Corporate Fraud There are several examples of corporate fraud. Some of these are

Question

Corporate Fraud

There are several examples of corporate fraud. Some of these are:

Adelphia

Global Crossing

Qwest Communications

Rite Aide

Tyco

WorldCom

Xerox

GlaxoSmithKline

Use Rite Aide as your corporate fraud example and answer the following and be AS DESCRIPTIVE AS POSSIBLE:  

How was the fraud perpetrated? How much money was involved? Explain.

How was the fraud uncovered? How did the law enforcement agency investigate and prosecute the crime?

Which laws were violated?

What was the outcome of the case?

Was this the best possible outcome given the circumstances of the case?

Explanation / Answer

Fannie Mae has been charged with 400 million dollars to fraud there investors by manipulating the accounts resulting capture of million dollars in form of the undeserved bonuses.

It has been a very big scandal involving huge amount of money such as $11 billion. SEC put on penalty of 400 million dollars against Fannie Mae in specific settlement over the very well known accounting manipulation.

For better detection of the specific fraud I would have done an intensive approach of the top down structure of the company. While having assessment of the different structural analysis as well as having electronic data management system which can be analysed plea for observing any kind of destructions into the company would have been my choice for early detection of the specific scandal. By having multiple financial analysis and also having a specific team to analyse the situation as well as having a find eye on the investment from the company would also have been my main motive to create more ethical working environment without any standard.

By implementing new accounting methods and implementing the new risk management strategies would also have been my main concern. Be specific technological advancements as well as implementation of newer strategies into the organisation would have directly helped me too early detect this is specific scandal and to overcome the situation.

While having intense Research and analysis over the financial structure of the company, I would have directly increase the level of implementation of risk management strategies as well as analysis strategies which would have been reduced or stopped the specific situation.

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