Wednesday, April 22, 2009

The Satyam Conspiracy

"The deception played out over at least eight years, involved dual accounting books, more than 7,000 forged invoices, dozens of fake bank statements, thousands of unnecessary employees and auditors who received fees several times the market rate, according to a charge sheet filed by the Criminal Bureau of Investigation in a court in Hyderabad.

The 77-page document details the scope of the fraud at Satyam, and lays out the bureau’s case for charging six company managers, their PricewaterhouseCoopers auditors and an adviser with cheating, forgery and falsification of accounts.

Satyam managers, including the founding brothers B. Ramalinga and B. Rama Raju “were able to attract prospective customers and investors by making them believe” that the company was “carrying out huge volumes of business,” the report said." (NY Times)

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