Case Study 7.8

Our project team analyzed the Fraud and Illegal Acts Case (True blood Case Studies- Case 08-9), which involves a questionable sales transaction made between Jersey Johnnie’s Surfboard, an SEC registrant, and Mr. Sinaloa, an independent sales representative of the company. As a simplified overview of the case, an external audit firm was hired on to perform a year-end audit of Jersey Johnnie’s Surfboards, Inc. Towards the end of the audit, the engagement partner notified the auditors that there could be a possibility of fraud and illegal acts made by the company.

The information that should be obtained from the patient at the time of scheduling the appointment is the reason for the visit, name, DOB, phone number, and insurance information.

I would also contact all of his registered clients and confirm their information with the

When Ms. Stewart found out about the investigation, her first instinct was to lie and try to cover up the fact that her broker gave her before hand knowledge about the soon to be falling Imclone stocks. I believe this case and investigation was tried out in the media

-4/SD = -4/2.7 = -1.48 ≈ -1.5 SD (negative means towards the right therefore there would be an increase)

According to Securities Exchange Act of 1934 under Rule 10b-5, plaintiff which was the defrauded investor Hochfelder needed to prove that Ernst & Ernst intentionally manipulate the escrows investors.

The article states that, “Kozlowski expended $2 million dollars on a birthday party for his wife, as well as a $6,000 shower curtain.” (Crawford, P.2). Mr. Kozlowski’s also purchased expensive one of a kind artwork pieces that came from transferred funds out of a “stock loan plan” that was intended to help executives’ pay taxes on stock awards. He also stole from the employee relocation program designed to help workers afford the adjustment from relocating within the business. Yet, in Kozlowski’s and Swartz’s minds, they feel these extravagances were acceptable. They stated that the company was aware of these expenses, and gave the money to them for their wages. A chairman for the board stated that “the wording of the stock plan could be interpreted to allow the funds to be used for other purposes” (Cohen, et al). As a result of this vagueness in policy, Mr. Kozlowski used the funds like his own personal credit card.

Re: Examination of Alleged Racketeering Conspiracy and Insider Trading by the Chairman and officials of Crazy Eddie, Inc.

Looking at the case 41.9 there was a violation in sections 32 of the Securities Exchange Act of 1934. This violation was done by R. Foster Winans in which he committed some insider trading where he agree to provide Felis and Brand with information that was to appear in the “head” which is a widely read and influential column. This information was to be provided by Winans to the brokers the day before it appeared in the Journal. Now taking that into account this is a serious violation of insider trading which is the illegal practice of trading on the stock exchange to one’s own advantage through having access to confidential. The classical theory of insider trading is the theory I believe should be used for the prosecution of this case.

This month, we start with another of David Richardson’s (HWL Ebsworth) case note. David, a regular contributor and a member of our editorial board, provides a summary of Gogetta Equipment Funding v Mark & Liz . In this case, the court had to determine which of two unregistered securities had priority where both lenders concerned were found to have been derelict to some degree. Which was the “better equity? This case note will answer that for us.

E & Y was consulted and they should have provided an evaluation to ensure that Lehman Brothers was remaining US GAAP compliant. Jennings (2011) notes how E & Y failed to evaluate the official judgements of the United Kingdom law firm and normally consider using an opinion from a law firm outside the United States is not ethically prudent (p. 38). However, when E & Y was officially confronted during the audit with this new practice, E & Y is responsible to investigate and properly report its

B. Extent of the Information Diffusion The analysis in Section III assumes that all trades not made by one of the 38 insiders are uninformed trades. It is critical to verify the soundness of this assumption. If it is not true, then conclusions based on the estimates of trade informativeness will be incorrect. There are several reasons for believing that there was no direct information leakage to other traders outside of the identified group of 38 individuals. First, our sample arose through the costly and extraordinary effort of Anheuser-Busch in preparation for civil litigation against brokerage firms that employed two of the key insiders. Attorneys for Anheuser-Busch began by deposing all the individuals identified by Mr. Thayer as having received information from him. Anyone identified in those depositions was subsequently deposed. The process continued until all tippees identified in

In light of the facts provided the ‘show-stoppers’ that stem to mind are in relation to the dismissal of the underwriter from the syndicate; depth of analyst research; low expense ratio; and timing. Ordinarily, where an underwriter is involved in a public or private offering the importance of undertaking a proper due diligence is paramount as it provides a complete defense, against a strict liability, under section 11 and 12 of the Securities Act 1933.

Delong, T. and Vijayaraghavan, V. (2002) Mellon Investor Services (ECCH case reference 9-402-036, Harvard Business School)

One May afternoon, while sitting in his cubicle at WorldCom Inc. headquarters located in Clinton, Mississippi, Gene Morse was stunned to find an accounting entry for $500 million in expenses, which was not accounted for with any invoices. He immediately reported this entry to his boss, vice president of internal audit Cynthia Cooper (Pulliam & Solomon, 2002). Little did they know at the time that this discovery would begin a journey for Cooper and her team that would challenge their core values, ethical beliefs, moral principles, and strain their physical strengths and personal relationships. They would eventually unearth a $3.8 billion dollar fraud. Cooper was