Crime

The publicity surrounding the uncovering of the WorldCom fraud resulted in greater auditor oversight over American corporations and greater government oversight over auditors.

With revenues in 2001 of $38 billion and 240,000 employees worldwide, Tyco was one of America’s largest conglomerates, but a 2002 corporate fraud case nearly destroyed the firm.

The Teapot Dome scandal was a defining moment in American history that helped fuel the public’s general distrust of government and fears of corporate-governmental collusion.

The RICO Act was designed to put an end to the enormous illegal profits enjoyed by the Mafia.

Price fixing eliminates competition and forces buyers to pay higher prices than the market would normally bear.

The diverse enterprises in which various organized crime elements have engaged since the late nineteenth century have created a black market for goods and services in the United States...

Since Charles Ponzi perpetrated his scheme on a large scale in Boston in 1920, many others have defrauded investors through what have become known as Ponzi schemes.

Ships and goods of uncountable value have been lost to piracy from the colonial days to modern times.

The criminal act of identity theft costs Americans and American businesses millions of dollars per year in losses, legal fees, and investigations and fosters distrust between consumers and businesses.

Hoffa revived the American labor movement but also became symbolic of corrupt union leadership. Head of the Teamsters union, he worked closely with members of organized crime.

Richard Scrushy, the founder and chief executive officer of HealthSouth, was the first person to be indicted under the Sarbanes-Oxley Act of 2002, which held senior executives responsible for the accuracy and completeness of corporate financial reports.

The collapse of Enron, an energy conglomerate with reported revenues of $100 billion, is one of the largest bankruptcy and accounting fraud cases in U.S. history.

Drug trafficking is not a new phenomenon in the United States.

The Crédit Mobilier of America scandal entered the annals of American business as an example of corruption typical in post-Civil War commerce, especially in railroad construction.

Counterfeiting of money weakens the foundation of a financial system by devaluing its currency.

Although business crimes can be perpetrated by business owners, most white-collar crimes are committed by individuals who work for or manage businesses.

The Racketeer Influenced and Corrupt Organization Act, passed as part of the Organized Crime Control Act of 1970 and better known as RICO, was intended to control the activities and influence of mobsters and drug traffickers in legitimate businesses.

A Ponzi scheme is a fraudulent financial-INVESTMENT proposition in which initial investors are promised extraordinarily high rates of return, usually to be realized after a short period of time. These very high rates of return attract a few initial investors who are paid with the funds of subsequent investors.

Insider trading is the buying and selling of shares of stock in a CORPORATION by the company’s managers, BOARD OF DIRECTORS, or other individuals with a financial interest in or knowledge of the company. Some insider trading is legal and closely watched in the marketplace, while other insider trading is illegal and closely scrutinized by securities- industry authorities.