Fraud is not a new issue. It has been around for several years. Over the years, people have lost billions of dollars because of financial advisors who looked out for their benefit instead of investors who trusted them to help in complex matters.
Below, we will talk about some of the most historic fraud cases. We hope that seeing these cases can give you a better idea of what to look for to protect yourself.
1998 Waste Management Scandal
In 1998, a new CEO took over Waste Management Inc., which is a publicly-traded company. A. Maurice Meyers discovered that the company reported more than $1.7 billion in false revenue. The United States Securities and Exchange Commission took action against the company’s former CEO and other executives. The result was a class-action settlement for $457 million.
2001 Enron Scandal
An investigation in 2001 determined that Enron was using accounting loopholes to hide bad debt and increase the company’s income secretly. Shareholders lost more than $74 billion because of it. In just one year, Enron’s share price drastically dropped from about $90 to under $1.
2002 WorldCom Scandal
In 2002, WorldCom was discovered to have inflated assets totaling more than $11 billion. They underreported lines instead of expensing them. The result? More than 30,000 people losing their jobs and over $180 billion in investor losses.
2002 Tyco Scandal
CEO Dennis Kozlowski and CFO Mark Swartz were investigated in 2002, and it was determined that they stole more than $150 million from the company. Investors lost money, the two were sentenced, and a class-action lawsuit allowed investors to recover a $2.92 billion settlement.
If you’re the victim of financial and securities fraud, trust our team at Vernon Litigation Group to be there for you. Our Naples securities litigation attorneys work to safeguard your best interests every step of the way.