Filed in archive shareholder activism by leon on August 10, 2007

In the past I have talked about corporate delinquent communities here and here.

Usually when there's corporate malfeasance, it involves a stack of people. Auditors look the other way, managers help themselves to the spoils and directors pretend nothing is happening.

Floyd Norris looks at this phenomenon in his piece on the Refco debacle, Is Fraud O.K., if You Help Just a Little?.

You can read it in full here.

As he shows, the problem with delinquent communities is that they can become legal quagmires.

"Does a company have any obligation to avoid transactions it knows are intended to deceive creditors and investors? What about lawyers who help structure such transactions? If other executives or directors see red flags, but choose not to investigate them, can they be held responsible?"

Related Entries:

Can SOX compliance work? - 05 December 2005
Fraud and delinquent communities - 16 May 2007
Decision about Floyd Landis Coming Soon - 18 September 2007
Will it Blend之Chuck Norris - 27 September 2007

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Permalink: Refco's delinquent community

Tags: Floyd Norris Refco Is Fraud O.K. if You Help Just a Little? corporate refco+delinquent

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Vote for Refco's delinquent community:

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Rating: 9.00 out of 2 vote(s) cast.

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Usually when there's corporate malfeasance, it involves a stack of people. Auditors look the other way, managers help themselves to the spoils and directors pretend nothing is happening. It’s a delinquent community. And now the evidence suggests Refc...

Response from: news.fatpitchfinancials.com

Usually when there's corporate malfeasance, it involves a stack of people. Auditors look the other way, managers help themselves to the spoils and directors pretend nothing is happening. It�s a delinquent community. And now the evidence suggests Refco ...

Response from: BizzBites.com