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LETTERS ing Standards Board (FASB) to testify annually to Con- gress on the steps they have taken to reduce the com- plexity in financial reporting and to provide more accurate and clear financial information to investors. Increase Profits at All Costs This is a bill that the House passed in the two previ- It seems like it was only yesterday that my article about ous Congresses only to watch the legislation vegetate in whistleblowers [“Whistleblowers: A Rare Breed”] was pub- the Senate Banking Committee, which has jurisdiction. lished in Strategic Finance [August 2003]. Although the arti- The bill never moved an inch off that Committee’s dock- cle was published more than six years ago, executives of et. Rep. Christopher Lee (R.-N.Y.), who championed the leading organizations (corporations, financial institutions, bill in the House this year, thinks the legislative climate is government agencies) still have not learned their lessons and more conducive to Senate passage this year, given the continue to participate in illegal and/or unethical behavior. concerns about financial industry accounting and hijinks The current recession was caused primarily by executives raised by last year’s Wall Street debacle. He’s trying to in organizations who did whatever necessary to increase give the financial reporting transparency issue a populist profits at all costs. Those executives stooped to illegal twist—i.e., Americans need better information in order and/or unethical behavior in their quest to justify their exor- to make decisions about their retirement accounts. Lee bitant salaries and bonuses. also thinks accounting rules could be improved for the The latest example was the drug giant Pfizer, who agreed sake of easier corporate compliance, which isn’t exactly a to pay $2.3 billion in fines and penalties to settle the new thought. He states, “It is critical that we take care to largest pharmaceutical fraud case ever pursued by the U.S. identify the complexities that trip up everyone from Department of Justice. The probe was triggered by whistle- small businesses to large corporations and then pursue blowers who will share more than $100 million for bringing reforms that may simplify and improve the process.” The Pfizer’s actions to the attention of authorities. kinds of things Lee expects the SEC/FASB annual testi- The primary Pfizer whistleblower was John Kopchinski, a mony to cover are assessments of complex and outdated U.S. Gulf War veteran and former Pfizer sales representative. accounting standards, increasing the usability of the Kopchinski said, “In the Army I was expect
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