The world of finance is built on trust and transparency, but that trust can be shattered by greed and corruption. When these scandals occur, they can wreak havoc on companies, investors, and in some cases entire economies.

The Enron scandal was one of the biggest financial crises in history and ultimately led to the company’s bankruptcy. It shook investor confidence, caused layoffs, and resulted in billions of dollars in lost savings by shareholders and employees. The scandal prompted new laws to protect shareholders and prevent corporate fraud.

Bernie Madoff was another financial fraudster who scammed investors out of $64.8 billion in his Ponzi scheme. He paid out returns to investors using money from new investors rather than profits – a technique known as a “fire sale.” Many philanthropic organizations suffered significant losses, including the $1 billion Picower Foundation, the $240 million Chais Family Foundation, and the $198 million Betty and Norman F. Levy Foundation.

In 2021, American food giant Kraft Heinz was hit with an accounting fraud scandal that forced it to restate several years of financial reporting. This was primarily due to the actions of senior manager Dale Swanberg, who was accused of manipulating profit margins by concealing costs in project budgets.

In the aftermath of these major financial scandals, governments and regulatory bodies often scramble to impose reforms in order to prevent similar incidents from occurring again. These may include stricter standards for financial reporting and increased oversight of large corporations.