The business world, like the real world, has a certain set of guidelines they most follow. These guidelines are not far from the same guidelines that we, as individuals follow. However, in this free economy of ours people feel the need to get ahead of their competitors. The same goes for businesses and corporations. The difference is when a company does it is, almost always, on a scale that individuals couldn't comprehend. I"m talking about millions upon millions, sometimes-even billions of dollars, that are embezzled from the company and it's stockholders. In the following essay I plan to highlight a few cases of this, as well other faux pas made in the business world.
My first case occurred early in October of this year. The New York office of the Attorney General has found state laws from 1921, which could possibly turn the office into somewhat of a corporate watchdog. With the Martin Act in hand, Attorney General Elliot Spitzer filed a 1.5 billion dollar lawsuit against five current and former telecom executives. The lawsuit was made in order to return the 1.5 billion dollars that was accumulated through unlawful stock sales. According to the online edition of the Wall Street Journal, Spitzer is using the less commonly used civil side. Enabling him to use illegal investment banking as an issue. He has also invoked the act to charge former Tyco International Ltd. CEO L. Dennis Kozlowski with reaping hundreds of millions of dollars in illicit gains from the sale of Tyco stock. However, Kozlowski has denied the allegations. This is a textbook case of how the study of the law can help shape the business world. Very few people have the resources to challenge a giant corporation. The .
Government, whether it is national or State, are the ones who hold the answers. By studying the laws of their offices, they can find provisions, such as the Martin Act, that allow them to take initiative and challenge the bug business world.
