Homework Question on Bankruptcy Filing
- Prepare a 2–3 page, double-spaced paper explaining the three key chapters of the U.S. Bankruptcy Code (7, 11, and 13), and how each chapter operates in our bankruptcy court system.
- Do individuals/corporations filing for bankruptcy progress through more than one of these chapters?
- A question you must cover in your paper concerns the effect that both petitioners’ student loans have in their bankruptcy filing.
- Research the Internet, and gather statistics on the number of students being forced into personal bankruptcy as a result of federal student loans.
Homework Answer on Bankruptcy Filing
“Recent Major White Collar Crime Sentences”
This section analyses three criminals by depicting their crimes, mode of punishment, and how it is affecting the current business.
Jamie Olis
He is the vice president of a finance company whose offence is evident when he attempts to hide or conceal approximately $300 million. This happened to be a company debt from public investors. Olis was found to be at fault for mail and securities fraud. Additionally, the court convicted him of an offence that incorporated three counts of wire fraud. Olis had to face consequences of his actions through punishment, which saw him sentenced to 292 months in prison.
This 24 year sentence that Olis was subjected to served as the longest term for a fraud case in the US history. He was also fined $ 25,000 dollars in regard to the huge financial loses that various investors incurred. As a result, this has affected the current ongoing business making it to lose millions of investors. For instance, the $ 105 million loss affected 13,000 participants of retirement plan in California. The impact of this crime is that investors will no longer be loyal to the business and will choose other options due to the poor returns.
Walter Forbes
Forbes’ offence was that he became deceitful and inflated revenue of the firm by $500 million to improve its stock price. He was also accused of fraud concerning mail, securities, and wire operations, besides conspiracy. His other crime was clear when he was found guilty of the insider trading worth $11 million in Cendant stock before he became charged of an accounting scandal. He received a punishment of 12 years and 7 months duration in prison. Moreover, he was ordered to pay a fine of $3.275 billion in restitution.