Your 10 questions Aug 29, 2009
The deafening call to audit the auditor in recent years (Malaysia has had its fair share of accounting scandals) has damaged the profession s credibility somewhat. How has that made your job tougher. (The Star Online, Malaysia -- Business)
Alex Grass, 82; founded Rite Aid pharmacy chain Aug 29, 2009
His son, Martin Grass, ran the company for several years but was ousted in 1999 after he was implicated in an accounting scandal that nearly destroyed the company. He is serving a federal prison term stemming from an overstatement of Rite Aid s earnings in the late 1990s. (Boston Globe)
$1 Billion Fraud Case Against AIG Dismissed Aug 22, 2009
6 billion accounting scandal settlement that sent CEO Hank Greenberg packing. But NCCI -- which administers a pool that serves as a payer of last resort for injuries at companies that can't acquire insurance on the open market -- believed the workers comp portion of the settlement was insufficient. (Law.com)
Huron Consulting rallies on positive results Aug 19, 2009
85, partially reversing a loss of more than 70 percent suffered earlier this month when the company said its entire top management team would exit amid an accounting scandal. Despite a second-quarter profit that topped Wall Street's view, and some investor relief that the earnings restatement is complete, analysts noted that Huron still faces risks to its reputation and operations. (Crain's Chicago Business)
Huron posts higher profit, warns of breaching loan terms Aug 18, 2009
(Reuters) , whose shares plunged in the wake of an accounting scandal, posted a second-quarter profit above analysts' expectations, helped by higher revenue from its health and education consulting segment. The company said in a regulatory filing that due to significant decline in its stock price, it may record a non-cash goodwill impairment charge for the quarter ending Sept 30, leading to non-compliance with the financial covenants in its credit agreement. (Crain's Chicago Business)
SEC investigating Huron Aug 12, 2009
(Reuters) , whose shares plunged in the wake of an accounting scandal, said the U.S. Securities and Exchange Commission is investigating it for acquisition-related payments, and it will delay filing its latest quarterly report. Earlier this month, the consulting firm's entire top management quit as it said it would restate more than three years of results, slashing its profits by almost half because it misreported costs related to acquisitions. (Crain's Chicago Business)
Nortel CEO Departs as Losses Continue Aug 12, 2009
Zafirovski joined Nortel at a time when the company was trying to recover from an accounting scandal and management challenges. Zafirovski's predecessor, Bill Owens, lasted just over a year as CEO after stepping in to. (SmallBusinessComputing)
Ex-Moto exec Zafirovski leaves Nortel Aug 11, 2009
Nortel Chairman Harry Pearce said in a statement Monday that Zafirovski made progress on getting the company past its prior accounting scandals and legal issues during his tenure. He said it was unfortunate the transformation was derailed by a deteriorating economic climate and the company's legacy cost structure. (Crain's Chicago Business)
Nortel CEO Planning to Leave Soon: Report Aug 8, 2009
5 billion to settle two class-action lawsuits from a previous accounting scandal. He was also forced to make deep cuts throughout his tenure as industry conditions worsened. (ABC News -- Wire)
AIG's Former CEO, CFO to Pay $16.5 Million to Settle Fraud Charges Aug 7, 2009
5 million to settle charges that they helped the insurance giant hide losses from 2000 to 2005, when an accounting scandal forced Greenberg out. (Greenberg will pay $15 million; Smith will pay $1. (Law.com)
Ex-AIG CEO to pay $15 million fine in case Aug 7, 2009
The charges are tied to an accounting scandal at AIG that led to Greenberg's ouster in 2005. The following year, AIG paid more than $1. (AZCentral -- Business)
Ex-AIG CEO Greenberg settles fraud charges Aug 7, 2009
SEC: Greenberg agrees to pay $15 million on accounting scandal ... The charges are tied to an accounting scandal earlier this decade at AIG that led to Greenberg's ouster in 2005. (MSNBC -- Business)
Hagens Berman Files Class-Action Lawsuit Against Huron Consulting Group, Inc. on Behalf of Investors Aug 6, 2009
In the same announcement, the company announced the CEO, CFO and CAO had resigned because of the accounting scandal. Huron shares declined precipitously upon the announcement, falling $30. (PR Newswire)
Huron stock plunges after accounting scandal rocks consultancy Aug 4, 2009
Huron shares plunge after accounting scandal rocks consultancy ... (Reuters) - Shares of fell 75 percent early Monday after an employee-payment-related accounting scandal led to the departure of its top management team, even as the company said the payments were not kickbacks to its management. (Crain's Chicago Business)
S&P 500 Eclipses 1000 Amid Recovery Aug 4, 2009
Huron Consulting Group (HURN) lost more than two-thirds of its market value and plunged to 52-week lows amid an accounting scandal that forced the exit of the companys management team. Huron, which provides consulting services to other companies, said it needs to restate the results from 2006 to 2008 and the first quarter of this year after an SEC inquiry. (Fox News)
Law Firms Weigh Shareholder Claims Against Huron Aug 3, 2009
NEW YORK (Reuters) - Two law firms are investigating potential shareholder claims against Huron Consulting Group Inc concerning possible securities violations after the company disclosed an accounting scandal on Friday. Huron on Friday said it was forced to restate its results over three years, slashing its profits by almost half. (ABC News -- Wire)
Investor Notice: Former Attorney General of Louisiana and KSF Announces Investigation On Behalf of Investors in Huron Consulting Group Inc., Following Massive Restatement; Departure of CEO, CFO Aug 2, 2009
The investigation launched by KSF focuses on, among other things, the timing of the sale of millions in Company stock by company insiders as well as what has been reported in the press as an "accounting scandal." Remarkably, Huron's website says the company helps its clients "comply with complex regulations.". According to the Company, Huron replaced Chairman and CEO Gary Holdren, as well as Chief Financial Officer Gary Burge and Chief Accounting Officer Wayne Lipski will be leaving the company. (Primezone Releases)
Huron CEO, CFO leave over accounting scandal Aug 2, 2009
(Reuters) - s entire top management team is departing and the company will be forced to restate more than three years of results, slashing its profits by almost half, because of an accounting scandal. Shares of the company, which says it provides consulting services to Fortune 500 companies and leading academic institutions, sank more than 57 percent in after-hours trading, wiping out more than half of its previous market value of almost $1 billion. (Crain's Chicago Business)
Banker baiting has gone too far Aug 1, 2009
Public expectations in the wake of the financial crisis have been elevated after the number of indictments we had after the accounting scandals, said Kathleen Brickey, an expert on white collar crime at Washington University. Criminals or not, financiers became pariahs. (FT.com -- Markets)
Fewer Americans applauding Fed’s performance, poll suggests Jul 28, 2009
That was down sharply from the 53 percent who thought the Fed was doing an excellent to good job in a survey in 2003, when then-Fed chief Alan Greenspan was steering a fragile economy back from the 2001 recession, terror attacks, and corporate accounting scandals. The poll asked about nine government agencies. (Boston Globe)
Meltdown 101: What Is CIT, and What If It Fails? Jul 17, 2009
Most recently, it was acquired in 2001 by Tyco International, which at the time was embroiled in an accounting scandal. To pay down debt, Tyco spun off CIT Group in an initial public offering in July 2002. (ABC News -- Wire)
AIG Looting Case Against Greenberg's Starr Was `Weak,' Jury Forewoman Says Jul 8, 2009
3 billion of those shares after Greenbergs ouster in March 2005 amid an accounting scandal. SICOs case was very strong and well documented, jury forewoman Karen Jaroneski, 45, said in an interview. (Bloomberg)
AIG loses big round in lawsuit against former CEO Greenberg Jul 8, 2009
The panel also concluded the firm didn't illegally convert the shares after Greenberg was forced out in 2005 amid an accounting scandal. The verdict in the case, issued after little more than half a day, is an advisory finding that may be upheld or reversed by U.S. District Judge. (USA Today -- Money)
Greenberg Win is Another Setback for AIG Jul 8, 2009
The insurer says Greenberg hijacked Starr and the trust when he was ousted as the company's CEO in 2005 amid an accounting scandal. Starr countered it is a separate company from AIG, and that the shares and any proceeds it was able to gain from selling the shares were always the property of Starr. (Time.com)
A steady hand for troubled Freddie Jul 2, 2009
Richard Syron, who ran the Federal Reserve Bank of Boston, was hired as Freddie s chief executive in 2003 after a $5 billion accounting scandal. He resigned in September after failing to prevent the company s slide into government receivership. (Boston Globe)
Facebook, Twitter and peers for sale privately Jul 2, 2009
One factor is compliance with the Sarbanes-Oxley anti-fraud law, which was enacted in 2002 after accounting scandals at companies like Enron Corp. and WorldCom Inc. A key part of this law requires public companies to file reports on the strength of internal financial controls and fix any problems steps that can be costly for a startup. Issues like this have just made it more and more difficult for companies to make it to that next step, said Thomas Foley, chief executive of XChange, which he... (Helena Independent Record, MT)
Fannie Mae, KPMG Push Hard to Settle Securities Suit Jun 26, 2009
The move amounts to the two corporations' hardest push yet to settle the hodgepodge of litigation that grew from Fannie's 2004 accounting scandal. The attorney general of Ohio filed suit against Fannie Mae and KPMG in 2005 on behalf of the state's pensions, following revelations that for years the mortgage giant had vastly overstated its profits. (Law.com)
Nortel Networks to break in pieces; sell units to Nokia Siemens Jun 23, 2009
Nortel was also embroiled in an accounting scandal earlier this decade that triggered criminal charges against former employees. Nortel's wireless business is the second largest supplier of infrastructure in the world, the company said in a statement. (Atlanta Business Chronicle, GA)
Nortel sells wireless biz to Nokia Jun 21, 2009
The telecom giant's accumulated problems - from the bubble burst to internal accounting scandal to the current meltdown - forced it to seek bankruptcy protection in the US and Canada this January. Its bankruptcy plea was accepted ahead of its $107 million interest payment in January. (India Times)
Feds: Ex-Cendant Chairman's Divorce a Ploy to Dodge $3.2 Billion Payout Jun 19, 2009
The Cendant case was among the first in a series of corporate accounting scandals that sparked outrage from investors in recent years. Forbes was convicted in 2006 of conspiracy to commit securities fraud and two counts of making false statements. (Law.com)
Greenberg on the Stand: Is the Ex–AIG Chief Lying? Jun 18, 2009
In a trial that started on June 15 in U.S. District Court in New York, AIG contends that the shares as well as over $4 billion in profits that Starr International has reaped from past AIG stock sales were meant to fund a long-standing deferred-compensation program for AIG employees a program that Greenberg, 84, halted after his acrimonious ouster from AIG amid an accounting scandal ... U.S. District Court Judge Jed Rakoff, who is hearing the case, has said he wants to limit the case to the facts... (Time.com)
Greenberg, Starr Voted to Transfer AIG Stock to Bermuda After Insurer Sued Jun 18, 2009
3 billion in company shares after Greenbergs ouster in March 2005 amid an accounting scandal. Greenberg had voted with directors of SICO, where he is chairman, to transfer the stock certificates from JPMorgan Chase & Co. in New York to a bank in Bermuda. (Bloomberg -- US)
Citigroup Says It's Settled Lawsuit With Three Former Executives in Japan Jun 17, 2009
June 17 (Bloomberg) -- said it settled a lawsuit against three former executives at a Japanese brokerage it acquired in 2007, ending a two-year court battle stemming from an accounting scandal at the firm ... Citigroup, which agreed to buy Nikko Cordial in March 2007 after the accounting scandal sent its stock plunging, last month struck a deal to sell some of its businesses to Sumitomo Mitsui Financial Group Inc. for 545 billion yen. (Bloomberg -- Japan)
Former General Re Executive Gets Probation for Fraud Jun 17, 2009
A former business executive was sentenced Tuesday to two years of probation for his role in an accounting scandal that cost shareholders of insurer American International Group Inc. more than $500 million. John Houldsworth, the former chief executive officer of an Irish affiliate of Berkshire Hathaway's , was also fined $5,000 and ordered to perform 400 hours of community service during the probation period. (Law.com)
AIG vs. Hank Greenberg: Who's More Deserving? Jun 16, 2009
The complicated case stems from the departure of Greenberg in 2005, when he was ousted from AIG, a company he ran for 37 years, amid an accounting scandal. While the case gets at the wacky bonuses and compensation structure present at AIG for years, the facts of it predates the mortgage mess and the company's current troubles. (Time.com)
Dyadic settles SEC inquiry Jun 6, 2009
The company was hit with an accounting scandal at its Chinese subsidiary in 2007, and it filed a lawsuit this year against its former accountants and lawyers to hold them accountable for it. Dyadic CEO Mark Emalfarb said the company agreed to do a better job in its accounting and financial statements. (South Florida Business Journal, FL)
Transmile queried over unusual market activity Jun 6, 2009
The losses were revealed after an accounting scandal involving the company broke out in 2007. In a separate filing, the company announced it obtained approval from shareholders at its AGM for wholly-owned subsidiary Transmile Air Services Sdn Bhd (TAS) to continue doing business with Pos Malaysia Bhd, its major shareholder. (The Star Online, Malaysia -- Business)
Time Warner to spin off ailing AOL May 29, 2009
In the years since the merger, AOL weathered an accounting scandal and was relegated to being just one of the divisions in Time Warner's empire, which includes Time magazine, Warner Bros. studio and the CNN and HBO television networks. (Yahoo! Asia News)
Finally, It's Curtains For AOL Tale May 29, 2009
After the dot-com bust, however, AOL and Time Warner saw their relationship succumb to the strain of a slumping stock price, an accounting scandal and boardroom infighting brought on by culture clashes, among other issues. AOL is now alone in dealing with its dwindling dial-up business and its slumping advertising sales division, all without the help of Time Warner's deep pockets. (New York Post -- Business)
Transmile set to revamp RM569mil debts May 29, 2009
The regional express cargo carrier has been posting annual net losses since 2005 but is mainly remembered for an accounting scandal in mid-2007 which resulted in a change of management and massive drop in share price from its high of RM14. 40 on Jan 3, 2007 to a low of 50 sen on Oct 29, 2008. (The Star Online, Malaysia -- Business)
Dyadic settles lawsuit, signs deal May 14, 2009
However, Dyadic's board fired founder and CEO Mark Emalfarb in 2007 amid an accounting scandal. Abengoa then filed a lawsuit in Palm Beach County Circuit Court for breach of contract, alleging that its investment was based on false financial representations. (South Florida Business Journal, FL)
Today in History May 10, 2009
65 billion to settle a lawsuit brought by WorldCom investors who'd lost billions when the company went bankrupt in an accounting scandal. One year ago: Barack Obama erased Hillary Rodham Clinton's once-imposing lead among superdelegates as he added endorsements from Utah, Ohio and the Virgin Islands. (Yahoo News)
RIGASES ARE NO 'TERRORISTS': DEFENSE May 6, 2009
Judge Jose Cabranes said defense lawyers argue the father's 12-year sentence in an accounting scandal and the son's 17-year prison term were more years in jail than some terrorists serve. The feds said the sentences were long but not uncommon. (New York Post -- Business)
Don't Bet Against Boies Schiller May 5, 2009
When the firm represented Tyco International Ltd. in securities class action suits following its accounting scandal in 2002, Boies Schiller was willing to submit to a holdback on a certain percentage of its fees pending a review every 90 days. After the review period, Tyco and Boies Schiller lawyers would sit down to negotiate what percentage of the holdback the firm would receive. (Law.com)
Morgan Keegan suits loom large over Regions Financial May 2, 2009
On the tail end of the 2001 recession after investors became leery of the corporate bond market amid the infamous accounting scandal these funds, overflowing with slices of subprime, Alt-A and mobile-home loans took off, outperforming traditional funds. But the party didn t even last a decade. (Birmingham Business Journal, AL)
Ex-General Re executive is sentenced May 1, 2009
HARTFORD - A former executive of Connecticut-based General Re Corp. was sentenced yesterday to a year and a day in prison for his role in an accounting scandal that authorities say cost shareholders of more than $500 million. Robert Graham, 61, of Westport, will also have to serve two years of supervised release and pay a $100,000 fine. (Boston Globe)
Citigroup Plans to Sell Nikko Cordial to Sumitomo Mitsui for $5.2 Billion Apr 29, 2009
Nikko Accounting Scandal ... Citigroup offered to buy Nikko Cordial in 2007 after the Japanese securities firm was battered by an accounting scandal. (Bloomberg -- Japan)
Parmalat Shares May Rise as Headlines Fade: Report Apr 20, 2009
NEW YORK (Reuters) - Parmalat SpA , best known to many U.S. investors for its 2003 bankruptcy and accounting scandal, may benefit as the market again focuses on its boring but steady dairy business, Barron's said Sunday. The Italian firm's shares, re-listed in 2005, remain well below their high two years ago at 1. (ABC News -- Wire)
One Heckuva Cheap Stock Apr 19, 2009
All is not cut and driedWhile each of these companies offers a compelling price and an enormous growth opportunity, on the heels of the Satyam accounting scandal, it's difficult for American investors to be comfortable with foreign companies that may not offer the same level of transparency as their U.S. counterparts. That explains why U.S. companies that grew more than 30% last year are trading at substantial premiums. (MSNBC -- Business)
News highlights Apr 15, 2009
Denver-based Qwest flirted with bankruptcy at the end of Nacchio's five-year tenure in 2002, stung by an accounting scandal and saddled with $25 billion in debt. Still, Nacchio reaped more than $200 million in stock sales, bonuses and salary. (OregonLive, OR -- Business)
How IBM is hurting TCS, Infy, Wipro Apr 12, 2009
IBM also may attract new customers from Indias Satyam Computer Services, embroiled in the nations largest accounting scandal. India is slowly transforming from a back office -- a place where companies send work to cut costs -- to a coveted domestic market with fast-growing companies, Patel said. (India Times, India)
FORUM: Economic history lesson redux Apr 8, 2009
Compounding this led to a 10 billion accounting scandal. Incidentally, as coincidence would have it, those two aforementioned Fannie and Freddie CEOs became Barack Obama's political and economic advisers. (North County Times)
Nortel files for bankruptcy protection Apr 5, 2009
But he was never able to right a company plagued by a series of accounting scandals one of his predecessors faces fraud charges and weakening demand for its products. While not bankrupt the company has an estimated $1-billion in its coffers Nortel is burning though cash at an impressive clip, and has $4. (Globe and Mail -- Business)
AIG problems not my fault: Greenberg Apr 2, 2009
Greenberg, who left as the company's chief executive in 2005 following an accounting scandal, is scheduled to appear before the House Committee on Oversight and Government Reform on Thursday. In a report posted on its website, the paper reported that Greenberg will argue for pressuring AIG's trading partners, which include large US and foreign banks that received large payments due to the insurer's bailout, to invest that money back into AIG.. (India Times)
Washington Looks to AIG's Greenberg For Help Apr 2, 2009
An accounting scandal forced him to step down from his beloved company. Related. (Time.com)
Cattles in new warning on 850m c... Apr 1, 2009
Cattles, the embattled sub-prime lender, warned shareholders today it would have to write down up to 850 million because of defaulting borrowers in the wake of an external investigation into its accounting scandal. Unveiling what constitutes a third profits warning, the Cattles board said it had received inaccurate or incomplete information from some of its former management in what was "a breakdown of internal controls". (New York Post -- Business)
Manulife, the millions and moral hazard Mar 28, 2009
After the accounting scandals of 2001-02, he was one of the first big-name CEOs to call for changes to how companies account for stock options. He also warned of the moral hazards presented by the enormous, some would say grotesque, compensation entitlements. (Globe and Mail -- Business)
Tipping point the fall after the rise Mar 28, 2009
The accounting scandal at the air cargo carrier is well-documented. The alarm bells went off when the company committed a no-no it missed its April 2007 deadline for the submission of its audited 2006 accounts. (The Star Online, Malaysia -- Business)
A.I.G. sues U.S. government for return of $306 million in tax payments Mar 24, 2009
In part, A.I.G. says it overpaid its U.S. government income taxes after a 2004 accounting scandal that caused it to restate its financial records. A.I.G. says in part that it is entitled to a refund of $33 million that SICO paid in 1997 as compensation to employees, which it now says should be characterized as a deductible expense. (International Herald Tribune -- Business)
Fannie Mae Takeover Confuses a Class Action Mar 24, 2009
Investors filed suit against the publicly traded behemoth in 2004, in the wake of an accounting scandal. Now, , many players in the litigation are still wondering how the change will affect their case. (Law.com)
Revenge of the patriarch Mar 21, 2009
Choi Jae-ku / AFP - Getty Images FILEHank Greenberg resigned as CEO of AIG in 2005, his reputation wrecked by an accounting scandal in which AIG overstated the value of its assets ... Greenberg resigned as CEO of AIG in 2005, his reputation wrecked by an accounting scandal in which AIG overstated the value of its assets. (MSNBC -- Business)
Recessionary rage fixated on AIG Mar 21, 2009
Yesterday, even former AIG chief executive officer Hank Greenberg, who was forced out in 2005 over an accounting scandal, got into the act, decrying the payments and calling for the removal of current CEO Edward Liddy. When I was there, nobody had a contract with the company, including me, Mr. Greenberg said in a television interview. (Globe and Mail)
Ex-AIG CEO: Don't Blame Me For Bonuses Mar 20, 2009
After nearly 40 years at the helm, he was ousted in 2005 in the midst of an accounting scandal. Rodriguez: If you were still CEO, would you have paid out the bonuses. (CBS News -- World)
How AIG Became Too Big to Fail Mar 19, 2009
By the time Greenberg was forced out in an accounting scandal 38 years later, AIG had become one of the world's biggest public companies, with sales of $113 billion in 2006 and 116,000 employees in 130 countries, from France to China. AIG says it has written more than 81 million life-insurance policies, with a face value of $1. (Time.com)
AIG's past, present and future Mar 19, 2009
A 2002 law adopted after the accounting scandals at Enron and other companies allows publicly traded companies to take back ill-gotten compensation. Another way, which Liddy is trying, is persuasion. (Atlanta Journal-Constitution -- World)
