Corruption Of A Fraud Investigation

In this case, there are several conspirators who is involved in the fraud receiving punishment from either SEC or federal government. Robert Levin, the AMRE executive and major stockholder, and Dennie D.Brown, the company’s chief accounting officer, were subject to the punishment in the form of a huge amount of fine by the SEC and the federal government. This punishment came from reasons. After AMRE going public, the company have the obligation to publish its financial reports but its performance did not meet expectation. The investigation by SEC shows that Robert took the first step of this scam, fearing the sharp drop of AMRE’s stock price because of the poor performance of company. He abetted Brown, to practice three main schemes to present a false appearance of profitable and pleasant financial reports. Firstly, they instructed Walter W.Richardson, the company’s vice president of data processing, to enter fictitious unset leads in the lead bank and they originally deferred the advertising cost mutiplying “cost per lead” and “unset leads” amount, so that they deferred a portion of its advertising costs in an asset account. The capitalizing of advertising expenses allowed them to inflate the net income for the first quarter of fiscal 1988. Secondly, at the end of the third and fourth quarters of fiscal 1988, they added fictitious inventory to AMRE’s ending inventory records, and prepared bogus inventory count sheets for the auditors. Thirdly, they overstated the percentage

1. The three aspects of fraud - Perceived pressure, Rationalization, and Opportunity were present in the CIT case as follows:

Professional auditing standards discuss the three key “conditions” that are typically present when a financial fraud occurs and identify a lengthy list of “fraud risk factors.”

card fraud. In reference to money Laundering we will the complex process of how criminals

White collar crime is notorious for being difficult to regulate against and even harder to investigate and prosecute, in comparison to more traditional street crime (Friedrichs, 2010). The enforcement and prosecution rates of white collar crimes are lower than that of street crime; white collar crimes are also less likely to be reported (Friedrichs, 2010). The complexity and breadth of white collar crime cases can be crippling to law enforcement and may work to stop enforcement entirely (Friedrichs, 2010). In the Schlegel & Weisburd text (1992), the authors note that, unlike street crimes, many white collar crimes require lengthy investigation before determining if a crime has actually occurred, much less deciding if there is enough evidence

It is important to first gain an understanding of the various types of fraud, in order to aid understanding in regards to the prevention of fraudulent activity. This paper begins with a review of the definition of financial fraud, and identification of the different fraud types. Further, included is an examination of what motivates individuals to commit fraud, including an identification of some of the method in which people commit fraud. A discussion of the importance of the fraud triangle, and how rationalization contributes to fraud is a key area of focus. Finally, there is an examination of some controls that prevent and detect fraudulent behavior, including the value and importance of understanding the nature of fraud for

Law §18 U.S.C. 1030 Fraud and related activity in connection with computers is a law created to prevent crime in connection with computers. Policy Identification describes and defines this law in its fullest definition with details on who created it and who implemented it. History and Background gives a variety of events on how this law became to what it is, from oldest to the newest events which led to the creation of the law. Current situation explains what is going on today, how the law has changed, and who is affected by it. Differing viewpoints shows two different sources and their opinions on law §18 U.S.C. 1030.

In this course, students are introduced to the conduct of fraud examinations, including a discussion of specific procedures used in forensic accounting examinations and the reasoning behind these procedures. Topics include an overview of fraud and abuse, forensic evidence, substantive procedures for cash outflow irregularities, substantive procedures for asset irregularities, financial statement fraud, and examination reporting.

Once a fraud examination has been completed the fraud examiner often is called upon to testify before judicial authorities regarding the findings. Investigators must be detail-oriented when it comes to evidence admitted during a trial. If evidence processing is not done correctly, an innocent person may be convicted of a crime that was never committed. Prove that the alleged fraudster made a misrepresentation by obtaining the accurate copy of the documents like the claims forms or medical records where it contain the false statement. Prove that Altamirano knew that his representation was false; and he intend to mislead and obtain a financial benefit from another party. Keeping evidence intact and using the correct tools and procedures as

There are various forms of cash fraud. One of the common schemes is cash larceny. Cash larceny refers to employees intentionally taking away cash from their employer without the employer’s knowledge and consent (Wells, 2014). Employees who have direct access to cash are more likely to commit cash larceny (Wells, 2014). Cash larceny is more likely to occur if there are weak internal controls in an organization. Weak internal controls make it difficult to prevent and detect an occurrence of fraud. This paper seeks to evaluate a recent case of cash larceny by a former employee at Glen Aubrey Fire Company.

Dr. Kelly Richmond Pope is an associate professor for the School of Accountancy and MIS at DePaul University in Chicago, Illinois. In completing her collegiate career, she obtained a bachelor's degree from North Carolina A&T State University in accounting. Further, Dr. Pope received her doctorate's degree in accounting from Virginia Tech. She was employed by KPMG, LLP practicing forensic accounting. Several cases Dr. Pope has worked on included insurance fraud investigations, fraud risk management jobs, and anti-money laundering engagements. In addition, she co-authored a book, The A.B.C.’s of Behavioral Forensics: Using Psychology to Prevent, Detect, and Deter Fraud.

Fraud is an issue that causes major scandals, although it is a very ancient scheme. Recent fraud events gave light to gaps that facilitated its events. Its extent was drastic by affecting financial markets that eventually trickled into global markets. Major organizations and countries worked cohesively and continue to address the gaps and, in effect, implemented strict compliance regulations to diminish and refrain fraudulent activities. Strict compliance regulations are examples of a fraud response plan the small family business could have implemented to refrain the perpetrators from fraudulent incidents, protect organizational assets and the organization’s going concern.

In the present day forensic accounting plays a huge role in many of the court cases publicized by the media. With the spotlight on the profession, this is a good opportunity to discuss the following topics:

In this day and age, a corporation, family, or individual always has a potential risk of encountering fraud within their money supply. On average, fraud and abuse costs U.S. organizations more than $400 billion annually (Federal Bureau Investigation, 2010). Many may think that white collared crime is only money laundering or stealing, but that is only two out of the sum that countless culprits get away with. The term “white-collar crime,” originally coined in 1939 is synonymous with the full range of frauds committed by business and government professionals (Federal Bureau Investigation, 2010). These frauds include anything from bankruptcy fraud, money laundering, identity theft, corporate fraud to a wide number of threats all circling

There are many different avenues that one could take in the field of accounting. It is a lucrative career with many areas of interest to be followed. I have chosen Forensic Accounting to further review and research. This paper will define forensic accounting, describe what it takes to be a forensic accountant, give some statistics about forensic accounting, and give my feedback on this potential career path.