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What are some schemes used for financial statement fraud that have been released in the news? What prompted the fraud for each scheme?

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What are some schemes used for financial statement fraud that have been released in the news? What prompted the fraud for each scheme?

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What are some schemes used for financial statement fraud that have been released in the news? What prompted the fraud for each scheme?

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The cases are numerous, and probably endless. The news has been inundated in the recent past with stories of financial statement fraud. Here are examples:
- Enron: Their use of SPEs to hide poor performing assets kept them off of their balance sheet, and put them on an "unrelated" balance sheet as part of their massive fraud.
- Crazy Eddie: Inflated sales so as not to alert creditors and investors of the failing state of the company. He then skipped town so as to avoid punishment. The company was involved in a massive scheme that embellished their financial statements to make the company look profitable.
- Leslie Faye Industries did the same thing with their financial statements. They were a major clothing manufacturer. When the economy started to decline and people wanted to ...

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