Going, Going…

Call it dot-bomb redux. Amid great fanfare in 2000, Covisint wowed the procurement world when it launched its ambitious global online business-to-business marketplace for the car industry. Supported by the likes of Daimler-Chrysler, Ford, and General Motors, the project’s backers crowed that Covi...

By Poul Funder Larsen • July 21, 2004

Simpler Small-Business Tax Compliance

Sen. Olympia Snowe (R-Maine) has introduced a bill that would “simplify the tax code and reduce compliance burdens placed on small businesses.”The Small Business Cash Accounting Act of 2004 would permit businesses that generally earn less than $10 million during the tax year to use cash-accountin...

By Stephen Taub • July 21, 2004

SEC to Expand Environmental Disclosure

The Securities and Exchange Commission has agreed to make it easier for investors to track environmental liabilities at public companies, reported Reuters. The changes would also help the SEC to assess how well it enforces environmental disclosure and to adjust its reporting requirements.The init...

By Stephen Taub • July 19, 2004

Former Tyco Lawyer Acquitted

Mark Belnick, former executive vice president and chief corporate counsel of Tyco International Ltd., was found not guilty on Thursday of securities fraud, grand larceny, and falsifying business records.The verdict came on the fifth day of deliberations — even as the prosecution and the defense w...

By Dave Cook • July 16, 2004

Martha Stewart Sentenced to Five Months

Martha Stewart — the namesake, a former director, and the former chief creative officer of Martha Stewart Living Omnimedia Inc. — was sentenced this morning to five months in prison by U.S. District Judge Miriam Goldman Cedarbaum. Stewart will then serve two years of supervised probation, which i...

By Dave Cook • July 16, 2004

Enron Reorganization Plan Approved

U.S. Bankruptcy Judge Arthur Gonzalez has approved Enron Corp.’s plan that would enable it to emerge from the second-largest bankruptcy in U.S. history.Although creditors are owed more than $74 billion, the company said it expects to negotiate that amount down to about $63 billion and pay approxi...

By Stephen Taub • July 16, 2004

Fannie Mae Cooperation ”Spotty”

The head of the Office of Federal Housing Enterprise Oversight — which is conducting a broad investigation of Fannie Mae after its smaller sibling, Freddie Mac, became embroiled in an accounting scandal — doesn’t feel he’s getting all the help he should.“The cooperation has been spotty, but there...

By Stephen Taub • July 15, 2004

Blame Sarbox for Earnings Woes, Too?

In the past few weeks, at least two software companies — Veritas Software and Siebel Systems — have warned that earnings for the recently completed quarter came in lower than expected. Now one Wall Street analyst is blaming the shortfall on CFOs and the Sarbanes-Oxley Act.Piper Jaffray software i...

By Stephen Taub • July 14, 2004

No Vacation from Section 404 Prep Work

Most companies still have a lot more work before they are in compliance with Section 404 of the Sarbanes-Oxley Act, according to two new surveys.They’re cutting it mighty close, considering that for many companies, Section 404 — which will guide how auditors report on companies’ assessments of th...

By Stephen Taub • July 14, 2004

Lea Fastow Begins Prison Term

Lea Fastow, a former Enron Corp. assistant treasurer and the wife of former chief financial officer Andrew Fastow, began her one-year prison term on Monday for her role in the bankrupt energy company’s accounting scandal.Fastow, 42, entered the Federal Criminal Detention center in downtown Housto...

By Stephen Taub • July 13, 2004

Mistrial for Michael Rigas

The case of former Adelphia Communications Corp. vice president Michael Rigas ended in a mistrial Friday, a day after his father and brother were convicted on multiple counts of fraud.Michael Rigas was acquitted of conspiracy and wire fraud charges, according to Bloomberg, but the jury could not ...

By Dave Cook • July 12, 2004

Novartis CEO Rails at Sarbox

The chief executive officer of drug giant Novartis has publicly criticized the Sarbanes-Oxley Act, according to the Associated Press.Daniel Vasella, the head of the Basel, Switzerland-based company, said during a visit to Singapore that the standards are onerous for any company that does business...

By Stephen Taub • July 12, 2004

Office Politics

It took the Watergate scandal to convince Congress to put an end to direct contributions from companies to federal politicians. It took 30 years and another scandal — Enron — to stop the resulting flow of so-called soft money from corporate coffers to political parties.That doesn’t mean the corpo...

By Tim Reason • July 12, 2004

Adelphia Executives Convicted

John Rigas, the founder of Adelphia Communications Corp., and his son Timothy, the former chief financial officer, have been found guilty of looting the cable company and deceiving investors, according to reports.They were convicted on 18 counts of securities fraud, bank fraud, and conspiracy, ac...

By Dave Cook • July 9, 2004

Martha Stewart Denied New Trial

Domestic diva Martha Stewart faces sentencing next week after being denied a new trial, according to published reports.In March, a jury found Stewart guilty of one count of conspiracy, two counts of making false statements, and one count of obstruction of agency proceedings in her trial over a su...

By Stephen Taub • July 9, 2004

Kenneth Lay Indicted on 11 Counts

After months (if not years) of speculation, former Enron chairman and chief executive officer Kenneth Lay was indicted for his role in the collapse and bankruptcy of the one-time high-flying energy giant.A handcuffed Lay was paraded in front of TV cameras early Thursday after surrendering to the ...

By Stephen Taub • July 9, 2004

Name Game

Don’t be surprised to see the names of jurors in the first Enron case pop up in press coverage of the trial. That’s because a federal judge has denied the prosecution’s request to keep them secret.U.S. District Court Judge Ewing Werlein Jr. didn’t find that the case — which concerns an alleged sh...

By Joseph McCafferty • July 9, 2004

Bank of America Settles Enron Suit

Bank of America has announced that it will pay about $60 million to settle a class action lawsuit, led by the regents of the University of California, on behalf of investors in Enron securities.Unlike a number of other financial institutions, Bank of America had relatively small dealings with Enr...

By Stephen Taub • July 7, 2004

The Tortinator

Can California governor Arnold Schwarzenegger stem excessive jury awards against corporations? In May, his latest budget revision included an unexpected proposal to generate $450 million in state revenue by taking a 75 percent slice of punitive-damage awards from individual lawsuits.Punitive dama...

By Tim Reason • July 7, 2004

Donaldson’s Former Company Probed by SEC

A company whose audit committee formerly included Securities and Exchange Commission chairman William Donaldson confirmed published reports that it is being investigated by the SEC.EasyLink Services Corp., a provider of electronic information exchange services, said Thursday that the SEC is revie...

By Stephen Taub • July 6, 2004

Compliance Creep

It used to be that shorter monthly closes were considered a best practice. But these days, shorter is relative.Thanks to increases in compliance demands and an internal focus on reliability, closes are actually getting longer. New data from The Hackett Group’s 2004 “Finance Book of Numbers,” in f...

By Lori Calabro • July 6, 2004

Democratic Reps. Weigh In on Proxy Rules

Six key Democratic members of Congress called for the Securities and Exchange Commission to issue new rules that would provide large investors more access to the process of nominating a board of directors.The representatives see such a measure as a deterrent to scandal. “Adoption of this rule wou...

By Stephen Taub • June 30, 2004

SEC Charges Siebel, CFO, with Reg FD Breaches

The Securities and Exchange Commission has charged Siebel Systems Inc. with violating its Regulation Fair Disclosure (FD) rule for the second time since the rule went into effect less than four years ago, according to Reuters.The commission also charged Kenneth Goldman, the software company’s CFO...

By Stephen Taub • June 30, 2004

Former CFO Faces Time for Embezzlement

The former chief financial officer of the University of Florida Foundation pleaded no contest to charges that he wrote himself five checks worth $850,000 from foundation accounts, according to the South Florida Sun-Sentinel.Kenneth Hillier, who had worked for the foundation for 16 years and had d...

By Stephen Taub • June 29, 2004

Big GAAP, Little GAAP

Small companies are feeling the pinch of increased regulation these days. Many CFOs of small businesses say they are being unfairly punished for the indiscretions of such large companies as Enron, WorldCom, and Tyco by having to implement new rules that are disproportionately time-consuming and c...

By Joseph McCafferty • June 28, 2004