Tesco Accounting Scandal Overview

The practice of intentionally manipulating financial records to create a false impression of a company's financial performance.

An individual who reports suspected illegal or unethical activities within a company.

An official statement that details a company's current financial performance and outlook.

An investigation by a government agency focused on suspected criminal activity related to financial practices.

An agreement that allows prosecution to be withheld if the company meets specific conditions, usually involving a significant fine.

A regulator responsible for overseeing financial markets and protecting investors.

An instance of providing misleading information about a company's financial situation to manipulate the market.

A formal payment levied against a company for violating regulations or engaging in illegal activities.

A type of fraud where investors are tricked by misleading financial information, resulting in stolen capital or income.

A fraudulent investment scheme where early investors are paid returns with money from new investors, creating a pyramid structure.

Example of a Ponzi scheme where Charles Ponzi promised excessive returns, costing victims $20 million when it collapsed.

The act of misleading investors with false promises of high-yield earnings and returns to entice them to invest their money.

A common practice in Ponzi schemes, where the perpetrator uses newly invested money to pay earlier investors, creating an illusion of legitimacy while actually stealing funds.

A consequence of Ponzi schemes when the flow of new investors dries up, leading to the collapse of the scheme and financial losses for investors.

Financial crimes involving the fraudulent use of electronic communication channels, such as wire transfers, to steal money.

The act of concealing and hiding stolen money and assets in multiple countries to evade detection and prosecution.

The use of criminal funds (proceeds of crime) to make them appear legitimate.

The first stage of money laundering, where criminal proceeds are introduced into the financial system.

The second stage of money laundering, where criminal funds are moved through various transactions to obscure their origin.

The final stage of money laundering, where criminal proceeds are integrated into the legitimate economy.

The motivation to conceal or distance criminal property from its illegal origin.

The motivation to use criminal proceeds for personal gain or enjoyment.

The practice of concealing the illegal source of funds or property.

Intellectual property fraud refers to the illegal use, theft, or infringement of intellectual property rights like trademarks, brands, patents, designs, copyrights, or customer lists. This can be done by employees or external parties.

Counterfeiting involves creating and selling fake versions of genuine products. This can be anything from luxury goods like designer clothes to vital products like medical equipment.

Counterfeit goods can be harmful due to their potential for causing injury or illness. Fake products often contain substandard materials and lack quality control, leading to dangerous consequences.

The economic impact of counterfeiting is significant. Counterfeit products steal revenue from legitimate businesses and cost governments tax revenue.

Manipulating market information to deceive investors and gain an unfair advantage.

Counterfeit goods represent a substantial part of international trade. According to studies, counterfeit products can comprise a significant percentage of global trade, impacting several industries.

The deliberate process of creating misleading price movements in financial markets.

Counterfeit products have a serious impact on the EU economy. Studies show they represent a significant percentage of imports and cost the European economy billions of euros annually.

Using false information or misleading impressions to create a false perception of a company's financial health.

The amount of money generated from counterfeiting is higher than the income from illegal drugs. Counterfeit products are a sizable and profitable criminal enterprise.

Counterfeit products are especially damaging because they can steal away valuable intellectual property rights. Brands and trademarks are vital for businesses, and counterfeiting undermines their value.

The act of concealing the source of criminal proceeds to avoid detection by law enforcement.

Preventing authorities from connecting criminals to illegally obtained assets.

Financial crime includes white-collar crime, corporate crime, occupational crime, and economic crime.

Fraudulent activities that involve deception, manipulation, or abuse of trust for personal gain.

Trading securities based on private, non-public information, which gives an unfair advantage.

Manipulating financial markets by spreading false or misleading information to gain an advantage.

The process of concealing the origins of illegally obtained money to make it appear legitimate.

Financial institutions are required to identify and prevent money laundering activities.

Terrorist organizations may utilize financial institutions for funding their operations.

Money laundering and terrorist financing both involve hiding the origin of funds and disguising their activities.