News Analysis: A possibility of profligate or unauthorized spending might be assumed by an accounting body where a ‘paper trail’ does not exist. In the instant case, the reluctance to provide essential data to the accountants, ensures the lack of transparency. In such an event, to ‘suspect the worse’ is not illogical when it comes to monies the companies control. Trust, but verify.
Legal
Insider Information Skews Playing Field
News Analysis: “Insider information” skews the ‘playing field’ for honest investors who play be a country’s investment rules. It seems that, often, the illegal gains attained by the perpetrator[s] surpass the punishment meted out. This paradigm leads to other miscreants plying their crafts, unfortunately. Generally, the certainty of getting caught, rather than the punishment, dissuades deviant behavior.
Reference: http://tinyurl.com/mhoqsuh
Bernard Madoff’s Bank Associates
News Analysis: It makes next to NO impression on bank employees to have their banks fined for illegalities they have committed. Imprisonment, for the crimes, has the opposite effect. Fines are merely “cosmetic” blemishes the banks endure, not they.
Mr. Harry Markopolos, attempted, for several years, to get the attention of regulators regarding potential fraud by Bernard Madoff and his brother, Peter; to no avail. His valiant efforts have largely been ‘intentionally’ forgotten by banking authorities, it would seem.
It is said, many of the billions stolen by the Madoffs are still unaccounted for. Someone will enjoy the remaining ill-gotten gains.