Thursday June 25, 2020
Yep ACCT 5308 Accounting Ethics Fall 202 is coming up. So it is time to start yet another edition of Who's the Worst!
This is a round up of current ethically challenged individuals across the spectrum of business, politics, sports, you name it.
As I say about this class, I never run out of new material.
Past Issues
https://professorelam.typepad.com/my_weblog/2016/07/whos-the-worst-2016.html
Wall Street - Business
Seems the auditors cannot find a couple billion dollars at Wirecard.
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Elliott Wave International's March 2019 Global Market Perspective foresaw the futility in such "Draconian measures" and showed this chart of Wirecard.
You can see that a five-wave rally into the 2018 peak was complete, marking a reversal in investor psychology -- and the next move would see a "downward spiral."
March 2019, Elliott Wave International's Global Market Perspective:
"Catastrophic" was exactly how the media described the selloff that followed:
But as you can see, from an Elliott wave perspective and the independent analysis of Elliott Wave International's Global Market Perspective, the writing was on the wall nearly TWO years before the June 2020 scandal.
The best part, our friends at Elliott Wave International have just alerted us to their July 23-30 Global Opportunities FreeWeek. This 7-day event invites you behind the paywall with instant access to their July 2020 Global Market Perspective -- and other free forecasts for 50+ most-watched global markets.
To join Elliott Wave International's Global Opportunities FreeWeek, all you need is a free Club EWI password. Take 30 seconds to get one now and on July 23-30, read their forecasts free. (No catch, and no credit card is required.)
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This article was syndicated by Elliott Wave International and was originally published under the headline Wirecard Goes from $24 Billion to Bust: A "Wake-Up Call" Two Years in the Making. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
This was a German Pay Pal, except LostPal might be a better name. And they have a $1.3 B loan coming due.
Ernst and Young ET called out for not detecting missing funds.
Will EY and the other three big auditors continue to be TBTF?
EY audits NMC Hospital accused of fraud
https://www.complianceweek.com/accounting-and-auditing/ey-audit-of-nmc-health-under-investigation/28859.article
EY was also th auditor on collapsed travel firm Thomas Cook
https://www.theguardian.com/business/2020/may/04/watchdog-investigates-ey-audit-of-scandal-hit-nmc-health
Jeff Skilling finally exits prison, plans new oil and gas business with wife.
CHK finally enters Chapter 11. From Morning Brew
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Chesapeake Energy filed for bankruptcy yesterday, and if you’ve never heard of this company before...the things you are about to read will blow your mind. Let’s start at the beginning. Chesapeake was cofounded and led by a character named Aubrey McClendon, who saw the promise of horizontal drilling and hydraulic fracturing (fracking) and gobbled up land for oil and gas exploration. Then came fantastic growth...and fantastic debt.
McClendon was forced out in 2013 after accumulating more than $20 billion in debt. McCendon apparently took his life in a single car crash. Day after he was indicted by a Federal Grand jury You Can't Fix Stupid hMCD is suing former CEO Stephen Easterbrook, yep, read why here Speakin of Stupid, SStan Bates asks Supreme Court to Review his Sente https://www.expressnews.com/business/article/Imprisoned-San-Antonio-businessman-wants-U-S-15475257.php?utm_source=newsletter&utm_medium=email&utm_campaign=SAEN_210Report&utm_term=news&utm_content=headlines The best attended CPE presentation I have ever made was on this case. Bates lied about his service as a US Marine. The Federal Judge on the case was a former Marine,, and infuriated at Bates for ts transgression. Bates will lucky if the Supreme Copurt does not send the case back to lower courts to consider if his punishment was enough.
The Ethics of CEO pay This is from an article in he SA Express News Sunday July 26 2020 Person Company Pay xTimes the median pay of an employee at that company Robert Pittman IHeart Media $22.9 M 108x William Eccleshare Clear Channel Outdoor $1066 M 225x. W M Rusty Rush Rusty Enterprises $7.1 M 94x Rush is a Peterbilt Truck Dealer with multiple locations Phillip Green Cullen Frost $4.78 M 84x Bradley Barron Nustar $4.4M 36x and the winner is Joseph Gorder Valero $28.2 M 103X Luckin https://www.cnbc.com/2020/05/12/luckin-coffee-fires-ceo-coo-after-sales-fraud-investigation.html https://techcrunch.com/2020/07/01/after-grinding-investigation-luckin-coffee-confirms-300-million-revenue-fraud/ Apr 02, 2020 · Luckin’s market cap was over $6 billion before yesterday, and the company hoped to overtake Starbucks in China by the end of 2020. The fishy numbers backstory: In January, Muddy Waters Research said it was shorting Luckin stock based on an anonymous report. Luckin said the report was false, and investors were mostly unmoved...until yesterday, when shares dropped more than 75%. Goldman settle Malaysia Fraud for $3.9 billion https://www.yahoo.com/news/goldman-sachs-malaysia-agree-3-101222539.html Malaysia former Prime Minister convicted https://finance.yahoo.com/news/malaysian-ex-pm-najib-convicted-042123125.html Under Armour After 26 straight quarters of 20% growth, the SEC is questioning UA's accounting practices. It appears UA has been channel stuffing. This means they 'sold' goods to customers at quarter end but the customer did not have to pay, so accepted the goods, or at least did not have to pay right then. UA's shares tumble 18% on the news. Politics Tennesse State Senator charged with embezzling $ 600,000 https://nypost.com/2020/07/29/tennessee-lawmaker-used-federal-funds-to-pay-for-lavish-lifestyle-feds/amp/ Law S A Attorney fraudulently bills millions https://www.expressnews.com/business/local/article/San-Antonio-attorney-fraudulently-billed-millions-15429006.php?utm_source=newsletter&utm_medium=email&utm_campaign=SAEN_210Report&utm_term=news&utm_content=headlines
Thomas J Henry, ambulance chaser par excellence, can solve your legal problems but not his, is he or is he not married....read on https://www.expressnews.com/business/local/article/San-Antonio-lawyer-Thomas-J-Henry-s-divorce-15456899.php?utm_source=newsletter&utm_medium=email&utm_campaign=SAEN_210Report&utm_term=news&utm_content=headlines |