‘Fraud Prevention Week’ Focuses on Corporate Scandals

Two of the most infamous white-collar crimes in recent U.S. history were discussed and analyzed as part of the recent College of Business’ “Fraud Prevention Week.”

Sam E. Antar, former chief financial officer of the “Crazy Eddie’s” retail electronics chain, was the featured speaker during “Meet the Criminal” night. Along with his uncle Sam and cousin Eddie, Antar masterminded one of the largest securities frauds of the 20th century, bilking investors of more than $120 million during the late 1980s and early 1990s.

Facing 20 years in prison for his role in the crime, Antar became the federal government’s key witness in both the civil and criminal prosecutions against his family and fellow co-conspirators. Antar now uses his expertise for the public good as he speaks frequently on how to spot and prevent white collar crime.

The following night, Dr. Nancy Rapoport, former dean of the University of Houston Law School examined the question, “What Did We Learn from Enron?” Rapoport, author of “Enron: Corporate Fiascos and their Implications,” was one of the featured experts in an Academy Award-nominated documentary on the Enron debacle, which has become a national symbol for corporate greed and corruption.

When Enron, at the time the one of the nation’s largest corporations, filed for bankruptcy, thousands of investors, including many company employees were left holding worthless stock and many lost their entire life-savings. Several of Enron’s top officers, including founder Ken Lay and former CEO Jeffrey Skilling were convicted of conspiracy and fraud. Lay died of a heart attack in July before sentencing; Skilling received a 25-year sentence.

According to the FBI, tremendous growth in the securities and commodities markets at the institutional, corporate, and private investor levels has led to great numbers of individuals involved in intentional corporate fraud and misconduct, particularly senior corporate executives. The FBI is currently investigating more than 189 major corporate frauds, 18 of which have losses over $1 billion. Healthcare, financial institution, insurance, telemarketing, and investment frauds and environmental crimes also represent a serious threat to the nation’s public health and natural resources.