U.S. District Judge Edward Davila sentences Theranos founder Elizabeth Holmes to 135 months (11 years, 3 months) in federal prison plus three years supervised release for defrauding investors of over $140 million. Holmes is ordered to surrender on April 27, 2023 to begin serving her sentence. …
Elizabeth HolmesEdward DavilaU.S. Department of JusticeTheranosFDA+1 morecorruptionfraudregulatory-capturetechhealthcare+3 more
FTX cryptocurrency exchange, Alameda Research, and over 100 affiliated entities file for bankruptcy following the exposure of systematic fraud by founder Sam Bankman-Fried. The collapse was triggered on November 2 when CoinDesk revealed that Alameda Research—FTX’s affiliated trading firm owned …
Sam Bankman-FriedFTXAlameda ResearchChangpeng ZhaoBinance+2 morecorruptionfraudregulatory-capturetechcryptocurrency+3 more
A federal jury convicts Theranos founder Elizabeth Holmes on one count of conspiracy to commit investor fraud and three counts of wire fraud involving over $140 million in investments. The conviction follows a nearly four-month trial where prosecutors presented testimony from 29 witnesses …
Elizabeth HolmesTheranosU.S. Department of JusticeSecurities and Exchange Commission (SEC)FDAcorruptionfraudregulatory-capturetechhealthcare+3 more
After nearly a decade of systematic fraud, multiple investigations, Congressional hearings, and billions in penalties, the Wells Fargo fake accounts scandal concludes with a stark scorecard that defines two-tiered justice in American finance: 3.5 million fraudulent accounts affecting millions of …
Wells FargoJohn StumpfCarrie TolstedtDepartment of Justicecorporate-fraudwells-fargotwo-tiered-justicecorporate-accountabilitysystemic-analysis
The Department of Justice announces it will not bring criminal charges against any Wells Fargo executives for their roles in the fake accounts scandal, instead accepting a deferred prosecution agreement with the corporation. Despite Wells Fargo’s admission that “top Community Bank …
Department of JusticeWilliam BarrWells Fargocorporate-fraudwells-fargodojprosecutorial-discretiontwo-tiered-justice
Wells Fargo announces that its fake accounts scandal affected approximately 3.5 million accounts—a 67% increase from the initial estimate of 2.1 million accounts disclosed during the 2016 settlement. The revised analysis covers January 2009 to September 2016, nearly twice the timeframe of the …
On July 31, 2017, SCANA Corporation and South Carolina’s state-owned utility Santee Cooper abandoned the V.C. Summer nuclear expansion project after a decade of construction, $9 billion in expenditures, and massive cost overruns. Despite the complete failure to deliver any functioning nuclear …
SCANA CorporationSantee CooperKevin MarshStephen ByrneWestinghouse Electric Company+2 morecorporate-fraudinstitutional-captureregulatory-captureutility-corruptionconsumer-exploitation
Wells Fargo CEO John Stumpf resigns effective immediately, ending his 34-year career at the bank amid the fake accounts scandal. Despite calls from Senator Elizabeth Warren and others for him to forfeit his compensation and face criminal charges, Stumpf departs with approximately $130-137 million in …
John StumpfWells Fargo BoardTimothy Sloancorporate-fraudwells-fargoexecutive-compensationcorporate-accountability
Following intense Congressional pressure and public outrage, Wells Fargo announces that CEO John Stumpf will forfeit $41 million in unvested stock awards and his 2016 salary and bonus. The clawback represents the board’s first attempt to impose financial consequences on senior leadership for …
John StumpfWells Fargo Boardcorporate-fraudwells-fargoexecutive-compensation
Wells Fargo CEO John Stumpf testifies before the Senate Banking Committee in a hearing titled “An Examination of Wells Fargo’s Unauthorized Accounts and the Regulatory Response.” Senator Elizabeth Warren delivers a devastating confrontation, accusing Stumpf of “gutless …
John StumpfElizabeth WarrenU.S. Senate Banking Committeecorporate-fraudwells-fargocongressional-oversightelizabeth-warren
The Consumer Financial Protection Bureau, Office of the Comptroller of the Currency, and Los Angeles City Attorney announce a combined $185 million settlement with Wells Fargo for the systematic creation of more than two million unauthorized deposit and credit card accounts. The CFPB assesses a $100 …
Wells FargoJohn StumpfConsumer Financial Protection Bureau (CFPB)Richard Cordraycorporate-fraudbanking-regulationwells-fargoregulatory-capturecfpb
Walgreens formally terminates its partnership with Theranos after discovering that 31,000 Walgreens customers had received voided test results from the blood-testing company’s faulty devices. The termination follows months of deteriorating relations after the October 2015 Wall Street Journal …
WalgreensTheranosElizabeth HolmesFDACMScorruptionfraudregulatory-capturetechhealthcare+3 more
On March 29, 2016, a coalition of 17 state attorneys general announced coordinated investigations into ExxonMobil for potential climate denial fraud at a daylong climate change conference in Manhattan. Massachusetts Attorney General Maura Healey and Virgin Islands Attorney General Claude Walker …
Eric SchneidermanMaura HealeyClaude WalkerExxonMobilNew York Attorney General+2 moreclimate-denialexxonknewstate-investigationscorporate-fraudfossil-fuels+1 more
Valeant Pharmaceuticals’ October 2015 disclosure of its relationship with specialty pharmacy Philidor Rx Services triggered the unraveling of a systematic drug price gouging scheme that had raised prices on dozens of medications by 50-3000% over two years. Under CEO Michael Pearson, Valeant …
Valeant PharmaceuticalsJ. Michael PearsonPhilidor Rx ServicesWilliam AckmanSecurities and Exchange Commission (SEC)+2 morepharmaceutical-industrydrug-pricinghealthcarecorporate-fraudsystematic-corruption+1 more
Wall Street Journal reporter John Carreyrou publishes the first investigative article exposing Theranos’ fraudulent blood-testing technology, revealing that the company was using traditional blood testing machines instead of its proprietary ‘Edison’ devices and that test results …
John CarreyrouElizabeth HolmesTheranosWall Street JournalWalgreens+1 morecorruptionfraudregulatory-capturetechhealthcare+3 more
On September 16, 2015, InsideClimate News began publishing an eight-month investigation revealing that Exxon’s own scientists warned executives as early as 1977 that burning fossil fuels was heating the planet, yet the company then worked at the forefront of climate denial for decades. The …
InsideClimate NewsExxonMobilLos Angeles TimesColumbia UniversityJames Blackclimate-denialinvestigative-journalismexxonknewcorporate-fraudfossil-fuels
Corinthian Colleges, one of the nation’s largest for-profit college chains with over 100 campuses, filed for bankruptcy after federal and state regulators exposed systematic fraud against students. The company aggressively recruited low-income students with false promises of high job placement …
Corinthian CollegesU.S. Department of EducationConsumer Financial Protection Bureau (CFPB)Association of Private Sector Colleges and Universities (APSCU)predatory-lendingeducationstudent-debtcorporate-fraudregulatory-capture+1 more
The Los Angeles Times investigates Wells Fargo’s aggressive sales practices, revealing systematic pressures on employees to create unauthorized accounts. The investigation exposes a corporate culture that incentivized fraud, with employees opening fake accounts to meet impossible sales quotas. …
Wells Fargo BoardJohn StumpfScott Reckard (LA Times Reporter)corporate-fraudbanking-regulationregulatory-capturewells-fargo
On June 21, 2013, U.S. District Judge Sim Lake approved a deal reducing former Enron CEO Jeffrey Skilling’s prison sentence from 24 years to 14 years—a 10-year reduction that symbolized the erosion of corporate accountability in the decade following the Enron prosecutions. The sentence …
Jeffrey SkillingDepartment of JusticeSim Lakecorporate-fraudenroncriminal-prosecutionaccountability-erosionlegal-outcome
Questcor Pharmaceuticals implemented an overnight price increase for H.P. Acthar Gel from $1,600 to $23,000 per vial on August 27, 2007, launching a decade-long price gouging scheme that would eventually raise the drug’s price by 97,000% from its 2001 level. Questcor had acquired Acthar—a …
Questcor PharmaceuticalsMallinckrodtFederal Trade CommissionHumanaCongress+1 morepharmaceutical-industrydrug-pricinghealthcarecorporate-fraudbribery+2 more
On October 23, 2006, former Enron CEO Jeffrey Skilling was sentenced to 24 years and four months in federal prison for his role in the Enron fraud, representing one of the harshest sentences ever imposed on a corporate executive. U.S. District Judge Sim Lake also ordered Skilling to forfeit …
Jeffrey SkillingDepartment of JusticeSim Lakecorporate-fraudenroncriminal-prosecutionsecurities-fraudcorporate-accountability
On July 5, 2006, Kenneth Lay died of a heart attack at his vacation home in Aspen, Colorado, just six weeks after being convicted on all six counts of fraud and conspiracy in the Enron scandal. Lay, 64, was pronounced dead at Aspen Valley Hospital at 3:11 a.m. A preliminary autopsy reported he died …
On May 25, 2006, a federal jury convicted Enron founder Kenneth Lay on all six counts of fraud and conspiracy, and former CEO Jeffrey Skilling on 19 of 28 counts of securities fraud, wire fraud, and conspiracy. The verdicts marked a watershed moment in corporate accountability, holding top …
Kenneth LayJeffrey SkillingDepartment of Justicecorporate-fraudenroncriminal-prosecutionsecurities-fraudcorporate-accountability
On July 13, 2005, former WorldCom CEO Bernard Ebbers was sentenced to 25 years in federal prison for orchestrating the largest corporate accounting fraud in American history. The sentence, handed down by U.S. District Judge Barbara Jones in Manhattan, represented one of the harshest penalties ever …
Bernard EbbersDepartment of Justicecorporate-fraudworldcomcriminal-prosecutionsecurities-fraudcorporate-accountability
Between 2005 and 2024, the United States operated a two-tiered bankruptcy system that weaponized debt against students and working Americans while preserving bankruptcy as a strategic wealth-preservation tool for corporations and the wealthy—a defining example of 21st century American kleptocracy. …
Corinthian CollegesITT TechUniversity of PhoenixPurdue PharmaSackler Family+2 morebankruptcy-lawstudent-debtcorporate-fraudinequalitykleptocracy
On July 7, 2004, a federal grand jury indicted Enron founder and former CEO Kenneth Lay on 11 counts of securities fraud, wire fraud, and making false statements to banks. The indictment charged that Lay repeatedly lied to investors, employees, and federal regulators about Enron’s …
Kenneth LayJeffrey SkillingDepartment of Justicecorporate-fraudenronsecurities-fraudcriminal-prosecutionwhite-collar-crime
On September 12, 2002, Manhattan District Attorney Robert Morgenthau indicted former Tyco International CEO Dennis Kozlowski, CFO Mark Swartz, and General Counsel Mark Belnick on charges of looting at least $600 million from the company through fraudulent loans and unauthorized stock sales. The …
Dennis KozlowskiMark SwartzMark Belnickcorporate-fraudtycosecurities-fraudexecutive-lootingwhite-collar-crime
On July 30, 2002, President George W. Bush signed the Sarbanes-Oxley Act into law, calling it “the most far-reaching reforms of American business practices since the time of Franklin D. Roosevelt.” The legislation passed with overwhelming bipartisan support—423 to 3 in the House and 99 …
George W. BushPaul SarbanesMichael Oxleycorporate-fraudlegislationcorporate-accountabilityfinancial-regulationreform
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 EbbersCynthia CooperScott SullivanWorldComcorporate-fraudworldcomaccounting-fraudsecurities-fraudwhite-collar-crime
On June 15, 2002, a federal jury convicted Arthur Andersen LLP of obstruction of justice for shredding thousands of Enron-related documents. The verdict effectively destroyed one of the world’s most prestigious accounting firms, eliminating 85,000 jobs globally and marking the last time a …
Arthur AndersenDepartment of Justicecorporate-fraudenronobstruction-of-justicearthur-andersencorporate-accountability
On March 14, 2002, the U.S. Department of Justice announced the indictment of Arthur Andersen LLP on one count of obstruction of justice for destroying “literally tons of paper documents and other electronic information” related to the Enron collapse. The indictment, handed down by a …
Arthur AndersenDepartment of JusticeMichael Chertoffcorporate-fraudenronobstruction-of-justicearthur-andersencriminal-prosecution
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 AndersenJoseph BerardinoDavid Duncancorporate-fraudenronobstruction-of-justicearthur-andersenaccounting-fraud
Enron filed for bankruptcy on December 2, 2001, marking the largest corporate bankruptcy in U.S. history at the time, with $63.4 billion in assets. The collapse revealed extensive corporate fraud orchestrated by CEO Kenneth Lay and President Jeffrey Skilling, who manipulated financial statements and …
EnronKenneth LayJeffrey SkillingDick CheneyGeorge W. Bushenronbankruptcycorporate-fraudcorruptionfinancial-crime+2 more
On October 22, 2001, the Securities and Exchange Commission announced it was formally investigating Enron’s suspicious dealings with partnerships controlled by CFO Andrew Fastow, characterizing them as “some of the most opaque transactions with insiders ever seen.” Enron’s …
Securities and Exchange Commission (SEC)Andrew FastowKenneth Laycorporate-fraudenronsecinvestigationregulatory-enforcement
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 …
The Erie War reached its climax in early March 1868 when Jay Gould, James Fisk, and Daniel Drew, facing arrest warrants from Judge George Barnard after issuing $5 million in fraudulent Erie Railroad stock, fled across the Hudson River to Jersey City with $7 million in cash and watered stock …
Jay GouldJames FiskDaniel DrewCornelius VanderbiltErie Railroad+2 morecorporate-fraudstock-manipulationpolitical-corruptiongilded-agerailroad-consolidation