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Stock Scandal 101: Part 1

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Though the words associated with money and fortune are cheating, stealing and lying, not all scandals
were a result of negative intentions. The investment market needs a lot of research and
assumptions. It may happen that the correct reported earnings and revenue figures for a year
have been posted on the basis of some assumptions, which do not hold good later and can
prove to be disastrous.
Thus, it is important to understand how can the same be avoided. Let’s look at some of the
greatest scandals of all times where shareholders had no way of knowing the real position of
the company and thus were tricked into investing.

1. ZZZZ Best Inc., 1986
This company was owned by Barry Minkow, who believed that this carpet cleaning company
would become the ”General Motors of carpet cleaning." By creating more than 10,000phoneyy
documents and sales receipts, without informing anybody, he was able to build a multi-
million-dollar company. Though this business was a complete fraud, Minkow spent more
than $4 million to lease and renovate an office building in San Diego.
The company was listed in December of 1986 and even managed to reach a market
capitalization of more than $200 million. The most amazing fact about this scandal is that the
owner, Barry Minkow was only a teenager at the time. He was later sentenced to 25 years in
prison.

2. Centennial Technologies Inc., 1996
The company was recorded to have made a revenue of $2 million from PC memory cards,
though in reality, the company shipped fruit baskets to customers. To cover this fake
document were created to record fake sales. The stock prices of Centennial saw an increase of
451% and reached $55.50 per share on NYSE.
SEC accused Centennial of overstating its earnings by about $40 million. The company also
reported having had made profits of $12 million, when it really cost about $28 million. The
stock which was once considered a Wall Street darling, made over 2000o investors lose all
their money when the stock fell to less than $3.

3. Bre-X Minerals, 1997
Bre-X Minerals was reported to have an Indonesian gold property, containing more than 200
million ounces. The stock prices reached $280, and the market capitalization was at its peak
at $4.4 billion.
Soon it was public news that the gold mines were fraudulent which took the stock prices to
pennies. Major loses in this scandal were Quebec public sector pension fund, the Ontario
Teachers’ Pension Plan, and the Ontario Municipal Employees’ Retirement Board, who lost
more than $215 million in total.

4. Enron 2001

Once the seventh largest company in the U.S, Enron was able to keep hundreds of millions
worth of debt off its books through some fairly complicated accounting practices involving
shell companies. The company fooled its investors and analysts and was believed to be a
fundamentally strong company. They were smart enough to make the shell companies record
fictitious revenues multiple times, thus making it look as if the companies had incredible
earnings figures. Once the scandal was leaked, the share price dove from over $90 to less
than 70 cents.

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Top 5 Unforgettable Apple Scandals

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The media cherishes a decent Apple outrage, ideally finishing with the ‘- gate’ addition: more often than not another Apple item not doing what it should do (in a small part of cases). It’s nearly turned into a convention in the tech business. Here we take a gander at the five most important Apple embarrassments ever, and why we think they were dramatically overemphasised.

Antennagate

Antennagate was one of the greatest iPhone outrages, mostly because of the way that it happened amid Steve Jobs’ incredible residency as CEO of Apple.

It started with the June 2010 arrival of the iPhone 4, which was planned with an outside receiving wire wrapped around its edge as a space-sparing measure. The issue was that holding your finger over the hole between two receiving wire portions could meddle with the flag and make the telephone lose gathering, prompting numerous dropped calls. It was a noticeable and noteworthy building imperfection. However, Jobs compounded the situation for some time by encouraging clients to hold their iPhones diversely and minimising the issue.

Antennagate unavoidably brought about a progression of legal claims. Apple in the long run issued free iPhone 4 guards made of elastic that settled the reception apparatus impedance issue. It likewise sent out a cluster of $15 settlement checks in 2012, at long last conveying a near this shameful section in Apple history.

Bendgate

Benghazi, or Bendgate on the off chance that you lean toward, emitted in 2014 with the presentation of the exceedingly expected iPhone 6 Plus. Proprietors of the iPhone 6 Plus found that their aluminium gadgets tended to curve and twist after they sat down with them in their front pockets.

The mainstream YouTube channel Unbox Therapy discharged a video showing the imperfection, which rapidly circulated the web and transformed the issue into an out and out PR emergency for Apple. The organisation reacted by taking note of that example of bowed gadgets were “to a great degree uncommon” and guaranteed to supplant influenced handsets that passed visual investigation by a Genius at the Apple Store. It likewise had its specialists strengthen the outline of the then-approaching iPhone 6s.

The web is as yet separated in the matter of whether Apple was to blame, and how many points the finger at it merits. All telephones twist. Eventually, all things considered.

Touch Disease

Touch Disease is the reasonably exciting name given to an issue influencing iPhone 6 and iPhone 6 Plus handsets: one which makes a glimmering dark bar show up at the highest point of the screen, and can some of the time even reason the whole screen to wind up inert.

It’s accepted to be identified with Bendgate and influences similar gadgets. The 6 Plus is obviously more defenceless: one repair master has cautioned that fundamentally all iPhone 6 Plus telephones will be affected sooner or later.

Apple’s $14 Billion Tax Bill in Ireland

Apple was slapped with a massive $14.5 billion duty charge in Ireland a year ago, following a two-year examination by the European Commission discovered that the organisation had gotten “illicit state help” from the Irish government as a lower corporate assessment rate.

As per Reuters, the assessment plan amongst Apple and Ireland enabled the organisation to pay only 3.8% in charges on $200 billion of abroad benefits in the previous decade. Apple CEO Tim Cook, who has received a hardline position on the issue of Apple’s unpaid expenses and seaward assessment store, ridiculed the decision as “only a bundle of political poop”, and promised to battle it in court.

The Irish government has favoured Apple and is contending that Ireland isn’t owed billions in charge expenses. Apple recorded an active interest before the end of last year arguing that the European Commission’s discoveries depended on crucial mistakes. A European Commission representative reacted to Business Insider: “The Commission will guard its choice in court.”

Apple Maps

Things being what they are making accurate maps is hard. While we think the reaction to Apple Maps was to some degree pointless excess, there are no making tracks in the opposite direction from the way that it was (and stays) far less exact than Google Maps.

The way that Apple expelled Google Maps from the iPhone appeared to rub salt in the injury. What’s more, it took Google a while to construct a Google Maps application that you could reinstall yourself.

Over the long haul, however, things have likely worked out advantageous: both the Google Maps application and Apple Maps now have well-ordered course, for example (which wasn’t a piece of Apple’s unique manage Google). What’s more, Apple Maps is beautiful.

Apple Maps is additionally considerably more precise now, in spite of the fact that hunt still fails to impress anyone.

Apple VP Scott Forstall (the product lead on the iPhone) apologised for Maps, and the talk is that it added to him leaving Apple.

For more such scandals, subscribe to Scandal Column today!

Disclaimer: All images are sourced from the web. No copyright infringement intended.

 

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Top 5 Corporate Scandals That Are Still Fresh

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When scandals on celebrities and individuals hit the web, the damage is already done. But when corporates face the same, these are game changers. Stocks decline, customers shy away, and some hit shutdowns.

Here’s a list of top 5 corporate scandals that are still fresh, having shocked many!

Oh, Uber!

On January 28, 2017, the day U.S. President Donald Trump marked his official travel boycott, a large number of challenges broke out at aeroplane terminals the nation over. Amid a cab driver work stoppage, and much to the daunt of dissidents, previous Uber CEO Travis Kalanick guided his staff to keep working amid the occasions. Unintentionally, Kalanick was likewise part of Trump’s Economic Advisory Council at the time.

Irate clients blamed the organisation for endeavouring to benefit from the taxi challenge, and the hashtag #DeleteUber started inclining on Twitter – provoking Kalanick’s renunciation from the committee.

In any case, Uber’s PR lousy dream had quite recently started.

Only two weeks after the fact, on Feb. 19, a previous Uber representative outed the organisation for across the board, pressing inappropriate sexual behaviour in the working environment, and #DeleteUber began inclining again on Twitter.

The United Airlines Scandal

Maybe the most infamous corporate embarrassment of 2017 included United Continental Holdings Inc. (NYSE: UAL). On April 9, a video of a coercive, wicked evacuation of a traveller on an overbooked flight turned into a web sensation. In the accompanying a half year, the video was seen more than 5 billion times.

The occurrence appalled aircraft clients over the globe. Dissidents took to online networking, posting pictures of their cut-up United Visas. In the wake of discharging a deadened expression of remorse for “having to re-suit” the traveller that started considerably more shock, United CEO Oscar Munoz apologised abundantly for the episode.

But that was just the beginning. The United stock endured a shot, as offers of UAL slipped over 4% on April 11, only two days after the occurrence. The organisation’s reasonably estimated worth dove $1 billion in just 48 hours. Soon enough, the FBI was involved. On May 2, Munoz was flame broiled by Washington officials over how United took care of the circumstance. A U.S. Senate board held a different hearing May 4.

After three months, on Oct. 18, the officers engaged with the dragging were let go by the Chicago Department of Aviation. Be that as it may, the show is a long way from being done;

The Aviation Department affirmed that a survey of its strategies and systems was in progress and would be finished by the central quarter of one year from now, as per the overseer general’s most recent report.

Samsung’s Bribery Scandal

In 2016, Samsung had to deal with exploding Galaxy Note 7 batteries. In 2017, it was imploding corporate positions.

Initially wanting to put beneficiary Lee Jae-Yong at the leader of the realm, the family-run Samsung aggregate is presently confronting inquiries of progression after Lee was found in a sprawling political embarrassment that brought down previous South Korean President Park Guen-Hye.

Lee Jae-Yong is currently confronting five years (and conceivably 12) in prison for offering professedly offering influences to Park, misappropriation, and concealing resources abroad. Samsung Electronics co-CEO Kwon Oh-Hyun in the meantime likewise surrendered in October, referring to Samsung’s initiative misfortunes.

“As we are stood up to with remarkable emergency back to front, I trust that time has now desired the organisation [to] begin once more, with another soul and youthful administration to better react to challenges emerging from the quickly transforming IT industry,” he said in an announcement.

While Samsung’s long-haul wellbeing is still in dangerous territory, the organisation’s near-term standpoint gives a false representation of those stresses. The organisation posted record-softening benefits up the second from last quarter of $12.8 billion, relatively triple the number it posted a year sooner.

Equifax Inc. – The Scandal

The renowned Credit rating firm Equifax makes its benefits from offering individual, regularly touchy data to money related organisations and loan specialists.

In September, it uncovered that it had been at the focal point of one of the most noticeably awful information ruptures ever, with the data of somewhere in the range of 145 million individuals, about a portion of the U.S. populace, traded off.

In the fallout, CEO Richard Smith ventured down, and additionally its chief data officer and boss security officer, in the midst of disclosures that Equifax knew about the framework imperfection that the programmers exploited since March. At that point, when the hack happened, the firm held up an entire two months previously unveiling it.

In the interim, the Justice Department is apparently investigating whether top Equifax executives conferred insider exchanging when offering some $1.8 billion in shares just before the rupture was uncovered.

The Wells Fargo Woes

After losing the trust of purchasers in 2016 for making a large number of phoney records, Wells Fargo battled relentlessly to win back its client base with guarantees of straightforwardness and change.

In any case, Wells Fargo’s burdens just extended in 2017, when the organisation conceded that it had charged upwards of 570,000 purchasers for collision protection that they didn’t require. Moreover, about 20,000 of those borrowers may have had their autos repossessed subsequently. Wells Fargo said it would pay $80 million in remediation. Wells Fargo’s head of purchaser keeping money and around 70 senior administrators in the bank’s retail managing an account section were likewise cut, therefore.

Around the same time, Wells Fargo likewise uncovered that it had revealed an extra 1.4 million phoney records over the 2.1 million the bank already unveiled had been made without buyer authorisation.

Feel the need to read more Scandals like these? Subscribe to Scandal Column now!

Disclaimer: All images are sourced from the web. No copyright infringement intended.

 

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Scandal: Tom Cruise has not seen Suri Cruise Since 5 Years

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Tom Cruise has not seen Suri Cruise in five frickin years.

It’s difficult to accept, however this has been composed various circumstances by various destinations and nobody from Cruise’s camp has debated the charge.

Additionally, simply ahead and concentrate intensely: When was the last time you saw a photograph of well known father and little girl together?

This past November, gossipy tidbits flowed that Cruise had no enthusiasm for regularly observing Suri again – which is decidedly unfortunate assuming genuine.

Be that as it may, the most recent issue of Star Magazine asserts this isn’t the situation.

It shouts on its cover, truth be told, that Cruise is set to leave Scientology keeping in mind the end goal to reconnect with his girl.

Tom Cruise Star Cover

“On the off chance that he needs her back, he’ll need to leave the congregation, which has been a tremendous piece of his life, without a doubt,” a source tells this newspaper, including:

“Leaving Scientology would be the hardest choice he’ll ever need to make.”

We’ll overlook the stirred up tenses utilized as a part of that sentence and spotlight rather on the inquiry at the center of this verbal confrontation:

Will Cruise really leave the religion he’s helped make into an easily recognized name? Will he dump the extremely clear faction for his association with Suri?

“It’s an implicit risk, however Tom must know that the congregation would give it its best shot to shield him from leaving,” asserts this same insider, accentuating the famously shady nature of the Church of Scientology.

Star composes that arrangement might be cut amongst Cruise and religion leads “where he would be left in peace as long as he doesn’t stand up against Scientology. That way, the two sides win.”

Counting Suri, obviously.

Accepting, that is, she needs to be brought together with her father.

Tom Cruise for The Mummy

Voyage has been a Scientology part for more than three decades.

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He swears by the foundation (“Without it, I wouldn’t be the place I am. I’m extraordinarily glad,” the star as of late said), however others say the congregation’s impact has changed Cruise.

For the much more awful.

He is “malevolent,” ex-Scientology part Leah Remini has said of Cruise, who she additionally says is an aggregate imposter.

None of this progressions the main issue that issues: Will Cruise drop the religion for his young friends and family?

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