AutoRecovery save of White Collar Crime a Form of Occupational Fraud.doc

Announced that the sec inquiry had been upgraded to a

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announced that the SEC inquiry had been upgraded to a formal investigation, and in November was forced to revise its financial statements for the previous five years to account for $586 million in losses. Following this Enron’s accountancy firm, Arthur Andersen, received a federal subpoena and was eventually found guilty of fiddling Enron’s accounts. As the depth of the deception unfolded, investors and creditors retreated, forcing the firm into Chapter 11 bankruptcy. Sentences: Rick Causey (Chief Accounting Officer) – 7 and 1/2 years in jail. Andrew Fastow (Chief Financial Officer) – 6 years in jail. Jeffrey Skilling (Former Enron CEO) – 24 years in jail. Kenneth Lay (Former Enron CEO) – died before sentencing. The regulatory body responsible for reviewing firms’ financial statements, SEC missed warning signs concerning Enron’s misconduct.21 this failure partly reflected resource constraints. The SEC’s stated goal was to review every company’s annual report at least once every three years. However, in practice the annual returns of less than 50 per cent of public companies had been reviewed in the previous three years at the time of Enron’s bankruptcy, and no review of Enron’s returns had taken place after that of 1997, despite the warning signs. Enron former chief executive Jeffrey Skilling and founder Kenneth Lay were both found guilty Conclusions A large body of criminological research has focused on public attitudes about crime and different crime policies. Unfortunately, of the hundreds of criminological studies focusing on attitudes
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WHITE COLLAR CRIME 32 about crime, only a handful have focused on what the public thinks about white-collar crime. Yet research on white-collar crime attitudes is important for empirical, cultural, and policy-driven reasons (Piquero, Carmichael, & Piquero, 2008). In terms of empirical reasons, because so few studies have considered what the public thinks about white-collar crime, research on this topic will shed some light on how members of the public actually perceive this offense type. As well, such research will provide interesting, and important, insight into a particular culture or subculture. Perhaps most important, such research provides policy makers information they can use to implement prevention, response, and sentencing strategies . In the United States, sentences for white-collar crimes may include a combination of imprisonment, fines, restitution, community service, disgorgement, probation, or other alternative punishment. These punishments grew harsher after the Jeffrey Skilling and Enron scandal, when the Sarbanes–Oxley Act of 2002 was passed by the United States Congress and signed into law by President George W. Bush, defining new crimes and increasing the penalties for crimes such as mail and wire fraud. In other countries, such as China, white-collar criminals can be given the death penalty. Certain countries like Canada consider the relationship between the parties to be a significant feature on sentence when there is a breach of
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WHITE COLLAR CRIME 33 trust component involved. Questions about
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