U.S. Securities and Exchange Commission

information is made public. For example “David Carpenter, Kenneth P. Felis, and R. Foster Winans, Petitioners vs. United States”. In this case R. Foster Winans was sentenced in 1985 for informing two stockbrokers about stocks and columns that have high predictable value on the market. R. Foster Winans disclosed this information to the stock brokers before the company made the information available to the public. The crime that was committed in this case is referred to as insider trading. Insider trading is when employees inside of a company have access to profitable information that has not been made available to public in regards to the stock market. In addition, insider trading is unethical because insider trading violates the U.S. Securities and Commission guidelines,…

and the historical roots involving the roles of the Securities Exchange Commission (SEC) are critical aspects of accounting. The Financial Accounting Standards Board (FASB) and the American Institute of Certified Accountants (AICPA) is a prevalent and has been a useful set of standards for accountants. A presentation of an overview of the role of the U.S. Securities and Exchange Commission (SEC) and the oversight responsibilities as related to the Public Company Accounting Oversight Board…

depression, the U.S. Securities and Exchange Commission (SEC) was established with the guiding principle to instil confidence in current and potential holders of stocks and bonds that publicly traded companies are managing funds efficiently and appropriately, which is to be achieved through “full disclosure” of the organizations’ financial performance in the form of quarterly and annual financial statements (Callahan, n.d.a, p. 1). Nevertheless, since the inception of the SEC, there have been…

After being charged with securities fraud, stock manipulation, money laundering, and other organized crime tactics (NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC), Belfort was sentenced to 4 years in prison and a $110.4 million dollar fine. However, after pleading guilty to fraud and money laundering along with testifying against his fellow associates, Belfort was given a reduced sentence of 22 months in Taft Correctional Center where he later wrote his biography. Daniel Porush was also…

employment with is not registered properly as required under the Securities Act of 1933, the first thing I would do if find out why. According to the SE website, there are exemptions allowed for certain securities, including “private offerings to a limited number of persons or institutions, offerings of limited size, intrastate offerings, and securities of municipal, state, and federal governments” (U.S. Securities and Exchange Commission, 2011, para. 3). It is also of importance that these…

Today’s global business landscape is one of constant change. The accounting industry like all others, is experiencing the effects of globalization and as the U.S. accounting industry continues to press forward with replacement of rules-based accounting standards under the U.S. Generally Accepted Principles, with principles-based accounting standards under International Financial Reporting Standards, adoption of IFRS is inevitable. Leading the push for a single set of high-quality International…

Dallas Gold & Silver Exchange, a jewelry company, created and filed with the Commission materially inaccurate financial statements since 2009. I. John Benson, the Chief Financial Officer of DGSE, was found to manipulate the amounts of inventory for 2009 and 2010 by inflating millions of dollars (Jacobson, 2012). He exploited the inappropriate controls of DGSE and made some fraudulent accounting entries; He concealed them with false inventory details and management representation letter. Mr.…

In December 2008, Bernard "Bernie" L. Madoff owner of Bernard L. Madoff Investment Securities LLC wasarrested for committing a $50 billion investment fraud, which later was found to be $65 billion (Bernard L. Madoff. February 9, 2009).Bernard Madoff 's business was an investing firm that pulled off a massive fraud. His firm took money from several people, rich or poor, it did not matter. His victims were Jewish philanthropists from the Upper East Side of New York, almost half the members of the…

Tyco also is said to have artificially inflated stock and benefitted abundantly (U.S. Securities and Exchange Commission 2002). Another ethical issue includes Tyco’s auditing firm, PricewaterhouseCoopers, who failed to recognise the corrupt accounting, which led to continuous unethical behaviour, as they grew confident nobody could stop them. Top executives’ depletion of Tyco’s funds not only is illegal as it is stealing but also is considered corruption and manipulation of loopholes. The…

reported about Stratton Oakmont and the success of their over-the-counter stocks. Articles since 1991 report multiple companies’ stocks issued by Stratton boost quickly and plummet suddenly. The New York Times was not the only one picking up on Stratton’s deviant activity. The Securities and Exchange Commission received complaints about Stratton Oakmont. In 1991, the SEC opened an instigation of Stratton Oakmont’s sales practices. By 1992, the SEC filed a permanent injunction with the Federal…