Fraud probe faults former Cendant execs
Article Abstract:
Cendant's former Chairman Walter Forbes and Vice Chairman E. Kirk Shelton are responsible for the massive accounting fraud at the marketing and franchising group. Forbes and Shelton resigned from the company on Jul. 28, 1998, and in the spring of 1998, respectively. According to a report by the board's audit committee, the two encouraged an environment in which muddy accounting practices could prosper. The audit committee's report is based on findings by Arthur Andersen's accountants specializing in fraud. The scam involved recording over $500 million in phony revenue over three years at Cendant, the former CUC International.
Comment:
Former Chairman Walter Forbes and Vice Chairman E. Kirk Shelton are responsible for massive accounting fraud at the company
Publication Name: USA Today
Subject: News, opinion and commentary
ISSN: 0734-7456
Year: 1998
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Cendant chairman, allies quit
Article Abstract:
Cendant Chairman Walter Forbes, along with eight of his allies on the board of directors, stepped down from their positions in the midst of an accounting fraud scandal that hit the company. Forbes, 55, who used to be the CEO of CUC International, submitted his resignation during a meeting of Cendant's 28-member board. Previously, Forbes vowed he would not leave Cendant as he was unaware of fraud at CUC, which consolidated with HFS in December 1997 to create Cendant. However, pressure from Cendant's CEO Henry Silverman and shareholders forced Forbes to leave the franchising and marketing company.
Comment:
Chairman Walter Forbes, along w/ 8 of his allies on the board of directors, step down from their positions
Publication Name: USA Today
Subject: News, opinion and commentary
ISSN: 0734-7456
Year: 1998
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Potential conflict of interest bruises Cendant
Article Abstract:
Cendant, a marketing and franchising group, saw its shares dumped by some institutional investors as a result of charges of accounting fraud against the company. Stockholders also expressed concern on a possible conflict of interest that will emerge from Cendant chairman Walter Forbes' business ties with the company's audit committee head, Frederick Green. The audit committee of Cendant was tasked with making an inquiry into who was responsible for its CUC International operation's declaration during a three-year period of $300 million worth of sales, which were found to be untrue.
Comment:
Sees its shares dumped by some institutional investors as a result of charges of accounting fraud against the co
Publication Name: USA Today
Subject: News, opinion and commentary
ISSN: 0734-7456
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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