Essay about Review of Business Fraud

1656 Words Jan 3rd, 2013 7 Pages
Assignment 2: Review of Business Fraud
ACC 565 – Accounting Information Systems
July 28, 2012













Summary of United States vs. Bo Zhang

Bo Zhang, a Chinese computer program, was a contract employee assigned to the Federal Reserve Bank of New York (FRBNY), between May 2011 and August 11, 2011, to work on further developing a specific portion of the Government Wide Accounting program (GWA) source code (FBI, 2012). Mr. Zhang was not a United States citizen and was here on a VISA. The United States had spent approximately $9.5 million to develop the GWA code. The FRBNY was given the task of moving the Government Wide Accounting program, developed to help track the billions of dollars the United States
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Bo Zhang used the access to forge documents to give Chinese immigration VISA to the U.S. Stealing proprietary government software worth nearly $10 million using little more than a mouse had government officials and investigator worried they were vulnerable to cyber attacks. This concern was accelerated when Bo Zhang was arrested in 2012 which was five month after his employment date because they did not know for sure who else had the GWA code and could access the system. If attacked there were direct concerns accounting information could be altered or malicious virus could launched wiping ok critical data. FBI investigators questioned Zhang on August 11, Zhang admitted taking the code "for private use and in order to ensure that it was available to him in the event that he lost his job," the complaint said (FBI, 2012). Zhang’s thievery put the U.S. government at risk and made them vulnerable to outside attack. If executed correctly this could have caused the Federal Reserve Bank to lock done daily activity which would have affect U.S. business and individuals. “Zhang, 32, of Queens, New York, pled guilty to one count of theft of government property and one count of immigration fraud. He faces a maximum term of 20 years in prison (FBI, 2012).” Zhang will be sentenced by United States District Judge Paul G. Gardephe on October 1, 2012 at 10:00 a.m. for 18 months in prison, $30,000 in fines, and was subject to deportation after his time…

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