Enron’s Board of Directors: Contemporary Lessons on Crypto Marketplace Manipulation Computer Crimes - Crypto Computer Crimes Manual (W/183 Highlights)

Thu Jun 29 03:56:55 PDT 2023

A few years ago, I wrote an essay titled: "Enron’s Board of Directors:
Contemporary Lessons on Crypto Marketplace Manipulation Computer Crimes -
Crypto Computer Crimes Manual (W/183 Highlights)"

https://thecapital.io/article/crypto-computer-crimes-manual-w183-highlights-Mj17zgV81Qw6GJsfrtm

Working references on disclosure controls and procedures, as well as
strategic initiatives including mergers and acquisitions, joint ventures,
and management restructurings (including public/private board of directors).
Full, fair, and accurate disclosures from all parties in a battle for
corporate influence or control are critically important to investors,
particularly when they are called upon to make decisions about their
investments. Contemporary crypto computer crimes likely are key
considerations relevant to making informed investment decisions by
sophisticated investors, underscoring protection of pension assets via keen
planning.

BitLicense marketplace manipulation techniques and potential cross-border
computer crimes has been a major focus of xNY.io's scholar
research/innovation communication and Bank.org's business plan execution
strategy.

The World Bank (WorldBank.org) notes that vulture funds endanger the gains
made by debt relief to poorest countries. "The Bank has already delivered
more than $40 billion in debt relief to 30 of these countries...thanks to
this, countries like Ghana can provide micro-credit to farmers, build
classrooms for their children, and fund water and sanitation projects for
the poor," wrote World Bank Vice President Danny Leipziger in 2007.

World Bank directors warn that strategies adopted by vulture funds divert
much needed debt relief away from the poorest countries on earth and into
the bank accounts of the wealthy.

Bank.org is clear-eyed; microcredit lending fraud is a major issue for
developing economies. Likewise, in western developed economies, market
history warns that when boards of directors approve of and/or ignore the
misuse of computer software programs which compute values based upon data
input formulas from active cross-border manipulation structures, the
results can lead to scandals like Enron. Such outcomes cost investors
billions of dollars when the share prices of affected companies collapse,
while also shaking public confidence in the United States securities
markets.

Enron’s Board of Directors: Contemporary Lessons on Crypto Marketplace
Manipulation Computer Crimes

In its 2000 review of best corporate boards, Chief Executive Magazine
included Enron among its five best boards. Even with its complex corporate
governance and network of intermediaries, Enron was still able to "attract
large sums of capital to fund a questionable business model, conceal its
true performance through a series of accounting and financing maneuvers,
and hype its stock to unsustainable levels."On paper, Enron had a model
board of directors comprised predominantly of outsiders with significant
ownership stakes and a talented audit committee of various state and
federal regulators.

Two decades later, in 2021, it is clear that cryptocurrency and blockchain
computer software systems require contemporary, ethically pure and sound
cultivation to support the realization of a "generation of innovation,"
maximizing the full potential of blockchain software technologies.

Board directors that will pioneer the next chapters of the meaningful New
York legacy of global, cross-border banking will agree:

Close scrutiny of corporate governance and greater responsibility placed on
directors to vouch for the reports submitted to the SEC and other federal
agencies have resulted in the growth of computer software solutions such as
blockchain systems and processes.

Cryptocurrency and Blockchain computer software products allow corporate
directors and internal auditors to assemble and analyze financial and other
relevant data—including unstructured data—and create reporting required by
New York BitLicense regulators and various Federal counterparts.

Before its demise, Enron was lauded for its sophisticated software,
including financial risk management tools powered by computer software.

Risk management was crucial to Enron not only because of its regulatory
environment, but also because of its business plan. Enron established
long-term fixed commitments which needed to be hedged to prepare for the
invariable fluctuation of future energy prices.

Enron's downfall was attributed to its reckless use of derivatives and
special purpose formulas manipulated by computer accounting software tools.
To engage in probable computer crimes, Enron hedged its risks with special
purpose entities which it owned, and Enron retained the risks associated
with the transactions.

Enron's aggressive accounting practices were not hidden from the board of
directors, as later learned by a Senate subcommittee. The board was
informed of the rationale for using the Whitewing, LJM, and Raptor
transactions, and after approving them received status updates on the
entities' operations. Although not all of Enron's widespread improper
accounting practices were revealed to the board, the practices were
dependent on board decisions.

Eliminating Bad Board of Director Schemes
Ranging from additional corporate board responsibilities to criminal
penalties, the Securities and Exchange Commission (SEC) implemented
disclosure requirements to comply with the law. A recent SEC order
reiterated the importance of the disclosures, noting that the requirements
were adopted in order to alert the market to large and rapid accumulation
of shares that might represent a possible change in corporate control so
that shares can be valued accordingly. The SEC order also noted that the
requirements were designed to provide an issuer’s management with timely
information to appropriately protect its shareholders’ interests (including
pension protections).

The SEC’s recent enforcement actions relate to disclosure obligations in
connection with M&A transactions and fights for corporate control.

In 2015, the SEC brought forth a number of similar enforcement actions
alleging that filers had failed to update their disclosures after taking
steps towards certain plans and proposals.

These types of enforcement actions continue to create challenging issues
for practitioners, particularly when potential transactions are still in
the early stages of planning and preliminary negotiation.

The SEC’s historic actions serve as a reminder to investors, including
vulture activists, that Schedule 13D violations can result in monetary
liability and, in the case of registered funds and investment advisers, can
also have other regulatory consequences.

Care must be taken to avoid those communications constituting group
activities with disclosure consequences. It should be noted that in some
cases, coordination among the parties or sharing of information is
sufficient to form prompts for disclosure purposes.

Intention of Disclosing Crypto Computer Crimes Manual (W/183 Highlights)

Published by the Office of Legal Education Executive office for United
States Attorneys, the “Prosecuting Computer Crime Manual” has been xNY.io’s
reference guide as international scholars researching Crypto Computer
Crimes and how to best position corresponding Bank.org business innovation
moving forward.

The SEC encourages the description of any plans or proposals such as Proof
of Burn (PoB) or Short Selling market activities which may relate to or
would result in:

The acquisition by any person of additional securities of the issuer, or
the disposition of securities of the issuer;

An extraordinary corporate transaction, such as a merger, reorganization or
liquidation, involving the issuer or any of its subsidiaries;

A sale or transfer of a material amount of assets of the issuer or any of
its subsidiaries;

Any change in the present board of directors or management of the issuer,
including any plans or proposals to change the number or term of directors
or to fill any existing vacancies on the board;

Any material change in the present capitalization or dividend policy of the
issuer;

Any other material change in the issuer's business or corporate structure,
including but not limited to, if the issuer is a registered closed-end
investment company, any plans or proposals to make any changes in its
investment policy for which a vote is required by section 13 of the
Investment Company Act of 1940;

Changes in the issuer's charter, bylaws or instruments corresponding
thereto or other actions which may impede the acquisition of control of the
issuer by any person;

Causing a class of securities of the issuer to be delisted from a national
securities exchange or to cease to be authorized to be quoted in an
inter-dealer quotation system of a registered national securities
association;

A class of equity securities of the issuer becoming eligible for
termination of registration pursuant to section 12(g)(4) of the Act; or

Any action similar to any of those enumerated above.

Below we share 183 highlights to the Computer Crimes Manual as per best
disclosure practices to illustrate various potential scenarios when market
conditions are met and a board of directors potentially exploits blockchain
technological software innovation with forecastable reckless consequences.

https://thecapital.io/article/crypto-computer-crimes-manual-w183-highlights-Mj17zgV81Qw6GJsfrtm
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