crazy Eddie fraud case

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

At the age of 16, Eddie began to question the system, and the government. He began to ask why it is that his race is treated differently, and subjected to cruel and unjust laws. This was the beginning of his career in politics. Later in his years, he learned that the land on Murray Island, which he

The Molex Corporation is an electronic connector manufacturing firm, which is based in Illinois. This company is facing a financial reporting problem in which the financial statements were overstated. Joe King ,the CEO of the company, was appointed in July of 2001, and was responsible for managing and inventory control, among other very important duties. Diane Bullock was hired in 2003, to replace the previous CFO. Both Bullock and King were being accused of what? by the external auditors, Deloitte & Touche, for not disclosing an 8 million pre-tax inventory valuation error.

Our project team analyzed the Fraud and Illegal Acts Case (True blood Case Studies- Case 08-9), which involves a questionable sales transaction made between Jersey Johnnie’s Surfboard, an SEC registrant, and Mr. Sinaloa, an independent sales representative of the company. As a simplified overview of the case, an external audit firm was hired on to perform a year-end audit of Jersey Johnnie’s Surfboards, Inc. Towards the end of the audit, the engagement partner notified the auditors that there could be a possibility of fraud and illegal acts made by the company.

It is Eddie’s fifth birthday, and an Irish man, called Mickey Shea joyfully picks Eddie up by his feet and shakes him out once for each year he has completed, while the other adult men laugh and cheer. Firstly, “Eddie is wearing his birthday gift, a red cowboy hat and a toy holster. He gets up and runs from one group to the next, pulling out the toy gun and going, ‘Bang, bang!’ ‘C’mere boy’ Mickey Shea beckons from a bench. ‘Bang, bang,’ goes Eddie. MIckey Shea works with Eddie’s dad, fixing the rides. He is fat and wears suspenders and is always singing Irish songs. To Eddie, he smells funny, like cough medicine” (Albom 23). This is the beginning part of one of the flashbacks that talks about Eddie’s birthday, where the writer introduce Mickey

Mr. Spindler was asked to come for a debriefing to which he happily agreed. Mr. Spindler was a long time employee of Crazy Eddie until he was terminated by Eddie Antar in May 1987.

Eddie at the beginning of the story was hopeful that his career would succeed.Everything started going well for him, people said he played from the heart. He was starting to show that he had money, he got a leather jacket and and wore a chain. He made 1 record that went to the charts. When he went to hollywood he met a girl immediately and moved in with her. Not only that she taught him how to play the guitar which started his music career.Eddie started to become successful however when the A&R man told him that he doesn't hear a single. His music career was basically over, he had no idea what to do, he was confused. He was lost, he had no career when his A&R man fired him, he is “a rebel without a

Not only does Eddie possess immense knowledge; amazingly, he also possesses an incredible personality that reflects the ideal qualities that all great leaders should have. Eddie's kind yet honest persona are the epitome of what every great leader should strive to be. His cheery disposition gives him the ability to inspire and influence everyone he meets which is an important asset for a leader of the galaxy. His personality maintains a balance between cheerful optimism and straightforward honesty. Eddie is not afraid to say things like they are but he does so in a cheerful and calm manner. These qualities are absolutely necessary for the betterment of the galaxy. Eddie's cheerfully calm demeanor could pacify the turmoil of any crisis. Eddie also possesses an alternative personality which gives off a much more motherly vibe. This persona of his is incredibly protective and prioritizes safety above all else. This is clear evidence that as the ruler of the galaxy Eddie would do everything in his power to ensure that his citizens remain safe and free from harm. Surely, this super computer is the absolute definition of

He continued on to work for Citicorp then, following a transfer to training and development in San Francisco he began working for Citibank. Rivera then moved to Las Vegas and worked a long and fulfilling career at a medical practice named Jacobs and Modaber MD. After 11 years at Jacobs and Modaber MD, his parents fell ill. Eddie took a year off to care for his parents in Puerto Rico, returning to Las Vegas to help open the Bellagio. After the opening of one of Las Vegas’s most prestigious hotels, he began working as the director of human resources for MGM

Global Crossing came to its ascent as an organization during the height of the dot.com bubble, when oversight over technology companies was fairly lax, given the lack of understanding of the

can see the type of man Eddie is, as when he meets the brothers for

a. The falsification of inventory count sheets. – Auditors should have observed a physical count of the inventory to check for accuracy. The case had mentioned that Eddie Antar would ship inventory to his retail stores before auditors arrived to conceal any shortages. (Knapp, 2011) These sites should have been audited unannounced in order to hinder any attempt by the client to conceal fraud.

Following the risk assessment procedures, substantive procedures are designed and conducted to detect material misstatements of relevant assertions. Substantive procedures include analytical procedures and tests of details. Analytical procedures involve evaluations of financial statement information by a study of relationships among financial and nonfinancial data. Tests of details may be divided into three types. One test is the test of account balances to address whether there are misstatements in the ending balance of an account. In the case of Crazy Eddie, auditors should have put greater attention to inventory and accounts payable accounts. The second test is a test of classes of transactions to determine whether particular types of transactions have been properly accounted for during the period. Crazy Eddies fraudulently classified these transshipping transactions as retail sales to inflate its sales revenue and continue growth at existing stores. A key ratio for retailers is to compare growth in existing stores to growth from new stores. The third and final test is a test of disclosures to evaluate whether financial statement disclosures are properly presented. Crazy Eddie prepared bogus debit memos of over $20 million to understate accounts payable.

With Eddie being limitless on this drug he gains power over things and makes more money than he ever thought would be possible, which eventually conditions him into becoming even more dependent upon the drug.

It was Roy Olofson, along with suing investors who “blew the whistle” for Global Crossing Ltd. According to Olofson’s attorney, he just wants a restitution for the job that he lost but isn’t likely to get it from the entity since it was then under a bankruptcy protection. Roy Olofson was formerly the VP for Finance of Global Crossing and is responsible for preparing the Financial Statements and SEC filings.