Posts Categorized: Fraud Accounting

Ponzi Schemer Resurfaces

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Uncategorized, Video Updates.

According to the New York Post, a Colorado conman who escaped from a federal prison in Colorado in 2018 was rearrested in Florida, living in a luxurious $1.5 million mansion. Questions: Source: Reyes, R. (2023) Colorado conman who escaped fed prison caught living lavishly in $1.5M Florida mansion. The New York Post, Aug. 3 (Retrievable… Read more »

Albemarle purports to have violated Foreign Corrupt Practices Act (FCPA)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to the Wall Street Journal, well-known chemical manufacturer, Albemarle, reached an agreement in principle with U.S. authorities to pay a $218.5 million fine to resolve an investigation into potential improper payments by third-party sales representatives. Questions: Source: Tokar, D. (2023). Albemarle to Pay $218.5 Million to Settle Foreign Bribery Probe. The Wall Street Journal,… Read more »

Fraudster’s Home Depot Scam Snagged!

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to the Associated Press, a Connecticut man was given nearly $300,000 in fraudulent Home Depot credit by walking into stores in several states, loading expensive doors into a lumber cart in one department of the store and then returning them to the customer returns department of the same store without a receipt. Questions: Source:… Read more »

IRS Tackles The Latest Scam

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Behavioral and Social Issues Related to Accounting, Ethical Dilemma, Fraud Accounting, Income Taxes, Uncategorized.

According to Accounting Today, the Internal Revenue Service will be adding extra procedures to deter scammers who have been inundating the agency with bogus claims for the Employee Retention Credit. Questions: Source: Cohn, M. (2023) IRS plans new measures to curb Employee Retention Credit fraud. Accounting Today, July 26 (Retrievable online at https://www.accountingtoday.com/news/irs-plans-new-measures-to-curb-employee-retention-credit-fraud?)

Bank of America fined and ordered to issue refunds

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to the Associated Press, Bank of America will reimburse customers more than $100 million and pay $150 million in fines for “double-dipping” on overdraft fees, withholding reward bonuses on credit cards, and opening accounts without customer consent. Questions: Source: Sweet, K. and M. Chapman. (2023). BofA hit with $250 million in fines and customer… Read more »

Inheritance from Antiquities Smuggling

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the Washington Post, U.S. authorities announced that they have secured a $12 million forfeiture agreement from the daughter of accused antiquities smuggler Douglas Latchford, a man federal prosecutors say was a key figure in the decades-long ransacking of ancient Cambodian temples. Questions: Source: Whoriskey, P. (2023). Heir of accused antiquities smuggler agrees to… Read more »

The Godfather Speaks about AI

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, for half a century, Geoffrey Hinton nurtured the technology at the heart of chatbots like ChatGPT. Now he worries it will cause serious harm. Questions: Source: Metz, C. (2023). ‘The Godfather of A.I.’ Leaves Google and Warns of Danger Ahead. The New York Times, May 1 (Retrievable online at… Read more »

Artificial Intelligence (AI) Responses Are Responsible for the Firing of an Editor

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Managerial Accounting, Uncategorized.

Recently, we have heard many things about the dangers of artificial intelligence (AI). Today, the New York Times published an article about the firing of the editor of German celebrity magazine Die Aktuelle that used the AI-generated responses of retired Formula 1 driver, Michael Schumacher. Questions: Source: Holpuch, A. (2023) German Magazine Editor Is Fired… Read more »

JP Morgan Duped

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to Compliance Week, JPMorgan Chase Bank was fooled into wildly overpaying for a student loan assistance company after the bank dropped its guard on how carefully to vet the startup’s customer database. Questions: Source: Nicodemus, A. (2023). Alleged fraudster cited privacy in duping JPMorgan into $175M merger. Compliance Week, April 5 (Retrievable online at… Read more »