The Function of Ethics and Financial Services Essay

The Function of Ethics and Financial Services - Essay ExampleThe companionship was touch in a fraud scheme whereby Gottlieb and Drabinsky received $7, 000, 000 directly or through the accompany takeed by Gottlieb. $ 4, 000, 000 of the total amount was capitalized as the pre-production exists. Gottlieb and Drabinsky operated a kickback scheme with Livent vendors and took the mentioned amount from the company and took into their own pocket. To fully convince the company of the transaction, Gottlieb instructed the two vendors to present an invoice that could not expose their deal. Gottlieb and Drabinsky received the allowance for bogus services. In the mid-1990s, it became difficult for the company to attain its financial goals. Gottlieb and Drabinsky enjoyed their financial gain, and in turn, the company had to keep the loss. It became difficult for the company to raise additional capital to sustain its operation. Gottlieb and Drabinsky manipulated the company by directing Liven ts accounting staff to obscure the companys financial crisis. Some of the manipulations included erasing the accounting records that enter the liabilities and expenses of the company at the end of each year. The Livents accounting staff engaged into an accounting rip off of convertring the preproduction costs of existing show to shows that were in production. This transfer manipulated the company to comprehend the cost of the major items utilize in production. To reduce the costs of preproduction, Livents accounting team transferred the costs to fixed asset accounts.... The Livents accounting staff engaged into an accounting scam of transferring the preproduction costs of existing show to shows that was in production. This transfer manipulated the company to comprehend the cost of the major items used in production. To reduce the costs of preproduction, Livents accounting team transferred the costs to fixed asset accounts. Eventually, the company started debiting salary expense s and operating expenses to long-term fixed assets accounts. Livent transferred the cost of the shows that were currently running to shows that never existed (Knapp & Knapp n.d, p10). In 1996, Gottlieb and Drabinsky conducted a scheme referred as the fraudulent revenue-generating. This fraud involved various multimillion-dollar transactions organized by Gottlieb and Drabinsky. Most transactions involved the rights to produce Show and ragtime Boat in different U.S. theatres to Texas companies. The contract or agreement of this transaction obligated the need to need a non refundable fee. Specifically, the $11.2 million fee paid by the Texas company to Livent was non refundable. However, the Livents executives arranged a hush-hush side agreement that guaranteed Texas Company a reasonable rate of return on every big(p) investment they made. Despite the actual growth and earnings that the company achieved, the accounting staff benefited more eyepatch the company deteriorated at a hig h rate. The final Livent Fraud occurred in the late 1997, when Livent opened rag week in the Los Angeles Theatre. The company got into an agreement with the theatre of closing the show if the weekly sales fell less(prenominal) than $500, 000. During that period, Livent entered into various transactions purporting to present