Latest "SEC" Posts

Entitlement Ethics and Abuse: Darryl Layne Woods highlights Banking Abuse

Today’s blog is inspired by one of the most blatant ethical missteps I have heard in years. In an article by Peter Lattman for The New York Times (August 27, Darryl Layne Woods2013), “Bank executive admits to using bailout money to buy condo,” we are introduced to Darryl Layne Woods a bank executive and a former chairman of the Mainstreet Bank of Ashland, Missouri. In a sense, Mr. Woods is emblematic of the worst of the abuses of banking in America.

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Posted by Chuck Gallagher in bank fraud, Banks, Ethical Behavior, ethics, prison, SEC and tagged , , , , ,

City of Miami – How Unethical Behavior leads to a Fraud Charge by the SEC – Comments by Business Ethics Expert Chuck Gallagher

There are times when it is sad to report on unethical practices – especially when it comes to municipal governments.  As a business ethics expert and someone who speaks on a regular basis to municipalities around the country, it is painful when a city – like the city of Miami – find themselves embroiled in a dispute regarding ethical behavior.

City of MiamiIt seems like we can now add the city of Miami to the city of Harrisburg, Pennsylvania and the state of Illinois insofar as the growing list municipalities misrepresenting themselves to the public in 2013 alone. In Miami’s case, it appears as though they are about to become two-time losers. We wonder who will be next.

In an online article for CNN Money by writer James O’Toole, we learn that:

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Posted by Chuck Gallagher in Ethical Behavior, ethics, Ethics - Political, Fraud Pure and Simple, Political Ethics, politics, SEC and tagged , , , , , ,

Scott London at KPMG Charged With Insider Trading, Part II

Last week, we discussed the case of Scott London, KPMG’s Chief of Audit Practice, for their southwestern office.  Mr. London has been charged with insider trading violations for disclosing confidential information in regard to several of KPMG’s publicly traded companies…clearly a business ethics violation and an Scott London KPMGillegal act.  He told a friend things about those companies that were about to affect their stock prices. The friend then took the information before the general public knew and bought stock in the companies.

Over three years, the friend made more than $1 million trading on the information given to him by Mr. London and he, in turn, thanked the Chief of Audit Practice in the form of large bundles of $100 bills along with a Rolex watch and concert tickets valued in the tens of thousands of dollars.

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Posted by Chuck Gallagher in Business and Personal Ethics, business ethics, ethics, FBI, SEC, white collar crime and tagged , , , , , ,

After dropping the ball on the Bernie Madoff scandal – the SEC changes its focus on Tips!

Sometimes government agencies just don’t get it…they miss the obvious and ignore competent data that’s provided through tips.  Perhaps they aren’t staffed to follow up.  Perhaps they feel that most tips are grudge tips and not credible.  Who knows?  But after the Madoff scandal – the largest Ponzi scheme in US history, the SEC has now changed their focus when it comes to tips.  Below is a well written article that shows the power of tips and it’s impact on busting fraud wide open.

(Sarah N. Lynch and Matthew Goldstein) – For more than three years, U.S. securities regulators investigated allegations of accounting fraud at a small telecom firm called China Voice Holding Corp, but could not make a case.

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Posted by Chuck Gallagher in Bernie Madoff, Fraud Pure and Simple, New Website, SEC and tagged , , , ,

CNBC Features Dan Frishberg, an investment advisor who’s under investigation by the SEC? Where are CNBC’s Ethics and Standards?

Short – sweet and to the point.  What due diligence does CNBC do when selecting their guests for appearances on their shows?

CNBC: Dan Frishberg


According to their web site – CNBC is the recognized world leader in business news, providing real-time financial market coverage and business information to more than 340 million homes worldwide, including more than 95 million households in the United States and Canada. The network’s Business Day programming (weekdays from 5:00 a.m.- 7:00 p.m. ET) is produced at CNBC’s headquarters in Englewood Cliffs, N.J. CNBC also includes reports from its news bureaus worldwide in Midtown Manhattan, the NASDAQ MarketSite, Washington D.C., Chicago, Los Angeles, Palo Alto, London, Singapore and CNBC’s headquarters in Englewood Cliffs, N.J.

Dan Frishberg

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Posted by Chuck Gallagher in Al Kaleta - KCM, Bernie Madoff, BizRadio, Daniel Frishberg, ethics, New Website, ponzi scheme, Scams, SEC, white collar crime and tagged , , , ,

White Collar Crime hard to Deter? Perhaps we’re trying the wrong approach says Business Ethics Speaker Chuck Gallagher

How do companies deter White Collar Crime?

White Collar Crime

White Collar Crime

With media reports filled with stories of “white collar crime” such as the developing Koss embezzlement story and the on-going reports related to Allen Stanford and recently sentenced Bernie Madoff, it’s no wonder that organizations are seeking to find deterrents to this seemingly growing phenomenon.

As I prepare to address a group in just hours, I came across this article in the Charleston Regional Business Journal and it struck me – “We’re going about this all wrong!”  But, before I suggest what’s right let’s look at excerpts from the article featured below.  The whole article is here:

Law school panelists: White collar crime hard to deter

By Andy Owens
Published Feb. 22, 2010

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Posted by Chuck Gallagher in embezzlement, New Website, prison, SEC, white collar crime and tagged , , , , , , , , , ,