Fraud

Vice President, Fraud Risk Management while she was working for the Countrywide Financial Corp. This role requires our whistleblower to supervise and monitor internal bank processes and mortgage fraud investigations, if needed, organize and send conclusion in the form of suspicious activity report to the U.S. Treasury as well as the board of directors. During her time, she learned that Full Spectrum Lending Division (FSL) managers in the Boston area were subject to several fraud allegations, she…

free of fraud. According to the textbook, Intermediate Accounting by Spiceland chapter one, it said “Audits add credibility to the financial statements, increasing the confidence of those who rely on the information” (page. 16, 2016). After the frauds scandal of WorldCom and other companies, the investors lost their confidence in the accounting department (page.16, 2016). To increase the investors’ confidence one again, Congress created the Sarbanes-Oxley Act of 2002 to prevent future frauds…

Fraud and dishonesty are both issues that are inevitably faced in jobs and workplaces every day all throughout the world. These two issues are not to be taken lightly and should be taken care of immediately when there are any occurrences. Fraud and dishonesty can be present in any workplace no matter what the field. When it comes to the field of Community Health and Public Health, there are many instances in which fraud and dishonesty can play a role within the workplace. One of the biggest…

Revenue Recognition Changes Caused Fraud Revenue Recognition standards as we all know has been codified or updated several times in an effort to improve the usefulness and relevance of the reporting information. The trial and error concept of identifying what criteria works across business industry in recognizing revenue instigate several opportunities. The fact that there is not going to be a general standard on recognizing revenue that is commonly suitable to all business types turn out to be…

For employee fraud case study, I chose the Nathan John Mueller’s embezzlement scandal. As an accounting manager of ING Reinsurance Corporation (a major financial service company) in Minnesota, Mueller stole almost 8.5 million dollars from the company from 2003 to 2007 (“Mueller Gets 8 years for $8.5 million ING Fraud”). The way he orchestrated the fraud was surprisingly rather simple. Mueller accidentally found out that ING gave him and another co-worker the authorization to request and approve…

Puerto Rice. The beginning stages of this national news accounting fraud began in 1996, where the company’s Chief Executive Officer, Richard Scrushy, and several of the company’s Chief Financial Officer’s stole more than 2.7 billion which surfaced in 2002 after the company’s CEO/Chairman sold over $100 million dollars in stock just days before reporting a large loss to its shareholders. The year 1996, was the year that started the fraud, when the company missed its earnings target. Although the…

White Collar Crime: Bernard Madoff’s Ponzi Scheme We have all heard of a Ponzi scheme and may know of someone who has fallen victim to this type of fraud but we may not all be familiar with the definition of a Ponzi scheme. A Ponzi scheme is an investment fraud in which funds from a new investor are taken to pay an existing investor an alleged return on their investments. New investors are recruited by being guaranteed high return rates with little to no risk for loss. The organizer of the…

pay 20 million dollars in a limited partnership but NatWest only received 1 million. The rest of the money went to executives of ENRON and some employees of NatWest that were in on the deal. Many executives were charged with fraud, money laundering, securities fraud, mail fraud and conspiracy. One term we learned this quarter was the “Sarbanes Oxely Act” in 2002. This act was created in response to the ENRON scandal “to protect shareholders and the general public from accounting errors and…

In what is considered one of the largest fraud cases in history, Bernard L. Madoff stole billions in not only savings, but investments and retirement funds from a wide range of individuals, businesses and not-for-profit foundations. The size and scope of this scam went way beyond anyone’s knowledge of occurrence at the time and ultimately caused a widespread financial crisis for all victims involved. Bernard Lawrence Madoff, American stockbroker and investment manager, graduated from Hofstra…

In 1939, the term “white-collar crime” began to be associated with frauds committed by business and government professionals. The phrase was mentioned during a speech given by Edwin Sutherland to the American Sociological Society. Sutherland defined “white-collar” as “a crime committed by a person of respectability and high social stats in the course of his occupation” (White Collar Crime). However, white-collar crimes are described in various ways. The Justice Department characterize…