Stauffer Chemical Company

In one of the largest financial fraud cases in American history (at the time), the U. S. Securities and Exchange Commission (SEC) found that the Stauffer Chemical Company - a company now heavily involved in the American seed industry, agricultural chemicals, and plant biotechnology - used improper accounting methods to inflate its profit by $31.1 million in 1982, a fraudulent 25 percent increase. Stauffer agreed to issue new financial reports for 1982 and 1983, showing sharply reduced profits, and the company signed a consent degree in federal court agreeing not to violate SEC regulations in the future. SEC spokesman Chiles Larson said of the Stauffer finding, "This is one of the more significant financial fraud accounting cases the commission has brought in recent years. These numbers are pretty gross, both in terms of the size and in terms of the offense... When people start cooking the books, it's pretty serious stuff. Those numbers are something that people rely upon."

I guess “cooking the books” was a buzz phrase even 20 some years ago!


Certificate: Subordinated Debenture Bond, issued in the 1960’s

Printer: American Bank Note Company

Dimensions: 8” (h) x 12” (w)

State: DE-Delaware

Subject Matter: Chemicals and Related | Scandals and Collapses

Vignette Topic(s): Allegorical Featured | Laboratory Equipment Featured

Condition: Vertical fold lines, punch hole cancels in the signature areas and body, and has some toning from age.