Purchase Solution

Training session to identify shareholder crimes: agency to prosecute, punishment

Not what you're looking for?

Ask Custom Question

You are the new training manager for a large corporation that offers employees the opportunity to purchase company stock directly through their paychecks. Using the following scenario and other recent real-life examples, develop a training session for the employees of the company. The goal of the training session presentation is to accomplish the following:

Identify the crime.
Explain what federal agency would prosecute the crime.
What punishment(s) could be enforced?
Provide other real-life examples of people who have committed this crime.

SCENARIO

Jack and Diane are married and both executives at Electro-Source, a large multinational electronics company. The couple holds substantial Electro-Source company stock and the majority of their retirement funds depend on company stock performance.

Jack is a director within the marketing division, and Diane is a vice president in charge of all North American sales. One Friday, Jack advises Diane that the company lost a large government contract for new electronic components. The contract was worth over US$1 billion in sales and the loss could signal large layoffs. Government officials have not publicly announced their contract decision; however, they have advised, privately and confidentially, several nonwinning bidders, including executives at Electro-Source.

Jack and Diane decide to immediately sell the majority of their company stock to protect their retirement savings. The market on that Friday was favorable toward Electro-Source stock as earlier reports indicated that Electro-Sources was a finalist for the contract; however, as stated, a final decision was not public yet. Jack and Diane sell their stock to unsuspecting investors through their personal broker.

Approx 8 slides with speaker notes

Purchase this Solution
Solution Summary

The solution contains in-depth answers to the questions posed by the student.

Solution Preview

Here's how I'll approach this for you: 1) I'll talk briefly about each of the 4 issues involved, 2) I'll see what real life examples and resources I can come up with from online, and 3) since we're not allowed to do students' work for them, I can't make the slides, but I am allowed to provide you with a viable outline, so I will do that. If you have technical questions about how to make the slides, let me know and I'll see if I can answer them. That part should be fairly simple.

Identify the crime.

Well, for starters, this was definitely insider-trading. Insider trading is the trading of a company's stocks or bonds by individuals with access to non-public information. It's important to note that corporate officers, or other "insiders" may still be allowed to trade in the company's stock. In fact, most stock quote services have a tab that lists the last insider trades by who, when, what amount, and what price. There are certain rules governing this practice. For example, legal insider trading cannot be done based off non-public information. What Jack and Diane did, however, was clearly done with the intention to profit (or stem loss) from non-public information, and is illegal.
Further Reading: http://www.sec.gov/answers/insider.htm

Explain what federal agency would prosecute the crime. ...

Purchase this Solution
Free BrainMass Quizzes
Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

View More Free Quizzes
Related BrainMass Solutions

  • White Collar Crime

    The white collar crime investigate by this agency is insurance fraud. Local Agency: Local Police: The police is empowered to enforce the law, protect property, and limit civil disorder.

  • Interpol Funding

    -What kind of crimes or criminals is Interpol best suited to address? -What is their exact authority? Do they make arrests or prosecute cases? -Why is an agency such as Interpol necessary? What are the pros and cons of having such an agency?

  • Identify the federal agencies responsible for the prosecutio

    458993 Identify the federal agencies responsible for the prosecution of computer fraud and abuse violations. How do these agencies focus on computer violations, and how do they train their employees to recognize computer crimes?

  • Administrative Policies

    The students will also be exposed to laws related to gang behavior and the punishment that the law give to gang members. The children are exposed to the legal punishment gang members may be subject to.

  • American Corrections

    Therefore, they could be cured according to this model that was endorsed by the Federal Bureau of Prisons, a newly created federal agency.

  • Restorative Justice Models

    Police also use discretion as to whether or not to prosecute juveniles in the courts, which reducing the amount of juveniles that enter the court system.

  • Philosophies of Punishment

    Discuss the five philosophies on punishment and identify the one that I feel makes the most sense.

  • Master's Proposal Statement on Hate Crimes and Legislative Action

    Then, determine if they worked to prevent the crime or to provide punishment for the crime. Is the punishment severe and appropriate to the crimes committed under the act?

  • Founding Fathers and the Justice System

    This is a good system that makes sure that every possible law is used to make sure punishment is given to those who commit crimes and that assets are allocated to those agencies that can best enforce these laws.

View More Related Solutions