Due to the pandemic, the Federal Reserve Board temporarily lifted the cap so the bank could provide these loans to small businesses. In 2018, an asset cap was placed on Wells Fargo due to employees creating fake accounts. To add insult to injury, this latest fake account scandal was not the first. The relief program was created during the Covid pandemic to help small businesses that were forced to close down or significantly reduce business practices. Their intent? To monetarily benefit from the Small Business Administration relief program. Wells Fargo was embarrassed yet again after it was revealed that more than 100 employees created fake profiles to file fraudulent applications. Securities and Exchange Commission is currently investigating the matter. After the scandal was uncovered, CEO Jenny Zhiya Qian and COO Jian Liu were fired. Luckin Coffee intentionally positioned itself as a growth stock, which manipulated investors to have confidence in their key metrics. This wouldn’t be a big problem for Americans except that Luckin Coffee is listed on the U.S. Luckin CoffeeĬhina-based Luckin Coffee was operating a scam where their reported sales and actual sales were two significantly different numbers. This shocking revelation left investors with empty pockets after company stocks plummeted and Wirecard filed for insolvency. Shortly after the admission, CEO Markus Braun resigned from his position.Īfter an investigation by German authorities, Braun was arrested and accused of market manipulation and false data. The German payment processing company, Wirecard, disclosed an “accounting error” that inaccurately inflated their balance sheet by $2.3 billion. This article uncovers some of the less talked about company scandals and how they affected others during the health crisis. With all the news media focused on the pandemic, many of the significant company scandals of 2020 were overlooked. In addition, the phrases “ unprecedented times” and “social distancing” were used far more than we ever thought they would. The year 2020 was overwhelmed with COVID related news the majority of the time.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |