Sign In
Not register? Register Now!
You are here: HomeEssayAccounting, Finance, SPSS
1 page/≈275 words
1 Source
Accounting, Finance, SPSS
English (U.S.)
MS Word
Total cost:
$ 4.68

FTE Networks Inc. Scandal and Its Legal and Ethical Implications (Essay Sample)


The task required me to find and cite a recent ethical scandal in the business field. Summarize the situation and discuss the legal and ethical implications of the action as applied in business and then discuss the recommendations i would suggest about how the ethical dilemma should be solved DESPITE OUTCOME reported.


FTE Networks Inc. Scandal
Course Title
Instructor’s Name
Date (2022).SEC Charges Executives of Network Infrastructure Company with Accounting Fraud. Retrieved 3 September 2022, from
Summary of the Situation (FTE Networks Inc. Scandal)
The SEC on 15 July 2021, charged a network infrastructure company executive with accounting fraud. The accounting fraud by executives involved inflating the company’s earnings by 108% and embezzling the company's millions of money for personal use (, 2022). CEO and CFO misappropriated the company’s money by paying for personal expenses unrelated to company activities and illegally increasing their salaries. Also, the executives concealed the issuance of NYSE’s convertible notes worth 22.7 million dollars ( 2022). According to the SEC, the CEO and CFO misled FTE's accountants and auditors about the convertible notes' terms, which made them not account for or disclose them in financial reports.
Legal and Ethical Implication of the Action as Applied to Business
The legal implication is that once company executives inflate the company’s earnings they are charged by SEC with charged with violation of anti-fraud and proxy solicitation because they violated securities laws (, 2022). This can lead to permanent injunctions and penalties. It also leads to the retrieval of equity-based benefits paid to the company 

Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:

Other Topics:

  • Fraudulent Financial Statements and Accounting Practices at Toshiba Corporation
    Description: In many cases, CEOs and the executives of different organizations, particularly those working on economies of scale, look to satisfy their financial backers and investors by dispatching controlled budget summaries. Monetary extortion or bookkeeping embarrassments in most public corporations incorporate...
    8 pages/≈2200 words| 2 Sources | APA | Accounting, Finance, SPSS | Essay |
  • Organizational Behavior: Leadership and Conflict Resolution Strategies
    Description: The first of five conflict-resolution strategies is accommodating. Over-cooperating may hurt your goals, objectives, and intended results. This strategy works when the opponent is an expert or has a better option. Second, evasion avoids a problem. Not helping others reach their goals wastes time. However,...
    1 page/≈275 words| 2 Sources | APA | Accounting, Finance, SPSS | Essay |
  • Accounting as a Socially Acceptable Profession
    Description: Accounting is socially accepted as a profession by many people. This can be seen in the many materials of research published and as evidenced by the media available and the fact that we live in a capitalistic society where everything is done as a business (Chinese Institute of CPAs. 2019). Lewis (2015) has...
    6 pages/≈1650 words| 9 Sources | APA | Accounting, Finance, SPSS | Essay |
Need a Custom Essay Written?
First time 15% Discount!