Tobecksen, another accounting expert, was enlisted in to handle Hau's overflow. Getz, the general counsel, blessed the Company's fraudulent disclosures.
The complaint, filed in U. District Court in Chicago, charges that defendants engaged in a systematic scheme to falsify and misrepresent Waste Management's financial results between and The complaint names Waste Management's former most senior officers: Buntrock, Waste Management's founder, chairman of the board of directors, and chief executive officer during most of the relevant period; Phillip B.
Rooney, president and chief operating officer, director, and CEO for a portion of the relevant period; James E. Koenig, executive vice president and chief financial officer; Thomas C.
Hau, vice president, corporate controller, and chief accounting officer; Herbert Getz, senior vice president, general Waste management fraud, and secretary; and Bruce D. Tobecksen, vice president of finance. The Commission is seeking injunctions prohibiting future violations, disgorgement of defendants' ill-gotten gains, civil money penalties, and officer and director bars against all defendants.
Buntrock - the driving force behind the fraud.
He set earnings targets, fostered a culture of fraudulent accounting, personally directed certain of the accounting changes to make the targeted earnings, and was the spokesperson who announced the company's phony numbers.
At the same time, Buntrock posed as a successful entrepreneur. With charitable contributions made with fruits of his ill-gotten gains or money taken from the company, Buntrock presented himself as a pillar of the community.
For example, just 10 days before certain of the accounting irregularities first became public, he enriched himself with a tax benefit by donating inflated company stock to his college alma mater to fund a building in his name.
Rooney - in charge of building the profitability of the company's core solid waste operations and at all times exercised overall control over the company's largest subsidiary.
He ensured that required write-offs were not recorded and, in some instances, overruled accounting decisions that would have a negative impact on operations. Koenig - primarily responsible for executing the scheme. He also ordered the destruction of damaging evidence, misled the company's audit committee and internal accountants, and withheld information from the outside auditors.
Hau - principal technician for the fraudulent accounting. Among other things, he devised many "one-off" accounting manipulations to deliver the targeted earnings and carefully crafted the deceptive disclosures.
Tobecksen - another accounting expert who was Koenig's right-hand man. Inhe was enlisted to handle Hau's overflow. The complaint alleges that defendants fraudulently manipulated the company's financial results to meet predetermined earnings targets.
The company's revenues were not growing fast enough to meet these targets, so defendants instead resorted to improperly eliminating and deferring current period expenses to inflate earnings.
They employed a multitude of improper accounting practices to achieve this objective.WASHINGTON - The Securities and Exchange Commission said yesterday that it settled an accounting fraud lawsuit against four former executives at Waste Management Inc., the world's largest trash.
The SEC fined Arthur Andersen and three partners more than $7 million in connection with audits of Waste Management's annual financial results, in one of the first fraud cases ever filed against a.
IntroductionFinancial statement fraud (FSF) has received considerable attention from the public, press, investors, the financial community, and regulators because of high profile reported fraud at large companies such as Lucent, Xerox, Rite Aid, Cendant, Sunbeam, Waste Management, Enron Corporation, Global Crossing, WorldCom, Adelphia, and Tyco.
Waste Management sued SAP for the US$ million to recover the funds it had spent on the failed ERP implementation. In the lawsuit, Waste Management accused SAP of fraud and deception.
SAP countered that Waste Management failed to present knowledgeable workers and accurate business models and failed to migrate data from legacy systems.
Waste Management Founder, Five Other Former Top Officers Sued for Massive Fraud Defendants Inflated Profits by $ Billion To Meet Earnings Targets; Defendants Reap Millions in Ill-Gotten Gains While Defrauded Investors Lose More Than $6 Billion.
|The Waste Management, Inc. Fraud Scandal - Ellrich, Neal, Smith & Stohlman, P.A.||Professor Kari Day By: Examination of Fraud 1 Abstract FromWaste Management was found to have materially misstated their financial statements.|
|Getz, and Bruce D. Tobecksen, Civil Action No.|
|The Waste Management, Inc. Fraud Scandal - Ellrich, Neal, Smith & Stohlman, P.A.||Many of the biggest corporate accounting scandals in history happened during that time. Here's a chronological look back at some of the worst examples.|
Mar 27, · According to the complaint, Waste Management put a cap on the amount Andersen could be paid for accounting work -- a total of $ million over the years in question.