Tyco International Case Study

banking deals”, as financial analyst maintain “strong buy” ratings due majority of the analyst was employed with the investment banks that benefited millions for Enron deals, as politicians received political contribution amounting to $7 million to both parties and supported high ranking government officials in return of becoming influential in political appointments and acquired billion dollars of loans and gains from international projects, and concluded “the lack of obvious ethical constraints on any one 's part demonstrates a major facilitator for Enron 's fraud” (pp.1221-1222). Giroux (2008) recapped as Enron’s stock price declined from $90 per share in August of 2000 down to $33 a share, followed by the firing of Fastow, however the

(2013) recognized Tyco International has proven that the companies can inflate its cash flow by improperly recording as capital expenditures, which should have been reported as booking expenses (pp.8-10). Ahmad et al. summarized that three former CEOs and general counsel arrested for theft and the false sale of securities of misappropriation of $600 million for personal use (pp.8-10). On the other hand, Ahmad et al. noted that the company sued former CEO to seek return of $100 million for unauthorized bonuses ($58 million), unauthorized loans ($43 million) and taking personal credit of charitable donations (over $43 million), as well as charged with tax evasion for sales taxes ($1 million) on $13 million artwork (pp.8-10). While Crumbley et al. (6 edition) implied that the former CEO was lavishly spending $135 million to finance lifestyle fitness fit for Brunei’s Sultan and own a shower curtain valued at $6,000, while the company grant benefits with no interest loan ($19 million) for the purchase of 15,000 square feet Boca Raton mansion and another $13 million assistance money to pay taxes, without disclosing to shareholders

(2004) conducted a forensic examination of HealthSouth (p.44). Weld summarized that according to PricewaterhouseCoopers forensic study, HealthSouth and its CEO overstated earnings from $3.8 billion to 4.6 billion, while Ernst & Young LLP received $3.6 million for 2001 financial statement audit, which denied knowledge of the fraud and cited HealthSouth executives for systemic deception (pp.44-45). Weld quoted SEC Director Stephen Cutler, who stated “HealthSouth 's standard operating procedure was to manipulate the company 's earnings to create false impression that the company was meeting Wall Street 's expectations" (p.45). Weld et al. indicated that the SEC charged HealthSouth for fake profits of at least 1.4 billion since 1999 under Ernst & Young. HealthSouth committed external fraud against Medicare by billing for physical-therapy services the company never performed and submitted falsified documents to verify the claims (pp.44-45). Crumbley et al. (6 edition) book mentioned that the SEC said that it started cooking its numbers since 1986, which Ernst & Young fail to find over 17 years with net income increased nearly 500 percent but the revenue grew only five percent, as well as HealthSouth inflated its cash balances (p.4121).

GLOBAL CROSSING (2002)

Ahmad et al. (2013) indicated that the SEC had charged Global Crossing with using "swap deals" with other telecom carriers to book as or used to pump up revenue and inflate sales by improperly recognizing entire