41.9 Case Study

Read the David Miller case from Chapter 5. After reading the case, describe a reason why someone who has been entrusted with the firm’s assets would commit a fraudulent act against the company. Based upon your understanding of the case and your professional and personal experience, recommend a series of actions that should have been taken in order to pre

When assessing the economic damage to due to Paul Thayer and those that he tipped off about the acquisition of Campbell Taggart, it should be noted that some argue that this kind of insider trading circulates information and forces the stock to its “true value.” If we assume this argument to be flawed, then part of Anheuser-Busch stock dip after the announcement was due to the insider trading and the fact Anheuser-Busch probably paid more to acquire its target. Thayer and his friends trade the Campbell stock for nearly a month before any public announcement of the merger. On July 27 nearly half the volume was insider volume controlled by those individuals who were in violation of rule 14(e)-3 (See exhibit 2). The increased volume might

I believe that the dilemma is simple: a student challenges the school official authority. I said simple because not for the dilemma’s complexity rather for the regularity with which a young behave in a rebellious manner.

One of the main defenses E&Y took during the early stages of the HealthSouth suit was the fact that the SEC had no well-defined rules with regards to audit-related practices. Another defense was the mere fact that E&Y never faced a criminal indictment for the HealthSouth fraud. This was mainly due to the statute of limitations placed on securities fraud. It sets it at the earlier of (a) 2 years after the discovery of the facts constituting the violation or (2) 5 years after such violation. Thus, the DOJ was unable to file criminal charges against the firm because the partner on the audit (G. Marcus Neas) was “unaware” of the fraud in 1993.

The facts of this case are that Dr. Guiles who is self-conscious of his prostate cancer diagnosis is treated horrendously when he finally decides to have surgery ( Buchbinder, Shanks & Buchbinder, 2014). Considering that Dr. Guiles is already sensitive about his condition, his unbearable symptoms are not helping matters (Buchbinder et al, 2014). Upon arrival at the hospital, he is treated subpar. The admitting clerk is rude and unbecoming to a patient who isn’t feeling well and who is embarrassed about his sickness (Buchbinder et al., 2014). To make matters worse, he has to find his own way up to the floor by walking, which causes him to be even later in checking in because of the need to stop frequently to urinate as well as having difficulty in walking (Buchbinder et al., 2014). Once he arrives on the floor, the charge nurse is not welcoming and unprofessional (Buchbinder et al., 2014). After figuring out what to do with the paperwork; and the nurse aide delivers Dr. Guiles to his room, the nurse aide does not offer to help settle him in (Buchbinder et al., 2014). Therefore, Dr. Guiles is faced with battling obnoxious family members who are on his bed and to make matters worse someone is in the bathroom which doesn’t help his need of having to frequently urinate (Buchbinder et al., 2014). When the issues are brought up to the charge nurse, the charge nurse accuses Dr. Guiles of wanting preferential treatment

Overview of the Case: The Securities and Exchange Commission claims Mark D. Begelman misused proprietary information regarding the merger of Bluegreen Corporation with BFC Financial Corporation. Mr. Begelman allegedly learned of the acquisition through a network of professional connections known as the World Presidents’ Organization (Maglich). Members of this organization freely share non-public business information with other members in confidence; however, Mr. Begelman allegedly did not abide by the organization’s mandate of secrecy and leveraged private information into a lucrative security transaction. As stated in the summary of the case by the SEC, “Mark D. Begelman, a member of the World Presidents’ Organization (“WPO”), abused

Suppose that a large investment firm had approximately 10 percent of its total assets invested in funds managed by Madoff securities. What audit procedures should the investment firm’s independent auditors has applied to those assets?

The Court found that Cuban had not “misappropriated” any material non-public information because he had not violated a “legal duty to refrain from trading. Cuban had not promised that he would not trade after learning about a PIPE offering. The judge also said that the SEC failed to show that Cuban undertook a legal duty to not use the information he learned from those two phone calls with Mamma.com representatives. Mark Cuban did not have any fiduciary duty to not act upon the information. The Mamma.com CEO asked Cuban to keep their conversation confidential. However, that didn’t prove that Cuban had a legal duty to Mamma.com that would prohibit him from selling his shares based on what he was told. He just promised to not disclose the information to the others, not promised to not act upon what someone told him.

Both parties consulted their attorneys whose guidance instructed them that they did not have to disclose the information. The motivating factor in both decisions was to protect the livelihood of their companies. The facts of the information that had been revealed to each company had not been proven.

Since the evidences are clearly shown, Mebel, Doran & Company has many options to solve this problem. Firstly, Company should fire the person or people involved in this issue to show client company and public that company is not collaborated with them. Secondly, Company might have to pay some compensation for partial loss on Knox corporation deal in order to maintain relationship and close this acquisition deal. Thirdly, Company can notify the U.S. Securities and Exchange Commission or SEC to investigate this matter. Each option has its own advantages and disadvantages.

Throughout the case, it can be analyzed and expected to say that Deloitte & Touche have committed a breach to its fiduciary duty to Vertical Pharmaceutical at the end. Vertical Pharmaceuticals Inc., realized a huge loss as a result by Deloitte & Touche. Therefore, this shows that Deloitte & Touche did indeed breach their fiduciary duties. All the falsified reports and malpractices that were said to be revealed by Deloitte & Touche would be said to not be real by the forensic audit that was conducted. At the end, the court can rule that Deloitte & Touche did indeed breach their fiduciary duty to Vertical Pharmaceuticals.

The year was 1940 and walking around town was completely different back then it was safer and individuals were willing to help one another. There were two ants named Ethel and Jack, they both knew that they were for each other. Because Jack would protect Ethel and she knew that he was a one of kind ant. The couple has been married for over thirty years. Every Saturday morning they would take a nice walk down to the pond and watch the sun rise up. The couple lived in New York City and was married for over thirty years. The pond was on 42Street on the Upper East Side of Manhattan. Jack and Ether lived on the 19th street that was 23 blocks away it would take them about 30 min to walk from their home to the pond. Ethel and Jack are very successful business owners they own their own clothing store that sells clothes for the ant community. Since their children are all grown up and they have their own family’s to raise. Ethel and Jack are in need of some help with their designer store. The couple owns multiple businesses which makes them very wealthy.

The scandal that I chose to research is HIH Insurance. While reading I learned that it was one of the largest corporation downfall in Australia’s history, March 15, 2001 HIH insurance was placed in a provisional liquidation with an estimating lose that totaled to 5.3 billion. At the time of the collapse, HIH Insurance Corporation, director Rodney Adler pleaded guilty February 16, 2005, and on April 14 he was sentence to four-and-a-half years' jail, with a non-parole period of two-and-a-half years. Rodney criminal charge was one count of obtaining money, misleading statements, being dishonest and failing to discharge his duties has the director of HIH Insurance and two counts of disseminating information when he knew it to be false. Something

B. The case talks about the corporate governance practices at Citic Pacific and the affect it had on this investment decision.

Financial losses are commonly seen resulting from unethical business activities. Business ethic, encompassing moral principles and values guiding business and personal doings, concerns the moral elements of business activities (Alexei, 2008). It is important for balancing the interests among stakeholders. In 2009, the biggest insider trading in Hong Kong was first sentenced in the District Court. The defendant, Du Jun, a former managing director of the fixed income division at the multinational investment bank Morgan Stanley, was being prosecuted for insider trading and faced 10 charges in total. After the appeal raised by Du, a finalized restoration order was issued for him including a 6-year imprisonment along with a fine of HK$23.9 million to be paid to about 300 affected investors who had sold their shares to Du without prior knowledge relating to his insider dealings.