Waste Management Scandal 1998

Houston-based, publicly traded waste management company.

Reported $1.7 billion in fake earnings.

Main Players ; Founder/CEO/Chairman Dean L. Buntrock and top executives & Arthur Andersen company

Penalties; settled a shareholder class action suit for $457 million; SEC fined Arthur Andersen $7 million.

How did they do it ; The company allegedly falsely increased the deprecation time length for their property, plant and equipment on the balance sheets.

How did they get caught ; A new CEO and management team went through the books.

Fun Fact ; After the scandal, the new CEO A. Maurice Meyers set up an anonymous company hotline where employees could report dishonest or improper behavior.