Suchergebnisse

• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 28: EM.TV (Germany, 2000)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in European Companies 173 Case 28: EM.TV (Germany, 2000) “Entertainment Munich TV” (commonly referred to as “EM.TV”) was… …matter-of-factly, “I want to be big.” Accounting Fraud in European Companies 174 However, EM.TV was still tiny compared with European TV heavyweights… …Haffa brothers based on the allegations of untrue financial statements and securities fraud. Accounting Fraud in European Companies 175 The… …while continuing to paint a rosy picture of the company. In order to shore up EM.TV’s sagging share price, Accounting Fraud in European Companies… …, February 16, 2001 Fraud charges ground German TV’s high-flyers, Evening Standard London, November 21, 2002 Understanding Director & Officer Liability in…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 29: Infomatec (Germany, 2000)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in European Companies 177 Case 29: Infomatec (Germany, 2000) Infomatec, an Augsburg-based maker of interactive TV… …, Infomatec was a darling of Ger- many’s “Neuer Markt”. However, first came euphoria, then came fear, and finally, fraud. The founders of Infomatec, Gerhard… …Harlos and Alexander Haefele, were among the first board members of a corporation from the Neuer Markt to be arrested for allegations of fraud… …information. Accounting Fraud in European Companies 178 Although there were many attempts by single investors to sue Infomatec and the… …suspicion of insider trading and stock price fraud. Haefele received a jail term of two years and nine months, and Harlos was given a two years suspended… …close down in September 2002. Accounting Fraud in European Companies 179 The famous “Infomatec decisions” of the BGH constituted the beginning…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 30: Lernout & Hauspie Speech Products (Belgium, 2000)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in European Companies 180 Case 30: Lernout & Hauspie Speech Products (Belgium, 2000) In 2007, ten years after Jo Lernout and… …hundreds of disgruntled investors who lined up for the opening of the nation’s biggest fraud trial, seeking to get their money back. “Lernout & Hauspie… …of sophistication of the fraud and the amount of imagination that went into it”. Speaking at a news conference in Brussels, he said the fraud… …, revenue quadrupled to Accounting Fraud in European Companies 181 USD 31 million. In 1998, revenue mushroomed to USD 212 million, more than… …½ years because of “errors and irregularities”, a term that in accounting literature often signifies fraud. Jo Lernout and Pol Hauspie, the… …, the company voluntarily de-listed from the EASDAQ. In April 2001, L&H announced that a new probe of its operations found massive fraud. The probe… …of undisclosed and deceptive transactions to inflate reported revenue and, consequently, the stock price. Accounting Fraud in European Companies… …false impression of exponential growth. The LDCs had Accounting Fraud in European Companies 183 few, if any, employees, and were dependent upon… …of fraud. The revelations eventually led to an investigation by the American watchdog SEC. The Flanders Language Valley Fund N.V. Over the… …, recorded USD 160 million on June 30, 2000. L&H seemed to have cracked the Korean market. CEO Gaston Accounting Fraud in European Companies 184…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 31: Bankgesellschaft Berlin (Germany, 2001)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in European Companies 186 Case 31: Bankgesellschaft Berlin (Germany, 2001) It is a spectacular tale of incompetence… …, nepotism, corruption and accounting fraud that pushed one of Germany’s biggest banks to the brink of collapse. The news magazine Der Spiegel spoke of the… …million) was also expressly dispensed with. Accounting Fraud in European Companies 187 Later, investigations revealed that Berlin Hyp chairman… …said that it had been obliged to set aside over EUR 2 billion in provisions. About half the provisions were to cover Accounting Fraud in European… …in damages from BDO. Accounting Fraud in European Companies 189 The Walther report could have stopped the shenanigans years ago. But BDO… …weaknesses in the German system, Newsweek International, June 7, 2004 Bankgesellschaft fraud trial opens, Financial Times, July 29, 2005…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 32: Comroad (Germany, 2002)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in European Companies 190 Case 32: Comroad (Germany, 2002) For audacity and scale, few cases of accounting fraud can match… …: Accounting Fraud in European Companies 191 (1) a lack of clarity about the existence of a Hong Kong company named “VT Elec- tronics Ltd.”, and (2) a… …, in the wake of that firm’s role in the Enron fraud in the United States. KPMG’s merger talks with Andersen broke down as the Comroad scandal… …was removed, and in November 2002, CEO Bodo Schnabel was ultimately jailed for seven years for criminal fraud and market manipulation. The Wall Street… …total revenues and backed them up with the name of a Accounting Fraud in European Companies 192 non-existing Asian customer. By 2000, roughly 97%… …. Still, the courts rejected most of the civil claims against Mr. Schnabel. KPMG said that it was victim of the fraud – and indeed, some observers… …thought that the “we were fooled, too” defense could be valid. “Comroad is not an account- ing issue. This is fraud,” said Hans-Georg Bruns, a member of… …series of accountings scandals in Germany that have badly damaged investors’ confidence in Accounting Fraud in European Companies 193 financial…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 33: Vivendi Universal (France, 2002)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in European Companies 194 Case 33: Vivendi Universal (France, 2002) Initially, Jean-Marie Messier was being celebrated as a… …. According to Le Monde, Vivendi had appeared to dispose of 400 million shares in BSkyB, but, instead of selling them, Accounting Fraud in European… …separate SEC probe. In December 2002, fraud squad detectives raided Vivendi’s Paris headquarters and the homes of its deposed CEO, Jean-Marie Messier… …, hauling away boxes of docu- ments and electronic records. “The situation for Vivendi looks quite dangerous,” said a lawyer specialized in securities fraud… …cases. “Vivendi has to defend itself at a time when public anger over corporate fraud is running high, and juries are increas- ingly willing to hand out… …big awards in such cases.” Accounting Fraud in European Companies 196 In December 2003, the SEC announced that it filed and simultaneously… …settled a civil fraud action against Vivendi and its former CEO. Specifically, the SEC com- plaint included the following allegations (see SEC Press… …Accounting Fraud in European Companies 197 planned to dispose of. In a self-justificatory book published in 2003, Messier sug- gested that he was a… …, the company had continued to apply French GAAP. Accounting Fraud in European Companies 198 References: Vivendi Universal, with its… …turned up the heat for the French media giant, Business Week Online, November 18, 2002 Fraud squad raids Vivendi offices, The Independent, December 13…

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  Case 34: Royal Ahold (The Netherlands, 2003)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in European Companies 199 Case 34: Royal Ahold (The Netherlands, 2003) By the late 1990s, Royal Ahold N.V. ranked among… …have operated continuously (and honourably) for 100 years. However, shortly after the turn of the century, a case of Enron-style accounting fraud… …Amsterdam. “So many things have happened in the United States, but this is the first really large-scale fraud case we’ve seen on this side of the ocean.”… …goals ultimately became unreachable. Accounting Fraud in European Companies 200 In 2002, Ahold faced trouble in Latin America: operating… …Michiel Meurs, each of whom had been implicated in the accounting fraud. Standard & Poor’s and Moody’s slashed Ahold’s credit rating, and the… …retailer announced that the fraud was much more extensive than previously thought. Ahold said that the American subsidiary’s earnings had been overstated… …certain foreign joint ventures through fraudulent side letters. Accounting Fraud in European Companies 201 The earnings fraud at U.S… …confirmation letters were often inflated by millions of dollars and by more than Accounting Fraud in European Companies 202 100%. In most of the cases… …confirmation process at USF was systematically corrupted in order to help keep the fraud from being discovered. The SEC complaint alleged that USF… …by the SEC with aiding and abetting the fraud. Scott Friestad, associate director of the Commission’s division of enforcement, commented: “These…

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  Case 35: Parmalat (Italy, 2003)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in European Companies 206 Case 35: Parmalat (Italy, 2003) Parmalat, one of Italy’s most significant commercial entities and… …and EBIT of about EUR 600 million, Parmalat had Accounting Fraud in European Companies 207 become a global rival to Nestlé, Danone and… …account linked to the Cayman Islands subsidiary known as “Bonlat”, which appeared to be at the heart of the fraud. The Bank of America revealed that a… …creditors all lost money heavily. The case Accounting Fraud in European Companies 208 sent shockwaves through Italy where Parmalat was a household… …revenues through fictitious sales. The core of the fraud was a system of double-billing to supermar- kets and other retail customers. By billing twice for… …divisions. For example, one amount of EUR 65 million found its way to AC Parma, the soccer Accounting Fraud in European Companies 209 team owned… …located in tax havens around the world, and it engaged in complicated bond and derivative deals. The fraud was certainly not of the blatant “take-the-… …had echoes of several other recent scandals (see Trueman 2004, p. 4): – The fraud appeared to have been incremental, growing in magnitude over a… …is one that had been adopted by a great many fraud companies in recent years. Allegations against the auditors Public commentary and debate… …verification carelessly through Parmalat’s internal Accounting Fraud in European Companies 210 mail system instead of following the standard audit…

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  Case 37: Siemens (Germany, 2006)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in European Companies 218 Case 37: Siemens (Germany, 2006) For over 160 years, Siemens has stood for technological… …and I really mean zero toler- ance,” CEO Klaus Kleinfeld said in a statement. Accounting Fraud in European Companies 219 The Munich… …public prosecutor initially believed that a small criminal gang within Siemens was behind the fraud scandal, with money being channelled from the com-… …. Accounting Fraud in European Companies 220 The scope of the investigations was unprecedented, authorities said. German and American investigators… …collected more than 100 million documents and conducted more than 1,700 fraud interviews in 34 countries; Debevoise & Plimpton racked up 1.5 million… …guidelines – at least on paper. According to court docu- Accounting Fraud in European Companies 221 ments, Siemens just created a “paper program”, a… …discussed how to better disguise its illegal payments, while making sure that the employees didn’t pocket the money. Accounting Fraud in European… …, saying it had always fulfilled all its reporting duties in connection Accounting Fraud in European Companies 223 with the auditing of Siemens’s… …his conduct; he said he had assumed “political responsi- Accounting Fraud in European Companies 224 bility” for the affair. Siemens had charged… …than the Siemens fraud, and struck at the heart of German integrity. According to Wharton professor Thomas Donaldson, the attitude that bribery is…

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  Case 38: Daewoo Group (South Korea, 1999)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …226 2.3 Accounting Fraud in Asian Companies Case 38: Daewoo Group (South Korea, 1999) At the end of 1999, the Daewoo Group, one of… …the largest conglomerates in the world, collapsed in a spectacular fashion. The accounting fraud that was uncovered was described as one of the… …. The lending Accounting Fraud in Asian Companies 227 banks maintained rather lax standards, focusing on revenues and sales volume, instead… …“rags-to-riches” founder of Daewoo Group ended in a big corporate fraud scandal. Although the government prosecutor’s office released only scant details, it… …accounting fraud in a variety of ways. However, a substan- tial degree of the fraud occurred through asset swaps among Daewoo subsidiaries. One subsidiary… …illegitimately propped up Daewoo’s failing companies. Accounting Fraud in Asian Companies 228 Cover-ups of failed ventures When, e.g., Daewoo… …Motor attempted to cover up its failed USD 200 million investment in a car plant in Ukraine, the fraud bordered on the farcical. Daewoo Motor (the… …accounting fraud. Daewoo companies with questionable credit status would issue new stock that the overseas institutions would acquire, technically as equity… …for personal enrichment by Kim and senior Daewoo managers. Accounting Fraud in Asian Companies 229 Daewoo was not an isolated incident; a… …number of Korean firms found themselves in the spotlight over accounting fraud and embezzlement at the time of the Asian financial turmoil. In Korea, a…

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