Banco Intercontinental or BANINTER was the second-largest privately held commercial bank in the Dominican Republic, whose demise resulted from fraud and political corruption in 2003. This caused the Dominican’s economy to go into a steep decline as fraudulent bookkeeping and political influence by the administration of former President Hipólito Mejía and all the major Dominican political parties resulted in a $2.2 billion deficit or equal to 12 to 15% of the country’s GDP.
Adelphia Communications Corp.
This Pennsylvania-based company was ranked as the fifth largest cable company in the US before it yielded to bankruptcy in 2002 due to internal corruption. The company incurred $2.3 billion debt and its founders were charged with securities violations. John and Timothy Rigas were sentenced to 15 to 20 years in prison, while five other officers were indicted. The Rigases made a complicated cash-management system where they diverted funds to other family-owned entities.
Global Crossing Ltd.
This company showed that an incredible scandal is not necessarily the end of the business road. In terms of assets, the company’s bankruptcy can be considered the 7th largest filing in American history where the total assets given at the filing were $22.4 billion with debts amounting to $12.4 billion. The debt was amassed by four CEOs of the computer-networking services company, where each was given $23 million in personal loans, which were ultimately forgiven. However, in 2004, the company began to show improved margins and even announced acquisitions of FiberNet and Impsat in 2006.
Its corporate downfall can be considered the largest in Australia’s history. HIH Insurance was Australia’s second-largest insurance company until it entered into provisional liquidation in 2001. It incurred losses totaling $5.3 billion where its director, Rodney Adler, was sentenced to four and half years of jail time due to obtaining money by false or misleading statements, and failure to discharge his duties as a director in good faith and in the best interests of the company.
Martha Stewart’s Mess
Martha Stewart is a household name due to her endeavors as a business magnate, author, and magazine publisher. She is very successful in all her business ventures and has numerous bestselling books. However, she became entangled in the ImClone insider trading affair in 2002 and was even indicted on nine counts of securities fraud and obstruction of justice. She was able to bounce back, however, and even regained her company in 2012.