BCCI and White Collar Crime Essay Example | Topics and Well Written Essays - 1500 words

BCCI and White Collar Crime - Essay Example But, success was not the only step for BCCI's fate. Price Waterhouse was asked to carry inquiry in March, 1991. It was 24th June, 1991 when they submitted the Sandstorm Report to Bank of England stating that BCCI had engaged in fraud case. Main capital base to BCCI were virtual oil-rich Arab leaders who acted to be the investor but, in reality they were working as nominees. Bank since its beginning attracted people to deposit their funds by pretending that they have more capital which in reality was not true. It used to use the deposits in order to meet the expenses. Even it forced its own shareholders to participate in this drama. Major actions that resulted into frauds by BCCI were enlisted by New York District Attorney. According to them the important points are: Middle East personalities included their names and funds to BCCI as an investor which in effect turned to be flaw because their funding was based on guaranteed no-risk return instead of actual sponsor at risk. After getting the request from Bank of England, Price Waterhouse presented its report on BCCI known as Sandstorm Report. As per the report, BCCI committed several mistakes and did many unofficial activities that are out of one company's ethics. Price Waterhouse persons collected records from banks of various countries, reviewed them and interviewed in some cases, finally formed one draft keeping all key points there. During their scrutiny they found that BCCI did not record $600 million of BCCI's deposit. It first knocked the Price Waterhouse audit persons. Among the other types of frauds described by audit include: manipulation of their account at the time of non-performing loan, fabricated profit, hidden losses, setting up of untrue loans for repurchasing shares, cheating of deposits, unreal transactions and charges, showing nominees as capitalists, illegal repurchasing platform for shareholders, bad investment, missing of standardized procedure of records, artificial customer loa ns and most important fallacious audit confirmation (Price Waterhouse, 1987). After losing money for the reason of poor lending operations, instead of accepting provisions for losses they just simply cheated them. Apart from that BCCI used to manipulate their accounts. Actual reason for this manipulation was make the bank appear to be a good profitable and reputed institution than it was which helped it to get security for its deposits. With these approaches when condition of BCCI was worse, made it worst after the loss of $500 million in 1985. That loss was only due to commodity trading undertaken through Capcom. Along with the numbered accounts in order to manipulate accounts through back-to-back transactions they used to use "managers ledgers." It was such a bad activity that the person keeping the records even forgets which person made which transaction. In most of the cases, none of the authority was able to identify either the name of borrower or credit officer responsible for controlling the accounts (Price Waterhouse report to BCCI, 1986). Price

Business Regulatory Law Essay Example | Topics and Well Written Essays - 1500 words

Business Regulatory Law - Essay Example The federal government can make arrangements for the protection f the population from the pollution that flows down from other states. The federal government expects the local governments to put into effect national environmental laws, including the Clean Water Act. However, the federal government has some concerns if the state and local governments are not managing the inspections in a timely manner. The federal government also has concerns that the Environmental Protection Agency (EPA) is not following through. A resident f Erehwon, Ms. Kelly Bates has accused Alumina, Inc. f frequently contaminating the waters f Lake Dira with carcinogenic effluents, and has alleged that the consumption f the water is the prime cause f her 10 year old daughter's leukemia. Ms. Bates also alleges that her daughter's illness maybe as old as Alumina's first environmental law violation. The incident occurred five years ago. Alumina Inc. was reported to be in violation f an environmental discharge into Lake Dira. Alumina followed through and cleaned the spill up and the violation was corrected (UOP, 2007). People in a local newspaper, The Erehwon Reporter, seemed to want to keep the fire burning. Kelly Bates threatened to file a $5 million personal injury case against Alumina Inc. to recover compensatory and punitive damages. Ms. Bates alleged that Alumina's careless conduct is the immediate cause f her daughter's illness in though this occurred five years ago and the company has not had any further problems (UOP, 2007). The Scientific report on water pollution has rendered Ms. Bates claim unsubstantiated. Regulations and Legal Issues There are a few very important facts that include regulations and legal issues that are present within the Alumina simulation and they are as follows: Regulation f Business. There should be written roles and regulations that coincide with Federal and State laws. The regulations should be followed at all times with an Environmental supervisor in place to document all key findings. Alumina does not have any written regulations that match with the State and Federal governments at this time. The employees need these practices and references in place to ensure that they are following the laws that have been made. Environmental Policy The National Environmental Policy Act (NEPA) was passed in 1970 along with the Environmental Quality Improvement Act, and the Environmental Protection Agency (EPA). These federal enactments were to put into place to ensure that the environment would be protected against both the public and private actions (Environmental lawyers, 1997). Alumina was reported to be in violation f an environmental discharge into Lake Dira. However, according to the EPA, Alumina quickly responded to the allegation and cleaned-up the Lake. The violation within the organization was promptly corrected and Alumni have not had another incident. Ethical Issues Ethical issues such moral values, beliefs and principles are considered as foundation f civilized society. People follow these values on a day to day basis.