The Corruption Of The Fraud

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

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

During the time of the scandal, which broke in mid-2005, PBS&J had 4,000 employees in 75 offices in 24 states (Barnett, 2007). A number of high-profile projects were under construction with FDOT, OOCEA, and TxDOT. The funds from these projects were being brought into the firm at a rapid rate; however, PBS&J contained a flimsy internal controls system which facilitated the embezzlement that eventually took place. The major players of the scandal were located in the firm’s Miami office. They were Scott DeLoach, then chief financial officer (CFO); Maria Garcia, an accounting employee who was in charge of the office’s database and bank reconciliations; and Rosario Licata, a bookkeeper who maintained the firm’s benefits bank account (Eubanks, 2016).

A digital government seem to be leading more and more cases for review of fraud. In the high profile case of Joe and Teresa Giudice who filed for bankruptcy in 2009 and then dropped their petitions, a statement released by the US Attorney’s Office, District of New Jersey, about the New Jersey couple from the Real Housewives of New Jersey were charged with, among other things, trying to hide assets and income during the bankruptcy process. Teresa Giudice and husband, Giuseppe “Joe” Giudice, both of Towaco, N.J., were indicted by a federal Grand Jury with the charge of conspiracy to commit mail and wire fraud, making false statements on loan applications, failure to file tax returns for a number of years, and bankruptcy fraud among other things. The indictment indicated that the “Guidices lied to the bankruptcy court, to the IRS and to a number of banks,” U.S. Attorney Fishman said. He went on to state, “everyone has an obligation to tell the truth when dealing with the courts, paying their taxes and applying for loans or mortgages. That’s reality.” “The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join the United States Attorney for the District of New Jersey and our law enforcement colleagues in announcing [the] indictment…,” Special Agent in Charge A. Derek Evans said. Agent Evans went on to say “We are committed to our partnerships with federal, state, and local law enforcement to address mortgage fraud cases throughout the

“March of Dimes” charity was in news in November ’15, because of an alleged fraud committed by one of its employees named Ms. Karima Manji. Karima Manji has been working with MOD since 2005. She has been handling the portfolio of property manager and used to look after MOD’s non-profit residences. She is alleged to have used “various means” to siphon funds from the charity, including forging invoices and expense claims, and funnelling money into a false March of Dimes bank account. She has been charged with fraud over $5,000, theft over $5,000, possession of property obtained by a crime over $5,000 and presenting a forged document. She also served as the executive director of Kingsmere retirement living in Alliston and has been placed on administrative leave after being charged by Toronto police of allegedly defrauding MOD of $0.8 Mn. Officials at MOD has confirmed of ongoing investigation into the incident and those of Kingsmere retirement living have stated that “Manji’s employment is not linked to her involvement with MOD’s”.

Bell, a city of 35,000 people, has remained to be the greatest scandal in California. For a long time, the manager of Bell City Robert Rizzo and the people he was working with exploited the governance systems and the finances of the city (McGrath 122). They used vast sums of money to pay their salaries. They also transformed the development agency of the town into a piggy bank, from where they borrowed funds in an improper way, deposited money in retirement accounts that was illegal, purchased property without accounting in and documents, approved fees and taxes that were illegal and found out a way of exempting themselves from state law. Court documents provide evidence to show that indeed, those people committed the crime of corruption.

The main objective of this investigation is to see if funds are being misappropriated and who is misappropriating these funds. In conducting this investigation we needed to take many steps to ensure that the tip that the department received was true. To begin we checked personnel records and company records to gather information (Albrecht, Albrecht, and Zimbelman, 216) on the suspect, Rita Crundwell. Information such as how long has this suspect has worked in the city, what her position is, and what it entails. We also went through the accounts that she is transferring the cities money into and verified that all of these are all legitimate accounts of the city. If we found any errors or accounts that were not legitimate we would note these down and ask Rita about these accounts during the interview.

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

In Miami an accounting clerk by the name of Migdalia Ruiz was a able to steal 85,000 from the city of Miami over the course of a couple of years. She too checks from solid waste fees, false alarm fees, liens and business tax receipts from the government and directed the checks to her own personal bank account. She was only caught after leaving her job and the city’s bank informed the government that a check that the city deposited had already been cashed.

“Abandon all hope ye who enter here” (Alighieri, 1321/1954, p.18) ---- an inscription that is found on the gates of Inferno which foreshadows the fate of the soul of the sinner as said in “Inferno” by Dante Alighieri. The book tackles different natures of sins that individuals have committed and the corresponding punishment that they will receive in different circles of Hell (Ciardi, 1954). Alighieri (1321/1954) notes that although incontinence and violence are serious sins, fraud is considered as the worst type of sin because it betrays a whole community of people and breaks the trust of one’s kin.

This subject company in this case study is WoolEx Mills. The top management team at the Mills had to act fast to prevent the accusations charged upon them, so that they may venture deep into the United States market. In the process, they had to act in a way that will present the company’s financial statements; cash flows in a way that they did not show any suspicious fraudulent activities. The type of fraud in this case study is known as manipulation of accounts which involves the act of offering the accounts in the way they are not in reality.

Combating fraud in the private sector is a difficult task. Trying to combat fraud in the public sector is daunting. In 1999 15.7% of the American workforce were employed by a government entity (federal, state, and local).[1] Mirroring society, government will have its share of perpetrators. The difference from the private sector is in the scope of the fraud committed, the loss of the public trust, the blaring headlines from news media, and difficulty in making necessary changes to combat the problems.

The unlawful use of a person’s position while in power leads to multiple problems with today’s government. The corrupt methods politicians use are ideas that are strictly in place for personal gain. Present throughout history and still prevalent within today’s world, government corruption has consisted of a number of negative issues including bribery, economic and social impacts, and the misuse of power. Government’s role within daily life has been shown to have negative effects as seen in many aspects of life as well as in literature.

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.