Metadata and other electronic data supporting phar-mor’s “9/24/01 it is so ordered dated: june 12, 2007 09:38:08 am 2 by april 30, 2007 this chapter 11 case was filed in september 2001 and the reclamation issue currently before the court has been in dispute since the beginning of the case the court has provided. Case 2-9 phar-mor the dilemma the story of phar-mor shows how quickly a company that built its earnings on fraudulent transactions can dissolve like an alka-seltzer ® tablet one day stan cherelstein, the controller of phar-mor, discovered cabinets stuffed with held checks totaling $10 million. I feel that one major defect in the phar-mor company is the fact that mickey monus has full control of the company and could draw off such a elephantine fraud cozenage this is a blemished system in direction there were no cheques and balances to maintain this fraud from go oning mickey monus had so.
Phar-mor filed for bankruptcy shortly thereafter, and a number of lawsuits were filed by dissatisfied investors the dissatisfied investors at issue here, collectively known as the “rule 144a purchasers,” bought $110 million of phar-mor stock in a $112 million private placement offering in october of 1991. Michael i mickey monus (born 1947) is the former president of phar-mor, inc, a defunct deep-discount drug and grocery retail chain that established a strong national presence before declaring bankruptcy in the early 1990s. Shapira was the ceo and co-founder of phar-mor inc came to an abrupt halt in 1992 as michael monusthe rise and fall of phar-mor inc records000 employees nationwide 1996) during the whole ordeal david shapira was never charged and denied any involvement or knowledge of the fraud until after an investigation was conducted regarding a. Transcript of phar-mor case 2-9 phar-mor phar-mor was a chain of discount drugstores, founded in 1982 by michael monus and david shapira,the company grew from 15 to 310 stores in less than 10 years and had 25,000 employees introduction case problem.
A formal analysis of the shortage by a phar-mor accountant indicated that the inventory shortage/overbilling was around $4 million however, the two subsidiaries of giant eagle settled on $7 million, giving phar-mor a $2 million profit for the year. Phar-mor: case study phar-mor was known as one of the major discount chain retailers in the late 1980’s - early 1990’s it was founded by mickey monus, a gambler in nature, who with the help of senior management was “cooking the books” for years to cover up his loses. The investors who successfully sued coopers & lybrand contended that gregory finerty, the coopers & lybrand partner in charge of the phar-mor audit, was “hungry for business because he had been passed over for additional profit-sharing in 1988 for failing to sell enough of the firm’s services”2 in 1989, finerty began selling services to.
Case 2-9 phar mor essay sample i feel that one major flaw in the phar-mor company is the fact that mickey monus has full control of the company and could pull off such a giant fraud scam. Phar-mor, inc, appellee/cross-appellant))))) case no 04:06cv0432 memorandum opinion i introduction this matter involves a dispute over what amounts of rent should be paid by a chapter 11 debtor for the use of warehouse equipment both before and after the debtor’s lease is rejected. Case 2-9 1 the blame for the fraud should mostly go to mouns mouns took advantage from the company and using company’s assets to get his personal profits.
Frontline details how executives incuding the cpa/cfo committed a $500 million inventory fraud at private company phar mor as venture capital investores inve. Case 2-9 phar-mor the dilemma the story of phar-mor shows how quickly a company that built earnings on fraudulent transactions can dissolve like. Phar mor essay acct 4304, fall 2015 audit case read the attached audit case and answer all the questions that follow a total of 90 points are available for the actual responses to the questions and 10 points are available for presentation, clarity and grammar.