Accounting-Fraud

WorldCom Announces $3.8 Billion Accounting Fraud Discovery

2002-06-25 00:00:00 +0000 UTC | Importance: 10/10

On June 25, 2002, WorldCom, the second-largest telecommunications company in the United States, announced it would restate its financial statements after discovering $3.8 billion in fraudulent accounting entries. The company admitted that “certain transfers” from line cost expenses to …

Bernard Ebbers Cynthia Cooper Scott Sullivan WorldCom corporate-fraud worldcom accounting-fraud securities-fraud white-collar-crime

Arthur Andersen Admits to Shredding Tons of Enron Documents

2002-01-09 00:00:00 +0000 UTC | Importance: 9/10

On January 9, 2002, Arthur Andersen, one of the “Big Five” accounting firms, publicly admitted that its employees had destroyed “several tons” of Enron-related documents and deleted nearly 30,000 emails and computer files during October and November 2001. CEO Joseph Berardino …

Arthur Andersen Joseph Berardino David Duncan corporate-fraud enron obstruction-of-justice arthur-andersen accounting-fraud

Enron Reports $618 Million Loss and Reveals CFO Partnership Schemes

2001-10-16 00:00:00 +0000 UTC | Importance: 9/10

On October 16, 2001, Enron announced a $618 million quarterly loss, marking a pivotal moment in the company’s downfall. The loss was largely attributed to a one-time charge for terminating “certain structured finance arrangements” known as the Raptors, which were partnerships …

Kenneth Lay Jeffrey Skilling Andrew Fastow corporate-fraud enron accounting-fraud white-collar-crime