FRAUD CASE

Fraud Case

Fraud Case

Introduction

Fraud is regarded as an intentional act that seeks to secure the author or a third party an illegal gain at the expense of a person. At company level, can be given through altered financial reporting, misappropriation of assets, improper expenditures and revenues, among others. The consequences of corporate fraud are economic losses, image and confidence of customers and investors. Some examples of corporate frauds occurred in the world are Enron, the energy company that try to hide their true level of debt through complex transactions with its subsidiaries, WorldCom, accounted telecommunications firm charges about 4,000 million dollars in deferred expenses in order to conceal their true losses, Global Crossing, fiber optic company recorded as revenue, income should be deferred, Vivendi, European communications entity manipulates its earnings in the consolidation of information with the business group, to obtain greater borrowing capacity, and Adelphia Communications, cable television company that is undercapitalized by granting enormous personal loans to its members with the consent of its directors (Fisher & Hoffmans, 2009). These, among many others, are some of the most notorious cases in the world of corporate fraud.

UBS Fraud Case

Swiss bank UBS suffered from the unauthorized commercial transactions African asset management division, the organization initiated a verification of compliance with required procedures, writes Financial Times. A new case of fraud associated with trading activities of traders, broke out at a time when the head of UBS Sergio Ermotti told investors in New York, how management eliminate the consequences of the previous row of the deals, which cost the bank $ 2.3 billion. About the incident in the African division became known yesterday at a meeting of the Tribunal, in which the former head of the British Branch of UBS Asset Management, John Pottedzh requires compensation of 100 thousand pounds from the Financial Services UK. The regulator said that the manager could have in the past to notice serious problems in managing the assets of the bank. Pottedzh argues that taken all possible steps to eliminate unauthorized transactions. Both sides agree on a process that took place in the British department chain of serious incidents, including fraud, money problems with the use and misuse of bank customers in cash. The loudest scandal erupted with UBS in September this year. In London, was arrested 31-year-old Kveku Adoboli, who is suspected of causing bank losses amounting to $ 2.3 billion. It is ...