
20 | Chapter 2
Financial Statement Frauds to
Obtain Undue Benets
While in most of the nancial statement frauds,
net worth and performance of the company is arti-
cially inated either to lure the investors, deposi-
tors and lenders or to retain controlling stake by
the majority share holders, the reverse of the same
modus operandi can also be used to articially sup-
press the net worth of the company. The objective
of articially suppressing the net worth of a com-
pany is to squeeze out the minority share holders
by paying them lesser compensation. In cases of
mergers and acquisitions, the management or con-
trolling share holders can get personally ...