The Public Perception Of A Company

1994 Words8 Pages
Many cases of fraud begin when there is an image to keep up. The public perception of a company is important, especially when said company is publicly traded. When something within the company goes wrong, and the good image is threatened, that is often when the fraud comes into play. They attempt to cover up the problem by inflating revenues, evading taxes, or showing misleading information on their financial statements. Although Crazy Eddie, an electronic retail business in the 70-80’s, did employ many of these tactics as a cover-up, their fraud started almost from the beginning, just because they could.
Crazy Eddie started out as ERS Electronics. Its namesake (ERS) was from the three equal partners, Eddie Antar, cousin Ronnie Gindi, and father, Sam Antar. They founded it together in Brooklyn 1969, under the original store name of Sights and Sound. In 1970/1971, Sights and Sounds was at a disadvantage because of the regulation and “fair trade” laws. These laws allowed manufacturers to set a price at which the retailers must sell the products. Smaller stores therefore weren’t able to use their lower overhead costs to benefit them by marking the prices lower, and didn’t have the steep advertising budgets that big chain stores were able to afford.
Despite the challenges, Eddie refused to give up. In 1971, he bought out his cousin Ronnie Gindi for $25,000, thus rendering him owner of 2/3 of the company, with his father, Sam Antar, owning the remaining 1/3. Eddie knew that
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