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The Biggest Fraud Cases in U.S. History (Part 2)

March 30, 2015 by  
Filed under Blog

In our last blog, we talked about the biggest fraud cases in U.S. history; cases that went beyond the prowess of a regular private investigation firm. Although we do have the capabilities, we have never had the opportunity to investigate such cases. These cases required the attention of DOJ or SEC and the resulting cases and lawsuits incurred billions of dollars in settlements. And we aren’t done with these cases yet, there are still 5 more fraud cases, even bigger, that are left. And if you haven’t heard about them already, they will leave you in awe at the audacity of these CEOs and CFOs.

5- MF Global

Jon Corzine was at the helm of MF Global at the time when it held $41 billion in assets. But in 2011, MF Global was fighting to stay alive. Many consider Corzine to be the cause of the company’s demise and the missing $1.6 billion.

4- Cendant

One of the biggest fraud cases handled by SEC to date, Cendant lost its investors $19 billion. The then chairman of the company Walter Forbes was charged with accounting fraud and sentenced to 12 years in prison for his actions.

3- Lehman Brothers

Lehman Brothers was one of the world’s biggest financial services providers. The company had assets of over $600 billion, which is why in 2008 it became the largest company to declare bankruptcy. Many financial experts believe that it was also the cause of the financial crisis that engulfed the world in 2008. The most surprising thing about this case is that anyone has yet to be held responsible for the collapse of the company.

2- Bernard Madoff

It is not often that a single person is responsible for stealing $65 billion, but Bernard “Bernie” Madoff pulled it off. He founded his investment firm in 1960 and siphoned billions of dollars from his clients until he was arrested in 2008.

1- Enron

An energy industry giant, Enron Corporation, went down because of accounting fraud. The company’s president Jeff Skilling was held responsible for the collapse of the industry that was once worth $78 billion. The consequent lawsuits settlements reached a staggering $7 billion and are still considered the highest amount in settlements of all time.

You may have noticed that most of these companies went under after the turn of the century, hence the financial crisis. It can clearly be seen that the greed of a few people almost caused a country’s economy to crash. This is why all types of fraud, whether insurance fraud or accounting fraud, should be stopped before it can damage other people’s finances. Professional investigation services can help you avoid that.


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