Professional Documents
Culture Documents
“a white-collar offense as a
“a white-collar offense as a
Hartung violation of law regulating
Hartung violation of law regulating
business, which is committed
business, which is committed
for a firm by the firm or its
for a firm by the firm or its
agents in the conduct of its
agents in the conduct of its
business.”
business.”
Company Introduction
In 1961, Calisto Tanzi, a 22-year-old college dropout, opened a small pasteurization plant in Parma, Italy. Two
decades later, the company had grown into a multinational corporation. Parmalat Group is one of the major
players worldwide in the production and distribution of food and beverages.
Milk
Fruit-based drinks
Questions were
FACT raised about
transactions with
mutual fund
Epicurum
Collapsed at the
end of 2003 with Sell 500
a 14 billion
euros hole in its million euro
account in bonds
Key actors of the scandal
CFO:
Fausto Tonna
Banks
Manipulation of
No Auditing balance sheet,
income statement
Efficiency and Banks engaged in Misrepresenting
through bogus
Independence fraud, No Investor investment asset Financial statement
Lack of Protection and false and portraying the
Transparency Lack of sufficient transaction.
Ineffective company as strong
and Disclosure Regulation
Board of and profitable.
of information
Directors
Government
Intervention
Bonds are
classified as
Consequences Employees
uncertainty
junk
Banks’ role
questioned
Conclusion:
15 people have been jailed and 4 put under The key of the discussion is on transparent
.
accounting rules. Once this is achieved it will
.
house when began a criminal investigation
into Parmalat due to which centralized be much easier to solve the problem of
under $18 billion in debt. enforcement.
This scandals damaged many of investors Accounting Frauds will be with us all long as
such as insurance company, individuals who there are unscrupulous businessmen and
have bonds in Parmalat. dishonest or incompetent lawyers and
auditors.
In relation to the audit firm, Deloitte had Cost-effective system of better accounting
.
the threat as what Enron was to Andersen,
It means a body blow from which its
reputation will not be recoverable.
. rules and responsible enforcement that
strives only to reduce the problem to
manageable proportions.
Question ?