Post an article (and the URL at which you found the article) of a crime that could have been stopped by better internal controls by the business. Explain why you think so. Please make sure to describe the article accurately. Spell check your own writing by first posting it in MS Word on your computer or some similar word processing program and have the word processing program identify probable spelling errors for you. If your description of the article fails to match the contents of the article, you will not receive credit for the assignment.
Reply to 2 discussions
1.The article I decided to do was the World Com scandal in 2002. It is about how WorldCom lied and fabricated their balance sheet and how they claimed $11 billion in revenue which was never true in the first place. Bernard J. Ebbers, CEO of the company, committed fraud. Law would be changed forever and their would be a massive increase in regulation among auditors across the world. “The WorldCom fraud presumably could have been prevented had the company had good enough internal controls to prevent Scott D. Sullivan, the chief financial officer who later pleaded guilty and testified against Mr. Ebbers, from ordering changes in accounts just to allow the company to report phony profits.” Internal influences led Ebbers to make bad decisions and ultimately sent him to prison for 25 years. After Ebbers was convicted of the crime, the Sarbanes-Oxley act would be put into place which would require companies to be able to report any material weakness and strengths in internal controls.
2. The article I talked about was about Martin Shkreli. A federal jury convicted Shkreli guilty of deceiving investors about the performance of two hedge funds he managed, defrauding investors in his first pharmaceutical company, Retrophin, and stealing money from Retrophin to compensate investors for losses he hid. Shkreli rose to fame as the chief executive officer of Turing Pharmaceuticals by increasing the price of the antiparasitic drug Daraprim, which is widely given to AIDS patients and others with impaired immune systems, from $13.50 per pill to $750. The Securities and Exchange Commission presented the jury with all of these charges.