THE 10 WORST
Corporate Accounting Scandals of All Time
Corporate malfeasance has earned a place among the defining themes of the last decade-and-a-half, helping give birth to the present global recession and the Occupy Wall Street movement.
Here���s a look back at the who, what, when and how of some of the worst corporate accounting scandals.
WASTE MANAGEMENT SCANDAL 
COMPANY -Houston-based. publlcly traded waste management company
HOW THEY DID IT The company allegedly falsely waste increased the depreciation time lengt for their property. plant and equipment on the balance sheets
WHAT HAPPENED Reported $1.7 billion in fake earnings
HOW THEY GOT CAUGHT A new CEO and management team went through the books
PENALTIES Settled a shareholder class-action suit for $457 million; SEC fined Arthur Andersen $7 million.
MAIN PLAYERS Deal L Buntrock and Arthur Andersen
After the scandal, the new CEO Q Founder/CEO/Chairman n Arthur Andersen A Maurice Meyers Set up an anonymous company hotline where employees could report dishonest or improper behavior.
ENRON SCANDAL 2001
COMPANY Houston-based commodities energy and service corporation
HOW THEY DID IT Kept huge debts off the balance sheets
Shareholders lost $74 billion thousands of employees and investors lost their retirement accounts, and many employees lost their jobs
HOW THEY GOT CAUGHT
Turned in by internal whistle blower Sharron Watkins; high
stock prices fueled suspicions
Lay died before serving time; Skilling got 24 years in prison. The company filed for bankruptcy. Arthur Andersen was found guilty of fudging Enron's accounts
WORLDCOM SCANDAL 2002
COMPANY WORLDCOM Telecommunicauons company; now MCI, Inc,
HOW he got caught Worldcom's internal auditing department uncovered $3.8 billion in fraud.
What happened Inflated assets by as much as $11 billion leading to 30,000 lost jobs
Penalties: CEO was fired , controller reassigned, and the company filed for bankruptcy.
Main player: CEO Bernie Ebbers
How he did it: underreporting line costs by capitalizing rather than expensing and inflated revenues fake accounting entries
Following the scandal, congress passed the sarbanes-oxley act , introducing the most sweeping set of new business regulations since the 1930's
TYCO SCANDAL 
New Jersey_based blue chip swiss security systems company
How they got caught SEC and Manhattan D.A. investigations uncovered unquestionable accounting practices including large loans made to Kowzlowski that were then forgiven.
CFO and Ceo stole $150 million and inflated company income by $500 million
Kowzlowski and Swartz were sentenced to 8-25 years sentence in prison.
Tyco to pay $2.92 billion to investors.
Ceo Dennis Kowslowski and former CFO Mark Swartz
How they did it
Siphoned money through unapproved loans and fradulent stock sales. Money was smuggled out of the company disguised as executive bonuses and benefits
At the height of the scandal, Dennis threw a $2.5 million birthday party for his wife on an island with a complete Jimmy Buffett performance.
HEALTHSOUTH SCANDAL 
Largest publicly traded health care company in the U5.
How he got caught
Sold $75 million in stock a day before the company posted a huge loss, triggering SEC susplclons
Earnings numbers were allegedly inflated billion to meet stockholder expectations.
Scrushy was acquitted of all 36 counts of accounting fraud, but convicted of bribing the governor of Alabama. leading to a 7-year prison sentence.
How he did it
Allegedly told underlings to make up numbers and transactions lrom 1996-2003.
Scrushy now works as a motivational speaker and maintains his innocence.
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