To: Robert Faulkner
From: Katherine Cespedes
Subject: Analysis of Corporate Crime
Flight Transportation Corporation
Introduction: Flight Transportation Corp. started as a small flight training school and later became a full service aviation company. FTC went from making $1.2 million a year to $85 million a year. "The company had grown 551% from 1976 to 1980Ã¢ÂÂ¦" (Wojahn) The public thought that FTC was a successful company with high profits when in reality; the company was involved in embezzlement.
The company president, William Rubin, and company executive vice president, Janet Karki, were committing fraud all over the company. FTC was a scam. Rubin and Karki teamed up to turn FTC from a flight training school to a full service aviation company. FTC needed money. They were $500,000 in debt and only had $100,000 of available credit. Most of their effort was going into publicizing the company. "Tooling around town in a maroon limousine, Rubin and Karki plied stockbrokers, analysts, and suppliers with invitation to elegant lunches--often in Milwaukee or in Rochester, Minn.,
via Learjet. They even offered free vacations at the $400,000 beach house on Grand Cayman." (Wojahn) Rubin and Karki needed to find the right people to work with that would help them with their scam.
FTC was in a bad financial spot and Rubin and Karki were wearing the company of its assets. They were using company money for personal purchases. They were falsifying documents, reporting false information, and violating federal securities laws. They feel too deep before they knew it. Eventually, those involved with the fraudulent activity were charged and now have to pay for their mistakes.
Routes: While all the fraud was going on, Rubin and Karki were cheating many people along the way.
1. Corporation: Rubin and Karki were cheating the company by taking...