Mercury Rising 鳯女

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Financial culinary skilling

Posted by Charles II on May 9, 2013

Reuters:

Hard-pressed company bosses across much of the world are under so much pressure to deliver on growth that many have resorted to cooking the books, Ernst & Young said in a survey Tuesday.

One in five of almost 3,500 staff quizzed in 36 countries in Europe, the Middle East, Africa and India said they had seen financial manipulation in their companies in the last 12 months, the accounting and consultancy firm said.

In addition 42 percent of board directors and top managers questioned in the fraud survey said they were aware of “some type of irregular financial reporting.”

Conspicuously missing from the country list: the US. Where Jeffrey Skilling of Enron could have his sentence reduced by 10 years. Because, of course, lightening penalties on white collar criminals deters crime.

4 Responses to “Financial culinary skilling”

  1. A friend’s business was recently looted by a “consultant.” Still digging for details and evidence, but it appears that quite a few local and national businesses were very happy to let an unauthorized consultant sign up the business for all manner of very crappy deals. Like Bain Capital, the con man initiated all manner of costly deals just so he could scrape some money off each time. If my friend’s business does not survive, sixty people will lose their jobs and two banks will not see their loans repaid while dozens of vendors take a hit, all so one guy could steal about a hundred thousand dollars.

    We’re hoping that because he only stole a hundred grand, criminal prosecution may be possible. If he had stolen millions, we’d probably never lay a glove on him.

    • Charles II said

      Yikes, Mark.

      I hope your friend is able to recover. If there was fraud involved, any deals signed should have no force.

      • “Better” news came last night. It’s now officially a criminal case, so the police will do the heavy lifting.

        Most bothersome is the part about how quickly large companies assumed this man’s authority was legit. One company refused to freeze their account without notifying the man who set it up (i.e., the con man). Despite the preliminary stage of the investigation and the gentleman’s lack of authority to sign documents, the company insisted criminality be alleged before they shut the con man out. Alleging criminal behavior is serious business, and they were trying to intimidate us. Today we alleged criminal behavior and gave them the deadline of the end of this business day.

        Dealing with American corporations requires hostages. In this case we had to make the corporation an accessory to the crime before they would agree to cooperate. I suspect many major street gangs deal with their victims more honestly.

      • Charles II said

        Unfortunately, the legal stuff makes no money for anyone but the lawyers. Many businesses suffer in the inordinate time it takes to resolve criminal matters. So, I hope your friend will get justice, and soon.

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