Tuesday, March 27, 2007

Scandal scorecard, redux

And now for a blast from the past. Former Reagan budget director David Stockman, supply side boy wonder who made up the numbers then is still doing so now, indicted and also charged civilly with securities fraud.
Stockman personally directed fraudulent schemes to inflate C&A's reported income by accounting improperly for supplier payments. In furtherance of those schemes, the complaint alleges that Stockman and other defendants obtained false documents from suppliers designed to mislead C&A's external auditors. According to the complaint, when aspects of the schemes were discovered in March 2005, Stockman embarked on a public campaign to mislead investors, potential financiers and others by minimizing the extent of the fraudulent accounting and hiding C&A's dire financial condition.

The more things change.....

No comments: