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How Do You Know Essay

407 words - 2 pages

“How do you know?”

George Madison was being suspected of having misstatement of receivables to inflate earnings. A subpoena was being sent to him to produce documents, information or subjects or to permit inspection of premises in his company. His father, Charles, at first, was pretending to be innocent of what is happening in the company. His secretary, Annie, who knows the truth, was frustrated in telling who is behind in all this things. Accused of securities fraud, in which it is a type of serious white-collar crime wherein a person or company, such as a stockbroker, brokerage firm, corporation or ...view middle of the document...

He made misleading representations of the company’s income statement to deceive users that the company is doing well. This can be classified as management fraud where in falsification of financial information that had benefit of him. Furthermore, there is a corporate fraud that can be seen this situation for he what he has done gave him or the company an advantage in a dishonest and illegal manner.
Charles displayed characteristics of being intelligent in which he made himself blameless of what happened and controlled people to do fraud. Also he was a risk-taker where he was willing to bend the rules and take chances. He did not consider the consequences of being caught and who will suffer. And, he was greedy to have more and earn more in whatever means.
The fraudster would have prevented the criminal offense if he would have been more considerate of the outcome of such act. He should have served as a good example to his son to practice and maintain culture of honesty and high ethics. He should have set aside his own personal interest but the interest of the majority especially those who are working hard and honestly for the company. He should dealt with the outside people, officials or organizations with utmost sincerity and honesty to establish good integrity.

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