Business: Principles of Accounting 1 (ACC 111)

"Madoff: 150 Years, May Be Sent to Federal Prison in New York or New Jersey." New York Amsterdam News, July 2, 2009. 
Reports that financial investor Bernard L. Madoff was sentenced to 150 years in prison by New York District Judge Deny Chin. Madoff was found guilty of carrying out a Ponzi scheme and faced charges of money laundering, mail fraud and investor adviser fraud.

"Madoff's Other Legacy." Time, August 24, 2009.
Discusses financier and imprisoned felon Bernie Madoff and the revenues he derived by making markets in stocks. Madoff helped pioneer transactions such as diverting trades from the New York Stock Exchange (NYSE) to high-frequency trading specialists, a tactic which provides revenue by virtue of the price spreads that exist between quoted stock offer and buy prices.

"Millennials Have No Idea Who Bernie Madoff Was." Time, May 22, 2014.
For the 1.6 million Millennials entering the real world this spring, the Cold War has always been over and the Internet has always existed. They have no living memory of when testing positive for HIV was akin to a death sentence. In a new poll, more than half of 18-to-29 year olds could not identify the Bernie Madoff investment scam.

"The Trials of Ruth Madoff." People, February 21, 2011.
Looks at Ruth Madoff, wife of incarcerated Ponzi scheme stockbroker Bernie Madoff, including her reaction to Bernie's sentencing and the suicide of her son Mark Madoff. The author notes that Ruth is secluded and often socially outcast due to the actions of her husband. Ruth's strained relationship with her son Andrew Madoff is also discussed.

"A Closer Look at Martha Stewart's Trades." New York Times, July 15, 2002.
Peter E. Bacanovic was on vacation in Miami on Dec. 27, the day that Martha Stewart and the Waksals sold or tried to sell ImClone shares. Congressional investigators think he might have used his cellphone to call Ms. Stewart or to hold conversations with his assistant, Douglas Faneuil, who had remained behind in New York and handled the trades. Mr. Faneuil might have witnessed more of the action than he would have if Mr. Bacanovic had been in the office.

"The Ethical Lessons of the Martha Stewart Case." Corporate Finance Review, May/June 2004.
The case was foolish and preventable, with much of the conduct boiling down to small actions which ripened into large legal issues with the accompanying fines and penalties. Ms. Stewart's conduct and fate are not unlike the other corporate missteps and falls from grace that have besmirched the reputations of businesses and executives since a business ethics tailspin began with the Enron collapse in 2001. Now that criminal prosecution has the attention of the world of finance, a look at the ethical issues and missteps will perhaps be instructive in regard to prevention.

"Martha Stewart Convicted: Martha Stewart Found Guilty, Prison Likely." Los Angeles Times, March 6, 2004.
On its third day of deliberating, the jury of eight women and four men found that Stewart and her ex-stockbroker, Peter E. Bacanovic, hatched a plan to cover up a stock trade that Stewart made after getting an insider tip, then lied to investigators about it. Stewart was not charged with insider trading itself. The trial centered on Stewart's Dec. 27, 2001, sale of her 3,928 shares of ImClone Systems Inc., founded by Stewart's friend Samuel D. Waksal. Waksal, a man about town who once dated Stewart's daughter, is serving seven years in prison for insider trading, based on his and his family's attempts to dump their own ImClone holdings that day.

"Martha Stewart Guilty: Faces Prison for Lying, Conspiracy, Obstruction." Chicago Tribune, March 6, 2004.
Martha Stewart, who built a media and consumer goods empire that brought gracious living into everyday Americans' homes, faces prison after her conviction Friday on four felony counts related to a questionable stock sale. Stewart's former stockbroker and co-defendant, Peter Bacanovic, also was found guilty on charges related to her sale of nearly 4,000 shares in ImClone Systems Inc., a biotechnology company then headed by her friend Dr. Samuel D. Waksal.

"Martha Stewart Trial for Insider Trading Proceeds." Knight Ridder Tribune Business News, February 4, 2004.
Martha Stewart's broker, Peter Bacanovic of Merrill Lynch, is charged with perjury and obstruction of justice for allegedly lying about his role in Stewart's stock sale. Bacanovic's former assistant, Douglas Faneuil, pleaded guilty to a misdemeanor related to the case, and is cooperating with the government in the case against Bacanovic and Stewart. He testified Wednesday that Bacanovic told him to tell Stewart that the Waksals were dumping their stock. Faneuil said that after he passed along this message, she told him to sell her stock.

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"Changes Spring from Enron's Fall." Editor & Publisher, February 25, 2002.
Reports on the business planning of the Gannett Co. in the United States, including: amendments on company plans to permit employees to diversify investments; review of retirement plans on transferring funds from the company's stock; and the finance details of annual reports.

"An End to Enrons." InfoWorld, June 20, 2005.
Looks at the ability of computer monitoring systems to prevent and track down corporate misbehavior. Today's executives have more to worry about, thanks to Sarbanes-Oxley Act and other tough laws passed in the wake of these and other corporate scandals. Monitoring technologies can now identify problems not only from what is said but how it is said, or its context. With such tools in place, many abusive behaviors could have been detected much earlier.

"Enron: A Brand Gone Bad." Brandweek, February 18, 2002.
Comments on the brand corruption of Enron Corporation and points out the extent of the deception made by Enron regarding its finances. Defines the crux of the Enron problem. Discusses lessons that can be learned on brand management from the Enron case.

"Enron Scandal Leaves Bad Taste." ENR: Engineering News-Record, April 8, 2002.
Focuses on the impact of the Enron Corp. bankruptcy to the business sector in the United States, such as skepticism of financial statements. Discusses the indictment for Arthur Andersen LLP for obstruction of justice. Addresses the fallout of lack of confidence in Enron-owned purchasing suppliers.

"Et Tu Enron?" Adweek Magazines' Technology Marketing, April 2002.
Presents tips on dealing with ethical problems in business organizations. Gives advice on dealing with a situation wherein an employee is asked to do something which he believes is wrong. Points out issues involved in maintaining secrecy around employee layoffs. Provides suggestions for dealing with salespeople.

"Lawyers Finally Called to Account in Enron Debacle." Lawyer, September 16, 2002.
Reports on the class action lawsuit filed by stockholders of Enron Corp. against law firms Vinson & Elkins and Kirkland & Ellis in the United States. Includes details on the extent of the involvement of Vinson in the accounting scandal of Enron. Focuses on the special purpose vehicles of Enron. Cites the liability of law firms in the operations of large corporate clients.

"Trading Giant Enron Tumbles." Computerworld, December 3, 2001.
Reports on: the effects of the financial problems of Enron Corp. on its information technology (IT) business; the decision of Standard & Poor's to downgrade Enron stocks; investor lawsuits against Enron; and performance of the IT business of Enron.

"Lessons from Enron's Demise: Failed Titan Shows How Not to Run a Board." National Post, July 5, 2011.
This August marks the 10-year anniversary of the beginning of the end of Enron Corp. Once the seventh-largest U.S. publicly traded firm, with more than $100-billion in revenue and 22,000 staff, Enron officially declared bankruptcy on Dec. 2, 2001. Nine years ago, a U.S. Senate subcommittee helmed by Sen. Carl Levin released a brilliant 60-page report called The Role of the Board of Directors in Enron's Collapse. It's an impressive work of scholarship, including the review of more than a million pages of subpoenaed documents and extensive interviews with 13 Enron directors. The report amounts to a comprehensive guide on how not to run a board.

"Lessons Learned." Accountancy SA, April 2007.
This Special Report discusses the primary causes of the demise of Enron. It looks at the events leading up to the collapse in 2001 as well as the aftermath. In addition, the author considers the roles of the various role players, including management, directors, auditors, banks and analysts. The article also examines some of the subsequent controls put in place to prevent similar collapses from occurring in the future, and discusses whether or not a similar collapse could occur again.

"The Whistle-Blower: How Could a Fraud the Size of Enron Occur?" Credit Union Journal, August 15, 2005.
Former Enron executive and whistleblower Sherron Watkins told credit unions from around the globe that codes of conduct, while laudatory, are only paper, and that ethics must be exemplified and demonstrated by any organization's leadership. Enron, whose code of conduct was waived by the board on two occasions to permit questionable accounting procedures, has become a euphemism for corporate misconduct. Watkins rose to prominence when memos she had written to Enron CEO Ken Lay regarding fraudulent accounting practices were discovered by congressional investigators

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