Lingling Wu Taikang Life Insurance Company Limited, one of the largest life insurance companies in China, was founded in August 1996. It offers services from health insurance to assets management. The chairman, Chen Dong sheng, decided to set its headquarter in Beijing, and created 35 branches nation wide. Now, Taikang Life’s total assets are in the billions. In December 2012, the Chinese Ministry of Finance released the results of their inspections on 28 business firms, and Taikang insurance was one of the companies found to be severely violating the government regulations. Their investment balance had serious accounting problems. Approximately 102 million dollars were falsely recorded in the income and expenditure account. Another 28 million dollar worth of policyholders’ deposits and investment funds were unrecorded. Nevertheless, the buying back sale of financial assets incorrectly recorded as financial assets available for sale. The company distributed the special dividend insurance reserves without any prior notifications or approvals, and occupied the participating insurance assets illegally. The Ministry of Finance said that they have penalized the company for the above violations by law, and also supervised the company to help adjusting its system and strengthening its management. Fraud of any kinds is definitely not fair to any parties. Businesses need to follow regulations in order to compete fairly. Investors might lose their hard earned money because of frauds. Laws are the bottom line of the society and everyone should respect it. Although Taikang has corrected those problems and improved its management system, I think the negative influence still prevails in the society. Other Lingling Wu companies might be tempted to follow Taikang’s previous shortcut to success. This incident also harms consumers’ confidence in purchasing insurance plans. How Taikang Life was penalized sets a good precedence for other companies. It shows that all illegal activities are under the watch of law enforcers. Earning profit is every company’s goal, but this does not outweigh the importance of being ethical. If I were the company chairman, I would not have committed the crime. I think the government was being too lenient on this case. They should have punished Taikang more severely due to the number of regulations they violated. Lingling Wu Work Cited 1.“27 financial companies financial irregularities Taikang Life less about their income and expenses 600 000 000.” Best-news, 28 Dec. 2012. Web. 16 Sept. 2013. http://www.best-news.us/news-3564743-27-financial-companies-financial-irregularities-Taikang-Life-less-about-their-income-and-expenses-600-000-000.html 2."Globaltimes.cn | Global Times | NEWS." Globaltimes.cn | Global Times | NEWS. N.p., n.d. Web. 16 Sept. 2013. http://www.globaltimes.cn/DesktopModules/DnnForge%20-%20NewsArticles/Print.aspx?tabid=99&tabmoduleid=94&articleId=804563&moduleId=405&PortalID=0 本文来源：https://www.wddqw.com/doc/16757cafbd64783e08122b58.html