Entellium should have at least had a review, but that may not have caught the fraud ... Enron and Worldcom had full audits, and people still didn’t catch on to what was going on for a number of years.
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The Enron board was actually very sophisticated, but it turns out they didn't really understand what was happening in the company ... And I think that we'll find that's true with the boards of the companies that are going bust today.
Enron Corp.'s former chief operating officer of global markets, Jeff Shankman, was sued by a New York art gallery for allegedly trying to extort more than $150,000 by claiming a painting he bought was a forgery.
Experience shows that the biggest victims of economic crime are organisations run by professionals who thought it could never happen to them. Some examples are the Enron scandal that brought about the collapse of Arthur Andersen, one of the largest accounting firms in the world, and the Societe General case in France earlier this year
If the investigation demonstrates that any individuals within the organization had any sort of criminal intent to defraud anyone, or if any sworn financial statements were inaccurate, we could easily see an Enron-type series of criminal and civil lawsuits. But those would take a long time to emerge and even longer to resolve