List Headline Image
Updated by Rajashri Venkatesh on Jan 14, 2017
Headline for 8 Biggest Corporate Frauds of 2016
8 items   1 followers   0 votes   41 views

8 Biggest Corporate Frauds of 2016

From Volkswagen's Dieselgate to Martin Shkreli, the former CEO of Turing Pharmaceuticals, 2016 has witnessed some of the major corporate frauds. Here is a list of some of such major frauds that'll go in history.

The Volkswagen Emissions Scandal

It's been dubbed the "diesel dupe". In September, the Environmental Protection Agency (EPA) found that many VW cars being sold in America had a "defeat device" - or software - in diesel engines that could detect when they were being tested, changing the performance accordingly to improve results. The German car giant has since admitted cheating emissions tests in the US.

Fifa corruption crisis

Fifa, football's world governing body, has been engulfed by claims of widespread corruption since summer 2015, when the US Department of Justice indicted several top executives.

Long Island Produce Distributor Scandal

Preet Bharara, the United States Attorney for the Southern District of New York, announced that THOMAS HOEY, JR., the owner and president of a Long Island-based produce distributor (the “Company”), and trustee for the Company’s profit sharing plan (the “Plan”), was sentenced to seven years in prison for embezzling nearly all of the assets of the Plan and defrauding the Plan participants.  HOEY, over the course of several years, transferred over $750,000 from the Plan to the Company’s corporate accounts and then unlawfully used the money to, among other things: (1) purchase hundreds of thousands of dollars of produce for the Company; and (2) pay for hundreds of thousands of dollars of HOEY’s personal expenses.  On March 18, 2016, HOEY was convicted after a four-day jury trial.

Valeant's Secret Division

Drug company Valeant was one of Wall Street's hottest stocks for years. Hedge funds, Wall Street's so-called smart money, piled into the stock as the company's revenue skyrocketed. It was seemingly all based on a new business model. CEO Michael Pearson believed that drug companies were terribly inefficient spending money on research and development that often went no where.

Samsung Embezzlment More Than $1 Million

A former director of Samsung America Inc.’s Korea Export Department was sentenced today to 75 months in prison for his role in a scheme to embezzle more than $1 million from the company from 2002 through 2007, U.S. Attorney Paul J. Fishman announced.

Turing Pharmceuticals and Martin Shkreli

Sales of a drug manufactured by Turing Pharmaceuticals dropped precipitously after its former CEO, Martin Shkreli, oversaw a dramatic price hike, a US senator said Thursday during a hearing focused on prescription drug prices.

Bethany-Warr Scandal

The Bethany-Warr Acres Public Works Authority (Authority) owned and operated the Bluff Creek Wastewater Treatment Plant to furnish public and municipal services for the cities of Bethany and Warr Acres. Dewey began her employment as a secretary at the treatment plant in 1988. Throughout her career, Dewey gained more responsibilities and eventually became the Executive Assistant to the Director of the treatment plant in 2010. Her primary duties included purchasing and accounts payable where she purchased supplies and other items for the treatment plant. As part of her duties, Dewey was authorized to use Authority credit cards to make purchases for the wastewater treatment plant.

Wells Fargo Fraud Scandal

Wells Fargo continues to struggle with the fallout from a phony accounts scandal. The bank said that new credit card applications were down 43 percent in the fourth quarter of 2016 from a year ago, and that new checking account openings fell 40 percent. The results reflected the first full quarter since September, when Wells, which is based in San Francisco, announced that its employees had, over the course of years, created as many as two million unauthorized credit card and checking accounts.