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Accounting Fraud

All articles tagged with #accounting fraud

business25 days ago

Tricolor Executives Face Fraud Charges Amidst Collapse and Industry Concerns

JPMorgan Chase was aware of serious accounting weaknesses at Tricolor Holdings for over a year before its September collapse, which involved double-pledged loans and inflated balance sheets. The company filed for bankruptcy shortly after investigations revealed financial misconduct, including a scheme to inflate collateral and personal expenses by its CEO, leading to legal actions and JPMorgan taking a $170 million charge.

via Financial Times|
#accounting-fraud#auto-loans#bankruptcy
business1 year ago

Macy's Employee Uncovers $154 Million Expense Fraud

Macy's is investigating a former employee who allegedly concealed $132 to $154 million in delivery expenses through fraudulent accounting practices. The company delayed its third-quarter earnings release to complete the investigation. Experts suggest the employee may have manipulated expense coding to hide costs, possibly motivated by performance incentives. Despite the issue, analysts believe the problem is contained and not significant compared to Macy's overall expenses. The company is focusing on strategic growth plans amid ongoing financial challenges.

via Fortune|
#accounting-fraud#business#corporate-governance
finance1 year ago

Super Micro Computer: A Potential Comeback Story with Recent Stock Surge

Super Micro Computer experienced a volatile 2024, with its stock soaring due to high demand for its energy-efficient servers amid the AI boom, only to plummet following accounting fraud allegations and an auditor resignation. Despite appointing a new auditor and plans to rectify financial reporting, trust in management remains low, making it a risky investment. While it could potentially rebound in 2025, the uncertainty and lack of institutional investor confidence suggest there are safer investment options available.

via The Motley Fool|
#accounting-fraud#ai-demand#finance
finance2 years ago

C3.ai Stock Continues to Plummet Amid Accounting Allegations and Short Seller Criticism.

C3.ai's stock fell for the second day in a row as investors reacted to allegations of accounting fraud made by Kerrisdale Capital. The lack of a public response from C3.ai may have further shaken investors. Even before the allegations, there were reasons to avoid the stock, including declining revenue and wide losses. The stock now trades at a price-to-sales ratio of around 10, which looks stretched even after the recent decline.

via The Motley Fool|
#accounting-fraud#c3ai#finance
business2 years ago

EY receives two-year ban from auditing public interest companies in Germany over Wirecard scandal.

EY has been banned from auditing companies of public interest in Germany for two years and fined €500,000 ($544,000) over its failures as the auditor of Wirecard in the years before the digital payments company’s collapse. Germany’s auditor supervisory authority APAS imposed sanctions on the auditor of Wirecard over “breaches of professional duty” between 2016 and 2018. Wirecard filed for insolvency in 2020 following the discovery of a $2 billion accounting fraud that regulators, the company’s supervisory board and its longtime auditor failed to spot.

via CNN|
#accounting-fraud#auditing#business
business2 years ago

US Navy Shipbuilder Faces Charges for Massive Accounting Fraud

Three executives of Austal USA, a prominent shipbuilder for the U.S. Navy, have been indicted for orchestrating a multi-year accounting fraud scheme. The defendants are accused of manipulating an accounting metric to inflate Austal Limited's reported earnings in its public financial statements. The scheme involved using fraudulent devices to conceal growing expenses that should have been included in Austal USA's financial statements. The defendants face multiple charges and could each face up to 30 years in prison if convicted.

via gCaptain|
#accounting-fraud#austal-usa#business
legaldefense2 years ago

US Navy shipbuilding contractor Austal hit with accounting fraud charges.

Three executives at Austal USA, a Navy shipbuilding contractor, have been indicted for allegedly orchestrating a multimillion-dollar accounting fraud scheme from around 2013 through at least July 2016. The trio allegedly sought to artificially reduce cost estimates for Navy shipbuilding projects by tens of millions of dollars, resulting in a false overstatement of the company’s reported earnings in public financial statements. The DOJ claimed that they did this in part to maintain and increase the share price of the company’s stock, and when the higher costs were eventually disclosed, the stock price fell significantly and Austal USA’s parent company, Austal Limited, wrote down more than $100 million.

via Fox Business|
#accounting-fraud#austal-usa#doj
legal2 years ago

Austal Executives Indicted for U.S. Navy LCS Fraud.

Three executives of Austal USA, a shipbuilder that constructs vessels for the U.S. Navy and Coast Guard, have been indicted on accounting fraud charges. They are accused of falsely inflating the company's reported earnings, misleading shareholders and investors, and manipulating an accounting metric to hide growing costs. The executives are each charged with one count of conspiracy to commit wire fraud and wire fraud affecting a financial institution, five counts of wire fraud, and two counts of wire fraud affecting a financial institution.

via Defense News|
#accounting-fraud#austal#executives
legal2 years ago

Former Austal president indicted in accounting fraud scheme.

Three executives of Austal USA, including its former president, have been indicted by a federal grand jury for their alleged involvement in an accounting fraud scheme that misled investors about the company's financial condition for three years. The executives are accused of conspiring to mislead shareholders and investors about Austal USA's finances by artificially reducing and suppressing an account metric known as "estimate at completion" in relation to multiple Littoral Combat Ships that Austal was building for the U.S. Navy. If convicted, the executives face up to 30 years in federal prison for the conspiracy count and each count of wire fraud affecting a financial institution, and 20 years in prison for each count of wire fraud.

via AL.com|
#accounting-fraud#austal-usa#grand-jury
legal2 years ago

Austal USA executives indicted for accounting fraud scheme.

The former president of Austal USA, Craig Perciavalle, and two other former executives have been indicted for allegedly orchestrating an accounting fraud scheme at the Mobile shipyard between 2013 and 2016. The scheme involved the Littoral Combat Ship program and prosecutors say the three men falsely overstated Austal's reported earnings in its public financial statements, hiding growing costs that should have been incorporated into Austal's financial statements. All three men face up to 30 years in prison if convicted.

via WKRG News 5|
#accounting-fraud#austal-usa#doj