Difference between revisions of "Accounting fraud"

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|American Insurance Group (AIG)
|American Insurance Group (AIG)
|$800 Million
|[https://www.sec.gov/litigation/litreleases/lr19560.htm $800 Million]
|Insurance company booked loans as revenue at an estimated $3.9 billion in accounting fraud and conspired to induce traders to inflate the prices of the stocks.
|Insurance company booked loans as revenue at an estimated $3.9 billion in accounting fraud and conspired to induce traders to inflate the prices of the stocks.
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|Worldcom
|Worldcom
|$750 Million
|[https://www.sec.gov/news/press/2003-81.htm $750 Million]
|WorldCom inflated earnings by more than $11 billion and cost investors close to $200 billion. The deal reflects a civil penalty of $2.25 billion, which was reduced as part of the bankruptcy reorganization.  
|WorldCom inflated earnings by more than $11 billion and cost investors close to $200 billion. The deal reflects a civil penalty of $2.25 billion, which was reduced as part of the bankruptcy reorganization.  
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|Fannie Mae
|Fannie Mae
|$350 Million
|[https://www.sec.gov/news/press/2007/2007-219.htm $350 Million]
|Fannie Mae “issued materially false and misleading financial statements in SEC filings and in various reports disseminated to investors.”
|Fannie Mae “issued materially false and misleading financial statements in SEC filings and in various reports disseminated to investors.”
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|Time Warner
|Time Warner
|$300 Million
|[https://www.sec.gov/news/press/2005-38.htm $300 Million]
|Time Warner engaged in securities fraud related to its accounting for online advertising revenue. It used “round-trip transactions” to inflate its online advertising revenue to hide the business slow down.
|Time Warner engaged in securities fraud related to its accounting for online advertising revenue. It used “round-trip transactions” to inflate its online advertising revenue to hide the business slow down.
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|Qwest Communications
|Qwest Communications
|$250 Million
|[https://www.sec.gov/litigation/litreleases/lr18936.htm $250 Million]
|Qwest intentionally recognized over $3.8 billion in revenue and excluded $231 million in expenses that did not meet generally accepted accounting principles (GAAP) in an attempt to meet their predicted revenue and earnings projections.
|Qwest intentionally recognized over $3.8 billion in revenue and excluded $231 million in expenses that did not meet generally accepted accounting principles (GAAP) in an attempt to meet their predicted revenue and earnings projections.
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|Computer Associates
|Computer Associates
|$225 Million
|[https://www.sec.gov/news/press/2004-134.htm $225 Million]
|Computer Associates prematurely recognized over $3.3 billion in revenue by manipulating its quarter end cutoff dates to meet Wall Street’s quarterly earnings estimates. SEC’s Northeast Regional Office Director Schonfeld compared it to a team “that plays on after the final whistle has blown … until it had all the points it needed to make every quarter look like a win.”
|Computer Associates prematurely recognized over $3.3 billion in revenue by manipulating its quarter end cutoff dates to meet Wall Street’s quarterly earnings estimates. SEC’s Northeast Regional Office Director Schonfeld compared it to a team “that plays on after the final whistle has blown … until it had all the points it needed to make every quarter look like a win.”
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|Panasonic Corp
|Panasonic Corp
|$143 Million
|[https://www.sec.gov/news/press-release/2018-73 $143 Million]
|Panasonic overstated pre-tax and net income by prematurely recognizing more than $82 million in revenue by backdating an agreement with an airline. Additionally, Panasonic “lacked sufficient internal accounting controls and failed o make and keep accurate books and records in connection with purported consultant retained by PAC.”
|Panasonic overstated pre-tax and net income by prematurely recognizing more than $82 million in revenue by backdating an agreement with an airline. Additionally, Panasonic “lacked sufficient internal accounting controls and failed o make and keep accurate books and records in connection with purported consultant retained by PAC.”
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|Weatherford
|Weatherford
|$140 Million
|[https://business.cch.com/srd/2016-194-092716.pdf $140 Million]
|Weatherford inflated earnings by using deceptive income tax accounting which included an international tax avoidance structure that reduced its effective tax rate (ETR) and tax expense. False financial statements inflated earnings by over $900 million.
|Weatherford inflated earnings by using deceptive income tax accounting which included an international tax avoidance structure that reduced its effective tax rate (ETR) and tax expense. False financial statements inflated earnings by over $900 million.
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|Healthsouth
|Healthsouth
|$100 Million
|[https://www.sec.gov/litigation/litreleases/lr19280.htm $100 Million]
|Shortly after Healthsouth went public in 1986, it began to “artificially inflate its earnings to meet Wall Street analysts’ expectations and maintain the market price.” Since 1999, it overstated its earnings by over $1.4 billion.
|Shortly after Healthsouth went public in 1986, it began to “artificially inflate its earnings to meet Wall Street analysts’ expectations and maintain the market price.” Since 1999, it overstated its earnings by over $1.4 billion.
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|Lehman Brothers
|Lehman Brothers
|$80 Million
|[https://www.sec.gov/litigation/litreleases/judgm18116.pdf $80 Million]
|Lehman intentionally manipulated their accounting reports through numerous Repo105 transactions that hid their actual debt. When they declared bankruptcy they were $615 billion in debt.
|Lehman intentionally manipulated their accounting reports through numerous Repo105 transactions that hid their actual debt. When they declared bankruptcy they were $615 billion in debt.
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