Satyam Computer Chairman Admits Fraud, Stock Virtually Worthless
January 7, 2009 by Tisa Silver
Filed under Investing
Satyam Computer Services (Ticker: SAY), a once globally respected IT firm is now being referred to as the “Enron of India.” That name says it all, but what happened?
Like Enron, it appears this company engaged is massive accounting fraud. According to CNBC’s Street Signs, the vast majority of the company’s cash position was a lie! The chairman appeared on CNBC back in November to say that profits were up 28 percent. Watch the interview.
Unlike Enron, the Chairman of this company admitted to the fraud (and in great detail). According to MarketWatch, Satyam’s Chairman, B. Ramalinga Raju, resigned after announcing the company had inflated assets, deflated liabilities and overstated profits …read more
