The Magazine of Corporate Responsibility

Tag Archive for ‘Fraud’

Study: Financial Fraud Often Results in Bankruptcy

The study found that news of an alleged fraud resulted in an average 16.7 percent abnormal stock price decline in the two days surrounding the announcement. Companies engaged in fraud also often experienced bankruptcy, delisting from a stock exchange, or asset sale, and in nine out of ten cases the SEC named the CEO and/or CFO for alleged involvement, the study found.

Novartis to Pay $72.5 Million to Settle Illegal Marketing Charges

The charges involved off-label marketing of the cystic fibrosis drug TOBI. Under the agreement the federal government will get $43.5 million and 10 U.S. states will share $29 million. Three former employees will share $7.825 million to settle their whistleblower lawsuit.

Finance Reform Bill Could Increase Whistleblower Payouts

The legislation would require the Securities and Exchange Commission to award whistleblowers up to 30 percent of the fines collected by the government for providing “original information” regarding violations of securities laws. Based on some recent cases involving the U.S. Foreign Corrupt Practices Act, payouts could be in the tens of millions of dollars.

Enron on Broadway: No Accounting for Bad Behavior

“Enron” the play tries hard to stimulate, dazzle and entertain. The problem is that it tries too hard. In the process it dilutes the authentic drama and power of the story behind Enron the company, a real-life corporate tragedy that really needed no embellishment.

Survey: Executives Expect More Financial Statement Fraud

A survey of 2,100 business professionals found that more than half (56 percent) think more financial statement fraud will be uncovered this year and in 2011, as compared to the last three years. Financial services was expected by most to be the industry with the greatest percentage increase in financial statement fraud alleged by the SEC during 2010.

AstraZeneca to Pay $520 Million to Settle Illegal Marketing Charges

The settlement involves civil charges that from 2001 through 2006 the pharmaceutical company illegally marketed the anti-psychotic drug Seroquel for so-called “off-label” uses not approved by the U.S. Food and Drug Administration.

WellCare Director Resigns, Questions Accounting Oversight

In a rare public display of boardroom in-fighting, a Harvard Business School professor and health care expert resigned from the board of WellCare Health Plans Inc., asserting that the company’s accounting systems were in need of greater oversight and that some board members had conspired to undercut her authority and force her from the board.

VIDEO:Analyst Who Warned on Madoff Talks to Jon Stewart

Harry Markopolos, the analyst who tried in vain to persuade the Securities and Exchange Commission that Bernie Madoff’s investment company was a Ponzi scheme, is interviewed by Comedy Central’s Jon Stewart.

Pfizer’s “Never Ending Dance” to Regain Its Reputation

What’s it like to have your company plead guilty to a crime and pay a $2.3 billion fine? “To put it bluntly, it’s like being hit in the face by a two-by-four. Even for a big company, it’s a very, very difficult thing to go through,” said Douglas Lankler, Senior Vice President and Chief Compliance Officer of Pfizer, the world’s largest drug company.