It’s a sad fact of the world of big business crimes and corruption can often be found inside gigantic corporations.
History is littered with huge crimes that have seen executives jailed, as well as environmental disasters and massive safety failures. More modern times have seen companies punished for huge data breaches.
Even in 2024, bosses are still going to jail over scams and corruption, like FTX boss Sam Bankman-Fried.
Here are 10 of the biggest business crimes in history.
Financial Fraud and Corruption
Enron Scandal (2001)
The scandal led to the bankruptcy of Enron, once the seventh-largest company in the U.S. Executives were sentenced to prison for their crimes.
The company’s accounting firm, Arthur Andersen, was convicted of obstruction of justice, effectively ending its business. This scandal prompted significant regulatory changes.
These included the Sarbanes-Oxley Act, which increased penalties for corporate fraud and improved the accuracy of corporate disclosures.
Read the full story of the scandal here.
Bernie Madoff’s Ponzi Scheme (2008)
Bernie Madoff was sentenced to an astonishing 150 years in prison, and efforts to recover funds for victims have returned over $14 billion of the estimated $17.5 billion in principal lost. He promised steady, double-digit returns to his customers while using cash from new investors to pay back money to older ones.
Madoff was able to carry on the fraud for several years while holding out against a serious recession in the 1990s, a global financial crisis in 1998, and the aftermath of the 9/11 attacks. The scandal highlighted significant failings in regulatory oversight and led to reforms aimed at improving investor protections.
Read the full story here.
Environmental Violations
BP Deepwater Horizon Oil Spill (2010)
The Deepwater Horizon scandal happened on April 20, 2010. An explosion on the Deepwater Horizon oil rig led to the largest marine oil spill in history, releasing an estimated 4.9 million barrels of oil into the Gulf of Mexico over a period of 87 days. The disaster caused extensive damage to marine and wildlife habitats, as well as the Gulf’s fishing and tourism industries.
Investigations revealed BP’s massive shortcomings in safety practices and emergency response.
BP was fined $20.8 billion, the largest environmental fine in U.S. history, to cover damages and cleanup costs. The disaster significantly damaged BP’s reputation, led to the resignation of its CEO, and prompted industry-wide safety improvements and stricter offshore drilling regulations.
Volkswagen Emissions Scandal (2015)
The Volkswagen emissions scandal, also known as “Dieselgate,” erupted in September 2015. The U.S. Environmental Protection Agency (EPA) discovered Volkswagen had installed software in its diesel vehicles that could detect when they were undergoing emissions testing.
During tests, the software would activate the vehicles’ full emissions control systems to meet legal standards. However, during regular driving, these controls were reduced.
This resulted in the vehicles emitting up to 40 times the legally allowed limit of nitrogen oxides. This revelation led to widespread public outrage, significant legal and financial repercussions for Volkswagen, including billions of dollars in fines and settlements.
The scandal was a major blow to the company’s reputation.
Volkswagen incurred over $30 billion in fines for its crimes, vehicle buybacks, and settlements.
The scandal led to the resignation of the CEO and other executives, a significant shift in the company’s strategy towards electric vehicles, and heightened global scrutiny on vehicle emissions standards.
Data Breaches and Privacy Violations
Cambridge Analytica and Facebook (2018)
Cambridge Analytica, a political consulting firm, harvested personal data from millions of Facebook users without consent, using it to influence voter behavior.
Exposed in 2018, this scandal raised significant concerns about privacy, data security, and the ethical implications of social media manipulation, leading to global scrutiny and regulatory action. Facebook faced a $5 billion fine from the Federal Trade Commission (FTC) for privacy violations for its crimes.
This was the largest fine ever imposed on any company for violating consumers’ privacy. The scandal prompted widespread scrutiny over data privacy practices and led to calls for stricter regulations on data handling.
Equifax Data Breach (2017)
In 2017, Equifax, a major credit reporting agency, suffered a massive data breach exposing sensitive personal information of approximately 147 million people.
This incident was caused by a failure to patch a known security vulnerability. It led to widespread identity theft risks and sparked intense criticism over data protection practices, resulting in regulatory investigations and fines.
Equifax agreed to a settlement that included a Consumer Restitution Fund of up to $425 million to help people affected by the data breach. The breach exposed the company to significant legal and regulatory challenges and underscored the importance of cybersecurity measures for personal data protection.
Worker Exploitation and Unsafe Practices
Rana Plaza Collapse (2013)
The Rana Plaza collapse in Bangladesh happened on April 24, 2013.
It was one of the deadliest industrial disasters, killing over 1,100 people. The building housed clothing factories supplying global brands. It collapsed due to structural failures.
This tragedy highlighted the dire working conditions and lack of safety standards in the global apparel industry, leading to calls for reform and better oversight.
The tragedy brought global attention to the unsafe working conditions in the garment industry. Although specific penalties for the companies involved were limited, it led to the establishment of the Accord on Fire and Building Safety in Bangladesh, improving safety standards in the industry.
Foxconn Worker Conditions
The Foxconn scandal, emerging in 2010, involved reports of poor working conditions, including excessive overtime, low wages, and a spate of worker suicides at its factories in China. Foxconn, a major manufacturer for leading technology companies, faced international scrutiny over labor practices, prompting calls for corporate responsibility and improved labor standards in global supply chains.
Foxconn faced fines and increased scrutiny from clients and international labor organizations.
The controversy led to commitments from Foxconn and its clients, like Apple, to improve labor practices, though challenges remain in monitoring and ensuring compliance.
Pharmaceutical Misconduct
Purdue Pharma, the maker of OxyContin, played a central role in the opioid crisis, aggressively marketing the painkiller while downplaying its addiction risks. This contributed to widespread opioid abuse and an overdose epidemic in the U.S.
It led to leading to lawsuits, settlements, and intense criticism of the pharmaceutical industry’s practices regarding pain management and patient safety.
Purdue Pharma filed for bankruptcy as part of a settlement that included a $10 billion plan to address the opioid crisis. The Sackler family, owners of Purdue, agreed to pay $225 million in a civil settlement without admitting wrongdoing.The case has prompted widespread litigation against opioid manufacturers and calls for regulatory reforms in pharmaceutical marketing practices.
