Statute Of Fraud: Case Study

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

Did Westby commit fraud? Fraud constitutes the making of false statements (1) with the knowledge of its falsity or reckless indifference to the truth (2) the intent that the listener relies on it (3) the result that the listener does so rely on it, and (4) the consequence that the listener is harmed.

Starting from the beginning, the original post the sale, on November 1, Dr. Peters wanted to sell 850 tubes of toothpaste. In the sale ad it states "Write me if wanting to accept". Therefore, Sam did in fact put a check in the mail the same day, November 1. This is considered to be a part of the mailbox rule in which "an acceptance sent via the postal system or by courier is effective when sent" ((Luizzo, A., 2016, pg. 127). Therefore, the acceptance of the sale is a contract between Sam and Dr. Peters. However, a written contract should have followed; as it states in the Statutes of Fraud that in order to be legally binding, sales dealing with "personal property of $500 or more" must "be in writing to be legally enforceable" (Luizzo, A., 2016, pg. 201). The two parties have entered into a valid and express contract.

In the Hoffman Vs. Sun Valley Company case, where the Sun Valley Company won, despite there being an oral agreement. The prerequisite memorandum form for the sale of the Rudd Mountain property, was not signed to fully close the deal. Thus, the oral agreement was declared void by failure to comply with the statute of frauds.

Embezzlement seems to be a white collar crime that is victimless. However, when monies are embezzled from a non profit it affects all those involved especially those benefitting from the work of the nonprofit organization. I thought of our local community nonprofit arts foundation. They not only produce a full slate of shows each season, but also provide classes in painting, sculpting, drawing, acting, music, and dance. If they were defrauded in the amount of $93,000 it would affect educational programs and community outreach.

The amount listed is the enrollment agreement was 10,020.00 which gives a difference of :

Graham I see that we disagree with whom should win the case, but I understand where you are coming from. Enterprise was paying and improving the property so it makes me wonder why Jane wanted to evict them after one year. Jane was probably trying to make a profit from someone else or selling the property. Yes business is business but morally she didn’t have to break the oral lease. Sometimes we need to go back to shaking hands and keeping our word. The textbook states, “That the Statute of Frauds requires certain contracts to be in writing and signed by the defendant to be enforceable against the defendant” (Lau, 2012, p. 187).

Do these sales practices constitute fraud under the mail fraud statute? What happened in Hawkey?

Newham is a company that manufactures cosmetics as well as body-care products. Two of their largest customers are Target and Walmart. They are a publicly traded company with major competitors of Revlon, and Avon. Recently Newham has changed their CEO and CFO, and although they have experienced growth over the years there have been problems in regards to bonuses to upper management and the tactics used. They have also been plagued by a lawsuit, which suggests that Newham did not properly advertise a product; the result of that has led to allergic reactions by many of their consumers.

CTFCU has many internal controls in place for protection of our employees and our member’s assets. This information is highly confidential. You should never discuss this information outside of the credit union. Doing so could endanger you as well as other branch employees.

Many organizations have been in the news over the past few years due to accounting ethical breaches that have affected their customers, employees, and the general public. I searched the Internet to locate a story in the news that depicts an accounting ethical breach. I selected Krispy Kreme. I enjoy their hot donuts and was curious to learn more about how they played with the numbers. For some reason I always want to dig into the trickery behind the manipulation of financial statements.

The video “Cooking the Books” discussed the ZZZZ Best case of fraud, it tells how and why fraud was perpetrated by Barry Minkow and why it was undetected for so long. According to the video, ZZZZ Best was founded by Barry Minkow in 1982; when he was sixteen years old, it started as a carpet cleaning company. But, due to high competition in the industry, low entry barriers, and bad internal control, this young entrepreneur started to have cash flow problems, thus creating a shortage of working capital. As a result of the financial pressure, he started to commit fraud by creating false accounts receivable and sales, false documents (using photocopies of real

The Case Summaries for Phar-Mor Inc. Fraud, Waste Management Scandal, & Enron Scandal and Answers

Financial statement fraud is any intentional or grossly negligent violation of generally accounting principles (GAAP) that is undisclosed and materially effects any financial statement. Fraud can take many forms, including hiding both bad and god news. Research shows that financial statement fraud us relatively more likely to occur in companies with assets of less than $100 million, with earnings problems, and with loose governance structures (Hopwood, Leiner, & Young, 2011).

A business can not work out without an account system, which includes internal. Internal controls are used by companies to make sure financial information is accurate and valid. Strong internal controls are signs of a financially healthy company and protect the company’s integrity. Strong internal controls can also increase a company’s profitability. There are several types of internal controls that companies used to protect themselves such as: Segregation of duties, asset purchases, supervisor review, internal audits and adequate documents and records. This paper will discuss several topics from a case study about And the Fraud