Waste Management Scandal ( 1998 )

1173 Words Jun 29th, 2016 5 Pages
Waste Management Scandal (1998)

Waste Management Inc. was founded by Dean Buntrock and Wayne Huizenga in 1968. It generated $5.5 million in revenue just the first year and it reached $2 billion in 1985. By 1971, the company became more public after it acquired 133 acquisitions and it became the largest waste hauler in the nation. Waste Management Inc. manages and reduces waste, provides transfer, recycling and disposal services. It is a leading developer in landfill to gas-to-energy and waste-to energy technologies. Waste Management went through a massive fraud from 1992-1997. The six people who were involved in this scandal were Dean Buntrock (CEO), Philip Rooney, former president, Thomas Hau (CAO), Herbert Gertz, general counsel, James Koenig (CFO), and Bruce Tobecksen, Vice President of Finance. Buntrock was the main force behind the scandal. He obtained more than than 16.9 million through the fraud. Rooney, on the other hand, made sure that write-offs were not reported. Koenig, mislead the company’s audit committee and withheld information from auditors. He worked behind the scene and ordered the destruction of evidence. Hau was the principal technician. He came up with “one-off” manipulations in accounting to deliver the targeted earnings and came up with deceptive disclosures. Tobecksen was Koenig’s right-hand man. According to sec.gov, these people created financial misstatements to reach their “predetermined earning targets.”
The company was doing so well…

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