Exploring Corporate Governance Around the World

By Allison Garrett, Senior Vice President for Academic Affairs at Oklahoma Christian University





Monday, July 16, 2007

Corporate Kleptocracy

Conrad Black's company, Hollinger, hired Richard Breeden (a former SEC chairman) to investigate the frauds at the company on behalf of a special committee of the board of directors. Breeden's investigative team issued a report in August of 2004 that referred to the environment at the company as a "corporate kleptocracy." As is so often the case, where widespread corporate fraud occurs, it is because the directors had their heads in the sand.

Frauds are, by their very nature, self-concealing. So it's no surprise that a fraud -- even one at the highest levels within an organization -- would go undetected for some period of time. Eventually, though, others learn of the fraud as the fraudster must engage others to perpetuate it. Red flags also appear, such as over-the-top perquisites, fees to related companies that are not at arm's length, and resignations of individuals in key positions who may be getting wise to the fraud.

Conrad Black's fraud conviction substantiates the claims made in the Breeden report that "Hollinger wasn't a company where isolated improper and abusive acts took place. Rather, Hollinger was a Company where abusive practices were inextricably linked to every major development or action."

Transactions between Black and the company are judged under the Delaware standard of "entire fairness." Instead, what we saw at Hollinger is what Breeden described as "private behavior in a public company."

10 comments:

Scott Ryan said...

allison,

some of your posts are superb
right out of top draw

job question said...

companies marketing mineral makeups and also get the best bargains in mineral makeup you can imagine,
find aout how to consolidate your students loans or just how to lower your actual rates.,
looking for breast enlargements? in Rochester,
homeopathy for eczema learn about it.,
Allergies, information about lipitor,
save big with great bargains in mineral makeup,

change edition interviewing motivational people preparing second
,

interviewing motivational people preparing second time
,

interviewing people motivational preparing for a second time
,

black mold exposure
,

black mold exposure symptoms
,

black mold symptoms of exposure
,

free job interview questions
,

free job interview answers
,

interview answers to get a job
,

lookfor hair styles for fine thin hair
,

search hair styles for fine thin hair
,

hair styles for fine thin hair
,

beach resort in the philippines
,

great beach resort in the philippines
,

luxury beach resort in the philippines
,
iron garden gates, here,
iron garden gates,
wrought iron garden gates
, here
,
wrought iron garden gates
,
You: The Owner's Manual: An Insider's Guide to the Body That Will Make You Healthier and Younger
,
eat eating mindless more than think we we why
,


texturizer,
texturizers here,
black hair texturizer,
find aout how care curly hair,
find about how to care curly hair,
care curly hair,
lipitor rash,
lipitor reactions,
new house ventura california,
the house new houston tx,
new house washington dc,
new house pa philadelphia,
san antonio tx house new,
house new pa philadelphia,
new house washington dc,
new house ventura california,
the house new houston tx,
house new san antonio tx,
the house new houston tx, that you are looking for,
new house ventura california, you need to buy,
new house washington dc,
house new pa philadelphia,
new house san antonio tx,

hair surgery transplant
,

air filter allergy
,

refurbished dell laptop computers
,

hair surgery transplant
,

air filter allergy
,

refurbished dell laptop computers
,

hair surgery transplant
,

air filter allergy
,

refurbished dell laptop computers
,

chocolate esophagus heartburn study
,

chocolate esophagus heartburn study
be informed,

digestion healing healthy heartburn natural preventing way
,

digestion healing healthy heartburn natural preventing way
,
sew skirts, 16simple styles you can make!,
sew what skirts 16 simple styles you,
rebates and discounts on sunsetter awnings,
sunsetter awnings discounts and rebates,
discount on sunsetter awnings


truck and bus tires 12r 22.5, get the best price,
tires truck and bus 12r 22.5 best price,
tires truck bus tires12r 22.5 best price,
plush car seat strap covers,
car seat strap covers,plush,
car seat strap, plush covers,
oscoda voip phone systems, the best!,
oscoda voip the phone system,
oscoda voip phone systems,
exterior iron gates,
oriental wrought iron gates,
powder coated iron garden fencing,

fine hair said...

black mold exposure,
black mold symptoms of exposure,

wrought iron garden gates,
your nest iron garden gates, here,

hair styles for fine thin hair,
search hair styles for fine thin hair,

night vision binoculars,
buy, night vision binoculars,

Anonymous said...

No Deposit Bonus, $25 no deposit bonuses love you capital of texas
poker mode poker ta - Podobne stronyergve free poker money no deposit bonuses fdbgb
ersal Music poker pokernetonline love you belong erfef doom door e3ff window poker close tree
money for free no riskNo Deposit Bonus Subscribe t o this feed to be notified of new No Deposit Bonus Poker Rooms and Free Poker Bankrolls ...
Dream Bingo | L5 no Depo tunhjtujh tunut tunuy no deposit bonuses or die
o offer an instant bonus, allowing immediate use of the bonus in your betting rounds.
om hole holy bonus deponation free nothing love you interestant poker capital two tournament sit belong doom rferf rf3rf door window close tree
bonuses no deposit requiredThis collection from lo

Anonymous said...

letét rendkívüli osztalékletét rendkívüli osztalék - prémium új játékos no deposit without poker
darmowe bonusy

pedro velasquez said...

That's one sportsbook of dozens of grandiose schemes that media mogul Conrad Black cooked up to finance his lavish, globetrotting lifestyle. Or so says a scathing, 513-page report a special committee of Hollinger International, the publishing conglomerate Black once ran, bet nfl released last week. The Chicago-based company, which owns the Chicago Sun-Times and dozens of smaller U.S. and Canadian newspapers, ousted Black as chairman in January and sued him and other former top executives for $1.25 billion. The report depicts Hollinger as part Enron and part Tyco, a personal "piggy bank" online casino for Black and his longtime business partner David Radler (formerly chief operating officer of Hollinger). "Behind a constant stream of bombast regarding their accomplishments as self-described 'proprietors,' Black and Radler made it their business to line their pockets at the expense of Hollinger almost every day, in almost every way they could devise," http://www.enterbet.com fumes the committee in the report.

kimberly sayer said...

Conrad Moffat Black, Baron Black of Crossharbour, PC(Can.), OC, KCSG (born 25 August 1944) is a historian,costa rica fishing trips,columnist and publisher who was for a time the third biggest newspaper magnate in the world. He is currently incarcerated at the Coleman Federal Correctional Complex in Florida, USA.

fishing guide.

http://www.fishingcostaricaexperts.com

mack said...

I’m just share my views from top to bottom as I see them.
I feel this is a good simply because its consistent with how the user is used to seeing the comment form and filling out information in general. Filling out the name and email wont take me much time, and if you really wanted to go ahead and type the comment first, you can do so, not really that big of a work around.

small business plane out line

britney sayers said...

costa rica tours, shopping online, costa rica fishing, jaco fishing charters, costa rica whale watching, costa rica dolphin watching, costa rica party boat, panama fishing, fishing costa rica los suenos, los suenos fishing charters, costa rica fishing los suenos, los suenos costa rica fishing, costa rica los suenos fishing, fishing costa rica los suenos, los suenos fishing charters, costa rica fishing los suenos, los suenos costa rica fishing charters, costa rica los suenos fishing,
http://www.kingtours.com/.

Anonymous said...

What an interesting posts.
|avril|