Five years were spent in investigating the stock market aspect of the accounting fraud comitted in the year 2009. It was biggest accounting fraud in the country which gained recognition to the forensic accounting as the profession. Satyam fraud which was exposed in the year 2009 was investigated by SEBI and the 65 pages report was made public.
Full copy of this report is available here. The comprehensive details pieced together in the report of SEBI confirm some of what is already known but debunks others.
While the report corroborates that Ramalinga Raju had a team working for him to produce fake orders, invoices, receivables, monthly bank statements and fixed deposit receipts to manipulate the financials, the cash perceived to have been swindled by the promoters is not Rs 5,600 crore.
According to SEBI, Ramalinga Raju, chairman, and four others including Rama Raju, managing director, Vadlamani Srinivas, chief financial officer, G Ramakrishna, vice president and V S Prabhakar Gupta, head of internal audit, were in possession of ‘unpublished price sensitive information’ and profited from sale of shares of Satyam Computer in the open market that were in violation of the SEBI Act of 2003.