The Fraud Orchestrated at Worldcom and Wells Fargo’s White-collar Crime Case

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What are the business wide ramifications of this white-collar crime?
The fraud orchestrated at WorldCom resulted first, in the change of leadership for the company whereby all the top management officials were fired, and others resigned, while the Board of Directors were replaced with other officials. Second, the fraud resulted in the loss of employment for about 17,000 employees who worked for the company due to their firing. Third, the audit saw the plummeting of the company’s stock from sixty-five dollars to 0.83 dollars after the detection of the fraud, consequencing in bankruptcy of the company. Fourth, many investors among them the New York State Common Retirement Fund that was the largest investor in the company lost all or most of their investments. Fifth, competing institutions made bad decisions and costly mistakes that led to massive losses as they attempted to keep up with the false financial statements of the WorldCom.
Wells Fargo’s white-collar crime case.
In late 2016, Well Fargo considered one of the top banking and ...