In: Accounting
search current news to find an article about a company that experienced an accounting fraud incident in the last three years. Summarize the article and include proper APA citation and reference list as part of your posting.
some important focal points:
What was the nature of the fraud (occupational or managerial)?
Who were the key players?
How does the event fit the Fraud Triangle?
What was the end result?
The multi-crore Satyam Computers corporate scam was a jolt to the market, especially to Satyam stock-holders. A look at all the aspects of one of the biggest corporate frauds that raised eyebrows and highlighted the need for better government regulations among corporates.
What: The scandal broke in 2009 when founder-chairman of Satyam Computers Ramalinga Raju confessed that the company’s accounts were tampered with. He disclosed a Rs.7,000-crore accounting fraud in the balance sheets.
Who: The 10 people found guilty in the case are: B. Ramalinga Raju; his brother and Satyam's former managing dDirector B. Rama Raju; former chief financial officer Vadlamani Srinivas; former PwC auditors Subramani Gopalakrishnan and T Srinivas; Raju's another brother B Suryanarayana Raju; former employees G. Ramakrishna, D. Venkatpathi Raju and Ch Srisailam; and Satyam's former internal chief auditor V.S. Prabhakar Gupta.
When: The timeline of the scam
January 7, 2009: Ramalinga Raju dropped a letter-bomb on unsuspecting investors, employees and the government confessing to a Rs.7,136-crore fraud committed by him and his close circle of relatives and employees at the company. Ramalinga Raju resigns. > Read more
January 8, 2009: Citibank freezes Satyam's 30 accounts.
January 9, 2009: Ramalinga Raju and his younger brother B. Rama Raju arreste. Central govt disbands Satyam’s board, to appoint its own 10 directors.
Jan 9, 2009: Satyam removed from Sensex, Nifty.
Jan 10, 2009: Satyam’s former CFO Srinivas Vadlamani arrested.
Jan 11, 2009: Government appoints Deepak Parekh, Kiran Karnik and C. Achuthan to Satyam board.
February 2009: CBI takes over investigation, goes on to file
three chargesheets.
Mar 6, 2009: Gets SEBI nod for bidding process to select investor.
April 22, 2009: Tech Mahindra makes open offer to Satyam shareholders at Rs. 58/share, offer to close June 9.
June 22, 2009: Mahindra unveils new brand identity for Satyam, Mahindra Satyam.
2010: Raju says charges levelled by CBI are false.
November 2, 2011: Supreme Court grants bail to Raju since CBI failed to file chargesheet on time.
October 28, 2013: Enforcement Directorate files a criminal complaint against 47 persons and 166 corporate entities headed by Ramalinga Raju. >Read more
December 8, 2014: Ramalinga Raju and three others given six months jail term by SFIO.
December 23, 2014: Judge postpones verdict citing voluminous documents.
March 9, 2015: Special court defers verdict till April 9.
April 9, 2015: All 10 accused found guiltY
PAGE REFERENCE: http://www.thehindu.com/specials/timelines/satyam-scandal-who-what-and-when/article10818226.ece
Satyam Scandal (2009)