U.S. Securities and Exchange Commission

CHAPTER I THE CONCEPT OF CORPORATE GOVERNANCE AND INSIDER TRADING This chapter shall deal with the concepts of corporate governance and insider trading, with explaining the development of the insider trading laws. It is essential to understand the concept of corporate governance first, in order to be able to understand the offence of insider trading in detail. Then the meaning and the concept of insider trading along with its evolution is explained subsequently in this chapter. 1.1 CORPORATE

authorities. A Ponzi scheme is an investing scam that promises high rates of return with little risk to investors. The operator generates returns for older investors by gaining new investors. Bernard was arrested on December 11, 2008 and charged with securities fraud. He pled guilty to 11 counts and was sentenced to 150 years in federal prison-the maximum possible prison sentence. A reported $17.3 billion was invested into the scam by Bernie’s clients and only about $2.48 billion have been returned to

there is any money left over to repay all of the swindled investors. Since most don 't know if he lost any money or how much he ever had, investigators don 't know what might be leftover, or where it might be. Investigators in the SEC and in the Securities Investor Protection Corp. are looking for the money by trying to follow the money trail. However it is probably safe to say if he was smart enough to outsmart thousands of investors out of their money, he is probably smart

Facts Several companies have performed methods of aggressive accounting by issuing financial statements to exaggerate their value. Either over inflating revenues, assets or cash flows, or understating any debts and expenses are examples of this type of fraud. These accounting swindles allow companies to have an efficient public appearance to investors and potential creditors. Nevertheless, according to a recent journal article from (Chen & Huang, 2013), these deceitful activities led to abnormal

the financial statement fraud in an organization. Situation Prior to the legislation of Sarbanes-Oxley Act, the regulations of financial statement were much more lax than current. There were only the rules declared by the SEC, the 1933 and 1934 securities laws (Carol, J., 2005). These laws required public companies to disclose the corporate information and have an independent party who reviewed and assured the company’s financial report. The public trusted the financial reports which were audited

Case Summary Security fraud is a white collar crime that involves the deception of investors or the manipulation of financial Markets (FBI, 2005). Security fraud is a broad topic that covers many different aspects of white collar crimes that individually can stand as their own form of indictable crime (FBI, 2005). Due to the broad reality associated with security fraud, when considering the different case studies, the Martin Shkreli case was the best option. Mr. Shkreli was a pharmaceutical executive

December 11, 2008, he primarily became known for being responsible for the largest Ponzi scheme in history. He was able to make $50 billion disappear as if the money had never existed by using new investors’ money to pay out the old. The Securities and Exchange Commission (SEC) had received tips about Madoff’s business, and paid his office a visit for an investigation. However, even after hours were spent searching through fabricated trading records, the SEC wasn’t able

Supposing, however, that an agreement is possible on a core set of financial standards and that they too are embraced by securities regulators as compulsory for foreign issuers, the road to commonality has at least two other impediments. The first problem derive from the flexibility that the IOSCO disclosure standards unequivocally grant to the securities regulators of the host country in a cross-border share offering. These standards cogitate that the core disclosure document

always steered "as far as possible" from the Indian stock market . The simple reason for this is that India is plagued by various scams, controversies, and allegations of insider trading that have not satisfactorily been acted upon. The Securities and Exchange Board of India (“SEBI”) has been in existence since 1988, and assigned

This paper will address the Securities and Exchange Commission’s rationale for charging Cardillo executives with the violations outlined in the case study and identify who was in violation or compliance with the AICPA’s Code of Professional Conduct and the reasons they were or were not complying. This paper will also analyze the actions taken by Cardillo’s outside auditors, evaluate the level of efficiency of the audit risk management, determine whether or not the five components of internal controls