Jerome Kerviel - Genius of Fraud

The account balances assertion was also misstated on. This is specifically on the PCAOB assertion about right and obligations. The City of Dixon had a bank account in their name called the RSCDA. This was a fraudulent account created by Crundwell to pull off her scheme. However, as this bank account was under the City of Dixon’s name the account should have appeared on the financial statements, with an accurate balance. The city had right to this misused bank account.

In reality being well liked in the business world and having a good appearance will not get you anywhere unless you know what you are talking about. Overestimating one’s abilities, and having a high ego will set people back, and not get them far in life. Having knowledge about different fields of work, and working hard will get those people farther

In response to this panic, a committee was established to find the flaws of the current banking system. This committee, the National Monetary Commission, found there were two main flaws dominating the system. First, the currency was not responsive to changes in demand. (Born...13). This meant that the bank had a fixed amount of currency, regardless of the

In the document is also said that even when people have money in that bank people would go to the bank and go get their money since that bank was going to be a failed and it also said that after their failure the repressive effect on the spending of its clients. They couldn’t do anything to help the bank to crash even though they will all be crashed any day.

People notice the outward accomplishments. They applaud your resume achievements, and they encourage you. We are thus trained from a young age that achievement is to be

Makes or uses any false writing or document knowing the same to contain any materially false, fictitious or fraudulent statement or entry;

88 Case 1.12 Madoff Securities Instructional Objectives 1. 2. To identify the principal precursors of financial fraud. To identify “red flags” or risk factors typically indicative or symptomatic of fraud.

It seems that the company does not think it feasible to try to recovery their loses from employee, Lisa Leslie, and therefore goes after the bank for allowing her to steal from them. Is the bank at fault? Does the bank have an obligation to their customers to protect them from fraudulent activity? In short, yes. Customers trust banks to do just that.

I doubt that Wells Fargo had done an independent investigation to find the root cause of the problem, otherwise, they would have reached to the same conclusion that top management's obliviousness on purpose was a crucial factor in elongating this problem. Not taking any action against the unlawful act is same as facilitating the unlawful

illegal acts which are characterized by deceit, concealment, or violation of trust and which are not dependent upon the application or threat of physical force or violence. Individuals and organizations

The court could not have used the Ultramares doctrine because GKCO was not in privity relationship with the bank or any other third parties.

He also increased the risk exposure of the bank and had hidden it from its superiors. By using his reputation and the trust from the bank he speculated while he should not have been able to do so.

Fraud is defined as a deliberate misrepresentation that causes a person or business to suffer damages, often in the form of monetary losses through deception or concealment. And Occupational Fraud as defined by the ACFE is the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets. Traditional fraud triangle theory by Donald Cressey explains that propensity of fraud occurring in an organization lies on three critical elements which are Pressure, Opportunity, and Rationalization.

The bank's main owner, Ramón Báez Figueroa, was accused of operating a secret “bank within the bank” by officials for more than ten years (Economist, 2003).

During the volatile and instable period, the risk was obviously brought to a new level. Morgan’s Private Bank kept their eyes open all the time. I concluded two main aspects.