This article looks at ad spending on the presidential race from April 10 to Oct. 10, based on data from Kantar Media. According to the video and article, the millions of dollars spent by superPACs and other outside groups send a clear message: There are really only 12 states in this presidential election and it’s… Read more »
Posts Categorized: Fraud Accounting
Hyundai & Kia overstated mileage
Hyundai Motors America and Kia Motors America are being forced to lower the fuel economy estimates on the majority of their 2012-13 models after an investigation by the Environmental Protection Agency found that the companies overstated the fuel efficiency numbers for their vehicles in previous years. Based on the audit, they will also have to… Read more »
Who is the most Indebted Man in the World?
The answer is that man is Former Société Générale rogue trader Jérôme Kerviel, who owes the bank $6.3 billion. His case tells us a lot about financial reform. Questions: 1. According to the article, how exactly do you carry out €50 billion (or about $73 billion) of unauthorized trades? (Focus on the controls mentioned.) 2…. Read more »
Product Chasing a Market – Fuzz Phobia
When Veet hair removal cream came to China in 2005, sales were sluggish. It turned out that Chinese women did not worry about being too hairy. So the company selling the product promoted a new marketing plan with ads that equate hair-free skin with health, confidence, and “shining glory.” Questions: 1. How fast are sales… Read more »
It Beats Earning $20 an Hour?
Flipping houses earned a bad reputation during the housing bubble, when speculators bought and sold millions of homes in search of easy profits. But as the real estate market is showing signs of life, the practice is gaining popularity again. Questions: 1. Which areas of the country have seen the most flipping action and why?… Read more »
Long Island Stock Broker Creates Complex Web of Deceit
Stockbroker, Mark Hotton, defrauded the producers of a Broadway production of “Rebecca,” through the combination of a fictitious loan and phantom investors, conjured up as part of a sham plan to rescue the financially ailing show. Questions: 1. How was the complex fraud described by federal authorities? 2. How could the producers have been proactive… Read more »
Interesting ACLU case
The ACLU is filing suit against Morgan Stanley, alleging that the company targeted African American borrowers in risky loan offerings. The ACLU claims that Morgan Stanley is culpable for predatory loan offered through the New Century Financial Corporation, who is a now-defunct subprime lender, because Morgan Stanley pressured New Century to make these troublesome loans… Read more »
Exploding Water Pipe – Fraud Alert
Forty-five government entities are now joining whistleblower John Hendrix’s suit against JM Eagle. The suit alledges that the largest PVC pipe manufacturer committed fraud by intentionally selling pipe to governments, where the company’s internal quality controls showed 50 to 80 percent failure rates. Questions: 1. What was Hendrix’s position with the firm and what did… Read more »
The Disappearing Debt Suddenly Reappears!
Jackie Esposito, of Guilford, Conn., got a letter that said her debt with JPMorgan Chase was canceling the amount she owed on a home equity account. While most people would be excited to get such a letter, Ms. Esposito was not. That is because Ms. Esposito had the debt legally wiped out three years ago… Read more »
An Ugly Tale: Double-Life and Secret Fortune
CFO John Franklin Howard, the trusted CFO and CPA for Raley Holdings, Inc., a defense contractor based in Grapevine, Texas, now has more than just $32 million to account for from his embezzlement; he is also facing solicitation of murder charges. Interestingly, he used some of the embezzled money to pay someone to murder his… Read more »