What happened in corporate accounting scandals?

When a company withhold or distort information to appear healthy and successful to its shareholders deliberately committed a fraud company or a shareholder. Corporate fraud may involve a few individuals or many, depending on the extent to which employees are informed of the financial practices of your business. Business leaders can circumvent financial records or disguise inappropriate spending. Fraud committed by companies can be devastating, not only for foreign investors who have purchased shares on the basis of false information, but for employees through 401k, invested their retirement savings in equities business.Recent accounting scandals of companies have used the media and ruined hundreds of thousands of lives of the employees who had invested their retirement and other companies that defrauded investors. The practical aspects of some of these accounting scandals are as follows:WorldCom admitted to adjusting accounting records to cover their operating costs and present a front success to shareholders. Nine billion dollars in discrepancies were discovered before the telecommunications company went bankrupt in July 2002. One of the hidden costs was 408 million against Bernard Ebbers (WorldCom's CEO) in undisclosed personal loans .At Tyco, shareholders were not informed of $ 170 million in loans that were taken by Tyco CEO, CFO and Director of Legal Affairs. Loans, many of which were taken interest free and later written off benefits have not been approved by the Compensation Committee of Tyco. Kozlowski (former CEO), Swartz (former CFO) and Belnick (former chief legal officer) face continuing investigations by the SEC and the Tyco Corporation, which now operates under Edward Breen and a new board of directors .Enron, investigations against uncovered several acts of fraudulent behavior. Enron used illegal loans and partnerships with other companies to cover its debt of several million dollars. Presented erroneous accounting records to investors, and Arthur Anderson, the accounting firm, began shredding incriminating documentation weeks before the SEC could initiate an investigation. Money laundering, mail fraud, mail fraud and securities fraud are some of the allegations of Directors of Enron have faced and continue to face as the investigation continues.