Whistleblower Anthony Menendez talks Halliburton, takes part in Baruch Ethics Week
By Vickie Savvides
New York (April 4, 2016)
The Robert Zicklin Center for Corporate Integrity hosted a Q&A panel with “whistleblower” Anthony Menendez, a former employee of multinational corporation Halliburton and Jennifer M. Pacella, assistant professor of law at Baruch College. The event was part of Ethics Week, a time in which Baruch features in-class discussion of ethics-related course material, conducts student-oriented ethics workshops and invites speakers to host events. Before the Q&A began, Menendez recounted his story leading up to Halliburton and the pivotal moments in which both his career and life would drastically change.
Halliburton, which is one of the world’s largest oil services, companies, was publishing its revenue before generating sales and charging its customers particularly high prices for the equipment/machinery it was responsible for. None of the company’s operations were disclosed to the SEC, shareholders or investors. In fact, the same year in which Menendez joined Halliburton, the company was moving forth from a two-year investigation with the SEC.
After acknowledging the disfiguration in numbers that he knew was overlooked, Menendez filed a confidential complaint to the SEC, citing Halliburton’s practices were “distort[ing] key financial rations and keep[ing] assets and liabilities off of the company’s books.” Menendez also included how KPMG, Halliburton’s external auditor, also worked in violation of the GAAP and GAAS by not disclosing any of Halliburton’s infractions and seemingly “downplay[ed] Halliburton’s inexcusable accounting and control failures.”