Betty Landrone's Fraud Case

The case describes that, "...the accounting system could not be locked at the end of the month and there was no audit trail. Sachdeva and Mulvaney were thus able to make undetected post-closing changes to the books and bypass an internal control requiring Michael J. Koss to authorize those changes". These post-closing changes may be false entries done to hide theft during the accounting period. Further, because the reconciliations were done by the same people who initiated or recorded the transactions, the fraud could be covered up. For example, had one of them made an unauthorized purchase at a retail store where the expense were obviously not business related, they could have assigned the expense or expense description to a vendor where the transaction amount would have been normal. If the accounting system was not locked, they could have also just posted the transaction date back to a prior period that isn't likely to be reviewed.

The reporting party (RP) stated there is a belief that the licensee and Maria Dickerson are committing fraud. According to the RP the licensee is never available. The RP stated Maria Dickerson lives in the licensed home with her son. The RP stated when they arrive to the facility Maria is the person providing care within 10-15 minutes the licensee would arrive at the home. There were a few occasions when the RP made visits she only communicated with the licensee over the telephone. The RP stated the licensee never answers the phone call made to (916) 806-8085 however, the licensee would return calls made to that phone number.

4. Through interaction with general counsel, compliance matters such as those that relate to the Foreign Corrupt Practices Act (FCPA).

Getting an internal auditor into the government office was a great move on their part. We can now move forward in this case as we have established that fraud is taking place. The next steps that could be made it to pay close attention to the employees. Any suspicious behavior, such as a sudden eager to work till late at night, or even noticing bad habits like gambling or drug problems could lead someone to steal. Another way to aid against fraud is to control and intensify the paper trail. Make it difficult to be able to get away with cash without recording it and clearing it with someone

R/s in January 2014 Taylor was diagnosed with PTSD. R/s Taylor has two sons Joshua (1) and Kane (2-months-old). R/s Taylor is living with some relatives at 612 Hill Street in Conway, SC. R/s Taylor goes to work and leaves the children in Mary Ruth’s care. R/s Mary Ruth’s mind is unstable and she is schizophrenia. R/s there is a possibility that Mary Ruth will leave the children or drop them off to someone else is she gets tired of the children. R/s about two months ago Taylor was sleeping in cars with the small children. R/s the children were malnutrition when they were sleeping in cars. R/s it is alleged that Taylor is bipolar. R/s Taylor has a history of fraud with the food stamps, FADC, and Medicaid.

In 1964, Betty Edmonson had been occupied at the Callaway Mills in Lagrange, Georgia for two years. She thought every day of the plan she had made to get married. Even if her wedding day wasn’t put together with a special ceremony and expenses, it was definitely a memorable occasion for her.

The Leslie Fay Companies (Leslie Fay) was a designer specializing in women’s stylish dresses. The company was run by Fred Pomerantz and subsequently by his son, John Pomerantz. Both Pomerantz men were known for their lavish lifestyles and overbearing personalities. Fred had hired Paul Polishan right out of college in 1969 to join the accounting staff at Leslie Fay. Polishan would later go on to become the company’s CFO. Polishan, as it seemed, had an even more overbearing personality than either of the Pomerantz men. The personalities and attitudes of these three men would bring about a huge fraud scandal for Leslie Fay, resulting in a Chapter 11 bankruptcy filing in April 1993 (Knapp, 2011).

Once again, another story of billing fraud in a medical practice made news this past week in Becker’s Hospital Review “Medical practice manager sentenced to prison of billing fraud” on April 6, 2017, by Ayla Ellison.

This shows a major breakdown in managerial controls that a low level employee was able to take steal money over the course of a couple of years without ever being suspected. This is a prime example of why internal controls are so vital and why even the government needs to be audited. Ruiz

After reading this I Saw how Peggy McIntosh wanted to point out how to understand feelings of fraudulence and to overcome them in contexts where that is necessary. I’m considering the difference between confidence and self-esteem as a main reason. Though “Confidence is saying, 'I believe I have the ability to do something, whether it is losing weight, learn a new language or climb a mountain.' Whereas self-esteem and a sense of entitlement are about believing you are worthy of something." Both are important qualities but self-esteem maybe the reason people have the feeling of fraudulence.

In the case of Phar-Mor fraud, the company was involved in cover up and some accounts were created to hide the fraudulent activities. Bad inventory counts in the stores were made to help with the cover up and deceit about activities that cost hundreds of millions of dollars. (Williams, S.L., 2011)

Ashley Johnson is the sole owner of Johnson Real Estate, hereby referred to as “JRE”, which is a sole proprietorship (LLC) that lists and sells real estate in West Virginia. Ashley’s husband James is the president of JRE and is the day to day operator. Besides James, there are two employees: office manager Joan Rogers and receptionist Doris Chambers. The realtors are contracted sub-agents that personally collect commission checks at the end of each month. These realtors receive 65% of the commission granted to the broker, the rest is deposited into JRE’s checking account. Ashley noticed discrepancies in the commission receipts from closings and the actual bank deposits in the year of 20X9. The previous year there were no problems. JRE has not been audited for the past three years due to rapid growth. Ashley filed a report with the local prosecutor, a family friend, and requested a thorough investigation, which resulted in the prosecutor’s office contracting an accounting firm to complete the financial examination. The prosecutor’s office assigned special agents Thomas and Longworth to the case. The prosecutors are Gina Conrad and Barry Morton.

On the Craftset side of things, the owners ran a tight ship. They had several layers of control in place. They limited access to their computer system, had physical controls in place, and increased their supervision where their controls were the weakest, segregation of duties. With all these controls, on both sides of the board, in place Anna was not given the opportunity to commit the fraud, so she didn’t. Instead, she did the work she had to do and then kept her focus where she was able to commit fraud the easiest.

A business can not work out without an account system, which includes internal. Internal controls are used by companies to make sure financial information is accurate and valid. Strong internal controls are signs of a financially healthy company and protect the company’s integrity. Strong internal controls can also increase a company’s profitability. There are several types of internal controls that companies used to protect themselves such as: Segregation of duties, asset purchases, supervisor review, internal audits and adequate documents and records. This paper will discuss several topics from a case study about And the Fraud

Over the past two years, corporate America has endured a plethora of fraudulent acts committed by those of high status within their respective corporations, most of which involve internal fraud. Internal fraud has two main aspects, misappropriation of assets and fraudulent financial reporting, with the focus of this discussion lying within the former. Misappropriation of assets is defined as fraud for personal gain. It is the most common type of fraud found among employees and frequently includes theft of cash and inventory.