CorporateConflicts.com v3.0
Insight & Commentary
Corporate Conflicts

How good are your internal controls?

>
>
>
>
>
>
>
>
>
Corporate  Conflicts was created to raise awareness of potential conflicts of interest occuring in the workplace.

Nelson Chin provides management consulting services to Fortune 1000 companies.

His commentary is based solely on public information available from a variety of sources and may not reflect the only course of action.

This website is to help educate managers, employees, and firms on how to avoid conflicts.

To inquire about a consulting or speaking engagement,
e-mail: Admin @ CorporateConflicts . com
 
Bernie Ebbers
Worldcom CEO
Scott Sullivan
Worldcom CFO
 
Dennis Kozlowski
Tyco
Mikhail Khodorkovsky
Yukos Oil
John Rigas
Adelphia Comm.
 
Richard Scrushy
HealthSouth
 
Sanjay Kumar
Computer Assoc.
 
Bernie Madoff
Coming Soon
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
To inquire about a consulting or speaking engagement,
e-mail: Admin @ CorporateConflicts . com

Settlement $ 

     Commentary

Home Depot Needs to Rebuild Customer Service. Shareholder Recommends Shopping at Lowe's Instead.

Many can recall when the first Home Depot stores opened up in their region. Home improvement retail chains such as Pergament and Rickel quickly folded when they could not meet Home Depot's lower prices. With over $5 billion in annual sales, Home Depot seems to have a successful sales strategy and price advantage over it's competitors.

I myself, have been a long time loyal Home Depot customer and shareholder of Home Depot stock (and continue to be as of writing this article on October 6, 2005).

So when a company is in a dominant position in their industry, what could possibly cause Home Depot to lose sales and market share ?

After going through the worst retail experience ever with the Home Depot store located at 980 3rd Avenue in New York City, I can no longer support shopping at this retailer. Instead, I highly recommend you take your business to Lowe's instead.


Cont'd ..

Nelson Chin Corporate Conflicts.
All rights reserved. No reproduction of this article in any format including electronic is allowed without the expressed written consent of the author.

              Commentary
Worldcom's Ebbers faces $30 million fine and life in prison.

Convicted former CEO Bernie Ebbers of Worldcom (now known as MCI, Inc.) offered his $45 million in total assets in a bid for leniency. Ebbers was convicted on March 15 by a federal jury for his role in the WorldCom fraud trial.

WorldCom shareholders who filed a class-action lawsuit against Ebbers would get 75% of the money. MCI, would get the rest. For the latest updates. . .

Nelson Chin Corporate Conflicts.  
  
   

Commentary 
Former CEO Kozlowski convicted, faces 25 years.

A jury convicted Tyco's ex-CEO Dennis Kozlowski and former CFO, Mark H. Swartz, of defrauding nearly $600 million from the company to finance opulent lifestyles. They face up to 30 years in prison. cont'd...

Nelson Chin Corporate Conflicts.  
   

                     Commentary
Russian Oil Tycoon, Mikhail Khodorkovsky: Guilty of Fraud and Victim of Politics?

Russian tycoon Mikhail Khodorkovsky, the former head of Yukos Oil, was convicted of charges including fraud and tax evasion and sentenced him to nine years in prison.

More details...

Nelson Chin Corporate Conflicts.
   
  


Commentary

Adelphia, and ex-CEO Rigas to settle fraud case. Rigas already facing 15 years in prison.

Adelphia Communications Corp. ('Adelphia") will pay approximately $715 million to settle ''one of the most extensive financial fraud ever to take place at a public company," according to a statement issued by the Securities and Exchange Commission.

Ex-CEO John Rigas along with other family members, will forfeit a total of $1.5 billion in assets to create a fund to compensate victims of ''one of the most extensive financial fraud ever to take place at a public company.''

Full commentary ...

Nelson Chin Corporate Conflicts.
 
  

 

 Commentary
Former CEO faces new indictment. Could auditors have detected the fraud ?

Former Computer Associates CEO, Sanjay Kumar is accused of paying $3.7 million to a businessman to buy his silence about an improper business transaction used to inflate sales.
More...

Nelson Chin Corporate Conflicts.  
  

Arthur Andersen Conviction Overturned: Too Little Too Late.

  Commentary

The Supreme Court overturned the 2002 conviction of accounting firm Arthur Andersen ("Andersen") related to destroying documents from their audit of Enron Corporation. The ruling unanimously stated that the jury instructions were too broad.

The reversal of the conviction is a bittersweet symbolic victory for the 25,000 employees that were let go as a result of the original jury verdict. Continued ..

Nelson Chin Corporate Conflicts.

      

Identity theft, a growing concern.

As technology makes it easier and easier for individuals and businesses to conduct more transactions online, there should be more of a concern regarding security. Security has not kept up with the technology.

Information is being stored online in so many databases worldwide that when there is a breach in security, it's often difficult if not impossible to determine how the data was obtained.

There are so certain safeguards one should take as a precaution.

1) Update all your passwords on a regular basis.

2) Make sure the passwords are not identical. With the growing number of online accounts requiring passwords, it's difficult to remember a unique password for every account. As such, individuals often use the same password for the majority of their accounts. Once an unauthorized individual has access to one of your passwords, it's likely all your accounts have now become compromised.
Cont'd ..
Nelson Chin Corporate Conflicts.  


Commentary
Accounting giant KPMG probed for unlawful conduct.

Federal prosecutors are investigating whether KPMG advised clients to participate in dubious tax shelters.

The Justice Department has been investigating KPMG and some former partners for promoting the sales of tax shelters from 1996 through 2002 for wealthy individuals. The shelters allegedly violated the tax laws and yielded large advisory fees for KPMG while costing the government as much as $1.4 billion in lost revenue.

Cont'd ..

Nelson Chin Corporate Conflicts.    

  
Sarbanes-Oxley Act of 2002
("SOX") is the first effort to reform corporate financial reporting and hold accountability after the collapse of Enron, and their auditors Arthur Andersen. SOX is also referred to as the Public Company Accounting Reform and Investor Protection Act of 2002.



Full Analysis of Sarbanes Oxley Act
  


Nelson Chin Corporate Conflicts.  
Dilbert Scott Adams
      Commentary

Japan shuts down Citigroup Private Banking Unit.

Corporate Conflicts of Interest
at Citigroup (C): Japanese Financial Services Agency (FSA) has ordered Citigroup to shut down its private banking operations in Japan. Regulators said they found a list of problems at Citigroup's private banking arm, from improper trading practices to lax anti-money laundering procedures.

For the full story...


Nelson Chin Corporate Conflicts.
 

          Commentary

Outgoing CEO's Favorite Toy? The Golden Parachute.

Since joining the Toys R Us as CEO in 2000, John H, Eyler has seen the beleaguered company steadily losing market share to discounters such as Wal-Mart. Eyler's annual total compensation is approximately $2 million, split evenly between cash and bonus.

With shareholders approving a $6.6 billion buyout, just how much is Eyler's
Golden Parachute?


Nelson Chin Corporate Conflicts.
 

5 Ways to Prevent Corporate Conflicts:

1) Documented Human Resources Manual that all employees should have access to and have annual re-affirmations that they have read and understand all policies in said manual.

Read 2 - 5 ....

Nelson Chin Corporate Conflicts.  
   

 Commentary
Former CEO of HealthSouth, Richard Scrushy acquitted.

HealthSouth Corp. founder Richard Scrushy walked away a free man after a jury cleared him of all charges in a stunning setback for federal prosecutors who sought to add his name to a list of CEOs convicted of fraud.

For the full story...

Nelson Chin Corporate Conflicts.
   
       Commentary
Buy, Write, then Sell for MarketWatch.com columnist.

Corporate Conflicts of Interest at MarketWatch: Thom Calandra, a former columnist for MarketWatch.com , has agreed to pay more than $540,000 to settle SEC's civil fraud charges for using his news column. Read more ..


Nelson Chin Corporate Conflicts.
    

 Commentary
CFOs in Short Supply at Retailer. A SOX Case Study.

On January 12, 2005, OfficeMax Inc. (OMX), the office products retailer, announced the resignation of new chief financial officer Brian Anderson after being on the job for 2 months.
cont'd...
  

Nelson Chin Corporate Conflicts.
   
>
Corporate Conflicts Website 2004 - 2009 Nelson Chin. All rights reserved.
All logos are trademarks of their respective owners.