When It Comes to Financial Scandals; The DOJ Should Focus Within Its Shores and Not Abroad!

LLDOJ

One of the problems that plague the USA is this overwhelming feeling that it has to police the rest of the world.  Such is the case when it comes to events which have taken place out of the legal jurisdiction of the USA.

It remains to be whether those were previously in the Department of Justice had some type of incentive to make 1Malaysia Development Berhad (1MDB) an issue worthy of their time; as 1MDB is a Malaysian entity not an American one.

Perhaps the USA should be more concerned about what happens on its own shores to prevent scandals like the following from taking place.

WorldCom Scandal (2002)

  • Company: Telecommunications company; now MCI, Inc.
  • What happened: Inflated assets by as much as $11 billion, leading to 30,000 lost jobs and $180 billion in losses for investors.
  • Main player: CEO Bernie Ebbers
  • How he did it: Underreported line costs by capitalizing rather than expensing and inflated revenues with fake accounting entries.
  • How he got caught: WorldCom’s internal auditing department uncovered $3.8 billion of fraud.
  • Penalties: CFO was fired, controller resigned, and the company filed for bankruptcy. Ebbers sentenced to 25 years for fraud, conspiracy and filing false documents with regulators.
  • Fun fact: Within weeks of the scandal, Congress passed the Sarbanes-Oxley Act, introducing the most sweeping set of new business regulations since the 1930s.

 

 Freddie Mac (2003)

  • Company: Federally backed mortgage-financing giant.
  • What happened: $5 billion in earnings were misstated.
  • Main players: President/COO David Glenn, Chairman/CEO Leland Brendsel, ex-CFO Vaughn Clarke, former senior VPs Robert Dean and Nazir Dossani.
  • How they did it: Intentionally misstated and understated earnings on the books.
  • How they got caught: An SEC investigation.
  • Penalties: $125 million in fines and the firing of Glenn, Clarke and Brendsel.
  • Fun fact: 1 year later, the other federally backed mortgage financing company, Fannie Mae, was caught in an equally stunning accounting scandal.

 

American International Group (AIG) Scandal (2005)

  • Company: Multinational insurance corporation.
  • What happened: Massive accounting fraud to the tune of $3.9 billion was alleged, along with bid-rigging and stock price manipulation.
  • Main player: CEO Hank Greenberg.
  • How he did it: Allegedly booked loans as revenue, steered clients to insurers with whom AIG had payoff agreements, and told traders to inflate AIG stock price.
  • How he got caught: SEC regulator investigations, possibly tipped off by a whistleblower.
  • Penalties: Settled with the SEC for $10 million in 2003 and $1.64 billion in 2006, with a Louisiana pension fund for $115 million, and with 3 Ohio pension funds for $725 million. Greenberg was fired, but has faced no criminal charges.
  • Fun fact: After posting the largest quarterly corporate loss in history in 2008 ($61.7 billion) and getting bailed out with taxpayer dollars, AIG execs rewarded themselves with over $165 million in bonuses.

 

The above are just a few of the financial scandals which have caused corporate bankruptcy, lost of savings and jobs.

So what about 1MDB?

As of March of this year, Malaysia’s Finance Ministry has reported that 1MDB is debt free

https://www.nst.com.my/news/2017/03/225541/1mdb-now-debt-free-finance-ministry

1MDB paying off its debt and becoming an even more viable fund is not something that Tun Mahathir and those who are trying to oust Prime Minister Datuk Seri Najib Razak want Malaysians to know.

They are desperately trying to paint the picture that is of the utmost importance in the USA; and as a result the DOJ announcement.  However ‘The Third Force reports that Tun Mahathir spent USD 5 Million to trigger the 20th July 2016 DOJ (pre-Raya) announcement.

http://www.malaysia-today.net/mahathir-spent-usd5-million-to-trigger-the-20th-of-july-2016-doj-announcement/

Raja Sara Petra correctly stated in her blog post that money can buy anything in America.

http://www.malaysia-today.net/money-can-buy-anything-in-america/

That is probably why those seeking to get rid of Prime Minister Najib went to America with a sweet incentive in order to trigger the DOJ statement(s).

But with all the DOJ has to do with things happening within its own shores, they should leave Malaysia politics (and that is what it is really about) to Malaysians!

 

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