How Common is Securities Fraud?

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According to a new study, ten percent of public companies commit securities fraud each year. Questions: Source: Livni, E. (2023) Just How Common Is Corporate Fraud? The New York Times, Jan. 14 (Retrievable online at https://www.nytimes.com/2023/01/14/business/dealbook/how-common-is-corporate-fraud.html?)

Coinbase Reaches a Settlement with New York Regulators

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According to the New York Times, Coinbase, a publicly traded cryptocurrency trading exchange based in the United States, has reached a settlement with financial regulators in New York. Questions: Source: Goldstein, M. and E. Flitter. (2023). Coinbase Reaches $100 Million Settlement With New York Regulators. The New York Times, Jan. 4 (Retrievable online at https://www.nytimes.com/2023/01/04/business/coinbase-settlement-anti-money-laundering.html)

More Than Three Years of Legal Battles End in Settlement

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According to the Washington Post, Juul Labs, an e-cigarette manufacturer, announced that it reached a settlement with almost 10,000 plaintiffs for 5,000 cases alleging nicotine addiction and other health problems. Questions: Which company partially owns Juul? What long-term health consequences have e-cigarettes been linked to? In September, a lawsuit was brought by 33 U.S. states… Read more »

Is the Bird Really Freed or Just Flying the Coop?

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When Elon Musk took over Twitter on Oct. 27, he declared the “bird” being freed. What a difference less than a month makes! Questions: What are some of the important organizational changes that have happened within the Musk takeover of Twitter over the last three weeks? How much did the acquisition of Twitter cost? With… Read more »

A $5 Million Fraud Against Hundreds in California Results from Postal Theft and Fraud

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According to the California Attorney General, 56 individuals involved in a scheme resulting in the theft of nearly $5 million from hundreds of people in a widespread mail theft and postal fraud operation. Questions: How many suspects were arrested as part of the fraud? Out of which counties were the suspects operating? What will the… Read more »

Amityville Horror?

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According to Susan Edelman, witnesses in alleged COVID vaccine fraud case have put 82 NYC educators in potential legal danger. Questions: Why are these educators in potential legal danger? Who committed the fraud? What was the amount of ill-gotten gains derived from the fraud? According to the article, what percentage of the COVID vaccines given… Read more »

Insider Trading

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According to the Washington Post, Stephen Buyer, ex-GOP Congressman from Indiana, is accused of exploiting nonpublic information in his role as a corporate consultant to reap hundreds of thousands of dollars in profits. Questions: Which arm of the government charges individuals with insider trading? During what period did Buyer act on insider trading information? What… Read more »

Largest Penalty Fine Ever by the SEC for Ernst &Young (EY) Cheating

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According to the New York Times, the Securities and Exchange Commission (SEC) said the cheating involved hundreds of EY’s workers from 2017 to 2021, resulted in the largest penalty ever imposed by the agency against an auditing firm. Questions: What amount was the fine imposed by U.S. securities regulators? What were the three (3) charges… Read more »

Trouble Ahead? Bad Economic Week

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Are we headed for a recession? Questions: What is the opinion of Goldman Sachs’ CEO? What did JPMorgan Chase’s CEO say? What did Elon Musk say? What is your opinion and why? Source: Mui, C. (2022). More than 60% of executives think a recession will hit soon, new survey finds. Fortune, June 17 (Retrievable online… Read more »

Two Sets of Books

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According to the New York Times, a congressional committee looking into wrongdoing within the Washington Commanders N.F.L. franchise referred the case to the Federal Trade Commission. Questions: What did the 20-page letter to the FTC allege? What is the basis of the team’s categorical denial of financial impropriety? If true, what would the allegations mean… Read more »