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

Per share with the strategy scheme the price pumped

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per share, with the strategy-scheme the price pumped up to $1000 range allowing the West Coast traders to make nearly $2billion dollars for Enron. Most miserably was that Enron’s traders never questioned if what they were doing was ethical, or moral nor they seemed to step back and ask why. They were remunerated with substantial multimillion dollar bonuses and their actions were justified because Enron’s executive orders were to generate profits. According to market watch (Leopold, 2002) Enron’s traders began manipulating California’s power grid in February of the year 2000 and they continued even when on June of that year heat temperatures were above 100 degrees. Essentially they would not allowed power to be sent to Northern California and they endured to do so until mid 2001 when power prices declined. So while the media portrayed a state in total chaos due to the state of energy crisis, the State of California was in total chaos with people being locked in elevators, car accidents, and elderly dying for lack of conditioned air. There was also a lack of accountability on Enron executive team members. For example when Kenneth Lay was indicted for fraud he denied that he had any personal knowledge of the accounting fraud and instead he blamed Jeff Skilling, Andrew Fastow and Richard Causey for Enron’s demise. Insisting he was a victim, in an interview with 60 Minutes
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WHITE COLLAR CRIME 14 before his trail, Lay said, “I don’t think I am a fool, but I think I was fooled…I can’t take responsibility for the criminal conduct of someone inside the company. Skilling also denied all knowledge of any fraud at Enron and there was anything wrong with the company at the time he resigned in 2001 which he stated was for personal reasons. This section of the paper introduce the reader to Stratton Oakmont Brokerage Firm and will share the white collar crimes committed by its CEO Jordan Belfort. The Rise Stratton Oakmont Brokerage Firm – Jordan Belfort Jordan Belfort entered Wall Street in the late 80s. Unlike Enron’s executives, who were well represented in the financial sector, Belford lack the same credentials and he had to work his way up to gain credibility and experience. Hence, driven by his determination to succeed he began his career in the finance sector as a connector of the Wall Street firm of Rothschild. In reference to Sutherland theory the author agrees that Jordan Belfort’s attitudes, drives, rationalizations and motives were acquired throughout a series of life circumstances and encounters that taught him the techniques for executing the white-collar crimes. Therefore Belford’s criminal behavior is learned with other people in a process of communication (Wells, 2013. Pag 12). Background Narrative Jordan Belfort was raised by two accountants in a tiny apartment in Queens, New York and as he writes on his memoir The Wolf of Wall Street since childhood his goal was to become a rich man. Similarly to Kenneth Lay, who was raised in a poor family, he too conducted a poor childhood life. Both had humble roots and both had the huge ambition to become wealthy to make things different for themselves and their families. They both worked many jobs, but while
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  • Fall '13
  • white collar, Enron Corporation

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