Bankruptcy Fraud
Bankruptcy is a way out for debt ridden companies and people. Unfortunately, it opens up many creative avenues for fraud. Bankruptcy fraud is on the rise in the world today with many hidden assets being recovered from those that were declared insolvent. Know more about the extent and types of global bankruptcy frauds from the articles showcased below.
Ebbers, Icon of Dotcom Greed, Jailed for 25 Years
Bernard Ebbers, the former chief executive of WorldCom, was sentenced yesterday to 25 years in prison for his role in the $11bn (£6bn) fraud that drove the once high-flying American company into the largest bankruptcy in corporate history.
Investigators Target Founder's Family
The son, daughter and brother of Calisto Tanzi, Parmalat's disgraced founder, were arrested yesterday by investigators probing the fraud at the bankrupt food company. Stefano, Francesca and Giovanni Tanzi, suspected of fraudulent bankruptcy and criminal association, were arrested at their...
Parmalat May Cost Bank of America $274m
Bank of America, which has become entangled in the accounting fraud at bankrupt Italian food group Parmalat, yesterday said its exposure to the firm totalled $274m (£152m). The bank triggered the bankruptcy of the company at the end of last year when it denied the existence of an...
Now Enron is Challenged Over Last-minute $1bn Lifeline
Federal investigators are examining whether Enron executives may have committed fraud by borrowing $1bn in an eleventh-hour attempt to stave off bankruptcy last year.
FBI puts cuffs on former WorldCom chiefs
US officials continued their crackdown on corporate scandals yesterday with the arrest of two former WorldCom executives for their alleged part in the $3.85bn accounting fraud that tipped the company into bankruptcy.
The virtual reality G8 summit
Our leaders indulge in denial as WorldCom's timebomb explodes. The timing was perfect. As the jets bringing the leaders of the G8 to their annual powwow were landing in Calgary, news was breaking that WorldCom was on the edge of bankruptcy following the discovery of the biggest accounting fraud in history.
WorldCom Formally Charged With Fraud
WorldCom today moved closer to bankruptcy as US regulators formally charged the telecoms giant with fraud by inflating its profits through improper accounting.