Lehman Brothers – Repo 105

Lehman failed, but so did their auditors, Ernst and Young to report deliberate balance sheet manipulations that the company used to show better metrics to the outside world. Leverage and liquidity ratios are the two key metrics that counterparties and credit rating...

Adelphia Communications

In April 2002, the Adelphia scandal went public. The main component of the scandal were, Adelphia from at least 1998 through March 2002, fraudulently excluded from the Company’s annual and quarterly consolidated financial statements over $2.3 billion in its bank...

Virtual Degree

Kelley School of Business recently introduced in their executive education program, Second World, the online 3-D virtual world. So now the executives don’t have to travel to learn, they just have to log into the course with their Avatars and can earn a degree!...

Health South

On March 19, 2003, SEC filed an accounting fraud charge against HealthSouth and its CEO for inflating their revenue by $1.4B since 1999. To meet the Wall Street expectations, the allegation mentions, at the insistence of the CEO, Health South systematically overstated...

Dell Computers

In August 2007, the CFO of Dell Computers acknowledged that there were some accounting irregularities found as a result of a lengthy internal investigation. The irregularities were mostly related to adjustments to various reserve and accrued liability accounts in the...

Satyam Computers

Chairman of Satyam Computers, Ramalinga Raju resigned on the 7th of January, 2009 after notifying the board that he had falsified the company’s accounts. The company’s Balance Sheet as of September 30, 2008, carried inflated figures for cash and bank...

XBRL- The final filing dates

On February 10, 2009, SEC issued the final rule mandating that the 500 largest public companies start to file their financial results using XBRL. The effective date of the new rule is April 13, 2009, which means that most of the largest public issuers are required to...

Sunbeam

In May 2001, SEC files a complaint against 5 of Sunbeam Corporation’s former officers, alleging that senior management of Sunbeam engaged in fraudulent scheme to create an illusion of successful restructuring of the company and thus facilitating a sale of the...

Computer Associates

In September 2004, SEC announced securities fraud charges against Computer Associates International Inc, and three of its former senior executives alleging that from 1998 to 2000, Computer Associates routinely kept its books open to record revenue from contracts...

Bristol-Myers Squibb

In August 2004, SEC files an enforcement action against Bristol- Myers Squibb alleging that Bristol-Myers used earnings management schemes to distort the true performance of the company and harmed the company’s shareholders. During 2000 and 2001 the company engaged in...