HALL OF

SHAME

Enron

An American energy company, the biggest audit failure that has led to bankruptcy in October 2011

White Collar Crime - non-violent, financially-based criminal activity typically undertaken within a setting in which its participants retain advanced education with regard to employment that is considered to be prestigious

Losses were not illustrated in their entirety, prompting more and more investments on the part of investors wishing to partake in what seemed like a profitable company

misrepresenting earnings reports while continuing to enjoy the revenue provided by the investors

 Executives of ENRON embezzled funds funneling in from investments while reporting fraudulent earnings to those investors

Tyco

Swiss security systems company incorporated in Switzerland.

Former chief  L. Dennis Kozlowski systematically created a corporate culture of greed and excess, secretly authorizing the forgiveness of tens of millions of dollars of loans to dozens of executives to keep their loyalty.

Warnaco

An American textile/apparel corporation.  Its products are sold under several brand names including Calvin Klein, Speedo, Chaps, Warner's, and Olga.

Discovered a $145 million inventory overstatement that would require the company to restate and significantly lower its financial results for the prior three years.

Warnaco falsely characterized the inventory restatement as the write-off of deferred start-up costs under a new accounting pronouncement.

The overstatement had been caused by serious defects in Warnaco's inventory accounting and internal control systems and did not involve deferred start-up costs.

Worldcom An American telecommunications company.  The $400 million given to Ebbers existing in

tandem with the declining profits sustained by MCI Worldcom placed the company on the brink of bankruptcy.

A number of executives purposefully misrepresented the company’s earnings and spending; this accounting fraud purportedly resulted in the fraudulent reporting of upwards of $11 billion that the company did not have.

Global Crossing

Biggest governance failure in modern corporate history. The board twice waived its ethics guidelines to allow the CFO to participate in off-balance-sheet deals. Ignored warnings from auditors concerning "high-risk" accounting. Failed to follow up on allegations from whistle-blower Sherron Watkins. Directors disavowed responsibility for company failure under oath before Congress.

Adelphia Communications Epic self-dealing by members of the

Rigas family went undetected. Board has ousted worst offenders, withheld $4.2 million in severance for founder John Rigas. But for Adelphia shareholders, it's too little too late.