Penalties for Fraud are insufficient to deter wrongdoing

• Autores: Curtis C. Verschoor
• Localización: Strategic Finance, ISSN-e 1524-833X, Vol. 96, Nº. 3, 2014, págs. 15-61
• Idioma: inglés
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• Resumen

  • The author argues that penalties for accounting and financial fraud assessed by the U.S. Securities and Exchange Commission (SEC) are insufficient to deter wrongdoing by describing the case of food company Diamond Foods, two of whose executives, chief executive officer Michael J. Mendes and chief financial officer Steven M. Neil, the SEC determined were complicit in accounting fraud. The author notes that Diamond was fined just $5 million, less than 1% of its 2013 revenues.