The bill which was passed unanimously in the Senate was also passed by the house with a vote of 423-3. It was presented by Representative Paul Sarbanes whom wanted to see tougher accounting rules in affect. With the act being in effect there is now a five-member accounting oversight body to investigate and punish accounting firms, of publicly held companies. It also got rid of the peer review process and replace them with federal accounting. If a CEO or CFO is caught lying on their financial reports they can be sentenced with a maximum twenty year jail term or a five million dollar five. It also prevents a

In researching about the Sarbanes-Oxley, I have come to the conclusion that Richard Scrushy is the last person to be indicted on charges of accounting fraud. He is just the most recent person arrested. I hope that in due time that the people committing the crimes realize that they are just being greedy and the time that they will have to spend in jail will measure up to the crime. Not even murder is equivalent to six hundred and fifty years in prison.

Richard Scrushy is the first senior-level executive to be indicted on charges of accounting fraud since the Sarbanes-Oaxley Act of 2002 has been in place. He was the head chief executive of Health South Corporation. Scrushy was indicted “on 85 criminal counts ‘stemming from a wide-ranging scheme to defraud investors, the public and the U.S. government about Health South’s financial condition.’” (Taub 1) Over the years he was in office, he is being accused of inflating the company’s earnings by over 2.7 billion dollars. If he is indicted he can face up to six hundred years in prison and more than 36 million dollars in fines.

In the years to com Enron become a mega-billion corporation having ties within a multiple number of countries that included: Austalia, Brazil, and the UK. At the same time they were also acquiring portfolio and land in the USA. It wasn’t until 2001 when Enron’s stock started to deflate. At that time they bought out their minority shareholders and began selling the Assets of one of their companies, Azurix. During that same year they also sold two of their bigger companies to other smaller ones. On Enron’s net income statement from 1997 to the first half of 2001 there was an overall 20% reduction. Dynegy in a twenty-two billion dollar deal had agreed to buy out Enron. The deal collapsed and Enron’s crediting rating and stock dropped. A few days later Enron filed for Chapter 11 and filed a lawsuit against Dynegy for breeching a m

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