Long Island Saving Bank Case Summary

An implicit theme of this case that I want students to recognize is the contrast between the persistent and vigorous efforts of David Sokol to “get to the bottom” of the suspicious items he uncovered in JWP’s accounting records versus what Judge William Conner referred to as the “spinelessness” of JWP’s auditors. The JWP audits were similar to most problem audits in that the auditors encountered numerous red flags and questionable entries in the client’s accounting records but, for whatever reason, apparently failed to thoroughly investigate those items. On the other hand, Sokol refused to be deterred in his investigation of the troubling accounting issues that he discovered. The relationships that existed between members of JWP’s accounting staff and the Ernst & Young audit team apparently influenced the outcome of the JWP audits. Of course, the Sarbanes-Oxley Act of 2002

As the founding attorney of Schreiber/Cohen, LLC, in Salem, New Hampshire, Jeffrey A. Schreiber devotes his legal practice to creditor debtor rights for businesses, business litigation and matters related to business and corporate law. He primarily represents clients in Salem or the surrounding area. The cases that Mr. Schreiber accepts typically involve matters such as consumer and commercial collections, crisis management and commercial bankruptcy* or reorganization. He has been rated AV-Preeminent** by Martindale-Hubbell, [1] and he has been named a top-rated lawyer by both The Boston Globe and The American Lawyer.

At Wells Fargo, to serve our consumers in a timely manner is and will always be a top

The dissent argued that the corporate veil should be pierced in this case. 
The argument was that Westerlea was organized solely to benefit Defendant, not to operate as a separate entity. Westerlea did not have a separate corporate identity because it was Defendant’s wholly owned subsidiary that had the same directors and management as Defendant. Westerlea was undercapitalized because Defendant provided Westerlea with small capital and Westerlea maintained insufficient funds to cover the cost of building the homes. Westerlea’s purpose

Citizens State Bank of Waverly was founded in 1907 by several individual investors. The Graham family, specifically Daniel Graham and his brother Mark took, over ownership in 1951. Eventually in 1985, the bank was sold to Catherine “Birdie” Jackson (formerly a Graham), Kim Jackson (wife and husband) and Daniel Graham. It has always been a locally owned, independent community bank with immense focus on customer service. At the end of 2012, the bank was purchased by Cattail Bancshares, Inc., a holding company formed by Robert “Bob” Meyerson and Suzanne Meyerson of Atwater, MN. This was viewed positively by the communities served, in that it would remain a true family owned, community bank.

He alleges he does not understand or know how any monies are distributed or taken from any of bank accounts which the insured banks with for his company. He maintained he has nothing to do with the bookkeeping being conducted with the company or assists Ms. Patty Chan with her accounting

The case study I choose was Pao v. Kleiner Perkins a sexual discrimination case brought by a former junior partner at the venture capitalist firm of Kleiner Perkins Caulfield & Byers LLC. Ellen Pao alleged she was discriminated against on the basis of her gender when the firm failed to promote her to general partner status. To support her claim, Pao pointed to the promotion of several of her male colleagues. One such colleague, with whom Pao had a relationship, allegedly subjected her to retaliation following the conclusion of their consensual sexual relationship. Pao blamed her lack of promotion on the allegedly rampant sex discrimination throughout the firm, which allegedly included holding all-male dinner parties and ski trips, asking female partners to take notes during meetings, placing male partners on significant accounts and boards in lieu of women, and excused sexual harassment from male partners.

Federal deposit Insurance policy was unsound but not corrected and that led to serious moral hazard problem:

Multiplying Sun Coast’s book value of equity with 0.8 gives a value of $47,095,840 (Figure 5.1) for the company’s market value under this assumption. This results in a share price of about $5,233 with a total number of shares outstanding amounting to 9000.

On April 21, 2001, Lee Farkas, the former chairman of a private mortgage lending company, Taylor, Bean, & Whitaker (TBW), was convicted for his role in a more than $2.9 billion fraud scheme (Schoenberg, 2011). This action contributed to the failures of Colonial Bank, one of the 25 largest banks in the United States, and TBW, one of the largest privately held mortgage lending companies in the United States. According to court documents and evidence presented at the trial, Farkas and his co-conspirators engaged in a scheme that misappropriated more than $1.4 billion from Colonial Bank’s Mortgage Warehouse Lending division and

This letter is in response to your correspondence received by Guild Mortgage Company (“Guild”) on October 26, 2016. Thank you for the opportunity to review and address your concerns.

Wells Fargo & Company is an American international banking and financial services. The headquarters is in San Francisco, California, and they work throughout the country. Wells Fargo offers many different services.

James Guisti, a trusted 14-year employee and the manager of an office of Greater Providence Deposit & Trust (GPD&T) was caught embezzling after his superior received an anonymous tip. James was abusing his power in the bank and taking advantage of his loan signing limit to write small loans for several unknowing or fake individuals. All of the loans were between $10,000 and $63,500 and were 90-day notes that did not require any type of collateral to secure them. James was then instructing other trusting employees of the bank to cosign the checks and cash the loan funds. Due to inefficiencies in bank policy, and the fact that the loans were small, the audit team was unable to detect the fraud. Also, in order to avoid being caught for unpaid loans, when the loans would mature James would take out new loans to pay off the old loans.

Records falsification was not the only illegal activity the Rigas family was wrapped up in. The family used company funds, unbeknownst to their investors, to finance personal endevours and interests. Examples include using corporate money to build a $12.8 million golf course on the Rigas property, using the company plane for personal vacation trips including a safari to Africa, and funding for two Manhattan apartments for his family (Markon, 2014). Not only this, but John Rigas purportedly used the company jet to fly a Christmas tree two times to his daughter in New York (Barlaup, 2009)! All of these incidents are just brief excerpts of the fraud and misuse of company funds that John Rigas and his family committed without any intention of ever paying back into the company. These actions, namely lying and stealing, prove to be the heart of the two moral issues that will be further analyzed.

The main entities in the case were Sky Air Inc. and Thyestean Ventures’ officials. The Chief Executive Officer of Sky Air Inc., Samuel Kaplan, and Thyestean Ventures’ managing partner, Stacy Simms, were the two main characters who drove the case. In this case, Kaplan had the task of promoting his company to ensure that it maximizes its profits. He was solely responsible for all the operations of the company as well as forming partnerships when a need arose. Mr. Kaplan was branded as a hard working entrepreneur, having grown a business from scratch. He knew that he would have to make this sound decision on his own. Stacy Simms had the responsibility to Thyestean Ventures to incur minimal expenses and maximize shareholders wealth.