One: Falsified Financial Reports
While there is some leeway in accounting practices for the purpose of ease of presentation (such as rounding numbers up to the nearest dollar), these practices have virtually no effect on the overall value of the information being presented. It is another thing altogether, however, when financial reports are falsified for the gain of the company and/or for an individual’s own gain.
The greater the significance of the financial report and the more significant the degree of falsification, the more financially devastating the effects can be. This is not to mention the precipitous decline in both public and investor trust in the venture involved. When the employees and other stakeholders are used to help prop up fraudulent financial schemes that are backed by falsified financial reports, they stand to lose their livelihoods (and potentially their life savings) when the house of cards ultimately topples. The effects of falsified financial reports on a grand scheme can reverberate throughout the entire nation – and beyond.
When you take a position with a business of any size, you accept a duty to act in good faith on behalf of the business itself. If an employee takes this opportunity to enrich himself or herself to the detriment of his or her employer and/or the employer’s investors, it is known as self-dealing. Insider trading is a prime example of self-dealing. Consider the following (for example):
A manager of a company knows private information regarding a forthcoming event that is likely to significantly affect the price of the company’s stock.
The manager uses this information to his or her own financial advantage (by either purchasing or selling the stocks, for example).
These, together, amount to a form of self-dealing, which is a form of corporate fraud.
Seek the legal Guidance of an Experienced Harker Heights Criminal Defense lawyer Today
If you are facing a corporate fraud charge, attorney Brett Pritchard at The Law Office of Brett H. Pritchard in Harker Heights, Texas, is prepared to employ the full force of his considerable experience in pursuit of your case’s optimal outcome. We are here for you, so please do not hesitate to contact us online or call us at 254-501-4040 for more information about how we can help you today.