World Top 10 Business Scandals
In 1996, Volkswagen's ex-manager, Klaus-Joachim Gebauer, began picking up prostitutes for his firm's work committee. About ten years later, he also admitted for supplying Viagra to his colleagues.
FREDDIE MAC AND FANNIE MAE, 2003-2004
Freddie Mac and Fannie Mae went under scrutiny when they connected with the balance sheet manipulating companies. Both government-financed, mortgage financing organizations were deeply investigated by the Office of Federal Housing Enterprise Oversight, which revealed vague records of revenues.
Healthcare gigantic organization HealthSouth primary found itself under the magnifying glass when its MD Richard Scrushy sold its shares worth more than $70 million before releasing his earnings' loss, in 2002.
MARTHA STEWART, 2002
Martha Stewart found herself in a trouble after engaging in an insider trading plan. This scandal surfaced in 2002, just one day before the FDA announced its verdict to not review its new drugs to treat cancer.
MERRILL LYNCH, 2002
This is another scam where financial management and advisory giant Merrill Lynch faced trouble with the S. E. Commission, though they were not the ones in real, to crack the case.
TYCO INTERNATIONAL, 2002
In 2002 another scandal of Tyco Int. appears regarding the electronic components, health care and safety equipment when CEO Dennis Kozlowski and CFO Mark H. Swartz, were accused of stealing more $600 million from the company.
The word's second long distance telephone providing company was shockingly reported more than $3.5 billion dollars fraud, a case akin to the Enron Corp. that appeared less than a year before.
Just 3 days after WorldCom's scandal, Xerox discovered an uneven allocation of more than $5 billion in its revenues.
Enron, once the 7th biggest company in the United States, deceived shareholders and analysts by downplaying their debts and overstating revenues just to show the company more financially secure than it actually was.
EROME KERVIEL, 2008
It is among the largest frauds in banking history; Jerome Kerviel of French bank Sec. General was accountable for losses more than $7 billion. As a fact, the 30-year-old French trader is under strict investigation but still free.
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