Stock option backdating doj initiative
Backdating stock options inflates their value to the holder at the expense of regular shareholders.Some corporate executives have also changed their stock option exercise date (the date the option can be converted to stock) to avoid paying income tax.The majority of Corporate Fraud cases pursued by the FBI involve accounting schemes designed to deceive investors, auditors and analysts about the true financial condition of a corporation.Through the manipulation of financial data, the share price of a corporation remains artificially inflated based on fictitious performance indicators provided to the investing public. While the number of cases involving the falsification of financial information remains relatively stable, the FBI has recently observed a spike in the number of Corporate Fraud cases that involve the backdating of executive stock options.In addition to significant financial losses to investors, Corporate Fraud has the potential to cause immeasurable damage to the U. Stock options are corporate incentives that allow the holder to purchase stock at a fixed “strike” price sometime in the future, regardless of the prevailing market price.Generally, the strike price is the cost of the stock on the date the options were granted. Experts take their best guesses on when data protection authorities will strike - and what kind of organizations will be first to feel the sting of the EU privacy law.
Each section of this report provides an overview, statistical accomplishments, and case examples of the identified priority crime problems specifically addressed by the Financial Crimes Section.
But even if youre not, the takeaway from these stories can easily be applied to the private sector: Focus on the impact, the people -- the customers -- and success will follow.
More business processes and highly-specialized tasks are being targeted for automation with the goal of making people and companies more efficient.
These are the identified priority crime problem areas of the Financial Crimes Section (FCS) of the FBI.
The mission of the FCS is to oversee the investigation of financial fraud and to facilitate the forfeiture of assets from those engaging in federal crimes.