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The Shuster Project

Tobacco Industry Fraud & False Claims Issues

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Click HERE To Read Our Letter Sent to Senator Kerry's Presidential Campaign

 

Petition Recipients


Submission Date

 Henry A Waxman
 Christopher J Dodd
 Joseph I Lieberman

 Mar 04, 2002

 

Petition Scope

Send Out Date

 United States

 Jun 02, 2002

 

 

Search Issues

 

Business
Taxes

 

        The Tobacco Industry's "ENRON"-like Deceptions.

To The U.S. Senate & American Stockholders of Tobacco Company Stocks, 

For decades, unknown to the American public, the tobacco companies have perpetrated various fraudulent policies and procedures that falsely and inaccurately keynoted a higher value for their stock(s) than otherwise would have occurred. 

By signing this Petition you demand that your U.S. Senators investigate these tobacco company policies and procedures for possible criminal prosecution. 

The Shuster Project shall reveal the most egregious of these frauds. 

It is known in the tobacco industry as "Advanced Ordering" or “A-O.” 

Tobacco company sales rep’s are pressured into going into all of their retail accounts and making out an "A-O" form. 

An "A-O" "insinuates" the permission of that retailer to "order" from their supplier an "artificial" volume of cartons of cigarettes inclusive to an "actual" volume of cartons for purchase. 

Although the procedure of “A-O”-ing can be legitimate to order in additional stock for an upcoming promotion or addressing out of stock conditions found, it was a constant policy of the tobacco companies for their rep’s to add/inflate the “A-O” form knowing full well that the store-owner would NOT “approve” it, yet they were “assured” that ONLY what they ACTUALLY wanted or needed would be shipped, but to sign it and it would be “adjusted” later.

So, although the “originals” of the multi-part form WERE adjusted and a much SMALLER volume of cartons were actually shipped to the stores, a copy was forwarded to the tobacco companies along with the tobacco company rep’s weekly reports and the originally inflated and artificial volume was, within the tobacco companies, affixed to figures that represented “SALES” and ‘MOVEMENT OF STOCK FROM THE WAREHOUSE,” thus artificially inflating the popularity and sales of that particular tobacco company’s brands and, thus, artificially inflating it’s stock(s) value.

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Last Update: 01/24/2004 05:23 PM