Equity Funding

Equity Funding

Equity Funding Corporation of America was a Los Angeles-based U.S. financial conglomerate that marketed a package of mutual funds and life insurance to private individuals in the 1960s and 70s. It collapsed in scandal in 1973 after ex-employee Ronald Secrist and securities analyst Ray Dirks blew the whistle on massive accounting fraud, including a computer system dedicated exclusively to creating and maintaining fictitious insurance policies. Investigation found that from 1964 onward, as many as 100 company employees had engaged in organized deception of investors, auditors, reinsurers and regulatory authorities.

An important sidelight was the filing of insider trading charges against whistleblower Dirks. The ensuing case of "Raymond L. Dirks v. Securities and Exchange Commission" went all the way to the U.S. Supreme Court where Dirks was finally acquitted. The case has been termed historic in helping to define insider trading, as well as the treatment of whistleblowers, analysts and the press.

ee also

*History of information technology auditing

References

* [http://www.stocksandnews.com/searchresults.asp?Id=1573&adate=2/6/2004 Ray Dirks and the Equity Funding Scandal, Part I] and [http://www.stocksandnews.com/searchresults.asp?Id=1579&adate=2/13/2004 Part II] at stockandnews.com
* [http://www.thestreet.com/stocks/accounting/789337.html Cracking the Books II: Reliving Equity Funding] at thestreet.com

External links

*imdb title|id=0074206|title=Billion Dollar Bubble — the Equity Funding scandal retold in the form of a movie starring James Woods in the role of the actuary


Wikimedia Foundation. 2010.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • equity funding — An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund.… …   Financial and business terms

  • private equity funding — UK US noun [U] ► FINANCE money provided by people and organizations for investment in privately owned companies: »Private equity funding fell 26% through the first half of 2010 …   Financial and business terms

  • equity-based — UK US adjective (also equity linked, equity related) FINANCE ► used to describe something that is connected to the value of shares in a company: »equity based funding/investments/products …   Financial and business terms

  • Equity (finance) — For equity securities, see Stock. Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management  …   Wikipedia

  • Equity co-investment — An equity co investment (or co investment) is a minority investment, made directly into an operating company, alongside a financial sponsor or other private equity investor, in a leveraged buyout, recapitalization or growth capital transaction.… …   Wikipedia

  • Funding Gap — The amount of money needed to fund the ongoing operations or future development of a business or project that is not currently provided by cash, equity or debt. Funding gaps can be covered by investment from venture capital or angel investors,… …   Investment dictionary

  • Equity swap — An equity swap is a swap where a set of future cash flows are exchanged between two counterparties. The two cash flows are usually referred to as legs . One of these cash flow streams can be pegged to floating rate of interest or pay a fixed rate …   Wikipedia

  • equity education — n. A school curriculum that teaches respect for alternative lifestyles and non mainstream thinking; fair access to schools and other educational resources for minorities. Example Citation: The Toronto District School Board, the country s largest …   New words

  • History of private equity and venture capital — The history of private equity and venture capital and the development of these asset classes has occurred through a series of boom and bust cycles since the middle of the 20th century. Within the broader private equity industry, two distinct sub… …   Wikipedia

  • Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users — The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (Public Law 109 59; SAFETEA LU) is a funding and authorization bill that governs United States federal surface transportation spending. It was signed into… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”