Securities fraud

Ergo, do corporate governance frameworks of organisations need to take action to cover the fraud risk of Ponzi schemes? On initial consideration one would think it unlikely, as organisations can be expected to have reasonable investment insight, business know-how and resources for active investigation. Nonetheless, even though one would assume…

to combat fraud and abuse. In 2015, Horizon Blue Cross Blue Shield’s Special Investigations Unit (SIU) -- generated $43.2 million in savings -- identified as a combination of monies recovered and losses avoided – and opened 988 new fraud cases. Since 2005, Horizon’s anti-fraud efforts have saved members $290 million. “It takes the right intelligence tools, a no-tolerance approach and highly skilled investigators to accomplish the SIU’s primary objective, which is to detect and stop fraud…

Small Business Fraud Fraud has become a major issue in the world in which we live today. Many would argue that fraud is quickly becoming a norm in today’s society. This abstract and false view on fraud has made its way into the business world and has created an idea that fraud is an acceptable and necessary part of living, specifically within small businesses. The unique aspect of small business fraud, is that the fraudster is possibly an employee within the company. To simply state that small…

accounting firms, failed their duty as auditors and overseers of the accounting profession. As external auditors, they have a duty to detect any fraud and irregularities and fell short of that duty. Instead, the well-known accounting firm simply stated that it “was unaware of a break in accounting rules” (Accounting Web, 2002). After a $3.8 billion fraud, Andersen responded by saying, “Our work for WorldCom complied with SEC and professional standards at all times. It is of great concern that…

with violating anti-fraud provisions of the Securities and Exchange Act and ‘aiding and abetting the reporting, record keeping and internal controls provisions of the Exchange Act.’ Between 1999 and 2002 their revenues increased from $44 million to $64 million primarily from the Veterinary Division that accounts for over 50% of Virbac’s total revenues. Their stock rose from 1.125 to 8.35 from 1999 to 2002, respectively. The following Virbac employees were involved in the fraud; Thomas L.…

Abstract: A truck scale fraud occurred in Pratt Recycling recently. There was collusion between the scale operator and several peddlers. The operator overstated the net weight information on the weight tickets and would create fictitious weight tickets when no weighing had taken place. Pratt started to require more documentation from peddlers and updated an automated scale system. Moreover, Pratt strengthened its monitoring process and adopted other internal control methods. Also, Pratt…

Button, M., & Gee, J. (2012). The scale of health-care fraud: A global evaluation. Security Journal, 25(1), 76-87. This article points out the seriousness of health care fraud by providing the findings from a survey of fraud and error loss measurement in the health care areas of six different countries. Health care fraud is a blue collar crime that has seen a rise in recent times. This article points out that the legal definition of fraud; is defined as false representation abuse of position…

grandparents is a common imposter scam that is a form of telephone fraud where the imposter poses as a family member phoning the grandparent claiming they are in trouble and urgently need money [2]. A number of different scenarios can be implemented such as, car accidents, drug charges, etc [2]. They are prompted to wire money to the family member and often instructed not to tell other members of the family. The biggest security measure that can be taken to protect those targeted in imposter…

White-collar crime refers to a nonviolent crime that is financially motivated and committed by any business or government official to obtain profits for personal advantage. (Buell, 2014). White-collar crimes ranges from fraud, Ponzi schemes, forgery and insider trading, a substantial amount of all white collar crimes offender’s live by privilege and power (Evertsson, 2013). Although, numerous amounts of white-collar crimes and offenders are caught by law enforcement, a substantial amount of…

prevented or detected early on. In chapter three of Financial Services Anti-Fraud Risk and Control Workbook, it gives examples of preventative techniques. First, to understand the weakness within an organization it is important to look at the red flags; the red flags can help show the vulnerabilities that a company has via a fraud risk assessment. The textbook mentions standard preventative techniques beginning with Anti- Fraud Policies. Policies are important to implement because the mold the…