Accounting Fraud

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Accounting Fraud

Any act or attempt to falsify an accounting statement for financial gain. A clear example of accounting fraud is the act of deliberately overpricing a company's assets in order to drive up its share price. Another example is filing bankruptcy to avoid debt, rather than because of financial hardship. One of the biggest accounting frauds in history occurred during the Enron scandal in 2001.
References in periodicals archive ?
It was targeted in damages lawsuits by shareholders of major companies that collapsed after accounting frauds such as those involving retailer Yaohan Japan Corp.
in an accounting fraud that has humbled what was once a premier cosmetics and textile company, investigative sources said Saturday.
Separately, Bristol-Myers says it will pay $150 million to settle Securities and Exchange Commission charges that it improperly inflated its sales and earnings through a series of accounting frauds that began in April 2002.
Bristol-Myers says it will pay $300 million to resolve a shareholder lawsuit alleging accounting fraud and similar charges.
The positive aspect coming from the large accounting frauds is that there is an increasing awareness by clients that they might have problems of their own," he adds.
8bn in expenses in what appears to be one of the largest ever accounting frauds.
Despite recent multi-billion dollar accounting frauds in the United States, fraud is a global problem," explains Wells.