Martha Stewart Fraud Case

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

R/s in January 2014 Taylor was diagnosed with PTSD. R/s Taylor has two sons Joshua (1) and Kane (2-months-old). R/s Taylor is living with some relatives at 612 Hill Street in Conway, SC. R/s Taylor goes to work and leaves the children in Mary Ruth’s care. R/s Mary Ruth’s mind is unstable and she is schizophrenia. R/s there is a possibility that Mary Ruth will leave the children or drop them off to someone else is she gets tired of the children. R/s about two months ago Taylor was sleeping in cars with the small children. R/s the children were malnutrition when they were sleeping in cars. R/s it is alleged that Taylor is bipolar. R/s Taylor has a history of fraud with the food stamps, FADC, and Medicaid.

Chad Brown and his wife, Brandy Brown, and maternal step-grandmother, Carolyn Patterson, while responsible for the children’s welfare, did or allowed the following: Chase Brown, minor, left the family home, stole a bicycle. Chase Brown was apprehended by Union County Sheriff’s Office, officers Elizabeth and Jeff Wright for a report of a stolen bicycle. Once at the Union County Sheriff Office, Chase Brown reported that he and his two siblings, Timothy Brown (16) and adult sibling, Ashley Brown (18), were being locked up in room by their father, Chad Brown and Step-mother, Ashley Brown. Union Department of Social Services, assessment caseworker, Dana Lyles was asked to come to the Union County Sheriff’s Office to speak with the Chase Brown. Chase revealed to caseworker Dana Lyles that he and his siblings, Timothy Brown (16) and adult sibling, Ashley Brown (18) were being kept locked in a room by the following persons; Father, Chad Brown, Step-Mother, Brandy Brown, Maternal Step-grandmother, Carolyn Patterson and other minor step-siblings.

In looking at the suit filed by Anheuser, we can closer examine how Anheuser- Busch was damaged through the actions taken by Mr. Thayer. Anytime that an insider trading scandal takes place, there is always damages and repercussions. The most identifiable damage is that of money and capital. Anheuser-Busch paid nearly $40 million more for the acquisition of Campbell Taggart due to the active trading of Mr. Thayer, and the rest of the insiders. It is easily identifiable, that one damage to Anheuser-Busch was a $40 million dollar excess payment to acquire Campbell Taggart. By exploring and understanding capital markets, we find other monetary damages to Anheuser-Busch. These damages come from the cost of ongoing lawsuits with the SEC as well as with the defendants, Paul Thayer, and the other insiders. Another monetary damage from the effects of the insider trading is the allocation of management resources during the legal battles and

On December 29, 2001, just two days after Celebrity Martha Stewart sold her stock in ImClone, the companies stock dropped sixteen percent when the Food and Drug Administration told it had rejected the main drug Erbitux, for cancer treatment. (According to an article written by Julia Leite of the Columbia Journalism School) Martha, by selling right before the FDA’s announcement, she avoided a loss of $45,673, a tiny fraction of her net worth, which the famous Forbes magazine estimated at $700 million just six months earlier. This decision that Stewart made would end up being one of the biggest she would make during her whole career, that would also send her to federal prison. She was not the only person that had invested in the company that avoided major losses just before the decision of the FDA.

Through a hostile bid for control, Glaxo announced in 1995 its plan to create the world’s largest pharmaceutical company with the acquisition of Wellcome. Wellcome was known as an antiviral specialist and “had ranked between tenth and twentieth worldwide in revenue” (Jick & Peiperl, 2011, p. 348). The Wellcome employees felt secure in their position in this industry that had seen many takeovers and mergers with assurances from Wellcome Trust, holder of 40 percent of the firm’s shares, that the holding was secure and would not be sold without advance communication. Communication of the acquisition did not occur however and the bid came as a complete surprise to the Wellcome employees who felt betrayed by the decision. Details of the acquisition should have been originally shared by Wellcome Trust as promised, but now should be done by Glaxo as the CEO, Sir Richard Sykes, assured Wellcome CEO, John Robb, Wellcome management would play a role in the acquisition including job placement. This is an important aspect of any acquisition as the lack of or ineffective communication strains the employer-employee relationship during such time and reduces personnel morale (Bansal, 2017, p. 421). Of particular importance to both companies should be discussion and strategy as to how Glaxo would partner Wellcome Israel with their existing Israel distributor, CTS.

She took an opportunity when she received word that the company, ImClone was about to crash to remove 4,000 shares where she would avoid losing about 46k dollars. Investigation into the case and begun and developments in the case had started surfacing on the truths in the case. On December 27th, Martha Stewart told investigators that she was traveling on a trip when she called to check her messages and her broker had stated that the company had fallen under $60 per share so he sold them. According to the literature, Martha Stewart claims that she had set up a “stop-loss” order, which states if the shares fell below $60/share that they would be sold. Unfortunely, this was not the case when the broker’s assistant came forward and told Merrill Lynch that his boss had told him to lie about the “stop-loss” order. He started cooperating with federal investigators and later was fined and fired from the company along with his boss for the involvement they had in the scandal. On the other hand, after everything started falling apart, Martha Stewart later resigned from her board at the New York Stock Exchange. Later in August, investigators begin building their case against Martha Stewart in her involvement with inside trading and lying about the “stop-loss” order. Investigators reached out to Stewart’s lawyers but later made a statement that Martha Stewart would be pleading the Fifth Amendment and keeping quit about anything to do with the case. As a result, the SEC filed charges against Martha Stewart, and she was found guilty on four counts of obstructing justice and lying to federal investigators. On June 17, 2004, Martha Stewart was sentenced to five months in prison and two years of supervised release along with a healthy fine attached. Till this day, Martha Stewart pleads her innocence and states that she did not do anything wrong. She is currently making a comeback with her company and

The reporting party (RP) stated there is a belief that the licensee and Maria Dickerson are committing fraud. According to the RP the licensee is never available. The RP stated Maria Dickerson lives in the licensed home with her son. The RP stated when they arrive to the facility Maria is the person providing care within 10-15 minutes the licensee would arrive at the home. There were a few occasions when the RP made visits she only communicated with the licensee over the telephone. The RP stated the licensee never answers the phone call made to (916) 806-8085 however, the licensee would return calls made to that phone number.

S.1043A “prohibits anyone in possession of non-public, price sensitive information from dealing in, or engaging others to deal in, the shares of a company” (text). After Patricia gained non-public, price sensitive information about SEPL’s intentions to buy a large amount of shares in FPPL, she immediately told her sister and engaged her in buying shares in

Jordan Belfort is the notorious 1990’s stockbroker who saw himself earning fifty million dollars a year operating a penny stock boiler room from his Stratton Oakmont, Inc. brokerage firm. Corrupted by drugs, money, and sex he went from being an innocent twenty – two year old on the fringe of a new life to manipulating the system in his infamous “pump and dump” scheme. As a stock swindler, he would motivate his young brokers through insane presentations to rile them up as they defrauded investors with duplicitous stock sales. Toward the end of this debauchery tale he was convicted for securities fraud and money laundering for which he was sentenced to twenty – two months in prison as well as recompensing two – hundred million in

Abby Lackman is an outstanding officer. As Deputy Unit Manager for Chengdu’s Fraud Prevention Unit (FPU), Abby distinguished herself as an innovative leader and a sharp policy advocate, allowing us to advance core U.S. border security interests in a resource-constrained environment. She displayed a demeanor and results that were already at the level I would expect to see in a mid-level officer. I strongly recommend her tenure and promotion now.

I think it is interesting that you mentioned that O’Peele had signed off prescriptions for the electric power chairs using a purchased Medicare list. It showed how the government lacks some form of fraud protection. Medicare was paying for the wheelchair before making inquiries about what they were paying for. Medicare could probably detect fraud easier if bills where sent more promptly to patients before making payments. It makes me think of the high amount of pre-approved visits a person has when they visit a specialized doctor. It’s like once you see the doctor once and do not have to come back do they keep trying to bill for those pre-approved visits.

The topic I chose is Martha Stewart Indicted on Criminal Charges by Kenneth N Gilpin. Ms Stewart built her reputation in 1982 as an authority on cooking and entertainment with a publication of "Entertaining". Martha Stewart created Martha Stewart living magazine in 1990 and she bought out her stake in 1998. At the time, the magazine had annual sales of 180 million and Ms. Stewart's wealth was more then $1 billion for a time but the author states "in the last three years, her fortune has greatly shrunk, especially the last year, after reports of her legal troubles surfaced."

On March 19 of the year 2003, Securities and Exchange Commission brought the trading of HealthSouth to an end on the New York stock exchange, charging the company for inflating its earnings by more than 10 percent and overstated its profits by more than $2.5 billion between 1999 and 2002. HealthSouth’s trading reached to $30.81 in the year 1998, but ever since the trading of the company has been put to an end it reached to $3.91 per share. One week later, Owens pleaded guilty to changing and editing the company’s financial statements.

Donald Trump’s is a con artist who resembles his own university; he scams people out of their money, and his whole campaign is a scam. Trump lied to people on live TV saying that his university got an A approval rating by the Better Business Bureau. However, that is a lie; the last time they rated his university was in 2010 and they gave it a D-. Furthermore, Trump University shut down in 2011 and now Trump has many lawsuits that have been filed against his university for fraud. The people that paid to attend Trump University never actually met Trump even though they were promised. The closest any of the students got was taking a picture with a cardboard cutout of Trump. Trump scammed people between $20,000 and $60,000; but if Trump continually