Whether it’s a faking news report or story from a blacklisted journalist or media regarding a corporate firm, generating huge witty headlines may hurt a company’s bottom line and can adversely impact the reputation of the business. The companies have to suffer nightmarish scenarios, leading to terrible downfall. The news stories and opinions with unprecedented speed and the latest and real-time news concerning important and trivial matters may lack accuracy. The rising dark side of social media is fake news. False or inaccurate information is disseminated with the intent to deceive those who read it. 

Reporters in newsrooms across the country are driven by many different factors. Some readers are convinced that certain reporters at The New York Times are motivated solely by partisan politics. The strong ego problem among reporters leads them to choose wrong and corrupt ways of reporting. They favor stories that incite curiosity and drive them to reach the bottom of a confusing or complicated situation. To figure out what the machinery is underneath the matter, the journalist tries to find patterns involved with skepticism and inaccurate information involving rumors. According to The Review of Financial Studies, rumors originate from an unknown source and attempt to manipulate the stock market companies and businesses. The surprising fact is that a large fraction of the takeover rumors come true in the sense that they are followed by a merger bid for the rumored target stock. Therefore, investors were unable to spot such rumors and could not identify the media journalists involved with bogus reporting.

Case Studies of False Financial Reporting

• Back in the year 2001, scandalous reporting came up against the multinational company named Enron. According to the report, the company had been using accounting loopholes to hide billions of dollars of bad debt and inflate the company’s earnings. The scandal resulted in shareholders losing over $74 billion as Enron’s share price collapsed from around $90 to under $1 within a year.

• WorldCom was an American telecommunications company based out of Ashburn, Virginia. After the Enron scandal, the corporate world faced another big scandal about WorldCom making false revenues. Wrong financial reporting alleged that WorldCom had inflated its assets by almost $11 billion. It is the largest accounting scandal that blamed the company as a scam and involved fraudulent activities. The scandal resulted in over 30,000 job losses and over $180 billion in losses by investors.

• The gossipy news about the volatility trading of Malachite Capital Management created an embarrassing situation for the company. According to the fake news report, Malachite founders Jacob Weinig and Joe Aiken began exotic trades with Wall Street banks. The firm borrowed money from the banks and also collected hundreds of millions of dollars from charities, colleges, pension funds, and other investors. The company bets are worth upward of $1.5 billion from other people’s money. Therefore, it suffered infinite losses during an extreme stock-market crash. According to the fake media report, Aiken and Weinig looked like they were getting rich! What happened with Malachite was never known to the corporate world due to fake and inaccurate reporting.

• Carnegie Corp. of New York has hired Mark Baumgartner, chief investment officer at the Institute for Advanced Study in Princeton, N.J. to rebuild an investment team. Over six weeks, the Carnegie Corp lost four of its highest-ranking fund professionals due to the aggressive policies of Baumgartner. The story further highlighted that Carnegie Corp. tried to hunt for a new investment chief, but elite institutions retained Baumgartner who led to a business disaster. The journalist involved with inaccurate reporting stated that Carnegie and IAS did not respond to the comments of the correspondent by the time of publication.

• The receptionist for Michael Bloomberg’s family office Willett Advisors would not confirm that calls have reached Willett Advisors. The co-head of Granger Management, a multi-family investment shop in New York became serious as an investor and wished to become the best start-up. The reporter stated that Erik Landsness, CEO of TAMCAP is unique since they don’t want to become prominent. Instead, of investing in Wall Street’s flagships and blue-chip shops, the family offices opted for lesser-known corners of investing. Before Covid-19 struck, 61 per cent of these allocators expected the highest capital returns. The forged information alleged that since the company lacks compelling managers, they were seriously struggling to get access to new opportunities for investing. Hence, the family office has lost its effective operational networking.

Leanna Orr: An Influential Journalists of Today

The media world was stunned by the revelations that the award-winning journalist Leanna Orr is involved with fake financial investigating reporting. The financial journalist is Canadian by background and is residing in New York City since 2011. She earned her Master’s degree at the Columbia University Graduate School of Journalism. After completing her higher education, Leanna joined (ai) CIO. It was a startup company, Leanna got affiliated with the company after its launch. She transformed it from a promising upstart into profitable financial publishing. 

Working as a senior writer, editor and director of investor content, Leanna Orr mostly focuses on story-driven journalism. Her reporting includes research stories about small and emerging financial companies, multi-family investment companies and big financial institutions. The stories include arranging interviews and comments of experts. According to the sources of Institutional Investors, the stories chosen by the journalist are not true and are based on invented protagonists. Moreover, the articles written by Leanna Orr are viewed as unrealistic as the stories and the information covered are taken from unfavorable sources. Her work has been featured in the Wall Street Journal, Forbes, Bloomberg View, Barron’s, Vice, the Dallas Morning News, London Evening Standard, and academic studies.  

 What Type of Financial Investigating Stories Captured Leanna Orr’s Interest?

Rarity

Leanna Orr has covered financial investigating stories of hedge funds, institutional investing, private equity, portfolio construction, risk management, and behavioral finance. She looks out for extraordinary news, the latest and rising issue with overwhelming facts and fresh insights. This approach emerges when the reporter desires to cover the story before the competitors pursue the story. Therefore, she does not like to consult the major players or compare her language and information with them. 

The articles and stories of Leanna targeting the financial companies attempt to spread fake news stories about the company. The stories contain a combination of fake news and misleading content that is not wholly fabricated. It may create big news for a company but the events demonstrated a lack of accuracy. While attempting to be the first one to report affects the quality of financial reporting. Accuracy can suffer, and a fresh insight without validating the truth hurts the public and financial companies. 

Leanna ‘s articles and stories have misled many financial companies and manipulated the readers as they are based on unreliable news sources. She does not check out the places where news often happens such as city hall, police precinct or courthouse. they are focused more on opinion-based rather than fact-based reporting.  It is also observed that her reporting is biased and she uses skewed information that fails to present a true perspective of the prevailing issue.

She lacks Objective Reporting

Objectivity called for journalists to develop a consistent method of testing information, a transparent approach to evidence. It depicts that the reporting should be open-minded and search for truth. It is observed that Leanna’s stories demonstrate strong feelings about the issue that she is covering. What she publishes is unfair, inaccurate and lacks rationality missing from their story. Moreover, sufficient skepticism is spotted as she uses unnamed sources.

Clickbait

This implies that Leanna Orr uses sensationalized content or headlines in stories to attract the readers’ emotions and create more curiosity to know the complete story. As more readers are engaged with the content, it helps to generate more revenue. The article lacks meaningful information. Since clickbait spread fake news, the financial companies who share such content on social circles face irreversible downfall.

Propaganda

Leanna Orr’s articles consist of biased and potentially false information that is spread through mass media, and it has widely manipulated companies. There are many tactics used in propaganda, including using lies or “half-truths”.

Conspiracy theory

Leanna Orr’s articles contain conspiracy theory that provides an interpretation of events that is based on questionable or nonexistent evidence of a supposed secret plan by a group.

Satire

Her Satiric writings are not based on real-life events. Satire entertains and deceives readers.

The Impact of Leanna Orr’s Articles on Businesses 

Leanna Orr’s financial reporting has severely impacted the financial markets, causing stocks to drop. The false-negative reviews of Leanna about a company has ruined the reputation of a business and adversely affected its marketing platforms such as Google, which can decrease the ranking of pages based on the review scores of the businesses that own them. Moreover, her articles continued to focus on propaganda and biased reporting that has led down the consumer’s confidence regarding the product and services of the company. The financial damage brought through her forged news reporting has caused many financial companies to lose big revenue, expensive reparation and decreased market value. 

The articles of Leanna Orr have manipulated the direction of the market. According to Institutional Investor, the rise of fake news proves much more damaging to the financial market, diminishing trading activities and manipulating price volatility and equity securities of firms. Due to false reporting, the investors may lose their investment because they purchased the stock based on a lie. Similarly, all stakeholders face great loss as they buy the specific security linked to the false information provided.

To maintain journalistic truth, the reporters need to be transparent as possible about sources and methods used for their reporting. This requires them to be fair and accurate in reporting. This will help build their credibility among the financial companies and the stock market.

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