Top 5 accounting scandal
Enron corporation SCANDAL
Industry: Energy.
Enron was one of the seventh largest energy based company
Founder: Enron was formed in 1985 by Kenneth lay. After several years it was merged Houston
Natural gas and Inter North.
Founded: Omatha, nebraska, United states
Causes of Bankruptcy :
In 2001 Enron went bankruptcy. Enron was to hide billions of dollars in debt from filed deals and projects. It uses unethical practices that the company use accounting limitations to misrepresent earnings and modify the favorable performance.
Key player: Kenneth lay, founder, chairman, and CEO
Jeffrey skilling, former president and COO
Penalties: Lay died before serving time
skilling got 24 years prison
WORLD COM SACNDAL
Industry: American telecommunication company
Founder: Bernard Ebbers
Founded: 1983
Ashurm, Virginia, united states
Causes of Bankruptcy: To falsify the report. underrepresented line costs by capitalizing instead of expending them and making revenues by false entries
Key player: Bernard Ebbers , CEO
Penalties: CEO was sentenced 25 years .
The company went bankruptcy and 30000 people lost their jobs
. TYCO SCANDAL
Industry: A security system company
Founded: 1960, Princeton, New jersey, United states
Causes of Bankruptcy: CEO, stolen 150 million from the company and falsify the earning reporting to hide the stealing money
key player: Kozlowski and Swartz
Penalties: 8 to 25 years sentenced the CEO.
to compensate 2.92 billion to investors
HEALTH SOUTH SCANDAL
Industry: one of the largest providers of post acute health care services
Founded: 1984, Birmingham, Alabama
Causes of Bankruptcy: sold 75 million in stock several days before the company posted a large loss.
The company earnings was falsified by 1.4 billion.
Key player: CEO, Richard scrushy
penalties: CEO was sentenced 7 years prison
LEHMAN BROTHERS SCANDAL
Industry: Investment services
Founded: 1850
Montogomery, Alabana, U.S
Founder: Henry Lehman
Emanuel Lehman
Mayer Lehman
Lehman was one of the largest investment bank
Causes of Bankruptcy : To hide the 150 billion loans and it disguised as sales
Industry: Energy.
Enron was one of the seventh largest energy based company
Founder: Enron was formed in 1985 by Kenneth lay. After several years it was merged Houston
Natural gas and Inter North.
Founded: Omatha, nebraska, United states
Causes of Bankruptcy :
In 2001 Enron went bankruptcy. Enron was to hide billions of dollars in debt from filed deals and projects. It uses unethical practices that the company use accounting limitations to misrepresent earnings and modify the favorable performance.
Key player: Kenneth lay, founder, chairman, and CEO
Jeffrey skilling, former president and COO
Penalties: Lay died before serving time
skilling got 24 years prison
WORLD COM SACNDAL
Industry: American telecommunication company
Founder: Bernard Ebbers
Founded: 1983
Ashurm, Virginia, united states
Causes of Bankruptcy: To falsify the report. underrepresented line costs by capitalizing instead of expending them and making revenues by false entries
Key player: Bernard Ebbers , CEO
Penalties: CEO was sentenced 25 years .
The company went bankruptcy and 30000 people lost their jobs
. TYCO SCANDAL
Industry: A security system company
Founded: 1960, Princeton, New jersey, United states
Causes of Bankruptcy: CEO, stolen 150 million from the company and falsify the earning reporting to hide the stealing money
key player: Kozlowski and Swartz
Penalties: 8 to 25 years sentenced the CEO.
to compensate 2.92 billion to investors
HEALTH SOUTH SCANDAL
Industry: one of the largest providers of post acute health care services
Founded: 1984, Birmingham, Alabama
Causes of Bankruptcy: sold 75 million in stock several days before the company posted a large loss.
The company earnings was falsified by 1.4 billion.
Key player: CEO, Richard scrushy
penalties: CEO was sentenced 7 years prison
LEHMAN BROTHERS SCANDAL
Industry: Investment services
Founded: 1850
Montogomery, Alabana, U.S
Founder: Henry Lehman
Emanuel Lehman
Mayer Lehman
Lehman was one of the largest investment bank
Causes of Bankruptcy : To hide the 150 billion loans and it disguised as sales
