Financial Fraud

Fraud is defined as the intentional deception or misrepresentation of facts that can result in unauthorized benefit or payment. Abuse is

In this paper we will be exploring white collar crime and specifically credit card fraud

In this chapters controversial issue, the author looks at if white-collar criminals are under prosecuted. Across the United States there a number of crimes that are committed which are considered white collar. One example is when Bernard Madoff defrauded investors of 50 billion dollars in the largest Ponzi Scheme that has ever happened in American History. Another example is the John Rigas and his son were convicted of fraud when they used millions of corporate dollars for personal use. The term white-collar is used when a person of higher economic status commits a crime. However, the public remains relatively indifferent to white-collar crimes. There are allegations that white-collar crimes are under prosecuted. At the local level, offices

During the Tylenol tampering scandal at Johnson and Johnson (1982) where seven people died, CEO James Burke and his team led a company culture that admitted the problem and set out to rectify it. He did not wait for the problem to fade away or just react to regional problems. He launched a Public Relations (PR) campaign and recalled several products whilst remaining calm and in control under the spotlight. He launched a further recall in 1986 costing Johnson and Johnson more than $200 million, when one person died after ingesting a capsule laced with cyanide (Yang, 2007). By doing so, James retained employee and customer loyalty. His achievement was of dealing with a crisis; he did not know cyanide was being planted into bottles, nevertheless he dealt with it. He remained trustworthy, transparent and engendered confidence. As an example, whilst at Johnson and Johnson, had James used questionable means for the success of the business, the organisation and the public would probably have forgiven him, following his conduct in the Tylenol tampering scandal. Not because they eventually forgot, but due to the importance in which

§ 1344. Bank Fraud is to defraud a federally hired or protected financial institution; obtain any of the moneys, funds, credits, assets, securities or other property owned by or under the care or jurisdiction of a federally chartered; insured financial institution by means of untruthful or fake pretenses, representations, or promises; fined not more than $10,000 and imprisoned not more than five years, or both (uscode, 2017). The requirements for Bank fraud it determine to deceive and exploit the financial institution; the intent to deceive, but not necessarily exploit, the financial institution; and the intent to deceive someone, but not necessarily the financial institution. Healthcare fraud statute is 18 U.S.C. §

Massey Energy’s strategy leading up to the Upper Big Branch Mine disaster in April 2010 was unethical. Massey attempted to convey their corporation as valuable to the nation and defined itself as being the most prosperous coal producers in central Appalachia. Their strategy was focused on revenue and productivity. This greed and thirst for profits gave top executives the excuse and desire to overlook and ignore regulations for miner’s safety set by the government. There were countless wrong-doings in their corporate strategy that put their employees at dangerous and threatening risk.

John was referred to therapy by the court, as part of a rehabilitation program. He is serving time in prison, having been convicted of grand fraud. The scam perpetrated by him involved hundreds of retired men and women in a dozen states over a period of three years. All his victims lost their life savings and suffered grievous and life-threatening stress symptoms. He seems rather peeved at having to attend the sessions but tries to hide his displeasure by claiming to be eager to "heal, reform himself and get reintegrated into normative society". When I ask him how does he feel about the fact that three of his victims died of heart attacks as a direct result of his misdeeds, he barely suppresses an urge to laugh out loud and then denies any

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

According to Daniel F. Dooley (2008), a member of the Commercial Fraud Taskforce, financial fraud with private middle-market companies is on the rise. In fact, Mr. Dooley believes that he has seen more instances of fraud in the past two years than in the previous ten. He notes seven areas in which financial fraud has increased over the past few years:

The case of Stratton Oakmont in the 1990s is an example highlighting the complexity of white-collar crime and contributes to its understanding. Jordan Belfort, founder of Stratton Oakmont, was found guilty of securities fraud and money laundering, both of which are types of white-collar crime. Fraud, according to Benson and Simpson (2015), is a crime in which a professional uses his or her superior knowledge and expertise to take advantage of something. Over the course of their occupation, the brokers at Stratton Oakmont used their knowledge and expertise to deceive their clients and inflate the prices of stocks under Belfort’s instruction. Ultimately, this fraudulent activity led to Belfort’s and Stratton Oakmont’s illegal financial success.

constructive fraud, (6) unfair trade and deceptive practices, and (7) in the alternative, negligent misrepresentation.

Personal loans are a great way to generate the income you need for a large number of needs. These loans can be secured by banks, loan companies, private investors and online lenders. It is important to be aware of personal loan scams and avoid them. This type of scam was in the United States for the year 2000, number 5 in the United States. On average, each fraud amounted to $ 464. Therefore, the federal government has worked hard to inform the public about this scam.

Identity theft or fraud is one of the computer crimes has arrangement issue that influenced a significant number of people life including business, association, and government. It is intentionally use of another person's identity in a strategy for pick up a budgetary favorable position or gets credit and advantages in different names. The person who deceives considered capable of the culprit's activity will endure with a terrible result. This crime was around for quite a while, and the ascent of technology advancement it turned out to be more typical. For Jane's situation, this is classified as cyber crimes assault on her character and data. Jane needs to report

Financial statement fraud is usually a means to an end rather than an end in itself. When people "cook the books" they may doing it to "buy more time" to quietly fix business problems that prevent their entities from achieving its expected earnings or complying with loan covenants (Fraud Magazine, 2014. It may also be done to obtain or renew financing that would not be granted or would be smaller if honest financial statements were provided. People intent on profiting from crime may commit financial statement fraud to obtain loans they can then siphon off for personal gain or to inflate the price of the company 's shares, allowing them to sell their holdings or exercise stock options at a profit (Fraud Magazine, 2014). However, in many past cases of financial statement fraud, the perpetrators have gained little or nothing personally in financial terms. Instead the focus appears to have been preserving their status as leaders of the entity - a status that might have been lost

The perfect fraud storm occurred between the years 2000 and 2002 involving two of the largest energy and telecom corporations in the United States: Enron and WorldCom. It was determined that both organizations fraudulently overstated assets, created assets from expenses or overstated revenues, costing investors billions of dollars and resulting in both organizations declaring bankruptcy (Albrecht, Albrecht, Albrecht & Zimbelman, 2012). Nine factors contributed to fraud triangle creating this perfect fraud storm, and assisting management in concealing the fraud until exposed and rectified.