The Parmalat Scandal Research Paper Example | Topics and Well Written Essays - 1250 words

The Parmalat Scandal - Research Paper ExampleParmalat employees tried to obturate justice by shredding documents and spoiling computers. Tanzi and two members of his family were arrested. Zini of Zini legal firm was the mastermind behind the fraudulent activities firearm Fausto Tonna is played a key role. Parmalets outside counsel and ten members of its management pleaded guilty to guilty charges, but were lucky to get sentences not exceeding thirty months. While claims against Deloitte&Touche LLP and Grant&Thornton LLP were allowed to continue, a pillowcase against marge of America was dismissed (Markham 375).Italian prosecutors sought to cast the net wider. They indicted Deloitte &Touche, Grant & Thornton and their employees. They accused Citigroup and Morgan Stanley Deutche Bank with aiding and abetting the fraud since they were the companys investment banks. Citigroup filed a countersuit in New Jersey claiming they were also a victim of Parmalets fraud (Markham 375).The scan dal was an embarrassment to the Italy political establishment that had received $120 gazillion in political contributions from Tanzi.The Parmalat scandal pull ind the Italian government to take measures to restore investor confidence. It passed laws that should consecrate been passed abundant ago to prevent frauds such as the Parmalat scandal. However, as history has shown, there will always be a lot to be done. It takes an economic collapse or a big scandal to force legislators to seal loopholes and increase regulation (Mallin 86).The measures the Italian government took to prevent fraud were long overdue. Publicly traded companies should have been required to rotate their lead auditors after a brief period. The government raise it at two long time that should be ideal. The new laws extend the time of engagement from three years to six but limit the number of times they can be contracted (Mallin 86). The extension ensures tenaciousness that is crucial to an auditing firms suc cess. In addition, mandatory rotation