Former FTE Networks CEO Michael Palleschi was arrested in New York for what authorities claim was a “years-long scheme to inflate FTE’s revenue, to conceal liabilities and expenses, and to embezzle company funds.” The company’s former chief financial officer, David Lethem, was arrested in Florida on the same charges. The pair of former executives was…
Tag: fraud
VEA Vice Chair on Motley Fool Money: CEOs and Politics, Wall Street Getting Rooked by Archegos
VEA Vice Chair Nell Minow was a guest on the Motley Fool Money podcast this week to discuss Archegos Capital and the failure of due diligence and CEOs and the failure to establish a consistent, brand-supporting message on political issues and campaign contributions.
Short-selling – Wirecard’s scandal shows the benefits of short-sellers | Leaders | The Economist
Wirecard’s rise and fall is a case study in the carnage possible when a firm’s accounting goes awry but national regulators and big investors are so seduced by the company’s narrative that they cannot, or will not, see it. It is also a reminder of how markets stand to benefit from short-sellers—who try to make…
The economic crisis will expose a decade’s worth of corporate fraud | The Economist
Booms help fraudsters paper over cracks in their accounts, from fictitious investment returns to exaggerated sales. Slowdowns rip the covering off. As Baruch Lev, an accounting professor at New York University, puts it, “In good times everyone looks good, and the market punishes you harshly for not keeping up.” Many big book-cooking scandals of the…
Volkswagen CEO Martin Winterkorn resigns amid scandal over emissions-rigging “defeat device.”
Martin Winterkorn, embattled chief executive of Volkswagen and public face of the company’s disastrous “defeat device,” said Wednesday that he is stepping down. His decision follows the unveiling of an emissions-rigging scandal in which Volkswagen systematically cheated on U.S. air pollution tests. While the full toll of the damage is yet to be taken, the…
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