What is Waste Management fraud?
Waste Management, Inc. experienced many fraudulent crimes within its company between the years of 1992 and 1997. One of the fraud activities that occurred was avoiding depreciation expenses by assigning and inflating salvage values and extending the useful lives of the garbage trucks that the company owned.
Why did the Waste Management scandal happen?
The fraud case unravelled in 1997 when Waste Management appointed a new CEO, who initially began to review Waste Management’s financial statements and ordered a restatement of the past 5 year’s financial statements ‘When the company filed its restated financial statements in February 1998, the company acknowledged that …
How was Waste Management fraud discovered?
The alleged fraud came to light five years ago after a new CEO ordered a review of financial records. As a result, Waste Management restated its earnings for 1992 through 1997 by $1.7 billion – the largest restatement in corporate history, the SEC said.
Where was the Waste Management scandal?
The complaint was filed in the District Court of Chicago for the involvement of the said persons in the fraud by falsifying and misrepresenting the financial statements of Waste Management Inc. for a period of five years from 1992 to 1997.
How could the Waste Management scandal been prevented?
The Waste Management Incorporated scandal was one of largest of fraud scandals of its time. On the contrary, fraud in many cases is prevented through employees tipping off regulatory bodies.
How could the waste management scandal been prevented?
What was the punishment for the waste management scandal?
The Houston-based company — the world’s largest trash hauler, according to Bloomberg — agreed to pay $17.1 million in penalties on behalf of founder and former chairman Dean Buntrock, who the SEC accused of leading a massive accounting fraud.
What was the Freddie Mac scandal?
In December 2003 Freddie Mac, the federally chartered mortgage financing giant, agreed to pay a civil penalty of $125 million and implement measures to correct its accounting and governance problems as part of a consent order with a federal regulator.
Is Waste Management an ethical company?
Waste Management Named as a 2017 World’s Most Ethical Company by the Ethisphere Institute for the Tenth Time. This year marks Waste Management’s tenth year to be recognized, underscoring the Company’s ongoing commitment to leading ethical business standards and practices.
What was Freddie Mac 2003 scandal?
An accounting scandal erupted at the government-sponsored company in June 2003 when it disclosed that it had misstated earnings by some $5 billion — mostly underreported — for 2000-2002 to smooth quarterly volatility in earnings and meet Wall Street expectations.