The Case Of Walt Pavlo - 1555 Words

The story of Walter â€Å"Walt† Pavlo, a once revered manager at MCI, will be one that includes a history of being found guilty of white-collar crimes. Walt Pavlo was quickly promoted at MCI to become second in command of the finance unit, where he was employed for four years from 1992 to 1996. Walt’s main duty was to ensure the collection of accounts receivable from customers that purchased and resold MCI’s long distance services. Per Brooks Dunn, MCI’s management was reluctant to show the true state of the company’s finances to its shareholders in order to push up the company’s valuation and profits. Walt felt pressure from MCI’s senior executives to minimize the visibility of $120 million in bad debts and to limit bad debt write offs to $15 million per year in order to attract a favorable takeover bid. He used many different unethical, illegal and fraudulent techniques to minimize the company’s bad debt expenses over years and cover their grossly past due accounts receivable. An action is considered unethical when it goes against widely understood and established societal, professional and/or personal value systems. Fraud is wrongful behavior that is done with the intention to deceive others and typically involves a criminal act. Illegal acts are committed when established laws are broken. Walt Pavlo adversely progressed from displaying unethical, fraudulent behavior to outright illegal acts. One of the many unethical techniques he used was the restructuring of $55 millionShow MoreRelatedCase Module G : Walt Pavlo Mci2638 Words   |  11 PagesCase Module G: Walt Pavlo MCI 1. What aspects of the schemes described in this case were: a) unethical, b) illegal, and/or c) fraudulent? MCI senior officers were concerned with the increasing amount of bad debt due to the number of delinquent Accounts Receivables (AR). A reasonable course of action may have been to improve on the collection of AR. However, the officers were more concerned with their stock portfolios. The officers sought to improve the reputation MCI. The company was attractingRead MoreWhite Collar Crime: The Effects and Punishments5087 Words   |  21 Pagesregarded as the â€Å"crime problem.† An Officer of a chain store in one year embezzled $800,000, which was six times as much as the annual losses from 500 burglaries and robberies of the stores in that chain. †¦ The New York Times in 1931 reported four cases of embezzlement in the United States with a loss of more than $1 million each and a combined loss of $9 million. Although a million dollar burglar or robber is practically unheard of, the million dollar embezzler is a small-fry among white collar criminals