Fraud and Highest Embezzlement Case

Read the David Miller case from Chapter 5. After reading the case, describe a reason why someone who has been entrusted with the firm’s assets would commit a fraudulent act against the company. Based upon your understanding of the case and your professional and personal experience, recommend a series of actions that should have been taken in order to pre

The case of Rita Crundwell revolves around a town, other employees, and an auditor 's blind trust in a women, who clearly did not deserve the trust. Crundwell was the town Comptroller. The fraud resulted in 53 million dollars to be siphoned from the town 's funds in a time frame of 20 years. Crundwell covered her tracks with a fake bank account, fake invoices, and the party line of blaming the state for simply being behind on payments. There were many red flags during the two decades of this scheme, but due to the town 's small size and trusting attitude, they relied heavily on external audits, which were not up to par.

2) Frank A. Tassone; the former business manager, Pamela Gluckin; and an accounting clerk, Debra Rigano, who is a niece of Ms. Gluckin embezzled money in a scheme in which Dr. Tassone and Ms. Gluckin and nine of their family members and friends charged $5.9 million for personal items and cash advances on 74 personal credit cards. Then Ms. Gluckin and Dr. Tassone used district checks to pay those bills. The audit found that Dr. Tassone and

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

This report examines and analyses the underlying reasons behind how and why such a massive fraud took place, how it went unnoticed through the years and the actions taken

On January 8, 2014, the U.S. Attorney has stated that the BISD school District Finance Officer and Controller, managed to embezzle over $4,000,000 from the school district by creating fake companies and issuing purchase orders and invoices that paid directly to an account

The Florida Department of Financial Services Bureau of Insurance Fraud and the Division of Workers Compensation’s Bureau of Compliance joined forces and apprehended a business owner they believed to be operating a fraudulent workers compensation insurance and payroll services company. Ivan Hernandez is accused of taking over $1 million dollars from 58 companies who paid for workers compensation policies that never existed.

This issue at hand in this case is one of embezzlement (Hancox, 2014). In December of 1990 the Treasurer/Comptroller of Dixon, IL, Rita Crundwell, opened up a fake capital account in the city’s name. This allowed her to take city money, deposit it in this account, and withdraw it in her name. For 22 years Rita Crundwell fooled the city of Dixon, the mayor, the City Council, the State of Illinois, and the tenth largest public accounting firm in the United States (Inside Public Accounting , 2015).

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.

Jon Fries who was the CEO of F&C Company. He orchestrated a large scale financial fraud that led to the downfall of the company. Fries used inappropriate methods to realize his company's operating results, to inflate revenues and overstate period-end inventories. He used his position to come up with a big fraud which was an unethical approach by a CEO of a Company. It was highly unethical (-100 scale) to systematically overstate sales revenues by backdating the valid sales transactions.

James Guisti, a trusted 14-year employee and the manager of an office of Greater Providence Deposit & Trust (GPD&T) was caught embezzling after his superior received an anonymous tip. James was abusing his power in the bank and taking advantage of his loan signing limit to write small loans for several unknowing or fake individuals. All of the loans were between $10,000 and $63,500 and were 90-day notes that did not require any type of collateral to secure them. James was then instructing other trusting employees of the bank to cosign the checks and cash the loan funds. Due to inefficiencies in bank policy, and the fact that the loans were small, the audit team was unable to detect the fraud. Also, in order to avoid being caught for unpaid loans, when the loans would mature James would take out new loans to pay off the old loans.

On May the 15th, Baez, along with two other executives, were arrested for embezzling 55 billion Dominican pesos ($2.2 billion) from the family bank. Two-thirds of the money deposited by customers in the bank

This case is about the $4 million embezzlement fraud by an employee of a magazine publisher, and how the fraud was discovered. The type of fraud discovered was a billing scheme that was found on accident. A billing scheme is, “Any scheme in which a person causes his employer to issue a payment by submitting invoices for

Tom Padgett made the affirmations and management of the company gave the papers, yet every source was included in the fraud.

In order to be covered, the individual must commit an act with the intent to cause a loss to the business and a benefit to some known person. This case should have been a lesson for all businesses. There are many warning signs of employee embezzlement that includes: Unusual drop in profits, business records are unorganized, bank deposits are missing or delayed, check amounts altered and duplicate payments are being made. Bookkeepers, managers and office managers that have access to certain documentation and banking information have the access to commit embezzlement just like Donnie Wright and many other Americans