Financial scandals occur when individuals or organizations engage in unethical or illegal financial practices, leading to significant losses for investors, employees, and the economy. These scandals often involve fraud, embezzlement, or accounting irregularities, and can result in legal consequences for those involved. High-profile cases, such as the collapse of Enron or the Bernie Madoff Ponzi scheme, highlight the devastating impact of such misconduct. The fallout from financial scandals can be extensive, affecting stock prices, public trust, and regulatory policies. Governments and regulatory bodies, like the Securities and Exchange Commission (SEC), often respond by implementing stricter regulations to prevent future occurrences and protect investors.