Description: At one time, the e-education company Knowledge House was a well-respected leader in Nova Scotia’s tech sector. But that, as they say, was some time ago. With over 100 employees in the late 1990s, Knowledge House imploded in 2001 when its share price collapsed. On Friday, two key players from the company’s executive suite were convicted of stock price manipulation in the 18 months prior to the collapse. During that period, approximately $11 million was used to buy 50% of the Knowledge House shares trading on the TSX.
Date: March 9, 2018
1) What interests you about this story?
2) What could a company’s accounting staff or auditors do to help detect or prevent this type of behaviour by senior managers?
3) In this story, we can see how long this case took to bring the offenders to Justice. In fact, the article points out that there are still outstanding legal matters before the courts. What impacts might these long timelines have on ethical choices people make in the marketplace?