Lessons from Litigation Phar-Mor Deep Discount Retail Drug Fraud Essay Example

Lessons from Litigation Phar-Mor Deep Discount Retail Drug Fraud Paper In 1981, Giant Eagle acquired the Monus family grocery store run by Michael Mickey Monus. David Shapira, CEO of Giant Eagle, became familiar with the Monus family and was somewhat intrigued with Mickeys talent as a hard bargainer and master retailer. In late 1982, Mickey and David decided to open up deep discount retail drug store called Phar-Mor after visiting the store of a successful deep discounter located in Cleveland. Phar-Mors strategy was to undercut the competitors prices on a variety of goods by power buying inventory in bulk at deep discounts and selling large volumes at a low gross profit margin (similar to Wal-Marts strategy). The first store was a huge success and led to the opening of several other Phar-Mors in the coming years. Beginning in the latter part of the 1980s, the deep discount retail industry more than doubled in size and became extremely competitive. To keep up with the industry, Phar-Mor opened several more stores, eventually opening its 300th store in 1990. Unfortunately, the increase in competition reduced Phar-Mors profit margins and caused it to sustain economic losses throughout the last six years of its life. To avoid reporting net losses for accounting purposes, Phar-Mor manipulated inventory and earnings, hiding the evidence in various fraud accounts and reporting net income on its books. Eventually a check written for Mickey Monus World Basketball League crossed the desk of a large Phar-Mor investor who brought the unauthorized check to the attention of CEO David Shapira.1 We will write a custom essay sample on Lessons from Litigation Phar-Mor Deep Discount Retail Drug Fraud specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Lessons from Litigation Phar-Mor Deep Discount Retail Drug Fraud specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Lessons from Litigation Phar-Mor Deep Discount Retail Drug Fraud specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Management Fraud and Litigation Giant Eagle held a majority stake in Phar-Mor and therefore controlled a majority of the seats on Phar-Mors board of directors.2 Mickeys father, Nathan Monus, was retained and paid a substantial sum as a consultant to the board of directors. In substance, COO Mickey Monus, ran and controlled the day-to-day business of the company, periodically submitting results from Phar-Mors operations to CEO and board member David Shapira. The fraud team, under Mickey Monus direction, included CFO Patrick Finn, head accountant John Anderson, Jeffrey Walley as Vice President of Finance and Stan Cherelstein as Controller (both former Coopers and Lybrand auditors). CFO Patrick Finn plead guilty to violating federal and state laws and agreed to cooperate with authorities in exchange for a commuted sentence. Monus was ultimately convicted of over one hundred counts of violating federal law and severed a commuted sentence of ten years in prison. Phar-Mors trustee in bankruptcy sued Coopers on behalf of Phar-Mor creditors and investors for over $1 billion on a theory of fraud where recklessness is equivalent to intent. Eventually the plaintiffs settled with Coopers for an undisclosed fraction of the amount demanded in the suit.4 Incorporating the Fraud Diamond Fraud Diamond If the Coopers had assessed the risk of fraud using the Fraud Diamond model, they would have uncovered evidence of opportunity, pressure, rationalization and capability, within Phar Mors management environment. a. Opportunity Monus discretion to run the company with little oversight from Phar Mors board members or CEO Shapira gave him the opportunity to divert company funds for his personal use. Monus could authorize unusual journal entries, destroy evidence without auditor detection. Several of Phar-Mors vendors were known to be owned either wholly by Monus, Monus-managed companies, or other related parties. In several cases, Monus would cause Phar Mor to overpay suppliers owned by Monus. After the fraud was uncovered, it was discovered that Monus had diverted over $10 million in Phar Mor assets through related parties to finance operating expenses of the World Basketball League. Phar-Mor didnt have an internal audit until function until the last years of the fraud. It was the inquiries of the newly hired internal auditor that ultimately led to the discovery of the Phar-Mor fraud. b. Pressure When the gross margin of Phar-Mor began to decline rapidly, Mickey faced a lot of pressure from various parties such as banks, suppliers and vendors. At the same time, Mickeys World Basketball League was broke. It was losing games as well as losing money. People lost confidence in the team, except Mickey. He continuously diverted money from Phar-Mor to his team, which just make the things worse. In order to maintain the appearance of a healthy basketball league, health company, and maintain performance goals for both. Mickey had to find a way to stay afloat. c. Rationalization: Mickey is very confident. He always believed that things would improve; future profits will reverse temporary adventure. Every time Monus would divert company funds to pay the operating expenses of his basketball league he maintained that they were advances backed by his word to some day pay them all back. He admitted that he did accounting fraud intentionally to avoid detection of audit techniques and procedures. d. Capability: Mickey had a strong personality. Although he is not the CEO, Phar-Mor was under the control of Mickey himself. Monus management team either feared physical harm or disappointment. It is also possible that the fraud team honestly believed that Monus could turn the company around if they could only hide the fraud a little longer. More likely, Mickey had an uncanny ability to keep straight face. Even though the evidence at trial showed Monus was guilty of criminal fraud beyond a reasonable doubt, he continued plead his case that he acted in good faith in directing the fraud and did nothing criminal. Audit Failures Insufficient and Unreliable Evidence Coopers relied heavily on the Phar-Mor accounting departments compilation of evidence of account balances and details instead of independently verifying management assertions in high risk areas. Coopers was aware that Phar-Mors accountants never provided the auditors with requested documents or data without first carefully reviewing them.5 Evidence at trial revealed that Coopers would have uncovered fraudulent account balances and journal entries had they reviewed sub-ledger accounts and supporting documents. Coopers would have likely uncovered the unauthorized checks written for Mickey Monus basketball league expenses by focusing on controls over the cash disbursement process at Phar-Mor. Substantive tests of details with respect to the authorization, valuation, and existence assertions would have revealed fraudulently overstated inventory. Scanning for unusual journal entries or investigating zero-balance accounts with management may have uncovered the existence of fraud. The Perfect Storm: Management Fraud and Inexperienced Auditors Phar-Mors fraud team was well-versed in the art of auditing accounting firms; two of the five members of the fraud team were former Coopers and Lybrand auditors. Additionally, Coopers audit team was composed largely of junior level staff inexperienced in detecting fraud, let alone management fraud. The auditors based their assessment of Phar-Mors books primarily on compilations of data and documents that were carefully screened and manipulated by Phar-Mor management to conceal any evidence of fraud. The audit team alerted Phar-Mor management well in advance of any planned visits to individual stores for a physical inventory inspection. During a given year, the auditors would verify the existence and valuation assertions at four individual stores by haphazardly sampling 25 30. By 1990, Phar-Mors fraudulent subledger accounts concealed almost $40 million. In order to hide these losses from year-end auditors, the fraud team added $200,000 to the inventory account of each store that the y knew would not be audited.6 The auditors tested the reasonableness of Phar-Mors cost of inventory ending based on managements gross profit margin schedule and a third partys physical count and valuation of inventory items. The auditors concluded that Phar-Mors ending inventory was fairly stated because their gross profit margin schedules were reasonable. Oddly enough, the auditors then concluded that Phar-Mors gross profit schedules were reasonable because the cost of inventory was fairly stated (which was originally derived from the gross profit schedules). The auditors claimed to have performed additional procedures on the gross profit schedules by tracing inventory costs to purchase orders. Any differences the auditors noticed between their expected gross profit margin and the recomputed gross profit margin were excused as sampling error.7 Physical Inventory Inventory at Phar-Mor increased rapidly from $11 million in 1989 to $36 million in 1990 and $153 million in 1991. Coopers identified inventory valuation as a high-risk area in its working papers. However, Coopers told Phar-Mor beforehand which locations it would be testing for inventory. Only 4 of 310 stores were tested and only 25-30 items were selected at those stores to perform price testing. Although, Coopers claimed they did additional procedures on inventory schedules to compensate for weaknesses in the price test, these additional tests were based on locations Phar-Mor had already manipulated inventory prices. The holes in Coopers inventory audit left Phar-Mor management free to overstate inventory at all other unaudited locations. Phar-Mors fraud team admitted to increasing the price of Coke, which normally sold for $0.89, to more than $2 a bottle.8 Mechanics of the Fraud Conditions for the Fraud A primary driver of the fraud on Phar Mor stakeholders was the increasingly competitive landscape in which Phar-Mor operated. The deep-discount retail market had virtually cornered its marketplace within a relatively short period. Between 1985 and 1990, the number of deep discount stores increased from 313 to over 700 stores, with at least 300 of them being Phar-Mor. The chain itself had over that time become Wal-Marts primary competitor, vowing to undersell its ambitious competitor by low margin selling and power buying business strategies. However, as competition in this market continued to increase, Phar-Mors gross margins (a key factor for its retail performance) eroded rather significantly. In fact, by 1990, its real gross margin had been reduced to less than 15.5%, a fact that demonstrates that Phar-Mor could no longer maintain its existing price structure. Obstinate and ambitious as he was, Monus pushed Phar Mors expansion ahead refusing to believe his low margin, power buying model could not sustain the companies blistering pace8. Rather than identifying practical ways to remain competitive, Monus resorted to fraud to maintain the healthy appearance of his company. Monus was able to temporarily offset the companies yearly losses by booking as sales revenue multi-million dollar exclusivity payments he had negotiated with vendors. As gross margins continued to go south, so did Phar Mors ability to pay off its vendors. Monus nearly avoided bankruptcy amid pressure from his suppliers by a last minute $200 million capital infusion from private investor Corporate Partners, LLC. Monus believed that by temporarily understating liabilities on Phar Mors books he could buy enough time to reverse the effects of the fraud when Phar Mors gross margins improved. Company Appearances Monus had the innate ability to maintain the appearance of control over his business and over his business associates, including those employed within the Phar-Mor accounting and financial reporting functions. He was able to accomplish this in a number of ways, but most notably through his continual appearance in charitable, social, and athletic spheres. His World Basketball League was his primary outlet to establish the greatness and the presence of Phar-Mor as a large company. The league was a collection of 11 teams represented small towns across the country (like Youngstown). Monus personally oversaw the development of the league, and used Phar-Mor funding to finance its success. In the midst of the companys struggle to secure private equity financing, Phar-Mor hosted its own golf tournament, where Monus personally distributed thousands of dollars in award checks to participants. The extravagance of Monus social display closely mirrored his modus operandi at Phar-Mor, which was to maintain the appearance of a healthy company at any cost. By the time the fraud at Phar-Mor had been exposed, it appeared that Monus primary responsibility was managing the fraud through his power over the accounting and financial reporting staff.

Aswan High Dam Controls the Nile River

Aswan High Dam Controls the Nile River Just north of the border between Egypt and Sudan lies the Aswan High Dam, a huge rockfill dam which captures the worlds longest river, the Nile River, in the worlds third-largest reservoir, Lake Nasser. The dam, known as Saad el Aali in Arabic, was completed in 1970 after ten years of work. Egypt has always depended on the water of the Nile River. The two main tributaries of the Nile River are the White Nile and the Blue Nile. The sources of the White Nile are the Sobat River and Bahr al-Jabal (the Mountain Nile), and the Blue Nile begins in the Ethiopian Highlands. The two tributaries converge in Khartoum, the capital of Sudan, where they form the Nile River. The Nile River has a total length of 4,160 miles (6,695 kilometers) from source to sea. Nile Flooding Before the building of a dam at Aswan, Egypt experienced annual floods from the Nile River that deposited four million tons of nutrient-rich sediment which enabled agricultural production. This process began millions of years before Egyptian civilization began in the Nile River valley and continued until the first dam at Aswan was built in 1889. This dam was insufficient to hold back the water of the Nile and was subsequently raised in 1912 and 1933. In 1946, the true danger was revealed when the water in the reservoir peaked near the top of the dam. In 1952, the interim Revolutionary Council government of Egypt decided to build a High Dam at Aswan, about four miles upstream of the old dam. In 1954, Egypt requested loans from the World Bank to help pay for the cost of the dam (which eventually added up to one billion dollars). Initially, the United States agreed to loan Egypt money but then withdrew their offer for unknown reasons. Some speculate that it may have been due to Egyptian and Israeli conflict. The United Kingdom, France, and Israel had invaded Egypt in 1956, soon after Egypt nationalized the Suez Canal to help pay for the dam. The Soviet Union offered to help and Egypt accepted. The Soviet Unions support was not unconditional, however. Along with the money, they also sent military advisers and other workers to help enhance Egyptian-Soviet ties and relations. Building of the Aswan Dam In order to build the Aswan Dam, both people and artifacts had to be moved. Over 90,000 Nubians had to be relocated. Those who had been living in Egypt were moved about 28 miles (45 km) away, but the Sudanese Nubians were relocated 370 miles (600 km) from their homes. The government was also forced to develop one of the largest Abu Simel temples and dig for artifacts before the future lake would drown the land of the Nubians. After years of construction (the material in the dam is the equivalent to 17 of the great pyramids at Giza), the resulting reservoir was named after the former president of Egypt, Gamal Abdel Nasser, who died in 1970. The lake holds 137 million acre-feet of water (169 billion cubic meters). About 17 percent of the lake is in Sudan and the two countries have an agreement for distribution of the water. Aswan Dam Benefits and Problems The Aswan Dam benefits Egypt by controlling the annual floods on the Nile River and prevents the damage which used to occur along the floodplain. The Aswan High Dam provides about half of Egypts power supply and has improved navigation along the river by keeping the water flow consistent. There are several problems associated with the dam as well. Seepage and evaporation account for a loss of about 12-14% of the annual input into the reservoir. The sediments of the Nile River, as with all river and dam systems, has been filling the reservoir and thus decreasing its storage capacity. This has also resulted in problems downstream. Farmers have been forced to use about a million tons of artificial fertilizer as a substitute for the nutrients which no longer fill the floodplain. Further downstream, the Nile delta is having problems due to the lack of sediment as well since there is no additional agglomeration of sediment to keep erosion of the delta at bay, so it slowly shrinks. Even the shrimp catch in the Mediterranean Sea has decreased due to the change in water flow. Poor drainage of the newly irrigated lands has led to saturation and increased salinity. Over one-half of Egypts farmland in now rated medium to poor soils. The parasitic disease schistosomiasis has been associated with the stagnant water of the fields and the reservoir. Some studies indicate that the number of individuals affected has increased since the opening of the Aswan Dam. The Nile River and now the Aswan High Dam are Egypts lifeline. About 95% of Egypts population live within twelve miles from the river. Were it not for the river and its sediment, the grand civilization of ancient Egypt probably would have never existed.

A Famous South Indian Restaurant In The Uk Marketing Essay

A Famous South Indian Restaurant In The Uk Marketing Essay Mirch Masala, a famous south Indian restaurant in the UK started in the year 1995 in Norbury, establishing branches in Tooting in the year 2001, Southall branch in April 2004, Croydon and East London branch in 2005 and Ilford branch being the latest in February 2009, under the watchful gaze of its owner and founder, Mr. Riaz Hassan Sabir, 49. It bears the name of most basic ingredient of Indian cuisine. The specialties are karahi and barbecue dishes. All food is prepared fresh on the premises, which may explain the massive popularity, as it tastes so fantastic. Mirch Masala has a string of awards to its credit. The Norbury branch won a highly commended in the Croydon Guardian’s Restaurant of the Year awards and the Tooting branch won its region in the Tiffin Cup and has gone on to the national finals. Mirch Masala has been the winner of a number of UK restaurant awards, the latest being TOP 100 RESTAURANTS OF UK voted by EVENING STANDARD (AUG 2003). Business portfolio The ent ire business is build upon a horizontal integration, dealing only with restaurant business. Expanding its wings in the South London with a total of 6 branches, all branches approved by Halal Monitoring committee, UK. Having the same menu and same style of preparing the food in all branches is unique in Mirch Masala. Mission Statement â€Å"To provide customers the authentic taste of Indian cuisine and be the best in the Industry on a consistent level† Overview of Business Mirch masala started with the first branch in Norbury and succeeded over a period of time, developing further with 5 more branches to its profile. Having over six branches, Mr. Riaz Hassan Sabir enjoys reaping a good profit and delivers excellent services with good quality of food equally over all branches even though the branches are decentralized. Employees come from the same Asian background that has enough idea about Indian cuisine. The business comprises of over 60 employees in all the branches with sea ting capacity of 170 in Croydon branch, 320 in Ilford, 130 in Tooting, 160 in Norbury, 140 in Southall and 120 in East Croydon. Branches Norbury Restaurant 1416 London Road, Norbury London SW16 4BZ Tel: 0208 679 1828, 0200 765 1070 Email: norbury@mirchmasalarestaurant.co.uk Tooting Restaurant 213 Upper Tooting Road London SW17 7TG Tel: 0208 672 7500, 0208 767 8638 Email: tooting@mirchmasalarestaurant.co.uk Southall Restaurant 171-173 The Broadway Southall, Middlesex UB1 1LX Tel: 0208 867 9222 Email: southall@mirchmasalarestaurant.co.uk East London Restaurant 111-113 Commercial Road London E1 1RD Tel: 0207 377 0155 Email: eastlondon@mirchmasalarestaurant.co.uk Croydon Restaurant 40-42 Southend Road Croydon CR0 1DP Tel: 0208 680 3322, 0208-6809898 Email: croydon@mirchmasalarestaurant.co.uk Ilford Restaurant 7-13 Goodmayes Road, Goodmayes Ilford, IG3 9UH Email: ilford@mirchmasalarestaurant.co.uk SWOT Analysis SWOT analysis is a strategic planning tool used to identify internal fa ctors such as strengths, weakness of a business and external factors such as opportunities and threats which should be addressed on the right time in order to be successful over a period of time. SWOT analysis of Mirch Masala Restaurant is identified and specified as follows. Strengths The exterior and interior of the restaurant is clean and tidy The quality and service of the restaurant has created a good brand image over a period of time

Immune Response Against HIV Research Paper Example | Topics and Well Written Essays - 500 words

Immune Response Against HIV - Research Paper Example The immune system is a defense mechanism of a body. This research paper desribes how the immune system works against the invasion and threats of viruses, bacteria and other microscopic organisms recognized as non-self. A good example of a virus that the immune system fights against and is a main focus of this research paper, is HIV (human immunodeficiency virus), which is responsible for causation of AIDS. This research paper gives detailed discussion on the topic and describes a few stages of the fighting against viruses process. During the 1st stage, the phagocytes try to engulf and destroy the non-organic enemies that they detect in the body. Stage II of the fight against viruses takes place after the CD4 have received information concerning foreign invaders in the body. During this stage, the CD4 divides and send signals that activate other components required in the defense system. Terminology of CD4, phagocytes and non-organic are also explained in this research paper. In concl usion, the immune system protects the body from foreigners such as viruses and bacteria. HIV virus is known of invading a human cell and making it a factory for viruses. Its destruction of the HIV virus in the body involves different stages. Phagocytes are involved in destruction of non-organic materials in the body. The macrophages then aid in presenting the information on the virus on their surfaces. The CD-4 then uses the information presented on the surface of the macrophages to activate many soldiers such as killer T-cells.

Termination of Pregnancy on Women Essay Example | Topics and Well Written Essays - 3000 words

Termination of Pregnancy on Women - Essay Example This paper will analyse the impact such TOP's have on women from the perspective of different genres, facilitated by my work in gynae nursing and looking after women undergoing such medical conditions along with other gynae related ones. To enhance my understanding of this along with the needs of these women, I feel an urge to explore this issue in more detail with relevant research producing this article. There are eight different types of miscarriages with the following five self explanatory: threatened miscarriage, incomplete miscarriage, complete miscarriage, missed miscarriage and recurrent miscarriage. Blighted Ovum occurs when the fertilized egg implants itself into the uterus but fetal development never begins. Ecotopic pregnancy occurs when the fertilized egg implants itself in places other than the uterus which can cause severe maternal complications if not treated in time. The last, Molar Pregnancy, is abnormal growth of tissue within the uterus during the fertilization process. They are all generally referred to as miscarriage by most though, applicable when the fetus is lost within the first 20 weeks of gestation. Vaginal bleeding is meant to last for a week or so, on the same pattern as a normal menstruation. Light bleeding is also an after effect, known as spotting due to the clots and/or bits of tissue. As for the normal monthly menstruation cycle, it should resume after three to six weeks though. Symptoms of pain are usually centered around the lower abdominal area and may last up to two days, often resembling that pain during a womans' period. Breast discomfort may also be an after-effect, lasting for approximately a week in the form of engorgement or leaking milk. Some of the pregnancy hormones are also said to remain in the blood for about a month or two after the miscarriage. Religious and Cultural Most religions and cultures place a high value on sexual purity, privacy and modesty and the woman plays a key role due to her 'child bearer' status. In India as well as Pakistan, a womans' procreative role is a salient disappointment when failed, often leading to emotional imbalances for the weaker sex. As for small agrarian societies, the disappointment may be more pronounced due to ignorance and an anthropologically sounder footage for extremism. To Wetzel (1982) in the article 'Miscarriage: A Special Type of Family Crisis' (1987, p. 305), "Miscarriage is a special type of dismemberment; the unborn fetus occupies a limited, semi-visible role. After the spontaneous abortion, there is usually no funeral or death ritual, but loss is felt". The vagueness of the term 'life' has led to cultural uncertainty and a lack of culturally defined rituals for the miscarriage process. In fact, hospital procedures regarding the dead fetus disallow the mother to see it and furthermore, most of them end up as remains in hospital sewage. Thus, the unavailability of such ritualistic transitions

The Intricacies of Cubanness :: Personal Narrative Writing

The Intricacies of Cubanness â€Å"Hey bro, en Hialeah me quedo,† I said to my friends Eddie Safille, Alex â€Å"G† Gonzalez and Orlie Castelblanco as we finished up our Cuban coffee while playing a game of dominos. Eddie, in an enthusiastic voice, answers, â€Å"You better believe I’m staying in Hialeah. This place is our home.† We all love Hialeah, as city in Miami-Dade County located a few miles from Miami city limits and is predominantly Cuban. Hialeah is one of the only cities in this country where we don’t feel like a minority. We cling to our Cuban culture like a python clings to its prey while it squeezes the life form its lungs with its muscular body. I feel a strong bond with my Cuban heritage, every time I play my bongos, every time the Salsa beat moves my feet across the floor like a hurricane taking a town by storm, or every time I drink some cafà © while playing dominos in the park or behind La Carreta restaurant. One of my favorite memories is of my friends and I playing a game of dominos at Bayfront Park downtown with Latin music in the background, feeling the ocean breeze brush against our faces, and seeing all the skyscrapers tower over us in a seemingly endless bundle of beauty and majesty. The city, with its sun-splashed avenues has treated the Cuban people with love and respect and has contributed to my pride in where I’m from. I like to think of my cultural heritage as a chocolate chip cookie. The dough of the cookie is an Americanized version of both Cuban and Lebanese cultures making up the majority of the cookie, while the chips are a mix of many cultures that have influenced me in smaller ways, such as my father’s Irish roots. The reason the Cuban and Lebanese cultures because the most predominate is mostly as a result of how I grew up. All my life I have lived with my parents, and my mother’s parents. Although both my Cuban and Lebanese influences have greatly impacted my life, my Cuban-American culture is without doubt the most influential of all. The first language I spoke was Spanish. Most of my friends are also of Cuban decent, and the city that I grew up in, Miami, is a strong hold of Cuban power in the United States.

Mixed-sex education Essay

Coeducation, also known as Mixed-sex education, is the integrated education of male and female persons in the same institution under same roof. Most of the older institutions of higher education were reserved for the male students but now changed their policies to become coeducational. The first co educational institute of higher education was Oberlin College in United States, which was established in 1833. In 1844, Hillsdale College became the second college to admit mixed-sex classes to four-year degree programs. The University of Iowa became the first coeducational public or state university in the United States in 1855. We have co education in many of our universities, a few colleges and some English type schools. It is mostly not available in most of our degree colleges up to intermediate level. Co education gives useful training to boys and girls to work together. While studying side by side in different classes, they learn to co operate for common aims and purposes. After completing their education, they can easily join different professions together. They can work together for common national aims and scientific research centres. Co education is good as it develops self confidence. Boys and girls studying together can discuss their subjects and can help each other in understanding them well. Co education can make boys and girls competitive with each other in studies. Both can try to learn more and do better in discussions and examinations. Co education can save some institutions and can save money and in such a developing country like Pakistan. At present, Pakistani govt. is not in the position to afford electricity for separate institutions for girls. Yet, co education has some disadvantages. First, it is totally against our religion. The system of co-education is not good in the Islamic States of the world. This system has been produced by the non-Muslim states. The concept of Hijab is not there, but in our religion Islam, Hijab (parda) is clearly ordered as presented in the Holy Quran in Surah Nisa. Meeting, talks, relations and other non-islamic tasks between the males and females (Muslim na-mahram) is prohibited in Islam. † A famous Hadith, † When a na- mahram man and woman are standing alone, the third one is evil (Ebleese) among them†. Finally, I will conclude that coeducation has some advantages as well as disadvantages. It is necessary to make a proper use of co education in our institutions of higher learning. It is possible to get the benefits of co education and avoid most of the disadvantages.