Tyco Case Study
I have chosen the topic listed below for my Research Paper. I found it to be a very interesting subject and highly entertaining at times:
During the 20th century there have been a series of infamous corporate frauds - e.g. the Ponzi scheme (and its latter-day variants), the McKesson & Robbins' fraud, Michael Milken's junk bond schemes, etc. Describe how one of these schemes operated and also describe (and critique) the mechanisms that are now in place, in Ireland, to prevent a repeat occurrence.
The example I chose was that of Tyco international as it is topical and it epitomises what I believe is a question at the heart of investigating Corporate Fraud: Is it still ethically wrong if everyone gains?
Tyco International, Ltd., a corporation that makes a diversity of products, from healthcare supplies to alarm systems, has recently accused three former high-level executives of fraud.
The three accused managers, former CEO L. Dennis Kozlowski, former Chief Financial Officer Mark Schwartz, and former general counsel Mark Belnick, have been indicted for fraud and theft by the Securities and Exchange Commission (SEC) as well as their former employer. They have all pleaded innocent.
Tyco's financial accounting first came under review in January 2002 after a tip suggested that a less-than-legal transaction might be taking place. In June of the same year, Kozlowski resigned just before he was accused of tax evasion on some expensive art purchases, allegedly made with company funds. On September 12, 2002, the SEC formally charged Kozlowski, Schwartz, and Belnick of civil fraud.
The SEC and Tyco International have indicted the former executives on charges of civil fraud and theft. They are accused of giving themselves interest-free or low interest loans for personal purchases of property, jewellery, and other frivolities. According...