In this paper I will be analyzing the research on Mickey Monus and his fraud crimes. I will exam the fraud and how it applies to this course, such as where it belongs on the fraud tree. Along with what type of fraud was committed, and how they got away with it for so long. Mickey Monus, the former president of the most successful multi-billion-dollar discount drug chain in American history, is from a town in Ohio called Youngstown. Monus is the child of two of Youngstown’s finest families and as a child, went to a prep school. Once he got of age, he then attended Babson College only to come back home and work with his relatives in the distribution business. In the early 80’s; approximately 1985, him and his friend, David Shapira visited …show more content…
The concept of the business was called “power-buying”, which is scooping up huge batches of inventory at special prices. This method offered the customers fewer selections of products, but in return great savings. Which the use of this technique, the business soon outpaced the companies that provided them the startup money. By 1988; the corporation had 100 stores. This was also the year that Monus was being honored as on of the year’s top entrepreneurs by venture magazine. Then in 1991, the company had spread to roughly 200 stores coast to coast. With this amount of success, Westinghouse Credit Corp. and an investment arm of prestigious Freres signed on to the cause. This further convinced him to “restore Youngstown’s self esteem”; he renovated the abandoned building in downtown and made them his headquarters, which then brought thousands of jobs to the valley. With the proceeds, he funded Camp Tuff Enuff which is a program for kids who are at the risk of drug abuse. He then went on to be the founder of the Semipro World Basketball League and a hometown team called the Youngstown …show more content…
Two days later, the Phar-Mor board confronted him with two books that had been found. The board had found that one of the books had largely inflated profits. This revealed that with the board, banks, and investors deceived, Monus was able to pull in more pay and sell stock at inflated prices to keep everything afloat. “To cover up the continuing losses, Pat Finn was now faxing falsified financial reports to the board of directors and to David Shapira every week. But in November of 1990, a secretary mistakenly faxed a report with the real numbers to Shapira. Here in black and white was a report which no CEO could ignore” (Media n.d.) This is when David Shapira took action; he notified the feds, investors and the public, changing the locks, and laying off 1,000 workers, firing the alleged accomplices, and shutting down the league and pride
This is the highest professional rating that Martindale-Hubbell offers to practicing US lawyers. Michael Ira Asen embarked on his career as a federal defender with United States District Court, Eastern District of New York, handling a number of cases that involved accusations of white-collar and organized crime. For the past 14 years, he has represented a large number of consumer goods merchants in the areas of civil recovery and employee restitutions after incidences of retail theft. Currently licensed to practice before six different federal courts in New York and New Jersey, Mr. Asen operates his own private practice in Greenvale, New York. In addition to maintaining this practice, he is a founder of the Sound Shore Symphony Orchestra and a lecturer for the National Business Institute.
UNDER ARMOUR Slide 1: Hi my name is Letycia Germain and I’m here to tell you about UnderArmour and where it all started. Under Armour is company that specializes athletic clothing and equipment. They also sponsor many professional athletes to promote their brand, such as Tom Brady, Stephen Curry and Dwayne Johnson. Slide 2: Kevin Plank was the founder of the now billion-dollar industry in 1995.
This was a great example for a new leader coming into a business with employees that have been there for years. It not only helped create a team-like community of employees, but it also gave them the ability to contribute to the new vision of Westlake Lanes. Givens also was able to start meetings with her employees every week to talk about how they are doing, and then end the meeting in a casual game of bowling to increase community in the workplace. Graduating from a highly rated business school Givens knew the importance of keeping track of finances.
It also provides a look into the corruption of the justice system and the democratic political process. Jurgis makes far more money by mugging, rigging elections, and working as a scab than he did as a regular wage earner. “They divided the spoils, and Jurgis got his share of fifty-five dollars and some change. He protested that it was too much…” (Sinclair 307). Jurgis makes more money as a criminal than he ever did working for the packers, so much that he feels like he does not deserve the share he receives.
Her business quickly expanded around many areas. “When Walker transferred her business operations to Indianapolis, the Madame C.J. Walker Manufacturing Company had become wildly successful, with profits that were the modern-day equivalent of several million dollars.” Madame C.J Walker was clearly an empowering woman. “Walker was as generous as she was successful, establishing a network of clubs for her employees and offering bonuses and prizes to those who contributed to their communities through charitable works. She promoted female talent” Madame Walker was setting a great example to the woman and to African Americans.
These transactions failed to be detected by their auditors, Coopers & Lybrand, whom would notify Phar-Mor in advance about which stores they would visit to observe inventory. Another misappropriation of assets included the investment of $10,000,000 of Phar-Mor’s funds into Monus’s personal projects, like the World Basketball League. Other important aspect of Phar-Mor’s fraud case was the fact that supplier companies were also involved. Tamco, a Phar-Mor’s supplier, began to send incomplete shipments while Phar-Mor wrote them down for the
One example of this unethical way of business, was his way of acquiring “Allegheny Steel Company.” The company was beginning to become quite the competitor, using a new method that allowed the efficient, and effective production of steel. The company’s new method was so successful, they were able to undercut Carnegie’s own prices. However, Carnegie began spreading false rumors of the steel being manufactured by Allegheny Steel Company, implying it was ineffective, spreading alarm to their buyers. He was able to hurt their company and take the the reins.
Another pressure presented in this case for Cendant Corporation was that for the top management once again. The top management needed to have their financial information seem profitable, therefore pressured the accountant of the company to falsify and “cook the books” to make the financial statements seem actually “profitable” when it wasn’t what It really was. As said in the previous question, income smoothing was used in this case by Cendant Corporation as an unethical practice to make the investors believe that their shares were all bright
They began a trek across the midwestern United States. There were many different companies throughout the trek. The most well known being the Willie and Martin handcart company. They traveled with handcarts until the group was able to reach their destination. Before beginning the trek, members said they would settle in “a city where we would build our temple and live in peace” (Swofford 1990).
These three individuals built businesses in industries that seemed to be struggling in order to help themselves
Bernard Madoff was a stockbroker who used his own investment company to run a multibillion-dollar Ponzi scheme. It was a family run business that his father in law, a retired CPA, helped him start up. On December 10, 2008, Madoff’s sons found out about this scheme and reported their father to the police. The next day, Bernard Madoff was arrested and charged with securities fraud. While Madoff is not the first person to create a Ponzi scheme – and unfortunately not the last – his accrued the most money in the entire history of Ponzi schemes.
Hollinger was doing very good as a newspaper. Many people wanted to invest in Hollinger. Many did put their money in hoping to get more for it. Black to investors that their money was going into stocks but was actually putting the money into his own bank account. He used the money for his own uses like taking his wife to Bora Bora for her 40th birthday (costing $40,000) This was very bad for the people that put their money in Hollinger.
Rosedale wrote of Monrovia’s strong partnership with its customers, thanking them for helping the company grow and thrive. It was those strong foundation blocks that Harry E. Rosedale established in the company’s start
It shows how the fraud was detected and the accounting practices that were used at the time, how the director
This three element fraud is often referred as a fraud triangle by the researchers (Cohen, Ding, Lesage & Stolowy, 2010, p. 276). On the other hand the theory of planned behavior focuses on the intentions behind the planned behavior. Ajzen (1991, p. 188) explains this as “attitude toward the behavior… refers to the degree to which a person has a favorable or unfavorable evaluation or appraisal of the behavior in question”. Cohen, Ding, Lesage & Stolowy (2010) have combined the fraud triangle and theory of planned behavior to understand that how the two theories can be collectively studied to find out the reasons behind the unethical activities that results in corporate frauds. Cohen, Ding, Lesage & Stolowy (2010) in their work studied various organizations including WorldCom and identified following: • WorldCom’s management had an excessive interest in maintaining the entity’s stock price and earning trends (p. 287).