Let brand new FOB (friend of the blog), Mr. Tom Selling over at The Accounting Onion tell you all about it.

-- MDT

Labels: Arthur Andersen, audit, SEC, Worldcom

Rentway... here's a company that back in 2000 was booming, at least according to what folks on the outside thought. Unfortunately, on the inside, some people knew better. When faults - fraud, really - were discovered in the company's accounting CEO, William E. Morgenstern faced a tough decision - gloss it over or take it to the board. Did they start shredding? Not exactly:

Rent-Way’s board made a decision within days of detecting the fraud — Mr. Morgenstern called the Securities and Exchange Commission and revealed everything. The company would turn over documents typically protected by attorney-client privilege, he said. He then invited the S.E.C. to set up an office at Rent-Way’s headquarters to conduct an on-site investigation.

How did it all work out for Rentway?

Details here, via an engrossing article at TheLedger.com.

-- MDT

Labels: Enron, Fraud, pre-trial agreements, Rentway, SEC, Worldcom