrushy s era. Workman was integral in helping the nation s largest provider of inpatient rehabilitation services divest its outpatient, surgical and diagnostic units in 2007. (Birmingham Business Journal, AL)
New Enforcement Chief Aims to Restore Confidence in SEC Oct 20, 2009
As examples, he points to the accounting fraud charges against two former executives at American Home Investment Corp. filed by the SEC in late April, the fraud and insider trading charges brought against the ex-chief executive of Countrywide Financial Corp. in June, and an insider-trading case against a bond salesman at his old employer, Deutsche Bank, and a hedge fund manager at Millennium Partners in connection with credit default swaps. But amid the flurry of new cases, the rejected Bank of... (Law.com)
Satyam delays restatement of accounts Oct 17, 2009
Satyam Computer Services, the software company at the center of Indias biggest accounting fraud probe, delayed the restatement of its accounts by a quarter, executive V-C Vineet Nayyar said ... Satyam Computer Services, the software company at the center of Indias biggest accounting fraud probe, delayed the restatement of its accounts by a quarter, executive V-C Vineet Nayyar said. (India Times, India -- Intl Business)
Financial fraud -- accounting for criminals Oct 10, 2009
"In effect, I was a fraudster, matchmaker and pimp," said Antar, who avoided jail time by working with the U.S. government, and now advises government agencies and businesses on avoiding accounting fraud ... "There's always an uptick in fraud activity when the economy goes down," said Kim Frisinger, a former FBI accounting fraud investigator and managing director of LECG Hong Kong, a consulting firm ... But many accounting fraudsters don't operate within the bounds of right and wrong. (CNN -- International)
Crossing the line Oct 8, 2009
Beam learned this prescient ethics rule the hard way he went to federal prison for participating in s multibillion-dollar accounting fraud scandal ... Beam left HealthSouth in 1997, a year after investigators say the accounting fraud began ... BBJ: What are some necessary checks and balances for ensuring accounting fraud doesn t happen. (Birmingham Business Journal, AL)
HealthSouth seeks to stall sale of yacht Oct 7, 2009
The former CEO was acquitted of accounting fraud in a book-cooking scandal that nearly sent the health care provider into bankruptcy. However, he is currently serving time in a federal prison in Texas for bribing former Alabama Gov. Don Siegelman in a 2006 case. (Birmingham Business Journal, AL)
LETTER: Government reigning in private sector blunders Sep 25, 2009
yocsmotel wrote on Sep 24, 2009 5:26 PM:" The presumption is--corporations, BAD. Enron was accounting fraud, and so was AIG, although related to reinsurance. Sarbanes Oxley and other legislation/bureaucracy has ALREADY been created to address those situations, and many good companies now creak under the burden of complying with them. When are we going to realize that productive corporations contribute to our GDP, and blustering demagogue politicians are parasites? Do we really have to resent... (Mattoon Journal-Gazette, IL)
Scrushy’s cars fetch over $800,000 Sep 25, 2009
9 billion verdict in a shareholder lawsuit over accounting fraud at the health care rehabilitation chain. About 800 people registered to bid and more than 1,000 showed up to watch as the 19 cars were auctioned off at a Birmingham wrecker company lot. (Boston Globe)
Judge okays auction of Scrushy's vehicles Sep 24, 2009
9 billion civil judgment returned against Scrushy in the accounting fraud that occurred while he led HealthSouth. (Copyright 2009 by The Associated Press. (WSJA.com, AL)
Recession stokes fire for writers, audiences alike Sep 23, 2009
" Evidence suggests the world is eager to know. Enron, a play at the Royal Court Theatre about the 2001 demise of the American energy giant, was sold out weeks before opening, and will move to a bigger West End playhouse this winter and to Broadway next April. More broadly, the recession does not seem to have dulled the public's appetite for the arts. London theatres had a record year, cinema takings were up last year and book sales are booming. Hytner said evidence from past downturns suggested... (Business Report, South Africa)
County: Cemetery board violates meetings law Sep 23, 2009
"[An accounting fraud investigator] concluded that the Campbell County Cemetery District has fairly tight internal controls and did not find any additional concerns to warrant charges," Stone said in the release. The board's legal representative, Greg Goddart, said he had not yet received the documentation regarding the charges, but he had been in contact with Slattery earlier in the day. (Casper Star-Tribune, WY)
BREAKING: County attorney charges cemetery board members Sep 23, 2009
An audit of the cemeterys books by an accounting fraud investigator also took place after the cemeterys records were confiscated Sept. 2, but no additional charges will stem from the audit. For a complete rundown of the charges, see Wednesdays News-Record. (Gillette News-Record, WY)
Co to replace law firm in US Sep 22, 2009
The company was hit by an accounting fraud early this year after its founder B Ramalinga Raju admitted to financial irregularities involving thousands of crores of rupees. Investors in India and the US filed several lawsuits in what has turned out to be one of India's most biggest corporate fraud cases. (India Times)
Immoeast Shareholders to Have Majority After Merger, Chief Executive Says Sep 19, 2009
Immofinanz amended its 2008 balance sheet, while Vienna prosecutors are investigating possible accounting fraud by former executives. Immofinanz will have to the rest of Immoeast because any other transaction would be too complicated, Zehetner said. (Bloomberg -- Europe)
Former CEO Fights SEC's Bid to Claw Back $4 Million Under SOX Sep 18, 2009
Historically, the SEC has wielded Section 304 against executives who were alleged to have been participants in an accounting fraud. Section 304 requires chief executive officers and chief financial officers to "reimburse" the company for certain bonus payments and stock sales if "as a result of misconduct" the company was required to issue an accounting restatement, the motion argues. (Law.com)
GE's Fraud Case Could Use the Judge Gone Wild Sep 17, 2009
On Aug. 4, he was assigned a settled the SEC filed that day against Under the deal, GE agreed to pay $50 million of its shareholders money to resolve the agencys claims that it had committed accounting fraud. The SEC didnt name any actual people as defendants. (Bloomberg -- Columnists)
SFIO to be part of new company law Sep 13, 2009
Set up by the Corporate Affairs Ministry in 2003, SFIO shot into prominence after the Government asked it to investigate into the multi-crore rupee Satyam accounting fraud on which it submitted a 14,000-page preliminary report to the government. The decision to give legal and statutory powers to SFIO by including it the new Companies Bill 2009, which is awaiting Parliament nod, follows recommendations of the Vepa Kamesan Committee report on strengthening SFIO.. (India Times)
Indian tech giant quits $75m Geelong project Sep 13, 2009
5 billion accounting fraud. Indian company Tech Mahindra bought a controlling stake in Satyam in April. (Sydney Morning Herald -- Technology)
Malpractice Suit Tugs K&L Gates Into Long-Running Case Sep 11, 2009
The years-long court proceedings involving alleged accounting fraud and the ultimate liquidation of beverage maker Le-Nature's Inc. now includes Pittsburgh law firm. The trustee of Le-Nature's has sued the firm, partner Sanford B. Ferguson and accounting firm Pascarella & Wiker in Allegheny County Common Pleas Court for their alleged "stunning failure" to detect fraud in the company during an internal investigation they were hired to undertake three years before the collapse of Le-Nature's,... (Law.com)
Enron's Skilling May Report to Federal Prison Today Sep 11, 2009
More than 5,000 jobs and $1 billion in employee pensions vanished when Enron collapsed five years ago, following revelations of a widespread accounting fraud directed by Skilling and former Enron Chairman. Investors are suing to recover more than $30 billion in losses. (Yahoo News -- Enron)
Ramalinga Raju stable in intensive care unit Sep 9, 2009
43 billion) accounting fraud in Satyam, was given first aid by the jail authorities after he complained of chest pain Monday evening ... Raju, who will turn 55 Sep 15, has been lodged in jail since Jan 9, two days after he shocked the corporate world by admitting to a Rs 78 billion accounting fraud in the IT major. (India Times)
Ex-Satyam boss Raju in ICU, lawyer says blockage in arteries Sep 8, 2009
43 billion) accounting fraud in Satyam, was given first aid by the jail authorities after he complained of chest pain on Monday evening ... Raju, who will turn 55 Sep 15, has been lodged in jail since Jan 9, two days after he shocked the corporate world by admitting to a Rs 78 billion accounting fraud in the IT major. (India Times, India -- Community News)
Fast-track court to settle Satyam case soon: Salman Khurshid Sep 6, 2009
KOLKATA: The Andhra Pradesh High Court has approved setting up a fast track court to settle the multi-crore accounting fraud in Satyam Computers, corporate affairs minister Salman Khurshid said here on Saturday ... Satyam's founder-head Ramalinga Raju stunned corporate India Jan 7 this year by admitting the multi-crore accounting fraud ... The Andhra Pradesh HC has approved setting up a fast track court to settle the multi-crore accounting fraud in Satyam Computers, the corporate affairs... (India Times, India -- Intl Business)
2 ex-Penn Traffic officers admit accounting fraud Aug 29, 2009
UTICA, N.Y. (AP) -- Two former officers of a Syracuse-based regional grocery store chain have admited to accounting fraud. Linda Jones of Reynoldsville, Pa. (Concord Monitor)
Andersen Will Settle Suit Over WorldCom Aug 26, 2009
The agreement, to be unveiled at a hearing in federal court on Tuesday, would end a three-week trial in which shareholders argued that Andersen should have uncovered an $11 billion accounting fraud at WorldCom. The fraud pushed the telecommunications company into the largest bankruptcy filing in U.S. history in 2002 and cost investors billions. (Yahoo News -- WorldCom/MCI)
BoA plead for Merrill bonus settlement Aug 25, 2009
In 2003, Rakoff forced a revision of a similar SEC settlement with WorldCom Inc over an accounting fraud, increasing the payout to $750 million from $500 million. Bank of America shares closed down 11 cents at $17. (India Times)
J.P. Morgan Settles WorldCom Suit for $2 Billion Aug 25, 2009
Plaintiffs in the class-action case, lead by New York State Comptroller Alan G. Hevesi, claim J.P. Morgan and other WorldCom advisers and directors should have discovered the company's $11 billion accounting fraud and disclosed it to investors. Post 200 Profile. (Yahoo News -- WorldCom/MCI)
Broker's role in Satyam fraud Aug 24, 2009
The team from SEC, had arrived in Hyderabad and held talks with the CBI team probing the accounting fraud at Satyam Computers. More Stories from this section. (India Times, India -- Intl Business)
'Satyam scam scared small investors' Aug 23, 2009
43 billion) accounting fraud, it was the small investor who had lost the most. Mehra said Indian companies needed to set high standards in corporate governance. (India Times)
Lincoln Financial Group Announces Sale of Delaware Investments to Macquarie Group Aug 19, 2009
Lincoln Financial Group logo. (PRNewsFoto/LINCOLN FINANCIAL GROUP) (Newscom TagID: prnphotos056206) PHILADELPHIA, PA UNITED STATES. (PR Newswire)
Gov't won't appeal shorter sentence for Nacchio Aug 18, 2009
Nacchio was one of several executives convicted as part of a government crackdown on white-collar crime stemming from major accounting fraud earlier this decade at companies like Enron and Worldcom. He is at the minimum-security Federal Correctional Institution Schuylkill satellite camp in Minersville, Pa. (Fresno Bee -- Nation)
AIG execs settle state suit for $115M Aug 15, 2009
The suit accused the group of anti-competitive practices and accounting fraud. The Ohio Public Employees Retirement System, State Teachers Retirement System and Ohio Police and Fire Pension Fund have been seeking damages for investors who lost money after the pension programs purchased securities from AIG between 1999 and 2005. (Columbus Business First, OH)
Nortel CEO Zafirovski Steps Down as Bankruptcy Asset Sale Nears Completion Aug 11, 2009
Zafirovski joined Nortel after accounting fraud led to the ouster of 10 executives including former CEO. Zafirovski built his reputation as a turnaround guy at Motorola Inc., where as president and chief operating officer he helped revive its wireless unit with the top-selling Razr phone. (Bloomberg -- Canada)
LETTER: Extreme acts needed to save our democracy Aug 8, 2009
7X6Z9 wrote on Aug 6, 2009 10:29 PM:" CORRUPT DEMOCRAT SUB-PRIME MORTGAGE GIANT FANNIE MAE SEEKS $10.7 BILLION IN U.S. AID AFTER 2Q LOSSWASHINGTON AP (Aug 6 2009) -- Fannie Mae plans to tap $11 billion in new government aid after posting another massive quarterly loss as the taxpayer bill from the housing market bust keeps growing.The mounting price tag for the rescue of Fannie and its goverment-sponsored sibling, Freddie Mac, is surpassed only by insurer American International Group Inc., which... (Mattoon Journal-Gazette, IL)
Judge Sets Hearing on BofA-SEC Settlement Aug 7, 2009
In 2003, he put the brakes on a proposed $500 million settlement with WorldCom Inc. for massive accounting fraud. 1. (ABC News -- Business)
SEC: Ex-AIG CEO Greenberg Settles Fraud Charges Aug 7, 2009
SEC: Former AIG CEO Greenberg to pay $15 million fine to settle accounting fraud charges. By STEPHEN BERNARD AP Business WriterNEW YORK August 6, 2009 (AP) The Associated Press. (ABC News -- Business)
Theater impresario Drabinsky gets 7-year sentence for fraud Aug 6, 2009
(AP) Two co-founders of a Broadway theater company that produced 1990s hits such as "Ragtime" and "Show Boat" were sentenced to prison terms of six and seven years each Wednesday for accounting fraud. Livent co-founders Garth Drabinsky, 63 who was involved in restoring Chicagos Oriental Theater in the late 90s and Myron Gottlieb, 66, were convicted in a Toronto court in March of two counts of fraud and one count of forgery each. (Crain's Chicago Business)
HealthSouth reports net loss Aug 6, 2009
reported a net loss for the second quarter after paying a hefty charge as part of a settlement from a class-action lawsuit related to the accounting fraud that occurred during former CEO Richard Scrushy s term. The Birmingham-based rehabilitation services provider had to pay a non-cash charge of $48. (Birmingham Business Journal, AL)
Canadian theatre moguls get jail for fraud Aug 6, 2009
Disgraced theatre impresarios Garth Drabinsky, pictured in 2003, and Myron Gottlieb, producers of Broadway hits such as "Phantom of the Opera," were sentenced Wednesday to up to seven years in jail for accounting fraud. OTTAWA (AFP) - Disgraced theatre impresarios Garth Drabinsky and Myron Gottlieb, producers of Broadway hits such as "Phantom of the Opera," were sentenced Wednesday to up to seven years in jail for accounting fraud. (Yahoo! Asia News)
2 former Broadway producers sentenced to prison Aug 6, 2009
Two co-founders of a Broadway theater company that produced 1990s hits such as "Ragtime" and "Show Boat" were sentenced to prison terms of six and seven years each Wednesday for accounting fraud. Livent co-founders Garth Drabinsky, 63, and Myron Gottlieb, 66, were convicted in March of two counts of fraud and one count of forgery each. (San Francisco Chronicle -- Entertainment)
Hank Greenberg Said to Face SEC Lawsuit After Role as AIG Chief Executive Aug 6, 2009
Aug. 6 (Bloomberg) -- , who led for 38 years until his ouster amid allegations of accounting fraud, may be sued by U.S. regulators after more than four years of investigation and a government bailout of the firm he built into the worlds largest insurer, people familiar with the matter said. Greenberg, 84, may face civil legal claims from the Securities and Exchange Commission as soon as today, the people said, declining to be identified because the regulators plans havent been... (Bloomberg -- US)
FDIC Sues Baker Botts for Findings of Internal Investigation Aug 6, 2009
The action stemmed from an investigation that Baker Botts and Ernst & Young conducted last year for the savings and loan after one of its vice presidents alleged accounting fraud and misconduct. The investigation, which included the review of 250,000 e-mail messages from Franklin Bank employees, resulted in more than $2 million in fees for legal and accounting services, the lawsuit said. (Law.com)
HealthSouth reports 2Q net loss Aug 5, 2009
reported a net loss of $12 million for the second quarter after settling a class-action lawsuit filed by shareholders over the accounting fraud that occurred when the company was led by former CEO Richard Scrushy. The Birmingham-based rehabilitation services provider which reported a profit of $37. (Birmingham Business Journal, AL)
General Electric charged in accounting fraud Aug 5, 2009
By Matt Krantz, USA TODAY The on Tuesday charged with committing accounting fraud spanning several years. Specifically, the SEC accused GE of inflating its earnings and revenue in 2002 and 2003 so it could beat investors' expectations, misleading investors as a result. (USA Today -- Money)
GE settles SEC accounting case for $50M Aug 5, 2009
Co. today settled a accounting fraud probe for $50 million, the same day the SEC filed the civil charges against the company. The SEC found that GE (NYSE:GE) intentionally wrongly accounted for commercial paper hedging activities and improperly reported derivatives regarding the sales of railroad locomotives. (Albany Business Review, NY)
Ex-WorldCom exec out of prison, back in area Aug 4, 2009
Then came July 2002, when WorldCom was revealed as the poster child of accounting fraud: Internal auditors found the company had improperly classified billions of dollars in operating expenses as capital expenditures ... When WorldCom's accounting fraud was revealed in 2002, the home's three-year construction job was halted. (The Palm Beach Post)
India fraud kills IT hub for Geelong Aug 3, 2009
But now Mr Raju and his brother Ramalinga Raju have been jailed after Ramalinga Raju admitted a massive $1 billion accounting fraud in January. The Australian Government has refused to offer any money for the project and the Geelong council is believed to have had its contribution refunded. (Sydney Morning Herald -- Australia)
MINOR/Pickering's betrayal obvious Jul 30, 2009
However, his company by 2002 turned into one of the biggest boom and bust stories of all time and Ebbers was sent to the slammer for 25 years for presiding over a $11 billion accounting fraud. In his heyday, Ebbers became one of Pickering's most generous political patrons-sitting in the front row of a $1000 a plate fund-raiser for Chip's 2002 election battle with Democratic Rep. (Philadelphia Neshoba Democrat, MS)
IT industry bucks global recession Jul 20, 2009
7,800-crore) accounting fraud by founder-chairman B. Ramalinga Raju. The Dataquest survey findings are lower than the projections made by the IT industry's representative body -- National Association of Software and Services Companies (Nasscom) -- for 2009-10. (India Times)
Is Maytas Infra up for grabs? Jul 18, 2009
It has only appointed government nominees to restore stability in the operations of the firm which plunged into a crisis after Ramalinga Raju confessed to perpetrating an accounting fraud at Satyam. The infrastructure firm is also under probe as investigating agencies suspect that money could have been diverted from Satyam into Maytas Infra. (India Times)
UBS, Jefferies Resolve Lawsuit Over Lorello's Alleged Health Group `Raid' Jul 11, 2009
Among Lorellos past clients is , the former chief executive officer of HealthSouth Corp., who was acquitted in 2005 of charges that he ran an accounting fraud that almost bankrupted the company. More recently, Lorellos team has advised clients including Eli Lilly & Co. on its $6. (Bloomberg -- Europe)
Charges filed against Beazer Homes Jul 2, 2009
In a criminal information brief filed Wednesday in federal court in Charlotte, prosecutors accuse the company of accounting fraud conspiracy and mortgage fraud conspiracy. One of the issues was Beazer's use of discount points on mortgage loans. (The Augusta Chronicle)
Former HealthSouth Executive Gets Prison Time Jul 2, 2009
Prosecutors asked Johnson to sentence McVay to 28 months in prison, but the judge said McVay's involvement in the accounting fraud was less than others who received less time. "Basically, Mr. McVay, to make it short and simple, when these three months are gone, it's over," Johnson told him. (ABC News -- Wire)
$50 million will end Beazer's fraud case Jul 2, 2009
CHARLOTTE -- Federal investigators filed mortgage and accounting fraud charges Wednesday against Beazer Homes USA, but the homebuilder will escape prosecution because it agreed to pay victims $50 million and accepted responsibility. The charges in Charlotte's U.S. District Court relate to Atlanta-based Beazer's participation in a scheme to increase its mortgage company's profits and sell homes, as well as an accounting scheme designed to "smooth earnings.". (News & Observer)
TechM to deliver Satyam project Jul 1, 2009
There were grave concerns that the project would be axed after Satyam Computer Services founder and chairman, B Ramalinga Raju, admitted to a one-billion dollar accounting fraud in January. Tech Mahindra executive vice-chairman Vineet Nayyar said construction of the 10ha development on Deakin University grounds would begin as soon as discussions with the Victorian government were complete and the company is determined to complete the project. (India Times, India)
Qwest CEO seeks judgment in SEC complaint Jul 1, 2009
9 billion to shareholders who sued over a massive accounting fraud that nearly sent the rehabilitation chain into bankruptcy. Fresno State to appeal verdict. (Fresno Bee -- Business)
Bernie Madoff Joins Long White-Collar Prison Roll Jun 30, 2009
Bernard Ebbers, 67, former chief of WorldCom, imprisoned in September 2006 on 25-year sentence for his role in $11 billion accounting fraud that toppled his telecommunications company. The federal bureau of prisons lists his projected release date as July 4, 2028. (ABC News -- Wire)
Asian employment at risk Jun 29, 2009
Satyam Computer Services, once India's fourth-largest outsourcing firm, was left struggling for survival after its founder revealed a massive accounting fraud this year. Its new owner Tech Mahindra created a pool of 9,000 staff, about 20 percent of its work force, who had not worked for three months and put them on reduced pay. (India Times)
Bribery charges stand against ex-congressman's kin Jun 27, 2009
9 billion judgment after he was found liable for the accounting fraud that nearly wrecked the company. Jefferson County Circuit Judge Allwin E. Horn issued the order Tuesday at the request of lawyers who won the judgment against Scrushy. (Fresno Bee -- Nation)
Scrushy asks judge for new trial in bribery case Jun 27, 2009
9 billion to shareholders who sued over a massive accounting fraud that nearly sent the rehabilitation chain into bankruptcy ... 9 billion judgment after he was found liable for the accounting fraud that nearly wrecked the company. (Fresno Bee -- Nation)
New consumer agency would require banks to offer 'plain vanilla' mortgages Jun 20, 2009
American consumers have fallen victim to one financial scandal after another in the past decade, from accounting fraud at to illegal late trading by mutual funds to the subprime mortgage meltdown. President Obama hopes to put the brakes on that trend with a series of regulatory reforms his administration says will guard the nation s financial system against its own excess. (Boston Globe)
