Monthly Archives: December 2014

MF Global Fined $100 Million: Reminder Of An Avoidable Corporate Disaster

The Commodity Futures Trading Commission (CFTC) has fined the failed commodities brokerage firm, MF Global, $100 million. The fine is part of a $ 1.2 billion settlement between CFTC and the bankrupt company. You might recall that MF Global, under … Continue reading

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Did Auditor Conflicted Self-Interest Kill Auditor Mandatory Rotation?

A year-end article in Accounting Today by Richard James laments the demise, in early 2014, of the Public Company Accounting Oversight Board’s (PCAOB) proposal to require mandatory rotation of public company auditors. PCAOB regulates the accounting industry in America. PCAOB … Continue reading

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ARCP: An Avoidable Corporate Disaster

The unfolding story of the accounting scandal at American Realty Capital Properties (ARCP), a fast-growing real estate investment trust (REIT) owning properties valued at $30 billion, provides an object lesson in avoidable corporate disasters. On October 29, 2014 the company … Continue reading

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Is Responsibility Delayed Responsibility Denied? American Apparel Finally Fires Charney

The board of directors of publicly-held American Apparel finally fired, once and for all, its legendary troublesome founder, largest shareholder, and CEO, Dov Charney. Charney has been dogged for years by female employee accusations of sexual harassment, inappropriate behavior, and … Continue reading

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Real Estate Tycoon Victim Of Corporate Disaster

Real estate tycoon Nicholas Schorsch was forced to resign on December 15, 2014 as head of the $30 billion commercial real estate empire he created. His resignation from the boards of American Realty Capital Properties, along with 15 other related … Continue reading

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Squaring Corporate Tax Responsibility With Social Responsibility

We learned last week that documents were leaked revealing that thirty-five major U.S. companies engaged in tax-reducing strategies involving use of complex financial structures in Luxembourg. Among the companies are big-league names like Disney and Koch Industries. The release of … Continue reading

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