The following headlines and article selections demonstrate the potential fallout when executive due diligence is overlooked – or when a “one-size-fits-all” background check is used…
RadioShack CEO Resigns Amid Resume Questions
“One of the most important things we have as a corporation is integrity and trust and we know we have to restore that back to the public.”
This was the public apology from the Chairman of RadioShack, after the company’s CEO resigned amid allegations of resume falsification, and falling stock prices.
USA Today, Feb 20, 2006
Herbalife President Is Scrutinized: Status Of M.B.A. At Cal State Probed; Work Incomplete
“The president and chief operating officer of Herbalife Ltd. was caught embellishing his academic credentials. Herbalife, a Los Angeles marketer of weight-loss products, has said (its COO) received a Master of Business Administration degree from California State University, Los Angeles. It mentioned the degree in at least 19 filings with the Securities and Exchange Commission.
But (Herbalife’s COO) never finished Cal State’s M.B.A. program, where he took classes in the early 1980s, the university said.”
Wall Street Journal, April 25, 2008
Four Prestigious Labs Ousted (CEO) For Questionable Work
“In the world of biotechnology…(ImClone CEO’s) bona fides seemed impeccable: a string of research at such prestigious institutions as Stanford and Tufts universities and the National Cancer Institute. His decade-long academic career lent credibility to …the biotechnology company he founded in 1985.
Missing from (his) official resume is that he was pushed out of each of those research institutions for what former supervisors and others say was misleading and, in one case, falsified scientific work.
ImClone’s board forced him out of the company in May (2002) because of directors’ increasing anxiety about his truthfulness and legal problems, according to people close to the board
…Dr. Waksal, 55 years old, stands accused by federal prosecutors of insider trading, his career seemingly in ruins.”
Wall Street Journal, September 27, 2002
Probe Into Usana Officials Ends With Settlement
“(Usana’s) chief financial officer, and ‘audit committee financial expert’ had both been described as certified public accountants in several of the company’s filings with the Securities and Exchange Commission.
Both officials are former CPAs. (The CFO’s) certification expired in 1986, and (the financial expert’s) in 2004. … holders of expired licenses may not describe themselves as CPAs under Utah law.
The Utah Division of Occupational and Professional Licensing began a probe of the matter on June 12. Both officials agreed to a settlement last week in lieu of a hearing.”
Wall Street Journal, June 26, 2007
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