Case 6.1: the Greater Providence Deposit & Trust Embezzlement

Werle used Digital Analysis technique to uncover this fraud. She conducted computerized analytical review. She also conducted in depth research to investigate irregular activities and contracts that could have been entered in to by

From year-end 2004 through the first-quarter 2008, defendant Brian Fox misled the investing public by fraudulently inflating the revenue and assets and fraudulently omitting major liabilities, of Powder River Petroleum International, Inc. (“Powder River” or the “company”) in the company’s Commission filings, and by making other false and misleading public disclosures. From year-end 2004, Powder River conveyed working interests in oil and gas leases to investors in Asia for over $43 million. Because Powder River promised full repayment of the working interest

What steps should management, the Board of Directors, or the Audit Committee of the Board of Directors take in response to allegations of possible fraud or illegal acts?

• Reason - Tellers must have examined the check carefully, considered legal and Credit Union requirements,

Those involved in the mortgage lending process have some duty to the borrower. They are expected to perform their specific duties in an ethical manner and have some form of direct or indirect contact with the

Our next step ought to be to get more information where the personal loan was acknowledged. This sample data has all rejected personal loans, as assuming 0 stands for rejection.

On August 25th 2015 Co-Founder of OXYwater Preston J. Harrison and his Wife Lovena Harrison were sentenced for Wire Fraud, Money Laundering and Tax Crimes. (Investor Claims, August 2015). I chose this case because it has many different types of fraud, including wire fraud, money laundering, and tax fraud, conspiracy to commit fraud, concealment of fraud, theft and misappropriation of funds. What makes this case so interesting is that the husband and wife co-owners of OXYwater are not the only criminals. Their co-conspirator was Thomas E. Jackson;

For an employee to be aware in this situation, a good concept to note would be how other loans similar to the one they are offering have performed in the past. The officer could analyze each one and determine the right path they might have chosen based on the criteria. As a result, they have more knowledge of what may and what may not happen. The officers have to be morally aware of the consequences even though they want to help these people out and provide them with a possible good future. Another way the employees can be morally aware in this position is to know the client from top to bottom. This means that they should have extensive knowledge about the client primarily in terms of finances, but other attributes as well such as their character. For instance, if they have had a loan in the past, have they paid the loan back or not along with say what their income is. Correspondingly, the loan officer needs to be mindful of the financial stability of the bank along with current government regulations. For the bank to help the employees, they could give out monthly reports on the bank’s finances. However though, the officers in most banks are recommended to stay up to date on government regulations, but a word document/pdf of all the regulations would be a

- Were we clear, gump, and concise in answering the client's questions? Omar does a great job on explaining how the creditor's checks work however, never provided a timeframe for when the client would receive the check we want to make sure that we are setting this expectation to the client it will avoid having them call in numerous times.

In September of 2016, it was revealed that there was alleged misconduct at one of the largest and safest banking institutions in the United States. Wells Fargo Bank was ranked among the nation’s safest financial institutions according to an analysis done by Global Financial, (Inside Tucson Business, 2009). Alleging that between May 2011 and July 2015, there were more than 2 million bank accounts or credit cards opened for customers without their knowledge or permission (Blake, 2016). Clients started complaining the they were receiving debit/credit cards from the bank that they had not ordered. Wells Fargo employees also started complaining that about the unethical behaviors they witnessed or were asked to participate in to the Human Resource Departments, the bank’s internal ethics hotline, branch’s individual managers and supervisors. All which led to the discovery of the fraud scandal.

Ensure that all members of the Wells Fargo Company understand that they are responsible for promoting integrity.

2. Identify and briefly describe the specific fraud risk factors present during the 2000 NextCard audit. How should these factors have affected the planning and execution of the engagement?

     Information gathered from various nationwide newspapers have indicated that some employees of companies that handle personal consumer information such as banks and utility companies, among others, have emailed confidential loan files to unauthorized third parties. This inappropriate employee use of email can result in identity persecution of the customer who have entrusted them with their personal data.

As Jackie Patrick, loans officer for the Commercial Bank of Ontario, the key issue is whether or not I will accept or reject Mackay’s request for a bank loan and line of credit. My key objective is to develop a thorough understanding of the facts presented in the case in order to make an informed decision that will best serve the interest of the Commercial Bank of Ontario, myself as the newly appointed loans officer, and of course my client Mr. Mackay.

Mortgage fraud - Misrepresentation of loan application data and mortgage fraud are other contributing factors. US Department