StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Accounting Fraud in Daedalus Capital LLC - Essay Example

Cite this document
Summary
The article “Accounting Fraud in Daedalus Capital LLC” talks about an individual who is a worker of Daedalus Capital LLC who is charged with committing fraud by selling improper investments to customers as well as providing unlicensed advice to potential investors…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.1% of users find it useful
Accounting Fraud in Daedalus Capital LLC
Read Text Preview

Extract of sample "Accounting Fraud in Daedalus Capital LLC"

Medicare Fraud in the USAMain issue The article talks about an individual who is a worker of Daedalus Capital LLC who is charged with committing fraud by selling improper investments to customers as well as providing unlicensed advice to potential investors. This individual namely Stephen Coleman is the founder as well as chief investment officer of the company which is situated in Chicago. Coleman has previous record of committing similar crimes in St. Louis Missouri and he was investigated but the case dismissed for lack of evidence of people who had been defrauded and their money lost in the defrauding scheme (Yerak, 2014).

This fraud scheme where Coleman was taking people’s money and promising them huge returns on their investments but then fail to deliver due to the unpredictability of the market place. The Illinois department prohibited the company from selling securities for a period of 90 days in which investigations would follow. The Illinois securities department would charge him with fraud in offering and selling securities, offering and selling of unregistered securities and offering investment advice while he was unregistered to do so.

The Illinois Securities Department hope to prosecute through seeking as much evidence against him as possible something which the court in Missouri failed to do leading to the current situation being experienced in Chicago at the moment. Despite the charges brought against him in the court of law and the pending investigations, Coleman still maintains that his company is able to get the clients the promised 100% reward on their investment as promised despite the conditions in the market (Yerak, 2014).

Describe how a company (and) people guilty should have dealt with that situation (provide solutions/critical thinking)The first thing that humans when accused of fraud or inappropriate misconduct do is to deny any allegations. This happens even in cases where there is evidence of whatever magnitude or the individuals charged have prior record of the same offence in the past. This is the case with Coleman where he has records in court as well as with the securities department in Missouri about committing fraud to his investors but he still maintains that it is not the case (Ferrell & Fraedrich, 2012).

He strongly stands for his company’s activities and promise even though it is evident that he cannot fulfill them without any fraud occurring in the process and there is evidence to that effect. Coleman would have been better off keeping quiet about the whole situation until cleared or charged by the court for committing the fraud. Talking would only worsen the situation in case his claims were proven to be untrue. A matter that is already in court should also not be openly discussed in any other setting unless permission granted by the court.

Coleman broke this law by talking to the media and he might find himself being charged with contempt in court over the matter.As for the Illinois Security Department, they should have collected enough evidence about Coleman and his company Daedalus Capital LLC first of all before taking the matter to court (Jones, 2011). This would lead to them having a stronger case against the defendant and creating chances of them winning the case as opposed to what happened in St. Louis Missouri. ReferencesFerrell, O.

& Fraedrich, J. (2012). Business Ethics: Ethical Decision Making & Cases. New York: Cengage Learning. Jones, L. (2011). Introduction to Business Law. New York: Oxford University Press. Yerak, B. (2014, May 23rd). Chicago money manager Stephen Coleman charged with fraud. Chicago Tribune. Retrieved from http://articles.chicagotribune.com/2014-05- 23/business/chi-stephen-coleman-20140523_1_deuce-securities-laws-money-manager

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Accounting Fraud in Daedalus Capital LLC Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Accounting Fraud in Daedalus Capital LLC Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/business/1686848-accounting-fraud
(Accounting Fraud in Daedalus Capital LLC Essay Example | Topics and Well Written Essays - 500 Words)
Accounting Fraud in Daedalus Capital LLC Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/business/1686848-accounting-fraud.
“Accounting Fraud in Daedalus Capital LLC Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/business/1686848-accounting-fraud.
  • Cited: 0 times

CHECK THESE SAMPLES OF Accounting Fraud in Daedalus Capital LLC

Financial Statement Fraud Investigations

It tries to make the capital market more efficient by providing perfect information for all participants.... Financial scandals not only ruin the repute of the company, it might also create negative sentiments in capital markets, affects the nation's economic growth and prosperity.... The report “Financial Statement fraud Investigations” revealed the facts that the company scheduled smuggled money as sales from foreign banks.... The financial statement fraud examination aims to implement integrity and CSR in all companies by encouraging transparent, reliable, and investor-friendly financial statement....
4 Pages (1000 words) Essay

Xerox Accounting Fraud

??… Unlike with other companies that have successfully swept problems away with minor disclosures, the SEC was not satisfied with these adjustments and continued its own investigation, which resulted in the commission filing a civil fraud injunctive action against Xerox in April 2002.... Stephen Cutler, the SEC's director of enforcement said, “Xerox used its accounting to burnish and distort operating results rather than to describe them accurately....
10 Pages (2500 words) Essay

Sales and Investment Fraud

nvestment frauds such as insider trading can impact greatly on the performance of a company in the capital markets.... The paper “Sales and Investment fraud” seeks to evaluate one of the biggest problems facing sales and investment businesses.... A fraud can be described as an ingenuity devised by an individual who resorts to the taking advantage of the other people through false representation.... According to the Federal Trading Commission (FTC) (2011), investment fraud represents over 50% of consumer dollar injury noted by the organization's Telemarketing Complaint System....
6 Pages (1500 words) Essay

Accounting Capital Transactions in Partnership

The limited partners contribute capital to the business unlike the general partners.... Accounting capital Transactions in Partnership Accounting for capital Transactions in Partnership Partnership occurs where two or more people enter into a treaty with a view of establishing a business together which governed by legal rules and conditions of agreement.... The limited partners contribute capital to the business unlike the general partners....
2 Pages (500 words) Essay

Fraud in the AIS: Koss Corporation Fraud

The paper “fraud in the AIS: Koss Corporation Fraud” seeks to evaluate the fraud in Koss Corporation, which entailed two major accounting system misappropriations, namely fraudulent wire transfer and the insertion of fraudulent account entries in the company financial books and records.... hellip; The author states that there are various ways in which both the functions and components of the Koss Corporation Accounting information system failed, allowing for the fraud and embezzlement of the company's funds....
10 Pages (2500 words) Research Paper

Delphi Corporation: Financial Fraud

Milan Blans is the former Director of capital Planning and Pension Analysis in Delphi Corporation.... In the paper “Delphi Corporation: Financial fraud” the author discusses Delphi Corporation, which is among the leading suppliers of latest technologies for commercial and automotive vehicle markets.... The Securities Exchange Commission accused Delphi Corporation of engaging in a number of financial fraud.... Delphi Corporation: Financial fraud Delphi Corporation is among the leading suppliers of latest technologies for commercial and automotive vehicle markets....
2 Pages (500 words) Essay

Accounting fraud

In my view accounting fraud is related to any act that conceals the facts relating to the finances of the company.... Another example of accounting fraud can be taken in the case of companies who deliberately delay their financial bookings to an appropriate time in the future where they may balance out the profits.... The aspect of Fair Value accounting is being used differently all over the world but it was wrongly used in Enron because it was not being checked upon by the relevant authorities....
2 Pages (500 words) Coursework

Frank Woods Business Accounting

The present assignment "Frank Woods Business accounting" deals with the matters of financial accounting.... %At the end of the accounting period, a business needs to write off an irrecoverable receivable of £3,000.... It is mentioned here that a manufacturing account is an account that serves to calculate the cost of finished goods produced in a manufacturing business....
10 Pages (2500 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us