Keep an eye on the results and media releases over the next few weeks. This will unfold quickly. Be aware
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Did they uncover the 2019 SOX coverup or is is this something else?
1iur is totally on point. Too bad internal controls is an internal function and they are justifiably frightened to death of turning the scope in those directions with any real effort.
It just takes one person to go public people. Get out, get hired, then release the information. Worst case is you get a large settlement to keep your mouth shut.
I agree with everything that's been posted. But keep in mind that people like Icahn can't do what they do to strong companies. They prey on weak companies, and Xerox was severely weakened by Ursula and Jacobsen long before Icahn came around.
Right on to the posts below ...1iur & 1vzh
Those things as stated from a Supply and Inventory were everyday happenings.
Greed fuels the lying thieves that are in charge of what was our company and it compels the market to look the other way and let it happen.
To the person that says they aren't doing anything illegal, they hire temps through agencies and treat them as if they are not employees and they get around the time limit by making them switch agencies. They work the same as employees, have to show up on time and work the same hours and they don't get sick days, vacation time, holidays or benefits. If you have to show up and work the same as everyone else with the same responsibilities YOU ARE AN EMPLOYEE and not paying them as an employee after 19 months IS ILLEGAL. And whether is something is illegal or not doesn't make it immoral. Carl Icahn and his ilk destroy the fabric of society. They leave healthy corporations teetering on the edge of bankruptcy and put thousands and thousands out of work. It may well be legal but it is not moral. Slavery at one time was legal but it doesn't make it right. I hope Johnny V's kids grow up and realize the blood money that put them through the finest education while former Xerox employees went on food stamps and medicaid in order to give Johnny V a bigger bonus. Legal but again not moral. Not moral is not good for society.
Fraud is an ambiguous term. Use your moral compass to decide on these actions:
- delaying payables beyond contractual terms
- bumping receivables
- official documents to Wall St stating strategies for which no funding, planning, or commitment exists
- booking warehouse transfer as revenue
- skating WARN reporting requirements
- failure to account for in-kind and AR skimming
- concealing of liabilities
- falsified expense reimbursement
- keeping material SOX audit deficiencies from annual report
I’m not on the enforcement side but most of these IMO violate GAAP, many regulations, and are just plain wrong to anyone more concerned with what is right than potential stock upside.
Here's the bottom line. Carl Icahn is well known. His strategy is well known. He's done this dozens of times. I'm not sure the analysts are as blind to what is happening as employees think they are. I think analysts just don't care. The metrics improve every quarter under JohnV. Are they artificially propped up? Sure. Will that be a problem eventually? Sure. As long as the stock stays flat or increases even marginally, no one cares. Company pays good dividends. They all know it will pop again when Icahn sells the company or splits it. It's a sick game, but that's all it is. No one cares about the impact to the employees, at least not enough to sell their shares.
What was the scandal in 2000?
No one is saying fraud..
Xerox has been pumping up their profit numbers and cash on hand, by decimating the XBS cores. Rebadging significant headcount and closing 80% of real estate, has no question raised cash on hand.. but those things will catch up eventually and the market will respond accordingly when the profit starts to dwindle .
No fraud. More snowflake chatter.
There are no credible allegations of fraud. After the accounting scandal around 2000, there is much more oversight than before.
I'm not defending Xerox and any of it's actions or directions taken in the last couple years, but the only people making accusations of fraud are disgruntled former employees on this chatter board.
There is plenty wrong with Xerox, how it treats employees and with it's vision. Focus on the reality.
Name one instance of accounting fraud, please. Otherwise, go find someplace else to troll.
I am not happy with the direction of the company, but just because our executive team is making (in my view) short-sighted and foolish decisions, that does not mean they are doing anything illegal, or even improper.
As far as we know, Xerox isn't doing anything illegal. The market doesn't care.
Fake news.