Fraud Case Study

Fraud Case Study
Freddie Mac Fraud
Thanaphan Darnsomboon
PME604 Project Financial Management
National University
December 18, 2012
Freddie Mac Fraud The definition of fraud is "an intentional deception or deceit, perpetrated for
profit or to gain some unfair or dishonest advantage" (dictionary.com). Fraud is a breach of law and
can be punishable by law. Mortgage fraud is one of the financial crimes where a company materially
misrepresents or omits information on its mortgage loan documentation in order to secure a loan
larger than what is actually required for the business. It could be perpetrated by one or more
participants, including the borrower, real estate agent, loan officer, appraiser or multiple related
parties. Fraud not only destroys a ... Show more content on Helpwriting.net ...
Loan level misrepresentation might include fabricated employment, income, or asset documents.
Consumer and mortgage debts might not be disclosed on the application. The sources of funding
might also be misrepresented. Usually, the recorded owner should always be the same as the person
on the contract, who sells the property, title documents and appraisal when conducting a purchase. If
the person who sells the property or the person who borrows is not the same as the owner on record,
the loan needs to be reinvestigated to ensure the legitimacy of the transaction. Identify theft is
generally used when dealing with impersonal real estate agent, loan officers and appraisers (Freddie
Mac, 2012).
There are numerous types of fraud, such as builder bailout schemes, condominium conversion
bailout schemes, property flips and multi–lien frauds. The builder bailout scheme occurs when the
sales speed in the market is slowing down while the builders and developers want to transfer
property quickly. Condominium conversion bailout schemes occur when the builders and developers
want to transfer units quickly and there is a depression on the real estate market. Property flips
happen when certain properties have changed ownership numerous times in a short period of time. It
becomes illegal when a property is purchased and resold frequently at an artificially inflated value.
Multi–lien fraud occurs when multiple loans for the same house are secured
... Get more on HelpWriting.net ...

Disability Fraud
25.7% of Nebraskan veterans reported a VA service–connected disability in 2013. Our article was
about Veterans Affairs (VA) and disability fraud. We have summarized our article, connected it to
something in our textbook, and discussed a related article. We have also given our opinions on the
significance, the impact on the company, and the lessons learned. This article starts by a veteran
explaining his call to the VA. When he asked what he could expect at his appointment, a VA
employee told him he would get more benefits if he acted "like you have a screw loose in your head,
wear clothes with holes that haven't been washed in a while and act like you've been homeless."
Critics say the VA has been cutting corners to increase the amount ... Show more content on
Helpwriting.net ...
No one is or will be happy with what the VA does. In the VA Scandal article, people are upset that
the veterans have to wait so long to get a disability claim. In our disability fraud article, People are
upset that the veterans are not getting the time they need to fully examine their claims. This then has
an impact on the company. People view the VA in a negative light because they see that they are
conducting disability fraud. However, this does not change whether veterans go to them for benefits.
There are some lessons to learn from this: the VA needs to fix their problems. They need to take
more time to process claims and do a better job of rooting out fraud. We all agree that the VA is
directing disability fraud, and we do not agree that it should be

Why Fraud Is Fraud
Fraud is defined as misinformation by a person of a material fact, known by that person to be
improper or made with negligent indifference to whether the fact is true, with the intention of
deceiving the other party and with the result that the other party is injured. Constructive fraud differs
from fraud as defined above in that constructive fraud does not involve a misrepresentation with
intent to deceive, gross negligence on the part of an another injured party.
The fraud has two different kinds, un–management fraud and management fraud. The un–
management means individual fraud is the company's employee use the defect of the management,
illegal to get assets from the company, it has some ways to get the assets, forged documents,
complicity or collusion with others. It commonly the employees use their duties to make some profit
for themselves from the company. When the company loss internal control, the individual can
commit the fraud, this is dishonest. The defect of the internal control is the circumstance for these
individual fraud. The company has this background, even ... Show more content on Helpwriting.net
...
Opportunity to commit fraud is possible, the fraudsters believe that they can commit and it not be
discover. Employees have the opportunity to access the assets and information, so the people who
can access may commit fraud. That beside the company's weak internal control. The managers have
become more responsible of employees. That will led the more opportunities to access the assets, the
more control of companies. Committing fraud through use of people's position normally happens,
beside assets are necessary for a staff to complete his job. Opportunities to commit fraud can
increase the ratio about the company fire employees, it also created by poor management agreement
oversight and use the people who is positive and authority. Company should make a clear supervise
system to measure the people who corruption in high

Example Of Fraud Awareness
Creating awareness is process used to make people know that information is available and how to
deal with fraud /corruption if they hear about the matter to assist Bow Treasures in preventing fraud
and corruption.
Fraud awareness will assist Bow treasures in preventing fraud through Bow Treasures will be able to
reduce the likelihood and the impact of losses which can be incurred if fraud affect their
organisation.
Bow Treasures can create awareness by involving :
Employees : which are those who work within the Bow Treasures ;
Customers :Which are those buy products or benefit from the services/product offered by Bow
Treasures ;
Suppliers : those providing goods and services to Bow Treasures ; and
The community at large where

Financial Fraud, And Identification Of The Different Fraud...
It is important to first gain an understanding of the various types of fraud, in order to aid
understanding in regards to the prevention of fraudulent activity. This paper begins with a review of
the definition of financial fraud, and identification of the different fraud types. Further, included is
an examination of what motivates individuals to commit fraud, including an identification of some
of the method in which people commit fraud. A discussion of the importance of the fraud triangle,
and how rationalization contributes to fraud is a key area of focus. Finally, there is an examination
of some controls that prevent and detect fraudulent behavior, including the value and importance of
understanding the nature of fraud for ... Show more content on Helpwriting.net ...
In fraud committed against organizations, the victim of fraud is the employee's organization. In
frauds committed on behalf of an organization, executives usually are involved in some type of
financial statement fraud; typically, to make the company's reported financial results appear better
than they actually are. In this second case, the victims are investors in the company's stock. A third
way to classify frauds is via the use of the ACFE's occupational fraud definition, "the use of one's
occupation for personnel enrichment through the deliberate misuse or misapplication of the
employing organization's resources or assets" (ACFE, 2010). The ACFE includes three major
categories of occupational fraud: asset misappropriations involves the theft or misuse of the
organization's assets, corruption involves the wrongful use of influence in a business transaction in
order to procure benefits contrary to their duty to their employer, and fraudulent financial statements
involving falsification of an organization's financial statements for personal gain. Occupational
Frauds Employee embezzlement is the most common type of occupational fraud, and can be either
direct or indirect. Direct fraud occurs when the employee steals company assets such as cash, or
inventory. Indirect fraud occurs in instances where employees take bribes or kickbacks from
vendors, customers, or others to provide allowances such as lower sales prices,

Casino Fraud
Computer hackers became prominent in the 1980's when the FBI investigates breach of security at
the National CSS. When an employee of the National CSS revealed his password cracker, the
company chastised him not for writing the software but by no telling them sooner of the security
weakness and vulnerability.
Head honcho of Israeli, Gery Shalon, a 31–year–old from the Republic of Georgia in an organized
cyber crime operation was involved in stock manipulation, money laundering, gambling and more
that spread like cancer in a global scheme. According to US authorities there is nothing that even
remotely comes close to corporate hacking than that of the global crime syndicate for the digital age.
Federal prosecutors defined it as a mob operation involving more than 100 people in 12 countries
with proceeds reaching into hundreds of millions of dollars. His hacking enterprise included running
pump–and–dump stock schemes, credit card fraud, fake pharmaceuticals and running ... Show more
content on Helpwriting.net ...
On one Casino affiliate site an email reply from the finance department at Classy Casino in regards
to non–payment complaint had this to say:
We would like to inform you that after reviewing your user activity which is based on your deposits
during last 30 days, your withdrawal request was not approved at this time.
Organized crime takes a modern turn, far removed of an era of bootleg liquor or drug lords and
illegal video poker machines labeled deceptively "for fun only". There is no small time muscle man
waiting in a car who rolls down the black tinted windows with a not so nice warning or hit man
ordered by the Godfather to "take care of it". These type of hoodlums still exist but there is a far
more sinister criminal injustice that wreaks havoc in large volumes with potential to cause global
implications.It is this type of powerful capabilities we shutter at the mere thought of "what

Fraud: Early Warning Signs of Fraud Essay
The early warning signs of fraud are, usually, always ignored. There are warning signs for every
type of fraud out there. To understand the warning signs of fraud, we must first know what fraud is.
Fraud is the intent to trick someone or lie to someone in order to receive financial gain. This
definition varies depending of the type of fraud used, but the person committing the fraud is always
looking for financial gain. There are many types of fraud out there. You have Medicare fraud,
internet fraud, mortgage fraud, loan fraud, tax fraud, embezzlement, forgery, insurance fraud, and
marriage fraud. These are only a few types of fraud. There are many more types of fraud out there
and new types of fraud are being committed every day. This ... Show more content on
Helpwriting.net ...
Tax payers are putting money into Medicare throughout all of their working life and are expecting it
to be there to help provide for the elderly who need it. The physician never pays taxes on any of the
money that Medicare has sent him. Patients that see that physician may feel less secure and switch
to other doctors if a fraud has occurred. One way this fraud is detected is when, "the unknowing
physician gets a call from the Internal Revenue Service" (3). For the fraud to occur, all the thief
needs is to obtain the physician's ID or obtain a physician's prescription pad. The physician's ID,
business address, and medical license can be obtained through hospital files. The prescription pad
can be obtained at the physician's office. Once the physician's ID, business address, and medical
license are stolen it can be sent to, "the state health department to obtain Medicaid provider
numbers" (3). The thief will also change the address of the business. Patient information is also
important to be able to bill Medicare or Medicaid. The reimbursement checks are sent to the new
addresses and the thief forges the physician's signature. The thief may use the prescription pad to
prescribe unauthorized medicines. Sham clinics are also set up by thieves to write illegal
prescriptions. A few warnings that a fraud is occurring is when you notice prescription pads are
missing. If the Internal

The Serious Fraud Office
Under normal circumstances, I would have considered some other stakeholder, like employees or
customers, however I felt it was best to analyse how the actions of Barclays has affected the amount
of interest regulatory authorities, specifically the Serious Fraud Office (hereby referred to as the
SFO) has taken in the company. Regulatory authorities in general, fall into Zone C of Mendelow's
matrix, as discussed previously. They wield a high level of power and thus have the ability to
massively effect the running of a business if they so wish to do so. Under normal circumstances
these entities have a low level of interest in the everyday activities of a company. However the
number of corporate scandals such as the LIBOR rate rigging, has drastically

Healthcare Fraud
Fraud is a serious crime that should concern all parties of the U.S. health care system and is a costly
reality that the government cannot overlook. While not all fraud can be prevented, by learning about
the many different types of fraud, patients can be educated on how to protect themselves from fraud.
If we use government programs to inform the public that they can be targeted, the dollar amount for
these cases for fraud can be reduced. An informed public and a properly funded FBI will go a long
ways in the overall crackdown of health care fraud.
The Federal Bureau of Investigation is spending large amounts of its budget to crack down on health
care fraud. Special units have been formed to help the FBI Crimes Section find these ... Show more
Yet, with all of this positive marketing for new surgical procedures, the lack of knowledge of
potential patients is being taken advantage of on a routine basis. Hospital administrators are now
trying to find more ways to get their physicians to get more work in order to add to the hospital's
bottom line. Physicians are feeling the pressure from management to get as much work done as
possible and they are burning themselves out (Health Care Fraud 1).
The Federal Trade Commission and the Food and Drug Administration have advised people that
they could be prime targets of health care fraud if they have one or more of the following
conditions: cancer, AIDS, arthritis, multiple sclerosis, diabetes and Alzheimer's disease. People with
these conditions need to be up to speed on the coverage of their insurance and if they can qualify for
government programs. Cancer is one disease that shocks a person mentally as soon as it is
diagnosed. Feelings of death can sometime impose improper judgment by those that have been
diagnosed and can lead to poor planning for the attack on their cancer. "Miracle" cures need to be
questioned before one jumps to a conclusion that probably won't cure them and could leave them
with a huge hole in their wallet. If one is willing to try such cures, they should enroll in clinical
studies that are endorsed by the FDA. An HIV or AIDS

Flowvent Fraud Essay
1. Plan
I will begin by constructing my fraud assessment team, ensuring it consists of a few senior human
beings. Then, coming together we set some goals that are particular, measurable, workable,
applicable, and timely. We write down what the definition of success seems like after which we
speak our intentions throughout the business.
2. Identify
Here, I will identify the risks that Flowvent faces such as the embezzlement of funds, procurement,
disbursements among others. My team will help me establish all the available fraud risks by
collecting information from the Flowvent employees through questionnaires.
3. Assessment
After identifying the fraud risks, I can then examine the potential damage which have been caused
by the fraud activities in Flowvent. There is need to do a cost–benefit analysis of the risks and then
determine the right procedure to deal with ... Show more content on Helpwriting.net ...
Communicate
Its then the time to compile a report of the identified risks and what is currently done in order to
attack them, and what is done to prevent the risks from occurring in the future. I will then let the
stakeholders to know what I have not done including the deficiencies in it.
6. Implement
This involves putting in place what the I have planned and the controls not forgetting the directive,
the preventive, and the response plans.
7. Monitor
Here I will then track all the measures that I have put in place and analyze how effective they are.
Recommendations
Flowvent need to come up with the compliance department so as to ensure that all that is done by
the stakeholders is right. The company should employ more workers so that they can have enough
time to monitor what is happening and identify any possible fraud risks that can occur. The company
should also come up with fraud risk assessment team who can be able to conduct assessments every
financial year and make a full report. A formal fraud or compliance training should be given to all
the employees who are recruited to Flowvent

Kmart Fraud
The Kmart fraud was the result of improper recognition of vendor allowances and improperly and
fraudulently recognized customer rebates. Kmart's historical accounting policy for vendor rebates
did not comply with GAAP and the financial statements misrepresented and misled investors about
the Company and its accounting. In order to meet senior management's earnings expectations,
Kmart began obtaining allowances from their vendors for various reasons including marketing and
promotional reasons. The allowances were recognized early and then "pulled forward" to change
earnings (prior to Oxley act, GAAP in FASB's Concepts Statement No. 5, ¶ 83, provides that
revenue should not be recognized until they are earned). The accounting department was

Virtual Relationship Fraud
Virtual Relationship Fraud 2.0
Introduction
Deception is one of the most highly discussed terms within the modern day society; the awareness
between deception and communication technology has raised many questions regarding deception
and technology, also known as 'digital deception'.
Research Questions
The questions this paper will research are societal issues concerned with deception and self–
presentation. 1) How can the Internet facilitate deception through the manipulation of identity; 2)
how are lies produced; do they differ in Internet conversations used to form intimate relationships?
Do different media vehicles cause more intentional forms of lying; 3) is there a way to detect digital
deception in different online communication spaces? In which situation is it more difficult to detect
lies in a text–based or face–to–face interaction? What factors affect our ability to determine these
deceptions?
Motivation
In order to further develop the motivation behind this fascination, I will question the reasoning
behind digital identity fallacies, and what steps are/can be taken in order to prevent this misuse of
online dating communities. In order to fully prepare an argument that has been structurally
constructed based on previous researchers evidence, I have incorporated many sources that have
addressed the topic of digital deception and "catfishing" before developing my own research.
Methodology
Digital deception refers to the intentional control of information in a

TADA Fraud Hotline
In the decade following entry of TADA, reports of data fraud exploitations to the FTC surged. In
2001, customers documented 86,212 protestations. After three years, the number announced
expanded about 250% to 214,905 grievances (FTC, 2007). Information from other government
offices and private associations likewise bolster the claim that data fraud has risen exponentially
since 1998. The Social Security Administration's (SSA) Fraud Hotline got roughly 65,000 reports of
government disability number abuse in 2001, more than a fivefold increment from around 11,000 of
every 1998 (U.S. Department of Justice, 2000). The Privacy and American Business (P&AB) study
report that the rate of wholesale fraud relatively multiplied from 2001 to 2002 (Morris ... Show more
Despite the fact that not as long–running and broad as the FTC's information accumulation program,
the ITRC has led yearly exploitation overviews since 2003, yet these studies are restricted to
affirmed casualties of wholesale fraud who have worked with the ITRC. Furthermore, CALPIRG
has directed an investigation of cops and their encounters with data fraud cases (Anderson, 2006).
More seasoned people, especially those matured 75 and more established, and people in the
Mountain states are in any event chance for exploitation. Instructive fulfillment and marital status
had no impact on the danger of exploitation (Anderson, 2006). The NCVS detailed that families
headed by people ages 18– 24 were well on the way to encounter commercial fraud, while family
units led by people ages 65 and more seasoned were most drastically averse to face it. Families in
the most elevated level of pay, those procuring $75,000 or more, were additionally well on the way
to be deceived (White & Fisher,

Accounting Fraud And The Financial Fraud
Introduction
WorldCom CEO Bernard Ebbers, former partner said "He didn't know anything about the long
distance or telephone business, but he knew how to read numbers, he was a number cruncher."
("Inside") This should have been a warning sign to those investing in the company that Ebbers
wasn't the best choice to run the 2nd biggest telecom company in America. WorldCom was just one
of many accounting frauds that took place in the early 2000's. But unfortunately that trend of
dishonest accounting didn't stop. The reason behind writing this report is to examine the $11 billion
accounting fraud the biggest in US history, the collusion between Ebbers and the CFO Scott
Sullivan to deceive investors, causing the loss of thousands of jobs and costing investors billions of
dollars. Hopefully covering this event thoroughly will make other CEO's think twice before stealing
investors' money. Getting in over his head: The fraud and the storm that followed
In 1983 Long Distance Discount Services, Inc(LDDS) was founded in Jackson, Mississippi by
Bernard Ebbers and Maury Waldron. Through the 1980's LDDS purchased many of its competitors
throughout the southern United States making it one of the largest Telecom companies in the world.
In 1995 Ebbers now CEO changed the name of the company to WorldCom and acquired a much
bigger firm MCI in 1998 the largest corporate merger in the US (Lyke 2). One year later WorldCom
tried to take over Sprint which would have made it the biggest telecom

Enron 's Financial Fraud And Corporate Fraud
Years ago, a series of financial frauds and collapses was occurs in United States. Includes Enron,
Global Crossing, Worldcom, Healthsouth, AIG and Lehman Brothers scandals. In the American
capital market, the investors abandoned a number of large listed companies leads to the bankruptcy
for those companies. The corporate frauds not only deceive investors, but also make oneself paid a
heavy price. At the same time, it not only harm the capital market, but also caused a significant
impact on American that resulted in regulation changes. These purpose of corporate fraud and
reason are different, which Enron's financial fraud is typical event and influence accounting filed
lots. Because Enron is the beginning of the series of financial frauds in American, and secondly is
form growth to the bankruptcy of Enron, has attracted American media and public, the third reason
is Enron's event also lead to the world top five accounting firm Arthur Anderson collapses. Enron
was one of the world biggest electricity and Gas Company, before it announced bankrupt. The sales
amount in 2000 was reached 101 billions American dollar, and the company was rewarded as the
most innovate companies in United States in six year terms. However the truth make Enron's
famous all over the world is that company was bankrupt in several weeks in 2002 after it was
disclosed the company's institutionalization of systematic financial fraud scandals for years. Since
then, Enron was a symbol of corporate fraud

Fraud Is Wrong
If I was working in a company for many years and I found out that someone was doing something
inappropriate for the company I would first gather evidence to back up myself. It is hard to protect
yourself from your employers when the person who is doing inappropriate things in the company is
a family member of the owner or superior. Sometimes family members of the owners of companies
are the ones that do more inappropriate things than the workers.
In most of the cases, family members of the owner's company still money from the company or send
private information to other companies. The reasons why these people commit fraud to their own
family is because they are ambitious and they want all for themselves. Unfortunately, the ambition
of this people not only harm the owner of the company, but also the employees of the company.
Since these persons don't want to pay for what they did, they blame an innocent person. When the
owners of the companies found that someone is committing a fraud in their company they open an
investigation to find the responsible. However, the responsibility of the fraud falls to an innocent
person. Because the persons that commit the fraud is an intelligent person and somehow finds the
way to blame others and wash their hands. ... Show more content on Helpwriting.net ...
First I would gather the appropriate evidence to protect me from anything or from anyone in the
workplace. If you have evidence it is more likely that others are going to believe you than when you
don't have any evidence. There is a metaphor in Spanish that says "papelito habla" which means
papers talk. This means that if you have the evidence on your hands you are powerful. Another
important aspect to gather evidence and tell the truth would be professional ethics. As a professional
person, you should have high standards of principles and values. This means that you must follow
certain professional ethics to complete your work with

Fraud And The Health Care Fraud Essay
On November 21, 2013, Theanna Khou pleaded guilty to dispensing and selling OxyContin from his
Huntington Pharmacy without medical necessity from fraudulent prescriptions issued by a clinic ("
Health care fraud investigations," 2014). Khou billed Medicare for filling prescriptions that patients
never received. This story is becoming a norm for the health care industry, because the growing
financial prosperity of the health industry. Corruption and crime is changing, turning from drug
dealing to a safer haven that has less legal management, organization, and more wherewithal the
business of health care fraud.
Health Care Fraud Fraudulent misrepresentation (fraud) is defined as the intentional deceit for
personal gain (Clarkson, Miller, & Cross, 2012). Fraud occurs when a person knowingly represents
an intentional deception as a fact to gain benefits they are not entitled. The boundaries between
fraud and abuse seem to be confused; the degree of intent distinguishes fraud from abuse. Under
HIPAA, it is considered a felony to intentionally implement a scheme to "defraud any health care
benefit program or to obtain money or other property owned or controlled by a health care benefit
program by means of false or fraudulent pretenses, representations, or promises" (Shepard, 2004,
para. 1). Health care fraud is an intentional act to deceive in order to receive greater reimbursement
for services, whereas health care abuse is conduct which is not consistent with acceptable

Mortgage Fraud Essay
Mortgage Fraud
Table of Contents
Abstract 3
Mortgage Fraud 4
Mortgage Fraud Statistics 4
Reports of Fraud 5
Key players in a real estate & mortgage transaction 5–6
Factors for Mortgage Fraud 7
The Fraud Triangle 7
Common Mortgage Fraud Schemes 8
Who are victims of mortgage fraud? 9
How to avoid becoming a victim of Mortgage Fraud 10
How to report fraud 11
Mortgage Fraud Indictment 11–12
Conclusion 13
References 14
Abstract
Since the housing market bust, there has been an explosion in the number of federal investigation of
mortgage fraud scheme across the country. Mortgage Fraud is a violation of state and ... Show more
Real estate agents draft the agreement of purchase and sale and make sure everything is up to par for
closing. They receive commissions from the seller. Their fraud usually concerns falsifying the value
of the property.
Lender – is the financial institution that approves the borrower loan application in order to acquire
the home. In most cases the lenders are the financial victims.
Mortgage Brokers – may or may not be involved in obtaining financing. Their involvement is at the
discretion of the borrower. Mortgage broker may act for both the seller and borrower. They can
assist the applicant in completing the loan application submitted to the lender as well as collect and
review the various documents needed to support the applications. Mortgage brokers are paid fee or
commission by the lender; therefore they are influenced to close as many loans as possible.
Appraiser – asses the market value of a property so that the value of the property is within the
lender's loan guidelines. They researched information on the property such as the legal address,

description, assessment, property tax and age of home. Appraisals are estimates and are subjective in
nature. They are hired by the mortgage company and paid at closing. If they are party to mortgage
fraud they will inflate the value of the property.
Title Company – Protects against future title claims and ensure that the home has a free title in order

Payroll Fraud
When making the statement "Our consulting engagements vary depending upon the industry of our
client as well as the departments if specific ones are selected for evaluation," Peggy simply meant
that every case is individual. There is not on answer that fits every client. Peggy provides risk
assessments for fraud and internal controls. All companies risk fraud in different areas and in
different ways. For example, in a big company with many employees, payroll fraud might be an area
determined a risk for fraud and internal controls such as, strict assignment of responsibilities and
segregation of duties, might help to lower the risk of fraud. Whereas, in a small company with very
few employees it would be quite difficult to perform payroll fraud ... Show more content on
Helpwriting.net ...
For example, I worked for Mack Molding for 3 years. The first year I was in molding as a machine
operator of plastic mold injection machines. We would create products off all kinds, from vapotherm
– a baby breathing apparatus machine – to plastic storage crates. When running the molding
machines, you would have to keep record of all parts made, even if they were rejects. There would
then be another employee responsible for filling the hoppers with the plastic pellet material you
needed to mold your products. The materials person would have to keep record of all materials
supplied for each individual machine. Not only did they record what materials went to what
machine, but they had to designated it to a particular job number. Along with recording the delivery
of materials, you also had to record who made the delivery. Just like material when the final or
rejected products where recorded there had to be a record of which employee was running the
machine. As orders were filled the records of materials supplied and parts made would be compared,
if a significant higher amount of materials were being recorded for disbursement then needed to
make recorded number of made product, further investigating would be

Fraud In Nonprofit Organizations
Nonprofit organizations are associated with goodwill and helping mankind. Because of this, many
people do not think that fraud is a concern in this sector. However, the average nonprofit
organization does not have strong governance in place. This is due to their erroneous assumption
that their staff and volunteers would not take advantage of the organization and profit individually
from the organization's funds. Internal controls, very common in for–profit organizations, can help
these organizations prevent any fraud by conducting employee background checks and by reducing
internal theft opportunities through segregation of duties.
Nonprofit organizations are generally associated with goodwill and help for mankind. Because of
this perception, ... Show more content on Helpwriting.net ...
G., Kelly, J. A., & Buckhoff, T., 2010). Having an ethical tone at the very top of the organization is a
simple, cost–effective governance measure to implement (Daugherty, B., & Neely, D. G., 2012).
This can be accomplished through fraud training, audits, and an anonymous hotline to report fraud
(Daugherty, B., & Neely, D. G., 2012). Involving CPAs for auditing functions can provide more
scrutiny and accountability for the employees of the nonprofit organizations, which can help in
detecting and deterring fraudulent activities (McNeal, A., & Michelman, J.,

Fraud Is A Global Problem
Fraud is deliberate deception to secure unfair or unlawful gain. Fraud is both a civil wrong (i.e., a
fraud victim may sue the fraud perpetrator to avoid the fraud and/or recover monetary
compensation) and a criminal wrong (i.e., a fraud perpetrator may be prosecuted and imprisoned by
governmental authorities).
Fraud is not prejudice; culture, ethnicity, and religion, are not factors in determining who will
commit fraud. Finding fraud can be difficult. We 're constantly reminded at every client
consultation, audit, fraud and accounting conference we attend that fraud is inherently hidden.
Deception, alteration, fabrication and the destruction of documents seems to be the norm for all
fraudsters, yet qualified anti–fraud professionals can ... Show more content on Helpwriting.net ...
These policies and procedures should include, a written fraud management program, ongoing fraud
risk exposure review, prevention techniques, detection techniques, fraud brainstorming, and a
reporting process that involves all employees .
II. Business Challenge
Our clients by their very nature are entrepreneurial. Through drive, will, and determination they
developed and grew their organizations. The traits that made them successful, such as drive and a
focus on growth, are reasons for their success. An area where many entrepreneurs lack the skill–set
or time to address is the creation of the policies and procedures that many large firms have in place.
In many cases this is one of the reasons they hired CFO Strategic Partners. Unfortunately, the lack
of strict policies and procedures can make them most susceptible to fraudulent activities.
From being overcharged for supplies to time cards that inflate hours worked, over 97% of
companies with fewer than 100 employees have experienced some sort of fraud within the last year.
The ACFE's 2014 report describes that, on average, companies with fewer than 100 employees
suffer an average loss of $154,000 compared to entities with 1000 – 9999 employees with an
average loss of $100,000 due to the differing levels of occupational fraud existing in the
organizations. Occupational fraud costs the typical organization 5% of revenues annually.
Occupational

Payroll Fraud Case
I agree with Rebecca Backman about a possibility that the fraud was committed by someone in the
payroll department. I also think if this is not the case, it can be either by an employee submitting
fictitious vendor invoices that contain specific banking information to wire funds or by an outsider
that knows specifics log in and passwords of the company's online banking profile, such as someone
from the Board Members or someone from an outside accounting firm hired by the company.
In the first place, why is the Payroll Department taking care of all vendor contracts? As a matter of
fact, the payroll employee handling the vendor contracts has the opportunity to be the one
processing fictitious vendor contracts and creating invoices to match ... Show more content on
Helpwriting.net ...
We need more information to determine the shortage of funds in the company. If the fraud
committed was orchestrated by someone from the accounts payables department, then probably one
of the "employees" created a fictitious vendor in the company and made up the invoices for services
or inventory and process payment to the fictitious vendor.
Knowing that everything is tracked in the company and none of the top 5 administrators committed
the fraud. Then, probably the fraud was committed by an outsider that knows banking information
from the company. This could be someone from the accounting firm use to audit the company's
financials.
During a fraud examination process. I would start by reviewing pay rates of the 125 employees in
the company. Examine payments made to employees and payments made to vendors, then vendor
invoices and match vendor invoices with contracts. See who is signing the vendor contracts. Review
the internal controls policies of the company and read upon who should be the one signing off on the
vendor contracts. The person handling the vendor contracts can be asked to take vacations. Then,
monitor the incoming and outgoing wire payments from the company's banking

Fraud And Fraud
INTRODUCTION
Fraud is a criminal act which involves deception to gain an unfair advantage more often financially
Bolton and Hand (2002:235).In this essay, fraud is discussed in relation to the critical paradigm
which Schichor (1980:14) believes is an over–simplification criminal behaviour as it is based on the
econo–political factor. Apart from fraud discussion, an analysis of possible fraud acts offenders as
well as the limitations of the critical paradigm is included in this essay. Typologies such as electoral
fraud seem to related well to the critical paradigm as the rich do define crime and laws protect them
at the poor's expense. However, fraud types such as E–tailing, insurance, wire and accounting fraud
are not committed by the poor in rebellion to the laws imposed on them by the rich as the paradigm
suggests. Zahra, Priem & Rasheed (2005.p. 804–805) say the managerial administrators commit
fraud more than the poor. Perhaps due to the poor's lack of information and advanced technology in
contrast with the rich's quest to get more wealth.
FRAUD
Bigelow and Melville (1887:419) acknowledge that fraud is showed in such interminable assortment
of structure and expression, in such complex and always showing signs of change camouflages
which challenges a specific ... Show more content on Helpwriting.net ...
Which perhaps proves the rich's dominance in eliminating fraud evidence and having the law work
in their favour. An example is in Afghanistan during the 2009 elections which resulted in the victory
of Hamid Karzai which the United Nations even noted was fraud through ballot rigging Tarvenise &
Abdul (2009:n.p). This shows how the rich exert their power and do not only define what is crime in
the society but have the final decision without considering the majorities, (poor) vote choice
confirming the critical paradigm theory on the rich making suitable laws at the expense of the

Refund Fraud
Florida AG accuses Clearwater firms of fraud in property deals. Two Clearwater businesses and
their president, alleging the companies defrauded consumers out of thousands of dollars in a land
buying scheme. The defendants charged upfront fees on average of $2,250 for brokering the deals,
sometimes promising to refund most of the money, but rarely following through on those promises,
a statement said. 34 people were paid about $70,000 to Scott and the two businesses.
Tampa man sentenced for credit card 'skimming' fraud. Dariel Sardinas Lopez, 22, of Tampa has
been sentenced to four years in federal prison for credit card fraud and ID theft, in relation to a card
number "skimming" scheme at local gas stations. Sardinas Lopez pleaded guilty in ... Show more
Two years after a federal grand jury charged the owner of a medical supply company in Largo in a
multimillion–dollar fraud scheme, that business owner has been arrested. Ubert Guillermo
Rodriguez, the president of G.R. Services Equipment and Supplies. The company claimed to
provide durable medical equipment to Medicare beneficiaries, but between the month of May and
July of 2013, Rodriguez caused G.R. Services to submit about $2.6 million in untrue and fraudulent
activities to Medicare for equipment that was not given by doctors and not provided to recipients,
the indictment

A Case Of Accounting Fraud
Another major case of accounting fraud driven by the desire to build and protect one's personal
financial condition is the WorldCom debacle. Bernie Ebbers had to show continually growing net
worth in order to avoid margin calls on his own WorldCom stock that he had pledged to secure
loans.
When WorldCom, the telecommunications giant, failed and was put into bankruptcy, the U.S.
witnessed the largest accounting frauds in history. Former CEO, Bernie Ebbers, was convicted of
orchestrating this accounting fraud and was sentenced to 25 years in prison in July of 2005. For
Ebbers, who is 63 years old and has a heart ailment, this will likely mean spending the rest of his life
behind bars for his role in the biggest corporate accounting fraud in US history. He was convicted by
a federal district court in New York of fraud, conspiracy and making false filings.
The fraud carried out at WorldCom amounted to a staggering $11 billion, far greater even than the
accounting manipulations at Enron. Thousands of workers lost their jobs and life savings after
WorldCom collapsed in the summer of 2002, and tens of thousands of investors were defrauded.
WorldCom made major accounting misstatements that hid the increasingly risky financial condition
of the company, by recording more than $9 billion in false or unsupported accounting entries in
WorldCom 's financial systems in order to achieve desired reported financial results.
In 1983, Ebbers formed Long Distance Discount Service (LDDS). The

Larceny Fraud
I recently finished a stint with the IRS–Criminal Investigation Division and I was exposed to some
of the principles we are talking about. Effective and efficient internal controls are paramount in
negating and mitigating the possibility of internal fraud.
A. Identify the people who have the opportunity to steal cash
Operation employee
Audit staff
Financial Manager
B. Identify ways in which these individuals can steal cash
There are many different methods used by employees to steal from a company. Often when you
mention employee theft, the first thought is of a cashier pocketing some money from the cash
register or a maintenance person stealing some items from around the office. While this happens,
there are many other ways that employee steal from the company. The most common types of
employee theft, as reported by the National Federation of Independent Business (NFIB)5, are:
1 Larceny/Embezzlement
2 Skimming
3 Fraudulent Disbursements
4 Stealing Business Opportunities
Each type of theft is committed in a different way and will be explained in detail in the next
sections.
4.1 Larceny/Embezzlement
Larceny is defined as the unlawful taking of personal property with intent to deprive the rightful
owner of it permanently. This is the type of theft that involves an employee outright stealing cash or
property from the employer. It is ... Show more content on Helpwriting.net ...
It is critical for small businesses to make sure that they maintain control over their company and
prevent this type of behavior ever being part of the corporate culture. It is important to know that
most employees are not inclined to steal and that 80% will only steal due to the opportunity and
likelihood that they will get away with it. This temptation can also be applied to business owners
and it is important to know the temptations that may arise and cause employers to illegally increase
their income as

Occupational Fraud Report
The Association of Fraud Certified Fraud Executives (ACFE) reported in their 2014 Report to the
Nations on Occupational Fraud and Abuse, that governmental and public administration
organizations have the second highest incidence of fraud in comparison to other organizations.
Further, the Brookings Institute found that governmental fraud directly impacts public finances by,
increasing public expenditures, and negatively impacting productivity, competitiveness, and growth.
Dekalb County Commissioner sentenced to fourteen months in federal prison and ordered to pay
$87,350 restitution for defrauding taxpayers. Former Chief Operating officer of Dekalb county
schools sentenced to prison for redirecting $1.4 million dollars to her ex–husbands ... Show more
The AFCE report found that fraud was detected via tip from an employee forty two percent of the
time. Understanding that fraud is most likely to be discovered and reported by one of the staff means
that the leadership of the organization should create an atmosphere of openness and the leaders
should be approachable. Additionally, it is imperative that the leadership is modeling the behavior
that they desire from the staff to clearly demonstrate what is acceptable or not in the organization.
Finally, the leadership should conduct periodic environmental scans to stay abreast of changes that
could potentially put the government at risk of employee fraud. For example, in the event of a
catastrophe such as Hurricane Katrina or construction of a new stadium could lead to increased risk
as contractors vie with one another for contracts.
The Role of organizational culture in preventing

Fraud, Specifically Corporate Fraud, Is A Common Occurrence
Fraud, specifically corporate fraud, is a common occurrence with a tremendous amount of precedent
– stories of high–level corporate executives committing and encouraging fraud in the name of
competition are constantly surfacing. A few of the more well–known perpetrators of fraud include
Jordan Belfort, Michael Milken, and Bernie Madoff. Corporate fraud is often thought of as a shady,
or unscrupulous, act committed by an ethically–challenged millionaire, with a tremendous appetite
for money and power, sitting comfortably in their corner office. The same person could be described
as being a, "twisted Robin Hood who takes from the rich and gives to himself and his merry band of
brokers" as former Forbes staff writer Roula Khalaf famously ... Show more content on
Helpwriting.net ...
The insatiable greed shown by fraudsters is acceptable since people should be able to legally earn as
much as they please, but in advancing their business practices past gray–area into illegal boundaries
is where punishment becomes necessary. More concise, not expansive, fraud laws should be
implemented in order to decrease the amount of gray–area present in corporate law. This makes
judgement and investigation of fraud clearer to investigators and judges alike.
Causes:
The risks and rewards of corporate fraud incline many to question what some motivations of fraud
are. The most evident motivating factors are certainly money and power. The corporate world offers
many lucrative positions that come with generous salaries, along with these benefits come nefarious
means of achieving ambitions. The fraud triangle is a well known tool created by Donald R. Cressey
which helps to, "explain the reasoning behind a worker's decision to commit workplace fraud" (HR
Zone, par. 1). There are three aspects designed to break down some motivating factors for fraudulent
activity. Pressure, or incentive, indicates a person must feel the need for the money they are
obtaining illegally such as insufficient revenue, low stock prices, or personal expenses. Opportunity
illustrates a person has the

A Business Fraud And Cybercrime
Both large and small companies require a certain amount of protection from fraudulent acts. To be
naive in thinking that fraud would never occur within a company would be reckless. There are three
key objectives when operating a business, whether large or small. These objectives include
prevention, detection, and response, and should be implemented into every company's operations.
When exploring preventative techniques, there are seven recommendations made by professionals to
reduce the most often seen attacks of small business fraud and cybercrime.
Most importantly a company should protect their assets, specifically their credit cards and bank
accounts. Credit cards and bank accounts are a common source of fraud and should be recognized as
the most important advice to adhere to (Beesley, 2013, para. 5).Professionals recommend
"separating your personal banking and credit cards from your business accounts – this will ensure
fraudsters don't get their hands on all your money. This will also make it easier to track your
business expenses and report deductions on your tax return" (Beesley, 2013, para. 5). It is also
recommended that credit cards are not shared with employees within the company. There are many
advancements in technology that allow for reduced use of having to tote around an actual credit
card, for example, bills can be paid in advance online (Beesley, 2013, para. 6). Along with online
bill pay, e–statements have also become available as well. If online

The Auditor and Fraud
EXPLAIN THE RESPECTIVE ROLES AND RESPONSIBILITIES OF MANAGEMENT AND
AUDITORS IN THE PREVENTION AND DETECTION OF FRAUD.
The primary responsibility for fraud detection lies with management. This arises due to a contractual
duty of care. Directors are able to discharge their duty toward prevention and detection of fraud and
error in many ways, for example: * Complying with the Combined Code on Corporate Governance
* Developing a code of conduct, monitoring compliance and taking action against breaches *
Emphasising a strong commitment to fraud prevention. This involves establishing a culture of
honesty and ethical behaviour within the organisation with clearly communicated policies. *
Establishing an internal audit function ... Show more content on Helpwriting.net ...
Typical rationalisations include:
I am only borrowing the money and will pay it back
Nobody will get hurt (perception of fraud as "victimless" crime
The company treats me unfairly and owes me
Its only temporary until my financial position improves
Everybody's at it!!
The extent to which individuals appear to be motivated by greed. Again, a difficult characteristic to
assess but the individual's concern with money and consumer goods may provide some clues about
this. If someone starts turning up to work in a brand new Ferrari, they may have won the lottery, or
benefited from the demise of a loving relative, or they could be up to no good!!
The degree of loyalty exhibited by an individual. If the individual has been with one firm a long
time, this may indicate a certain level of satisfaction with their employment and perhaps reduce the
likelihood of them committing fraud. You should, however, also be aware that experienced
employees, because they are trusted, might have a greater opportunity to commit fraud. Ernst &
Young Survey (2000) found that nearly half of the employees who defrauded their firms had been
employed for over five years. Also bear in mind that opportunities to commit fraud can arise when
an employee reaches a level of trust in an organisation or when internal controls are weak or
nonexistent. Then the employee if he or she is so motivated will perceive that there is an opportunity
to commit fraud, conceal it, and

Medicare Fraud Essay
Collectively, the Department of Health and Human Services and the Department of Justice work to
reduce healthcare fraud and investigate dishonest providers and suppliers. The Health Care Fraud
Prevention and Enforcement Action Team recouped almost 3 billion in fraud, this year alone. Also,
aggressive strategies exist to eliminate Medicare prescription fraud. Patients abusing or selling
painkillers received by visiting several doctors and obtaining multiple prescriptions costs Medicare
millions annually. Fraud affects everyone, preventing it requires government officials and citizens
diligently working together.
Protection from Medicare Insurance Fraud
Medicare provides healthcare coverage for individuals over the age of 65, in ... Show more content
on Helpwriting.net ...
Common fraudulent practices include billing for services never received, upcoding or unbundling of
services, and mislabeling. Billing dishonest services occurs anytime a healthcare provider charges
Medicare for a service the patient never received or billing for a more expensive service than
performed. Upcoding and unbundling, two examples of billing for a more expensive service
demonstrate this fraudulent practice. Simply put, upcoding occurs by billing more expensive codes
than the services performed, while unbundling refers to a "bundled" service broken down or
unbundled, allowing procedures billed separately to obtain a higher reimbursement than customary.
Mislabeling, the practice of substituting non–covered services or products with services or products
covered under Medicare guidelines also constitutes fraud. For example, a home healthcare company
commits fraud by mislabeling house cleaning services, not covered by Medicare, as a nurse visit in
order to receive payment. A pharmacy filling a patient's prescription with generic drugs and
charging for name brand drugs also represents mislabeling.
Identifying Fraud
Fraud identification requires Medicare patients actively monitoring healthcare services by recording
service dates and saving receipts and statements for all services. Monitoring allows easy verification
of charges and enables quick rectification of errors or in some cases, fraud. Patients noticing

Workers Compensation Fraud
Whether you're starting a new business or already in an established business, you need to know the
basics of workers' compensation insurance. Almost every business that has employees other than the
owner is required by state law to carry workers' comp. But you need to be careful in choosing a
policy. The fact is many insurance companies can get remarkably tricky when it comes to writing
policies – in their bag of tricks are such ploys as classifying the type of work your employees do
incorrectly, miscalculating so–called modification factors, and making a variety of other types of
mistakes which, oddly enough, result in insurance costs to you that are higher than they need to be.
Beyond needing to hold your own against your workers' compensation insurance carrier, there's
another reason to take a few minutes to learn more about this type of insurance, namely, fraud.
Workers' compensation fraud is the second largest category of white–collar fraud in the United
States today, second only to income tax evasion. According to industry observers, fraud occurs in
almost a fourth of all claims. It can take the form of employee fraud (an employee who's been in an
accident claiming to be injured more seriously than he/she really is), ... Show more content on
Helpwriting.net ...
Workers' compensation is regulated primarily by the states (and Washington DC) so there are 51
separate sets of rules which govern benefits, premiums, and coverage. However, a so–called "rating
bureau" called the National Council on Compensation Insurance (NCCI) has developed a manual
used by many states to regulate how insurance companies calculate your rates. NCCI states rely
almost completely on this manual, while some other states have developed their own manuals. For
example, Nevada sticks closely to the NCCI manual, whereas California has developed its own

Financial Fraud : Fraud Against Older Americans
Financial Fraud
"900" Telephone number fraud
Advance–fee loan schemes
Charity fraud
Credit card fraud
Schemes that charge money for services that the Government provides for free
Cute–rate health insurance fraud
Investment fraud (Ponzi Schemes)
Solicitations disguised as invoices
Oil and gas investment fraud
Land fraud
Fraud Against Older Americans
Sweepstakes advice for the elderly
Sweepstakes and Lottery Fraud
Illegal sweepstakes information
Chain letters
Free–prize scheme
Foreign lotteries by mail
Government look–a–like mail
Free vacation scams
Telemarketing Fraud
Rules for telephone solicitations
Characteristics of telemarketing fraud
Other Types of Mail Fraud
Home improvement and home repair ... Show more content on Helpwriting.net ...
The process of the mail when it is sent out for delivery, the employee when dropping mail becomes
aware of a bad address has to bring it back to their location and then gets processed to be return back
to the original sender for a bad address.
"Postal Inspectors across the country work hard to protect your mail, but with deliveries to more
than 100 million addresses, the Postal Inspection Service can't do the job alone. Here are some
things the Postal Inspection Service recommends you can do to protect your mail from thieves:
Use the letter slots inside your Post Office for your mail, or hand it to a letter carrier.
Pick up your mail promptly after delivery. Don't leave it in your mailbox overnight. If you're
expecting checks, credit cards, or other negotiable items, ask a trusted friend or neighbor to pick up
your mail.

If you don't receive a check or valuable mail you' re expecting, contact the issuing agency
immediately.
If you change your address, immediately notify your Post Office and anyone with whom you do
business with via the mail.
Don't send cash in the mail.
Tell your Post Office when you'll be out of town, so they can hold your mail until you return.
Report all suspected mail theft to a Postal Inspector.
Consider starting a neighborhood watch program. By exchanging work and vacation schedules with
trusted friends and neighbors, you can watch each other's

Fraud Case : A Case
Recent Fraud Case
Co–Founder of OXYwater and Wife Sentenced for Wire Fraud, Money Laundering and Tax Crimes
Soraya Swaby
Keller Graduate School of Management
Fraud Case Bio On August 25th 2015 Co–Founder of OXYwater Preston J. Harrison and his Wife
Lovena Harrison were sentenced for Wire Fraud, Money Laundering and Tax Crimes. (Investor
Claims, August 2015). I chose this case because it has many different types of fraud, including wire
fraud, money laundering, and tax fraud, conspiracy to commit fraud, concealment of fraud, theft and
misappropriation of funds. What makes this case so interesting is that the husband and wife co–
owners of OXYwater are not the only criminals. Their co–conspirator was Thomas E. Jackson; ...
Show more content on Helpwriting.net ...
However, that is not the case here, Imperial LLC and OXYwater had no intention of actually
making the oxygen water with the chemical compounds it promised. Their fraudulent plot was
solely based on using investors' money for their personal use and in order to keep the investors
interested they falsified financial records and published misleading and misstated sales report
(Justice News, August 25). "Harrison's wife Lovena was charged with conspiracy to defraud the IRS
after she filed a false income–tax return and structuring financial deposits to avoid having the
money reported to the government". (Gray, 2015) The fraudsters concealed their crimes by hiding
and laundering their investor's funds through the wife's day care business. Many different parties
were affected by OXYwater and Imperial, among their long list of investors' R&B artist Ne–Yo was
one of their victims, he invested approximately $2.5M in OXYwater after he was advised to do so
by his then accountant Kevin Foster who unbeknown to the artist was a financial consultant for
Imperial LLC. (Justice News, August 25). As illustrated below it seemed there was no end to their
mayhem thankfully their elaborate scam finally caught up with them and they went bankrupt.
ILLUSTRATION
Participants Description Their Role Their Outcome
The

Essay on Worldcom Fraud
Abstract
On March 15, 2005 former CEO of WorldCom, Bernard Ebbers sat in a federal courtroom waiting
for the verdict. As the former CEO of WorldCom, Ebbers was accused of being personally
responsible for the financial destruction of the communications giant. An internal investigation had
uncovered $11 billion dollars in fraudulent accounting practices. Later a second report in 2003
found that during Ebber's 2001 tenure as CEO, the company had over–reported earnings and
understated expenses by an astonishing $74.5 billion dollars (Martin, 2005, para 3). This report
included the mismanagement of funds, unethical lending practices among its top executives, and
false bookkeeping which led to loss of tens of thousands of its employees. ... Show more content on
Helpwriting.net ...
(Farrell, 2005, para 1). Unfortunately for Ebbers, the grand jury wasn't ignorant to the facts of the
case and found Ebbers guilty on nine counts of fraud. He was sentenced to 25 years in prison. Many
critics felt that the sentence was too harsh and others not harsh enough. The sentencing of Ebbers
did not change the situation of the shareholders and employees who lost more than $100 billion in
stock value, 17,000 jobs and their entire retirement savings. Ebbers was allowed to keep one of his
homes, $50,000 in cash and a retirement account (Ernst & Young, 2005, para 6). Many supporters of
Ebbers still questioned how much of a role he actually played in masterminding the WorldCom
scandal. The question still remains if greed was his motive, why didn't Mr. Ebbers sell more stock?
One explanation could be utilitarian based reasoning. Utilitarianism, the consequentiality theory
most widely accepted, and put forward by Jeremy Bentham and, later, John Stuart Mill suggests that
an action is right if it maximizes happiness for the greatest number of people over the long term,
given that everyone's happiness is of equal value (Gold, 2008, para 8). Some say as WorldCom grew
at a rapid pace, Mr. Ebbers set expectations high. This led

Corporate Fraud Is A Big Part Of The Fraud
Skimming, Cash Larceny, Check Tampering, Billing Schemes, Payroll schemes, and overstatement
of inventory are all forms of fraud. There are a vast amount of fraud types out in the world today
that some of us may not have even realized yet. With the immense amount of fraud that is occurring,
how could so many people get away with committing it? The answer is there is too much fraud
occurring for anyone to look into the smaller fraudulent acts. There are specifically two types of
frauds that occur that focus a lot on the business aspect, Corporate and small business fraud. Small
business fraud tends to appear more often than corporate fraud but that still doesn't hide the issue of
corporate fraud being a big part of the fraud domain. Corporate fraud is a little less complex
compared to small business fraud.
Corporate fraud is the undertaking of activities by an individual or company that are designed to be
dishonest and illegal. Not only does fraud exists within a small business but also corporate fraud
goes beyond the employee's stated position and usually is marked by the complexity and impact on
the business. This seems to be a lot like small business fraud and well fraud in general. That is
because fraud is fraud no matter what category it is put in. Fraud continues to occur everyday, in
small and large businesses. The types of fraud however can be the same but on a much larger scale
when dealing with corporate fraud. Some of the major types of corporate fraud that tend

Fraud Prevention
Ashley Davis
CRJS270–1103A–05
Security and Loss Prevention
IP5
8/18/2011
Abstract
This paper is about the benefits of a comprehensive control program. It will also talk about what
would be the benefits from a control program. It will also talk about what procedures should be
taken into consideration for the controls, including independent checks, and a system for the
documents and records. It will go into talking about a fraud hotline program to help detect fraud and
also preventing fraud.
Fraud Prevention
Management is aware of the increased requirements for a public company to maintain a system of
internal control to help prevent and detect fraud. The CEO, Mary Moore, is also interested in using a
proactive posture toward ... Show more content on Helpwriting.net ...
Can the current controls be overridden or circumvented? Future audit programs should include tests
on the design and implementation of these controls. If an event has been identified as
inconsequential, internal auditors may decide to take no action; even so, at

Essay On Enron Fraud
A once massive communications company was brought to ruin by the mishandling of DIRECTORS,
OFFICERS, and the CEO. Between 1999 and 2002 the CEO Bernie Ebbers orchestrated over $9
billion worth of fraudulent accounting transactions. Surely all of this was not accomplished by just
one man, this took teams of people who were unwilling to question authority or stand up during
times of corporate wrong doing. Therefore, the information to follow will contain explanation of
how this fraud was committed and by whom, the reasoning behind the fraud, the consequences of
their actions for them and the corporation, and the final outcome for the corporation and those
directors and officers held accountable. According to the Report of Investigation by the special
board of directors for WorldCom the accounting fraud was a number of unsupported and false
accounting entries. During the investigation key witnesses were unavailable for questioning and
accounting documentation was either nonexistent or piled on the floor of the storage area. This type
of disorganization made it merely impossible to conduct any formal audit. Interestingly, the auditor
in charge over the course of this fraud was Arthur Andersen who also conducted audits for Enron
another company corrupted by fraud. Mr. Ebbers was indicated to be the main person in charge of
the fraudulent accounting transactions. Through the course of this artifice, there were several other
employees and officers involved; however, the focus

Financial Statement Fraud And Corporate Financial Fraud
Financial Statement Fraud
Background
Financial statement fraud is one of the biggest types of fraud in today's business world. The
complexity and mechanism of financial statement fraud brought the attention of auditors and
regulators. Financial scandals of Enron, WorldCom, Xerox, Tyco, Parmalat, Qwest, and Satam
Computers increased the auditors' responsibility in detecting and preventing fraudulent transactions.
Corporate financial fraud had negative consequences for the market capitalization due to gigantic
losses of investors. In addition, accounting scandals of early 2000th ruined auditors' reputation and
the public trust.
The regulators, SEC, U.S. GAAP, SOX of 2002, together with AICPA, PCAOB, and COSO
concentrate on fraudulent reporting mechanisms and ways to lessen its occurrence. Inventors,
public, and officials expect auditors detecting fraud to protect third parties interests. The auditors'
core responsibility is to confirm that financial statements are prepared fairly in accordance with U.S.
GAAP. Therefore, auditors should comprehend real–world techniques to identify financial statement
manipulation.
Purpose of Research and Research Question
The purpose of this research is to analyze the cause–effect relationships between the auditor's role
and fraudulent reporting.
The primary research questions are:
1. What are the common schemes of financial statement fraud?
2. How the auditor can detect financial statement fraud?
The research is built on other studies that

Fraud Case Study

More Related Content

Similar to Fraud Case Study

More from Angela Hays

Recently uploaded

Fraud Case Study