WorldCom and The Mississippi Scheme Scandals Essay

WorldCom and The Mississippi Scheme are both large financial scandals that have occurred. WorldCom was a telecommunication company that overstated their cash flow by reporting $7.6 billion in operating expenses as capital expenses. WorldCom is the largest accounting scandal in US history as of March 2002. The Mississippi Scheme was a business scheme that destroyed the economy of France during the 1700’s. The scheme involved the loss of paper money’s purchasing power as a result of asset inflation. Both WorldCom and The Mississippi Scheme were frauds involving manipulation to create higher stock prices and dubious practices within the organizations to keep the public unaware. Bernie Ebbers was the founder and CEO of WorldCom. He†¦show more content†¦Buford Yates Jr. was the accounting director of WorldCom. He instructed the accountants to adjust financial records as the company was failing. He was acting on orders from his superiors. Betty Vinson was the director of management reporting at WorldCom. Troy Normand was the director of legal entity accounting. They made some of the fraudulent entries. They did this because they were pressured by there superiors. The Duke of Orleans became the Regent of France in 1715 and served as the ruler while the heir to the throne was a minor. Regent knew of John Laws financial expertise and asked for his advice and assistance in straightening out Frances financial mess left over from years of uncontrolled spending under Louis XIV. The Regent approved Law’s scheme and allowed it to happen. John Law was the founder of the Mississippi Scheme. He was the Controller General and Superintendent General of Finance which gave him control of all of Frances finances and money creation. He also controlled the company that handled all of Frances foreign trade and colonial development. The scheme he came up with was a bank that would pay off the national debt, increase the reve ¬nue, and at the same time diminish the taxes. His bank would receive deposits of all the coin and in exchange give its bills. The bills were worth set value, earning interest, and were payable on de ¬mand. The bills would take the place of coin and were to be a better and moreShow MoreRelatedAccounting Scandals Of Enron Company1070 Words   |  5 PagesBaasit Kazi Ms. Bogert College Accounting 1-1B 28 April, 2015 Accounting Scandals Reflection Enron was founded in July of 1985. Enron was an electricity and natural gas company which was a fortune 500 company and it was ranked the sixth largest energy company in the world. Enron’s stock went from a peak of $90.75 to $0.67. This was very detrimental to stockholders. Enron’s top executives sold their stock a long time before the stock price fell. 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