$-$ Security and Exchange Commission, $$$$750$ Million Distribution Begins for Bristol$-$Myers Fraud Victims,$$ June $8,2006$

$-$ Gold, Jeffrey, $$Bristol Myers Reaches $$300$ Million Settlement, Yahoo! Finance, June $16,2005$

$-$ Starkman, Dean, $$Civil charges Follow Indictments in Bristol$-$Myers Case,$$ The Washington Post, August $23,2005$

$-$ Masters, Brooke A$.,$Bristol$-$Myers Ousts its Chief at Monitor$$s Urging, The Washington Post, September $13,2006.$

Short Answer Questions

$1.$ By what percentage could Bristol Myers earnings have declined in $2002$ as a result of the fraud?

$2.$ What was the first period that the SEC believed that Bristol Myers $$stuffed the channels?$$

$3.$ Was channel stuffing the only scheme perpetrated by Bristol Myers? If the answer is $$no$,$ name one other scheme.

$4.$ What were the names of the marketing efforts that helped drive the need to channel stuff?

$5.$ How much was the fine in the deferred prosecution agreement?

$6.$ What was the total amount of fines and penalties levied against Bristol Myers?

Discussion Questions

$1.$ What makes channel stuffing illegal by comparison to a car dealership that runs $$mega$$ end$-$of$-$year sales?

$2.$ Why are revenue recognition frauds such a frequent problem for the SEC?

$3.$ What red flag symptoms might revenue recognition create and how might one best discover a revenue recognition fraud?