September 19, 2018

CFO Confessions

Bean Counter Reputations Hit a New Low

A woman who was a CFO for a charity that invested with Bernie is claiming, in a book of course, that she not only had all her personal money invested with him that went poof but that she was also bumping uglies with the Master Ponz. Supposedly there will be pictures which obviously begs several questions. Check out Dealbreaker for the debate.
Sleeping with the enemy is certainly a new low for bean counters. She could’ve done us all a favor and gotten down with Dick Cheney and it wouldn’t look nearly as bad.
Madoff Had Affair With Ex-Hadassah Finance Chief, Her Book Says [Bloomberg]

Your CFO Might Be Clueless about How IFRS Will Affect Your Company

accountant.jpgIn some very comforting news, CFO’s in a recent poll said they’re unsure about how at transition to IFRS would affect their company.
More scary stats include 8% of those surveyed said that they are “very familiar” with how their company will be affected and 43% said they were not familiar at all. So what does all of this IFRS ignorance mean?
Check out the list after the jump


A) Lots of CFO’s don’t give a rat crap
2) Lots of CFO’s don’t really believe IFRS will come to the States
D) Lots of CFO’s need to work on their qualifications
The obtuseness may work out though. At the pace the conversion debate is going, by the time the conversion gets done we’ll all be dead.
Survey: CFOs unsure how international rules will affect U.S. business [DBJ]

Stanford CFO Enters Not Guilty Plea, To Plead Guilty Soon Enough

As expected, James Davis, Stanford Financial’s Chief Number-Maker-Upper has entered his not guilty plea but his counsel has stated that his client will plead guilty to all the charges against him as early as next week. The initial plea has been made in order to finalize the plea agreement with Davis prior to his pleading guilty
This is all occurring while Stan the Man’s attorneys are in New Orleans appealing a Houston judge’s ruling that he has to pump iron in prison throughout his trial. Stan’s attorneys continue to maintain that their client is NOT a flight risk, which is kinda like saying that Bernie Madoff is NOT in jail.
Ex-Stanford CFO to plead guilty within 2 weeks: lawyer [Reuters]

CFO Confession: HealthSouth Edition

It might be a fair statement that we like to talk a little trash here at Going Concern. We do our best to embrace our natural inclination. However, every once in awhile we try to spread some positive news.
Today’s attempt at a positive story comes courtesy of Aaron Beam, a former CFO at HealthSouth. Beam was CFO at HealthSouth when the fraud first began in 1996. Beam describes his decision to make the numbers up this way, “one night, during the second quarter of ’96, I said, ‘OK, let’s do it,’ and we credited revenue that did not exist and we debited assets that did not exist.”
Not exactly the most sophisticated fraud in the world but whatevs. The Street and Richard Scrushy demanded results.
And so it went, until Beam left in 1997. HealthSouth continued to commit accounting fraud until 2002 when it imploded. Beam testified against “Hannibal Lecter” Scrushy but the slimeball walked on the criminal charges only to be found liable for damages to the tidy sum of a shade under $2.9 Billion.
As for Beam, he spent 3 months in a non-FPMITA prison and now speaks to business students around the country about ethics and has a lawn-service business.

I’m trying to turn a big negative into a positive, because there is such a need for ethics in the business world today, and I’m in a unique position to talk about it. If we can teach college students that they’re going to face these kinds of temptations every day in the business world, we can make a difference.

WTG man, and hey, we’re being serious.
“I Should Have Said No.” [CFO.com]