And the Fraud Continues Essay

844 Words Oct 6th, 2012 4 Pages
Continues 1

And The Fraud Continues

Andrea Williams-Weston

Strayer University

ACC571

Dr. Dushyant Gosai

July 22, 2012

Continues 2

Walt Pavlov’s Background

Pavlo received his engineering degree from West Virginia University and an MBA from

Mercer University in Atlanta. He began working as a financial analyst at Goodyear Aerospace

and later worked as a contract manager at GED-Ltd, before joining MCI in 1992. During his

employment at MCI, Pavlo worked in the carrier’s financial unit and was one of the group

managers responsible for billing and collections for
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Moreover, the actual value of the accounts is usually lower

than the total of the balances because some customers may file for bankruptcy or refuse to pay

their bills,” (Small Business, 2010).

Pavlo could receive payments, update, and reconcile the company’s bank accounts that

caused him to embezzle money at any time,” (Small Business, 2010). He used a variety of

accounting tricks to manipulate the system. He identified accounts receivables that was going to

be written off and converted them into notes receivable. Pavlo took worthless receivables and

created an asset on the balance sheet. He used “unapplied cash” to mask the bad debt

and slow payments.

Another trick he used was “placeholder credits.” MCI contacted their customers regarding

their overdue accounts receivables. If a customer told the company that he/she was sending in a

payment immediately, MCI credited their receivables before receiving the cash. Palvo’s tricks…

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