Satyam's Australia chief quits May 28, 2009
However, some clients, including Telstra and NAB, have either decided to cut all ties or reduce their engagement with the Indian firm due to the accounting fraud saga. The firm's bid to build a $75-million software facility at Deakin University in Geelong, Melbourne, also remains in limbo more than a year after it was announced. (India Times, India)
Andersen Will Settle Suit Over WorldCom May 22, 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)
J.P. Morgan Settles WorldCom Suit for $2 Billion May 22, 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)
Scrushy Denies Role in HealthSouth Fraud May 21, 2009
6 billion from Scrushy on behalf of HealthSouth, the longtime chief executive repeatedly portrayed himself as being unaware of an accounting fraud that evidence showed lasted for six years, starting in 1996. Scrushy said he didn't know the company had cooked its books until 2003, when an FBI raid and government lawsuit revealed the scheme. (ABC News -- Wire)
FBI using wiretaps to sniff out mortgage fraud May 21, 2009
The two agencies have been investigating allegations of financial statement manipulation, accounting fraud and insider trading that contributed to the current economic crisis. Copyright 2009 Reuters Limited. (USA Today -- Money)
Harmed AIG investors to get $843m May 20, 2009
The court estimates that checks will soon be mailed to more than 257,000 AIG investors affected by an alleged accounting fraud at the company, the SEC said. AIG, which has been propped up by billions of dollars in taxpayer funds, was charged with accounting fraud in 2006. (Boston Globe)
A fresh new dawn for trust-busters May 19, 2009
This is what is known in the blogging trade as "a must read." There are new details concerning AIG's sorry saga, including a provocative connecting-of-the-dots between the instances of accounting fraud that forced Greenberg's resignation and Cassano's big bets on credit derivatives. There's also a bonus picture of Cassano in full road-biker gear, which is not what I was expecting to see when I followed a link to the story from. (Salon)
Lincoln Financial Receives Preliminary Approval for $2.5 Billion from Treasury's Capital Purchase Program May 15, 2009
Lincoln Financial Receives Preliminary Approval for $2. 5 Billion from Treasury's Capital Purchase Program. (PR Newswire)
Mississippi Pension Fund Takes Lead in U.S. Crackdown on Corporate Fraud May 15, 2009
Since Jan. 7, when Satyam Chairman Ramalinga Raju revealed an accounting fraud and resigned, investors in the companys American depositary receipts filed at least a dozen securities-fraud lawsuits in the U.S.. Mississippi PERS pushed to be a lead plaintiff despite having bought Satyams common stock in India rather than ADRs in the U.S. The Hyderabad-based company and a group of individual investors opposed Mississippi PERS for that reason. (Bloomberg)
Experts: Scrushy's civil trial won't damage bolstered HealthSouth May 15, 2009
The founder of HealthSouth faces allegations in a civil trial by the inpatient rehabilitation provider s shareholders of orchestrating multibillion-dollar accounting fraud ... A national survey showed HealthSouth s reputation as a quality rehabilitation provider remained intact even as the accounting fraud scandal exploded across newspaper headlines and on television screens, she said. (Birmingham Business Journal, AL)
HealthSouth's Jay Grinney eyes future expansion May 15, 2009
4 billion in debt and near bankruptcy in the wake of the accounting fraud scandal during the Richard Scrushy-era. Grinney, who took the company s reins in May 2004, said trimming HealthSouth s remaining $1. (Birmingham Business Journal, AL)
'Satyam paid tax on fake interest' May 11, 2009
Satyam, in the centre of the biggest accounting fraud in the country ever, is alleged to have shown fake fixed deposits of Rs 3,318. 37 crore on its books of account, while the company had FDs worth only Rs 9. (India Times, India -- Intl Business)
UC president points to progress May 7, 2009
Schwartz dismissed as "accounting fraud" the claim that the state budget does not cover UC's cost of instruction. State funds fully pay the cost of UC's undergraduate education, he said, but not the cost of its faculty research. (San Francisco Chronicle)
Maytas seeks funds to stay afloat May 6, 2009
Following revelations of accounting fraud at Satyam and allegations of wrongdoing at Maytas Infra, the government recast Maytas Infra board appointing four new directors. These included former head of Airports Authority of India, K Ramalingam as Maytas chairman, besides Ved Jain, OP Vaish and Anil K Agarwal. (India Times)
Report: Islanders owner regrets buying team May 3, 2009
Wang bought out Kumar serving a 12-year prison term for a $400 million accounting fraud scandal in 2004. Copyright 2009 The Associated Press. (USA Today -- Sports)
Specter positions Democrats to overreach Apr 30, 2009
5 million to settle federal civil charges of accounting fraud and concealing the company s deteriorating finances as the subprime mortgage crisis hit in 2007. ProgressivePeach. (Atlanta Journal-Constitution -- Opinion)
AP: Senate Passes Bill Targeting Mortgage Fraud Apr 30, 2009
5 million to settle allegations of accounting fraud ... Charges against the company's former chief financial officer, Stephen Hozie, also accused of accounting fraud and misleading investors, are pending. (Missourian Publishing, MO)
SEC, Ex-American Home CEO settle Apr 29, 2009
5 million to settle federal civil charges of accounting fraud and concealing the company's deteriorating finances as the subprime mortgage crisis hit in 2007 ... Charges against the former chief financial officer, Stephen Hozie, also accused of accounting fraud and misleading investors, are pending. (Boston Globe)
2 former American Home execs charged with hiding losses Apr 29, 2009
By Kevin McCoy, USA TODAY Two former executives of a major mortgage lender that collapsed near the start of the subprime lending crisis were charged Tuesday with accounting fraud and making false disclosures to hide their firm's worsening condition from investors. Michael Strauss, 50, the former CEO of Melville, N.Y.-based American Home Mortgage Investment, and Stephen Hozie, 50, the former CFO of the now-bankrupt firm, fraudulently understated the company's first-quarter 2007 loan loss reserves... (USA Today -- Money)
After A Layoff, Detroit Family Struggles Apr 28, 2009
Meanwhile, they remain in total denial mode over Madoff, Enron, Andersen Accounting, and all the other rampant accounting fraud of the Clinton years. They remain in denial that planning and preparations for 9/11 were under way before Bush won the election, so obviously Clinton is the one who provoked the attack. (CBS News -- Evening News)
Infosys sees difficult year ahead Apr 16, 2009
The software services sector in India has been hit by a large accounting fraud at Satyam Computer Services, once ranked as India's fourth-largest IT firm. Satyam founder Ramalinga Raju said in January that its profits had been overstated for years. (BBC News -- South Asia)
Infosys Forecasts First-Ever Revenue Decline in Dollar Terms; Shares Fall Apr 15, 2009
The software provider may also face stiffer competition in India after the sale of this week following a $1 billion accounting fraud. Infosys 4 percent to 1,352. (Bloomberg -- Asia)
Infosys sees first sales drop as outsourcing weakens Apr 15, 2009
India's software services sector has also been hit by a large accounting fraud at Satyam Computer Services, once ranked as the fourth-largest IT firm. On Monday, mid-sized Indian outsourcer Tech Mahindra won an auction for a controlling stake in Satyam and analysts expect the new combination to compete aggressively for large deals with leader Tata Consultancy Services, Infosys and other players. (Globe and Mail -- Business)
Partners poised for control of Satyam Apr 14, 2009
The company has been losing clients, investors, and employees since its chairman admitted to accounting fraud in January. "The selection of the highest bidder, in a fair, open, and transparent process, signals a new stage for the company in its progress toward stabilization and growth," said the chairman of Satyam's board, Kiran Karnik. (Boston Globe)
India's Tech Mahindra wins Satyam bid Apr 13, 2009
The mid-level outsourcing firm will have to pay nearly 600 million dollars for a majority share of Satyam, which has struggled since its founder earlier this year confessed to staging India's biggest accounting fraud. Satyam said in a statement the news "signals a new stage for the company.". (Yahoo News -- Top Stories)
* Bids for disgraced outsourcing giant Satyam open today Apr 13, 2009
Sale of the firm at the heart of Indias biggest accounting fraud has taken on an urgency, with dozens of clients reported to have terminated their contracts or be aiming to shift their business because of uncertainty over Satyams future. The bids will be seen [on] Monday, Satyam board chairman Kiran Karnik told reporters on Saturday. (Taipei Times, Taiwan -- Sports)
Satyam Attacks Mississippi Pension Fund to Limit Liability in Fraud Suits Apr 11, 2009
Satyams shares and ADRs have lost most of their value after Chairman revealed an accounting fraud on Jan. 7. Investor complaints dont state total losses. (Bloomberg -- UK)
Satyam's Raju may get life sentence Apr 8, 2009
HYDERABAD: Satyam's founder chairman B Ramalinga Raju, who was on Tuesday chargesheeted by CBI in the accounting fraud case involving thousands of crores of rupees, may face life imprisonment if convicted under Section 467 of the IPC. ( ). The CBI has chargesheeted Raju under various sections of the Indian Penal Code, including Section 467, which carries a penalty of life imprisonment. (India Times, India)
State drops old dispute on Daimler judgment Apr 4, 2009
MAN then uncovered accounting fraud that masked ERF's losses. In 2005, MAN won a $488 million British court judgment against Freightliner. (OregonLive, OR -- Business)
3 Sentencings in Massive KPMG Tax Fraud Case Apr 2, 2009
At sentencing Wednesday, defense lawyers asked the judge for leniency, arguing their clients were the victims of overzealous prosecutors seeking to scapegoat their clients for widespread accounting fraud. 1. (ABC News -- Wire)
Harvard Begins Case Study on Harvard as Tainted MBAs Reveal Damaged Brand Apr 2, 2009
Harvard Begins Case Study as Tainted MBAs Reveal Damaged Brand - Bloomberg. Updated: New York, Apr 02 03:46 London, Apr 02 08:46 Tokyo, Apr 02 16:46. (Bloomberg -- US)
Charter files for bankruptcy Mar 30, 2009
HealthSouth president and CEO Jay Grinney credited Doody with helping the company redirect its focus in the wake of a multibillion-dollar corporate accounting fraud perpetrated under prior management. The bankruptcy, filed in U.S. Bankruptcy Court for the Southern District of New York, was pre-arranged in that the major creditors agreed to the bankruptcy terms before the petition was filed, allowing the plan to move more quickly through court. (Boston Business Journal, MA)
* Business Quick Take Mar 29, 2009
Satyams government-appointed board is looking for a buyer for Satyam to infuse funds into the company and ensure its survival after its finances were left in a shambles by the countrys biggest accounting fraud. The withdrawal is for the moment, a senior company official told the Press Trust of India. (Taipei Times, Taiwan -- World Business)
Will Bad Economy Lead To A New Outlook? Mar 29, 2009
Will Bad Economy Lead To A New Outlook. Will Bad Economy Lead To A New Outlook. (CBS News)
FORMER LIVENT EXECS FOUND GUILTY Mar 26, 2009
TORONTO -- Two former Broadway producers were convicted yesterday of participating in large-scale accounting fraud, after a judge found they overstated their company's finances for several years. Garth Drabinsky and Myron Gottlieb, co-founders of Livent, a major Broadway theater company in the 1990s that produced hit shows such as "Ragtime" and "Showboat," were convicted of two counts of fraud and one count of forgery. (New York Post -- Business)
Reliance Infra keen on Hyderabad Metro if Maytas is out of it Mar 22, 2009
Maytas Infra is under the scanner of investigating agencies in connection with the Rs 7,800-crore accounting fraud at Satyam Computer. Maytas recently sought extension for completing the financial closure for the Rs 12,132 crore project amid speculation that the Andhra Pradesh government might repeal the contract. (India Times)
U.S. agencies cracking down on financial fraud Mar 21, 2009
The FBI said it has 43 corporate fraud cases directly related to the financial crisis, including allegations of financial statement manipulation, accounting fraud and insider trading. The Securities and Exchange Commission told lawmakers at a House Financial Services Committee hearing that it has several investigations into subprime lenders raising issues regarding possible insider trading, particularly before the announcement of negative news regarding the lender. (USA Today -- Money)
Forum: More than money, Americans want justice for Wall Street Mar 20, 2009
The massive prior bonuses should be clawed back, he said, "and we do that by establishing that there is accounting fraud and by putting in intelligent, vigorous investigators.". Speaking of which, Goldman Sachs said that it had no material exposure to AIG, but we now learn that it has received $13 billion in AIG bailout money. (Athens Banner-Herald)
Mayer Brown and Former Partner Escape Refco Shareholder Class Action Mar 19, 2009
Within weeks of going public, the company collapsed after the discovery of massive internal accounting fraud -- which Mayer Brown and Collins have always maintained they were unaware of. (For more on the firm's Refco troubles, check out this. (Law.com)
Tips on preventing accounting fraud Mar 17, 2009
Lynne Munns of Version One explains the importance of document management in combating accounting fraud ... Similarly, executives at telecommunications giant WorldCom perpetrated accounting fraud that led to the largest bankruptcy in history ... Evidence shows that the accounting fraud was discovered as early as June 2001, when several former employees gave statements alleging instances of hiding bad debt, understating costs and backdating contracts. (Accounting Web, UK)
White collars, hard time Mar 13, 2009
Bernard Ebbers, former chief of WorldCom, imprisoned in September 2006 on 25-year sentence for role in $11 billion accounting fraud that toppled his telecommunications company. Dennis Kozlowski, CEO of Tyco International, convicted in June 2005 and serving 8 1/3 to 25 years on charges including conspiracy, grand larceny and securities fraud. (Globe and Mail -- Business)
Did Madoff Act Alone? Prosecutors Say No Mar 12, 2009
You also failed to address Madoff and Andersen Accounting and all the other rampant accounting fraud that was occurring across the country in the Clinton years. Now that we know about Madoff, it forms such a consistent pattern that no objective person would ignore it. (CBS News)
Charter tight-lipped as bankruptcy looms Mar 12, 2009
The company has been in financial trouble since 2002, with the nadir coming in 2005 when four executives were indicted on criminal accounting fraud charges. In 2008, the company was in hot water with the NASDAQ Stock Market after violating a rule that no company can trade at under 1 a share for more than 30 days. (Big Bear Grizzly, CA)
Madoff Investors Prepare for Court Confrontation Mar 9, 2009
Ebbers was sentenced to 25 years in prison after his conviction in an $11 billion accounting fraud that brought down the telecommunications giant. "He can never repay me or the tens of thousands like me whose lives disintegrated in the blink of an eye," Henry J. Bruen said. (Time.com)
Enron's Skilling May Report to Federal Prison Today Mar 8, 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)
The issue of corruption a factor in current financial crisis? Mar 7, 2009
The issue of corruption a factor in current financial crisis (The Star Online, Malaysia -- Business)
Former Qwest CEO Nacchio seeking new trial Mar 7, 2009
Nacchio was one of several corporate executives convicted as part of a government push to punish white-collar executives stemming from major accounting fraud at companies like Enron and Worldcom. Qwest is the primary telephone provider in 14 mostly Western states. (Muscatine Journal, IO)
Nacchio Ordered to Report to Prison March 23 Mar 5, 2009
Nacchio was one of several corporate executives convicted as part of a government push to punish white-collar executives stemming from major accounting fraud at companies like Enron and Worldcom. A former ATutive, Nacchio moved to Qwest after being passed over for the top job at ATresigned from Qwest in June 2002, about two months after Qwest disclosed that the Securities and Exchange Commission had opened a formal inquiry into its accounting. (ABC News -- Wire)
Former Gen Re VP Gets Year in Prison for Accounting Fraud Mar 5, 2009
A former senior vice president at General Re Corp. was sentenced Wednesday to a year and a day in federal prison for an accounting fraud scandal that artificially propped up the stock price of insurer American International Group Inc.. Christopher Garand, 61, was also fined $150,000 for his role in the case, which authorities say cost AIG shareholders more than $500 million. (Law.com)
Nobel Laureate Wiesel Was A Madoff Client Feb 27, 2009
The years when rampant accounting fraud was considered "normal and accepted practice." ... The years when rampant accounting fraud was considered "normal and accepted practice.". (CBS News)
* Taiwan News Quick Take Feb 26, 2009
2 million) for her role in a NT$7 billion accounting fraud at the chipmaker. Yeh can still appeal. (Taipei Times, Taiwan -- Business)
Gensler Calls for Swaps Regulation After Backing Rubin Over Brooksley Born Feb 26, 2009
After Enron Corp.s massive accounting fraud surfaced in 2001, Gensler volunteered to serve as a senior adviser to Senator. He eventually worked on the Sarbanes- Oxley Act, one of the most sweeping corporate oversight laws passed since the SEC was formed in 1934. (Bloomberg)
Satyam board hopes to invite bids this week Feb 25, 2009
Satyam, which has more than 600 clients, including General Electric, Cisco and Qantas Airways, has lost 3 or 4 important clients since the disclosure of the accounting fraud, Karnik said. "Business looks good after the initial reaction, which was somewhat panicky but understandable," he said, adding that many customers were watching what happens next. (International Herald Tribune -- Business)
Adobe Warns Of Critical Vulnerability In Acrobat, Reader Feb 23, 2009
The recent confession about inflated revenue, profits, and accounting fraud exceeding $1. 5 billion by Satyam Computer Services chairman and CEO Mr. Ramalinga Raju has put everyone linked to the Indian software industry in total disbelief and frustration. (Network Computing)
CBI files FIR against Raju in Satyam scam Feb 21, 2009
The investigating agency is calling it a `unique accounting fraud and even the strength of the investigating team reflects the uniqueness of the case. A 15-member multi-disciplinary investigation team, which is headed by CBI DIG in Hyderabad V V Lakshmi Narayana, will carry out a thorough probe into the Satyam scam, a CBI press release said. (Economic Times)
'No compensation Satyam investors' Feb 21, 2009
He also said that the losses suffered by investors following Mr Rajus admission to the accounting fraud were not quantifiable as capital market fluctuations are caused by a variety of factors. After the disclosure of fraud by Mr Raju on January 7, Mr Gupta said the share price of Satyam Computer Services on the bourses dropped from Rs 188 to Rs 30. (India Times)
Governances weak in 50% of IPOs: Crisil Feb 20, 2009
This revelation has come at a time when corporate governance has grabbed a centerstage in India, following the accounting fraud in Satyam Computer Services. According to Crisil senior director S Venkataraman, corporate governance has always been an important parameter while grading IPOs, and made a difference on the gradings. (Economic Times)
State's help sought in preventing PTA thefts Feb 20, 2009
He's asking for help from state officials to give parent organizations proper guidance on how to account for their money and prevent accounting fraud. Chang, the current treasurer of the Kailua parent group, said the group discovered the money was missing in July 2008 when new officers took over the organization. (Honolulu Advertiser)
Satyam can remain afloat on its own: Pranab Feb 19, 2009
Satyam, which has been plagued by controversy since December following a failed takeover attempt of Maytas Infrastructure and Maytas Properties belonging to the IT company's promoters shook the country after former chairman and founder B. Ramalinga Raju confessed to a Rs 7,000-crore accounting fraud. "The government is not interested to bail out any wrong-doer. The company holds significant importance in its sector and has several international clients. The company has adequate incumbent... (Hindu)
Multi-dimensional body to probe Satyam fraud: CBI Feb 19, 2009
NEW DELHI/ HYDERABAD: The Central Bureau of Investigation (CBI) has said it would form a multi-disciplinary investigation team to probe the accounting fraud at IT major Satyam Computer Services Ltd.. The CBI, which has taken over the probe, said a consultative mechanism was being worked out with all departments concerned. (India Times)
SEBI quizzing of Satyam accused starts Feb 18, 2009
Satyam Computer founder Ramalinga Raju, his brother Rama Raju, the company's former CFO Vadlamani Srinivas and the two auditors are in judicial custody in connection with the Rs 7,800-crore accounting fraud in the IT company. Earlier, on the direction of the Supreme Court, the market regulator interrogated and recorded the statements of B Ramalinga Raju and his brother Rama Raju for three days from February 4 at the Chanchalguda jail here. (Economic Times)
Indian ADRs lose $2.5 billion in one week Feb 16, 2009
Hit by a massive accounting fraud, the new board of the software exporter is looking at various options, including possible sale to revive the company's battered fortune. On the other hand, for the week ending February 6, the ADRs had added 4. (India Times)
Financial Meltdown Cases Flooding the Feds Feb 12, 2009
"These corporate- and financial institution-failure investigations involve financial statement manipulation, accounting fraud and insider trading," Pistole said. Large firms such as , Countrywide Financial, Washington Mutual, Bear Stearns, Lehman Brothers, UBS AG, New Century Financial, Freddie Mac and Fannie Mae have been targets of FBI and Justice Department investigations, according to federal law enforcement officials and Security and Exchange Commission filings reviewed by ABC News. (ABC News)
Charter hires turnaround expert Feb 12, 2009
HealthSouth president and CEO Jay Grinney credited Doody with helping the company redirect its focus in the wake of a multibillion-dollar corporate accounting fraud perpetrated under prior management. Last month, Charter missed $73. (Milwaukee Business Journal, WI)
Court Denies Billionaire's Request for Documents in Milberg Kickback Case Feb 12, 2009
In a Jan. 20 motion to intervene in the government's criminal case against Milberg, Wyly said the firm and its co-counsel failed to reopen the settlement discussions after it was revealed that CA's most senior executives had covered up massive accounting fraud. As part of the settlement, Milberg had obtained the equivalent of $40 million in attorney fees, he said. (Law.com)
