Florida International University Bankruptcy Fraud Essay

Final Research Paper

Do not plagiarize other individual’s work, accidentally or intentionally. It is always better to over cite than under cite. See https://library.fiu.edu/businesslaw/plagiarism (Links to an external site.)for review.

Writing Center Resources:Online appointments available: https://writingcenter.fiu.edu/make-an-appointment/… (Links to an external site.)Florida International University Center for Excellence in Writing Modesto A. Maidique Campus 11200 S.W. 8th Street Miami, FL 33199 Green Library 125 Phone: 305-348-6634Biscayne Bay Campus 3000 NE 151st Street North Miami, FL 33181 Glenn Hubert Library First Floor Phone: 305-919-4036I uploaded already the outline for research paper with the sources included, also a research paper instruction for you to guide.Thank you 1
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Bankruptcy Outline
1. Introduction
a. Opening statement on reasons why bankruptcy is becoming a common feature in the
business world
b. Views on Bankruptcy fraud
c. Thesis statement: Companies use bankruptcy as a tool rather than a last resort. Hence
Bankruptcy Code should be changed to eliminate fraud that debtors are committing when
filing for bankruptcy.
2. Body
I.
Bankruptcy Fraud
a. How debtors in the corporate business conceal assets
i.
Withhold knowledge concerning a property
ii.
Transfer property to a third party
iii.
Destroying property
b. How petition mills take advantage of the debtors
i.
Reliance on the credit counseling services
ii.
Working with the debtors’ landlord
c. The issue of multiple-filling schemes
i.
File for bankruptcy from state to state using real identities but never disclose
their full assets
ii.
File bankruptcy from state to state but use fake identities and never disclose
their full assets
iii.
Use of both fake and real identities to file bankruptcy from state to state
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d. The bust-out scheme with examples
i.
When the debtor exhausts all the credit accounts and files bankruptcy
ii.
The Robert Brennan Case
iii.
Few government, state, and financial organizations move to prosecute and reduce such kind of fraud on creditors
II.
Fraud Debtors
a. Studies on how fraud debtors use the bankruptcy code to pursue their interests
i.
Non-disclosure of assets
ii.
Files a false form
iii.
Files multiple times using false information
b. Illustrate the loopholes that are exploited by Fraud corporate businesses
i.
Bankruptcy laws favor the debtors
ii.
Organizations becoming big spenders with intent to file bankruptcy
III. Propose changes in corporate bankruptcy
a. Elimination of crucial tools which are non-consensual to the third party
i.
Through identification of interest between the debtor with the third party
ii.
Whether the non-debtor has contributed to the assets
b. Implementation strategies that are focused on supporting the creditors
i.
Introducing law measures that protect the creditors
ii.
Trigger full disclosure of the debtors’ assets
c. Reliance on the fraudulent transfer laws
i.
Through amending laws that avid fraud activities
ii.
Integrating huge penalties to discourage such from happening in future
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IV. Flaws in the corporate bankruptcy
a. The liquidation strategies that are used by businesses
i.
Selling of assets
ii.
Selling the company entirely
b. The unique asset and valuable tax attributes
i.
Crucial assets of the organization
ii.
The tax attributes associated with the assets
c. Case study example of an organization that used certain liquidation strategies.
V.
i.
USA example
ii.
France example
Value disputes in corporate bankruptcy
a. Disagreement that occurs between valuation and the judicial valuation errors
i.
Judicial valuation error
ii.
Company valuation errors
b. Disagreement regarding the discounted cash flows input due to multiple methods
i.
Multiple methods relied on discounted cashflows
ii.
Different accountants giving different analysis
c. Proposed strategies that are derived from the finance theory
i.
Bankruptcy is the most effective
d. Accounting valuation in the 19th Century French organizations
i.
Bankruptcy fraud in French organizations
ii.
Bankruptcy in French-based organizations
VI. Steps taken towards amending the bankruptcy code
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a. Submission of the Non-debtor Release prohibition act in the house for a full vote
i.
Lawmakers need to table the bill in the house for a full vote
ii.
Amend the bill where necessary
b. How the law will end the discharge of liabilities for the non-debtors in bankruptcy
c.
i.
It will want full disclosure of what the non-debtor own
ii.
It will require to disclose the assets that were obtained by the non-debtor
How the law will be used in stopping the divisive mergers as a strategy to get away
with liabilities
i.
Through the integration of amendment that wants full disclosure of the debtors’ asset
ii.
Through a full audit of the organization’s operations
d. How the policy will disregard issues relating to the non-consensual of third-party release.
i.
Full disclosure of the assets owned by the third party
ii.
The relations between the third party and the business owner
e. Bankruptcy Code of Reforms based on the creditors’ rights and corporate investments
i.
Introduce laws that are not only focused on the debtors
ii.
Determining the debtors’ credibility to avoid fraud activities
VII. Examples of corporate organization scandals in bankruptcy fraud
a. Eron Corporation organization scandal that led to the fall of one of the Wall Street
major business organization
i.
Industry of their Interest
ii.
Reason for Bankruptcy
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iii.
How did the debtors exhaust all the credit accounts
b. WorldCom organization that went bankrupt as a result of the accounting fraud
c.
i.
The industry of their interests
ii.
Reason for filing bankruptcy
iii.
How did the debtor deceive the creditors
The Allured Crude Vegetable oil Refining Corporation which used the bust out
scheme
i.
Crucial reason for its bankruptcy filing
ii.
How the debtors deceived the creditor
iii.
Why they had exhausted their credit account
d. Rise in personal bankruptcy
i.
Proven examples in society
ii.
How people have exploited the bankruptcy code
iii.
Ways to reduce bankruptcy fraud
e. Assessment of bankruptcy risks in other European nations (Czech)
i.
Czech example
ii.
Germany example
iii.
Italy example
VIII.
3. Conclusion
a. Restating the thesis statement
b. Illustrating how the amendment of the bankruptcy code will reduce bankruptcy fraud
c. Making a strong final statement on Bankruptcy Fraud
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4. References
Canipek, A., Kind, A. H., & Wende, S. (2022, January 31). Creditor rights, corporate leverage
and investments, and the firm type. Harvard Law School Bankruptcy
Roundtable. https://blogs.harvard.edu/bankruptcyroundtable/2022/02/01/creditor-rightscorporate-leverage-and-investments-and-the-firm-type/
Cohen, M. J., Rosenthal, M. A., & Williams (Gibson Dunn), M. J. (2022, January Congressional committees propose changes to bankruptcy code prohibiting non-consensual releases of third parties and limiting other important bankruptcy tools. Harvard Law
School Bankruptcy Roundtable. https://blogs.harvard.edu/bankruptcyroundtable/2022/01/26/congressional-committees-propose-changes-to-bankruptcycode-prohibiting-non-consensual-releases-of-third-parties-and-limiting-other-importantbankruptcy-tools/
Crowell IV, J. A., Harvey, R. A., Lodge, J. J., Stefan, G. D., Troy, M. J., Kelly, M. J., … &
Walsh, C. R. (2018). Bankruptcy and bankruptcy fraud. Part I: Executive office for
United States Attorneys. United States Attorneys ’Bulletin, 66(1), 1-217.
Dick, D. L. (2014). Bankruptcy’s corporate tax loophole. Seattle University School of Law Digital Commons. https://digitalcommons.law.seattleu.edu/faculty/468
Elnahas, A. M., Jain, P. K., & McInish, T. H. (2016). Exploring the manipulation toolkit: The
failure of Doral financial Corporation. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2800789
Garrett, T. A. (2007). The rise in personal bankruptcies: The eighth Federal Reserve district and
beyond. Review, 89(1). https://doi.org/10.20955/r.89.15-38
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HAIL, L., TAHOUN, A., & WANG, C. (2018). Corporate scandals and regulation. Journal of
Accounting Research, 56(2), 617-671. https://doi.org/10.1111/1475-679x.12201
Javaid, M. I., & Javid, A. Y. (2018). Efficacy of going concern prediction model for creditor
oriented regime via liquidation. Journal of Applied Accounting Research, 19(4), 552573. https://doi.org/10.1108/jaar-07-2017-0070
Johnstone, P., & Jones, M. (2000). The facilitation of money laundering through Western Europe and the United States by Russian organised crime groups. Journal of Money Laundering Control, 3(3), 199-203. https://doi.org/10.1108/eb027230
Labardin, P. (2013). Accounting valuation in nineteenth-century French bankruptcies. Accounting History, 18(3), 391-414. https://doi.org/10.1177/1032373213487976
Livshits, I., MacGee, J., & Tertilt, M. (2007). Accounting for the rise in consumer bankruptcies. https://doi.org/10.3386/w13363
Luckett, C. A. (2002). Personal bankruptcies. The Impact of Public Policy on Consumer Credit,
69-108. https://doi.org/10.1007/978-1-4615-1415-2_4
Maddox, W. (2021, September 13). The Texas two-step and how corporations may use it to
avoid bankruptcy. D Magazine. https://www.dmagazine.com/healthcare-business/2021/09/the-texas-two-step-and-how-corporations-may-use-it-to-avoid-bankruptcy/
Moore, R. (2018, February 6). Bankruptcy fraud. Encyclopedia Britannica. https://www.britan-
nica.com/topic/bankruptcy-fraud
Nicks, C. (2017, October 27). How to prove bankruptcy fraud.
www.nolo.com. https://www.nolo.com/legal-encyclopedia/how-to-prove-bankruptcyfraud.html
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Sanchez, J. M. (2009). The role of information in the rise in consumer bankruptcies. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2188509
Schwartz, A. (2020). Bankruptcy related contracting and bankruptcy functions. Research Handbook on Corporate Bankruptcy Law, 363394. https://doi.org/10.4337/9781781007884.00022
Selanda, C. A., & Hasanah, A. (2020). Analysis of corporate bankruptcy and financial statement
fraud prediction using Altman models and Beneish models. Proceedings of the 2nd International Conference on Applied Economics and Social Science. https://doi.org/10.5220/0010354501540164
Vasser, S., & Llp, D. (2021, November 11). New bill would end the ‘Texas two-step ’and eliminate non-debtor releases in Chapter 11. JD Supra. https://www.jdsupra.com/legalnews/new-bill-would-end-the-texas-two-step-3111746/
Weisberg, R. A., Lichtman, L. A., Grosman, C. A., & Kukla, P. J. (2015). Fraud and the bankruptcy code. The Handbook of Fraud Deterrence, 271350. https://doi.org/10.1002/9781119202165.ch17
Yousaf, M., & Bris, P. (2021). Assessment of bankruptcy risks in Czech companies using regression analysis. Problems and Perspectives in Management, 19(3), 4655. https://doi.org/10.21511/ppm.19(3).2021.05
Please review the following instructions regarding your Research Paper:
Research Paper Instructions
Topic Submission:
The research paper is a group effort. It must be completed in law firms. It is your
responsibility to contact your members, coordinate your efforts, and work as a team.
Each group must choose a topic and submit it in the assignment drop box and post it in
the Research Paper Chart for approval by the deadline given on the syllabus. The topic
must pertain to an issue relating to Business Law. Please include how your paper topic
impacts the business environment. Your paper must address the relevant laws relating
to your topic on the local, state, federal, or international levels. Bear in mind, a good
source for possible topics are recent court decisions and regulatory actions. Current
issues make more interesting papers.
The topic is your choice – everything is fair game as long as it involves a current
business law issue. The topics listed below are broad categories from which you can
draw ideas. The topic you choose, however, must be narrow enough so you can
address it properly within the space constraints of the assignment, and from which you
can develop an interesting and provocative thesis. For example, while “constitutional
law” as a topic is much too broad, you can choose a specific issue, or case relating to
constitutional law.
Topic Suggestions:
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Constitutional law
Breach of contracts
Insurance fraud
Malpractice
Antitrust
Intellectual property
Piracy
Copyright
Trademark infringement
Labor and employment
Bankruptcy
International Trade
Affirmative Action
Ethics
Maritime Law
Cryptocurrencies
Useful Resources: You may refer to the following websites for possible ideas:
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http://findlaw.com/
https://library.fiu.edu/businesslaw
https://library.fiu.edu/businesslaw/cite
https://library.fiu.edu/businesslaw/plagiarism
http://owl.english.purdue.edu/
Thesis Presentation
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Students will submit their respective group thesis statements into the assignment
dropbox and post it in the Research Paper Chart by Sunday evening in the
applicable week in which the assignment is due.
Additionally, each law firms will present the proposed thesis in the designated
zoom session for peer review and feedback.
Please create one or two slides containing the group topic and proposed thesis
statement.
At least one representative from the team must be prepared to present the
group’s work.
For tips, see the Purdue Online Writing Lab
Research Paper Outline
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Your outline should be a detailed breakdown of the component parts of your
paper
It should be two to four pages in length.
The outline is a critical step in developing your final paper – the outline should
provide a detailed, step by step blueprint. If done carefully and thoughtfully, once
you have an outline in place, the paper should practically write itself!
The outline must identify not less than 20 credible primary or secondary sources.
For tips, see the Purdue Online Writing Lab
Final Research Paper
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Your paper must address the relevant laws relating to your topic on the local,
state, federal, or international levels.
Please make sure that the paper is written in accordance with applicable legal
research standards. APA format only.
Do not plagiarize other individual’s work, accidentally or intentionally. It is always
better to over cite than under cite. See https://library.fiu.edu/businesslaw/plagiarism
for review.
The COVER PAGE must include title, law firm name and number. All the names
of the members of your group must be listed in alphabetical order (by last name)
or credit will not be given to missing individuals.
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Please make sure to PROOFREAD your paper for typographical and
grammatical errors before turning it in.
The paper should be 10 pages in length, exclusive of sources.
Double spaced, 1 inch side margins and 1 inch top and bottom margins on 8-1/2
x 11 inch paper.
All pages MUST be numbered excluding the cover sheet.
The paper must include a minimum of 20 sources.
The research paper is due on the date noted on the course schedule.
Each group should submit one group paper in the assignment dropbox. The
research paper is a group effort. It is your responsibility to contact your members,
coordinate your efforts, and work as a team.
Please review the Research Paper rubric before writing your paper.
Writing Center Resources:
o Online appointments available: https://writingcenter.fiu.edu/make-anappointment/index.html
o Florida International University Center for Excellence in Writing Modesto
A. Maidique Campus 11200 S.W. 8th Street Miami, FL 33199 Green
Library 125 Phone: 305-348-6634
o Biscayne Bay Campus 3000 NE 151st Street North Miami, FL 33181
Glenn Hubert Library First Floor Phone: 305-919-4036
Final Research PaperPresentation
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Law Firms will present the main idea of their respective paper, explain why their
Law firm is writing about this topic and what significance it has in the business
and legal environment.
Law firms can present their information in any format-simulation, case, newscast,
panel, mock trial etc…
Presentation should be approximately 8 to 10 minutes for each Law Firm.
Please include the law firm number and all members’ names.
All group members are not required to speak in the presentation. You may
choose as many members as you wish to present. All law firm members will
receive the same grade so make sure you all work together.
Please record your presentation and upload it to the assignment dropbox and
post the link in the Research Paper Chart.
.mp4 files and .mov files work well in Canvas. You can also use Powerpoint and
embedded audio.
Do not copy and paste your entire paper and format it to fit into slides.
If you do upload slides, PLEASE do not read verbatim from the slides. It is more
interesting and engaging if you paraphrase the information.
Please review the Research Paper Presentation rubric before writing your paper.
Oral Lab Resources: The Oral Presentation Lab, located in the Communication
Arts Department at MMC or in the Honors College at the BBC, expert coaching in
the organization and delivery of oral presentations. Feel free to make an online
appointment by visiting the Oral Presentation Lab’s appointment page at web
page at: http://fiuspeechlab.timetrade.com
a. Please visit the Lab in VH 212 at the MMC campus and ACI at the BBC
campus. The Oral Presentation Lab is open Monday thru Thursday 10am
– 9pm and Friday from 10am – 2pm. Phone: 305-348-0069
b. oralpresentationlab@fiu.edu Oral Presentation Lab VH 212
Communication Arts Department 11200 S.W. 8th Street Miami, Fl 33199
Peer Evaluation Forms: I expect you to complete this paper in a collegial and
cooperative manner. Communication is paramount; it is your responsibility to work
together as a team. Please communicate with your law firm in the private discussion
forum so all members of your group can participate fully. It is each individual’s
responsibility to monitor the forum and successfully complete the tasks you have jointly
divided amongst yourselves. Make sure you adhere to your internal group deadlines
and the course deadlines. You are only required to complete a peer evaluation form if a
problem arises within your law firm. The form can be found in the Research Paper
folder. It must be submitted through the assignment drop box on the same day as your
paper is due.