Accounting Scandals by Ali Hepburn https://padlet.com/ahepburn5/ML314 en-us 2022-03-24 16:59:18 UTC 2022-03-24 17:41:15 UTC hello@padlet.com The was the fraud committed https://padlet.com/ahepburn5/ML314/wish/2112316191  The SEC charged WorldCom with civil fraud and reached a $2.25 billion settlement.]]> 2022-03-24 17:14:57 UTC https://padlet.com/ahepburn5/ML314/wish/2112316191 How it was committed https://padlet.com/ahepburn5/ML314/wish/2112317570 WorldCom had engaged in a concerted effort to manipulate its earnings in order to meet Wall Street targets and support its stock price.]]> 2022-03-24 17:15:47 UTC https://padlet.com/ahepburn5/ML314/wish/2112317570 The monetary value https://padlet.com/ahepburn5/ML314/wish/2112319055 They manage to make $2.25 Billion]]> 2022-03-24 17:16:36 UTC https://padlet.com/ahepburn5/ML314/wish/2112319055 overstated income and cash flow by capitalising expenses https://padlet.com/ahepburn5/ML314/wish/2112320207 2022-03-24 17:17:11 UTC https://padlet.com/ahepburn5/ML314/wish/2112320207 https://padlet.com/ahepburn5/ML314/wish/2112322073 was unearthed by an employee running a spot check on the Mississippi-based company's books, 

]]> 2022-03-24 17:18:18 UTC https://padlet.com/ahepburn5/ML314/wish/2112322073 The former CEO of WorldCom, Bernie Ebbers was the prime individual to blame for the scandal. Consequently, Bernie Ebbers' costed the company more than $3.8 billion in expenses, with over 17,000 employees losing their jobs, including the CFO, and COO. https://padlet.com/ahepburn5/ML314/wish/2112322292 2022-03-24 17:18:26 UTC https://padlet.com/ahepburn5/ML314/wish/2112322292 https://padlet.com/ahepburn5/ML314/wish/2112323399 They were fined 2.25 billion]]> 2022-03-24 17:19:03 UTC https://padlet.com/ahepburn5/ML314/wish/2112323399 Madoff convinced thousands of investors to hand over their savings, falsely promising consistent profits in return. He was caught in December 2008 and charged with 11 counts of fraud, money laundering, perjury, and theft. https://padlet.com/ahepburn5/ML314/wish/2112325288 2022-03-24 17:20:06 UTC https://padlet.com/ahepburn5/ML314/wish/2112325288 In 2009 Madoff was sentenced to 150 years in prison and forced to forfeit $170 billion. https://padlet.com/ahepburn5/ML314/wish/2112328127 2022-03-24 17:21:43 UTC https://padlet.com/ahepburn5/ML314/wish/2112328127 Bernie Madoff https://padlet.com/ahepburn5/ML314/wish/2112329062 Bernie Madoff stole $65 billion from as many as 37,000 people. he was sentenced to 150 years in prison, forfeiture of US$17.179 billion and a lifetime ban from the securities industry. He operated the largest Ponzi scheme in history. He was able to defraud so many people because he was a trusted investor even becoming her chairman of the NASDAQ at one point.]]> 2022-03-24 17:22:15 UTC https://padlet.com/ahepburn5/ML314/wish/2112329062 Overstating profits https://padlet.com/ahepburn5/ML314/wish/2112331211 Was found to have overstated profits by £263m after recognising irregularities in their half-year results.]]> 2022-03-24 17:23:29 UTC https://padlet.com/ahepburn5/ML314/wish/2112331211 Tesco said it had found a 250 million pound overstatement of its expected profit, mainly due to booking commercial deals with suppliers too early. In the following days and weeks, Tesco suspended eight senior members of staff, including Bush and Scouler. https://padlet.com/ahepburn5/ML314/wish/2112333658 2022-03-24 17:24:52 UTC https://padlet.com/ahepburn5/ML314/wish/2112333658 Patisserie Holdings announced that its board had been notified of potentially fraudulent accounting irregularities. The company subsequently entered into administration, leading to the closure of 70 stores and more than 900 job losses https://padlet.com/ahepburn5/ML314/wish/2112340201 2022-03-24 17:28:35 UTC https://padlet.com/ahepburn5/ML314/wish/2112340201 WorldCom https://padlet.com/ahepburn5/ML314/wish/2112341358 WorldCom committed accounting fraud, overstating their profits by $11 billion. The company inflated earnings by counting routine expenses as long term expenditures, which do not have to be deducted as business costs. The fraud was discovered when Vice President Cooper led an early audit. They were ordered $750 million to compensate investors.]]> 2022-03-24 17:29:17 UTC https://padlet.com/ahepburn5/ML314/wish/2112341358 ahepburn5 https://padlet.com/ahepburn5/ML314/wish/2112342072 What were the consequences for Tesco?]]> 2022-03-24 17:29:38 UTC https://padlet.com/ahepburn5/ML314/wish/2112342072 Accountancy firm Grant Thornton has been fined £2.3m for failures in its audits of collapsed cake chain Patisserie Valerie. https://padlet.com/ahepburn5/ML314/wish/2112342470 2022-03-24 17:29:51 UTC https://padlet.com/ahepburn5/ML314/wish/2112342470 https://padlet.com/ahepburn5/ML314/wish/2112343981 the collapse followed the discovery of a huge black hole in the firm's accounts, eventually valued at £94m. After it went into administration, the cafe chain was found to have overstated its cash position by £30m and failed to disclose overdrafts of nearly £10m.]]> 2022-03-24 17:30:40 UTC https://padlet.com/ahepburn5/ML314/wish/2112343981 Tesco https://padlet.com/ahepburn5/ML314/wish/2112347930 Tesco committed accounting fraud, overstating their profits by £263 million. They were forced to pay £193 million to settle the scandal. Tesco said it discovered the overstatement of its figures, made as part of a 29 August profit warning.]]> 2022-03-24 17:32:57 UTC https://padlet.com/ahepburn5/ML314/wish/2112347930 ahepburn5 https://padlet.com/ahepburn5/ML314/wish/2112349467 What happened to Tesco’s share price?]]> 2022-03-24 17:33:47 UTC https://padlet.com/ahepburn5/ML314/wish/2112349467 ahepburn5 https://padlet.com/ahepburn5/ML314/wish/2112349830 How was it found out?]]> 2022-03-24 17:33:59 UTC https://padlet.com/ahepburn5/ML314/wish/2112349830 Incorrect books https://padlet.com/ahepburn5/ML314/wish/2112355524 Tesco had incorrectly booked supplier income by £250m but the error grew to £326m]]> 2022-03-24 17:37:12 UTC https://padlet.com/ahepburn5/ML314/wish/2112355524 An ex employee reported the untrue financial statements not long after leaving https://padlet.com/ahepburn5/ML314/wish/2112362286 2022-03-24 17:41:15 UTC https://padlet.com/ahepburn5/ML314/wish/2112362286