25:
104:, who previously used Adelphia Pharmaceutical Manufacturing Company as a front for bootlegging operations. Musica, a twice-convicted felon, used assumed names to conceal his true identity in taking control of the two companies: Frank D. Costa at Adelphia Pharmaceutical and F. Donald Coster at McKesson and Robbins.
107:
Although Musica was successful in expanding the company's legitimate business operations, he recruited three of his brothers, also working under assumed names, one outside the company and two inside it, to generate bogus sales documentation and to pay commissions to a shell distribution company under
118:
The McKesson and
Robbins scandal led to major corporate governance and auditing reforms. The SEC required that public companies have audit committees of outside directors and that the appointment of auditors be approved by the shareholders. The American Institute of Accountants, now the
108:
their control. McKesson and
Robbins treasurer Julian Thompson discovered the distribution company was bogus. It was determined that about $ 20 million (about $ 335 million in 2017 dollars) of the $ 87 million in assets on the company's balance sheet were phony.
115:(SEC) opened an investigation and Musica was arrested. After he was booked, fingerprinted, and released on bond, authorities realized that "Coster" was really Musica. His bond was revoked, and he committed suicide before he could be rearrested.
120:
54:
230:
177:
215:
112:
199:
162:
76:
235:
184:
220:
225:
37:
47:
41:
33:
58:
144:
94:
132:
195:
173:
158:
140:
123:, adopted audit standards requiring that auditors verify accounts receivable and inventory.
101:
185:
http://www.newaccountantusa.com/newsFeat/wealthManagement/Clikeman_Greatest_Frauds.pdf
209:
183:
Paul M. Clikeman, "The
Greatest Frauds of the (Last) Century," monograph, May 2003,
97:. It is widely considered one the largest financial scandals of the 20th century.
93:
was a major financial scandal in 1938, involving McKesson and
Robbins, Inc, now
148:
192:
A Financial
History of Modern U.S. Corporate Scandals: From Enron to Reform
170:
Accounting for
Success: A History of Price Waterhouse in America, 1890-1990
18:
147:. New York: Garland Publishing, 1996. pp. 409–410.
155:
137:
History of
Accounting: An International Encyclopedia,
121:American Institute of Certified Public Accountants
46:but its sources remain unclear because it lacks
100:McKesson and Robbins was taken over in 1925 by
172:Boston: Harvard Business School Press (1993)
8:
168:David Grayson Allen and Kathleen McDermott,
77:Learn how and when to remove this message
7:
157:Oxford: Oxford Univ. Press (2006)
135:. "McKesson and Robbins Case." In
113:Securities and Exchange Commission
14:
23:
231:Corruption in the United States
194:Armonk, NY: M.E. Sharpe (2006)
1:
91:McKesson and Robbins scandal
252:
187:(accessed March 15, 2008).
216:1938 in the United States
32:This article includes a
61:more precise citations.
111:In December 1938, the
145:Richard Vangermeersch
236:McKesson Corporation
95:McKesson Corporation
221:Accounting scandals
226:Corporate scandals
190:Jerry W. Markham,
133:Chatfield, Michael
34:list of references
178:978-0-87584-328-5
165:pp. 139–140.
141:Michael Chatfield
87:
86:
79:
16:Financial scandal
243:
153:John C. Coffee,
82:
75:
71:
68:
62:
57:this article by
48:inline citations
27:
26:
19:
251:
250:
246:
245:
244:
242:
241:
240:
206:
205:
180:pp. 75–83.
129:
83:
72:
66:
63:
52:
38:related reading
28:
24:
17:
12:
11:
5:
249:
247:
239:
238:
233:
228:
223:
218:
208:
207:
204:
203:
202:, p. 171.
188:
181:
166:
151:
128:
125:
102:Phillip Musica
85:
84:
42:external links
31:
29:
22:
15:
13:
10:
9:
6:
4:
3:
2:
248:
237:
234:
232:
229:
227:
224:
222:
219:
217:
214:
213:
211:
201:
200:0-7656-1583-5
197:
193:
189:
186:
182:
179:
175:
171:
167:
164:
163:0-19-928809-7
160:
156:
152:
150:
146:
142:
138:
134:
131:
130:
126:
124:
122:
116:
114:
109:
105:
103:
98:
96:
92:
81:
78:
70:
60:
56:
50:
49:
43:
39:
35:
30:
21:
20:
191:
169:
154:
136:
117:
110:
106:
99:
90:
88:
73:
64:
53:Please help
45:
59:introducing
210:Categories
139:edited by
127:References
149:Full-text
67:June 2017
55:improve
198:
176:
161:
40:, or
196:ISBN
174:ISBN
159:ISBN
143:and
89:The
212::
44:,
36:,
80:)
74:(
69:)
65:(
51:.
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.