Posts Categorized: Fraud Accounting

Feds Catch Bid-Rigging Bankers

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Fraud Accounting, Intermediate Accounting, Managerial Accounting.

Federal authorities are pursuing legal action against bankers accused of systematically defrauding states, local governments and non-profits. The ongoing probe is focusing on bankers who have colluded about the offers they’ve made as they bid on contracts to invest municipal bond proceeds. Questions: 1. What is bid-rigging? Summarize the way in which the suspect bankers… Read more »

How to Earn $46,000 for Each Day Spent in Prison

Posted by & filed under Accounting Principles, Advanced Accounting, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Video Updates.

Bradley Birkenfeld, the whistleblower in a tax fraud case against Swiss bank UBS AG, was awarded a record-setting $104 million reward from the IRS. Birkenfeld learned about the inner workings of UBS as an employee of the company and supplied many secrets about his former employer’s dealings with U.S. clients. Despite this, he was jailed… Read more »

Do I have to take the course? Will I go to jail?

Posted by & filed under Accounting Principles, Advanced Accounting, Financial Accounting, Fraud Accounting, Managerial Accounting.

More than 300 district attorneys’ offices allow debt collectors to use their letterhead to send letters to people across the country who have written bad checks. These letters threaten them with jail if they do not pay up. In return, the companies try to collect not only the unpaid check, but also high fees from… Read more »

Debt for Life?

Posted by & filed under Accounting Principles, Advanced Accounting, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting.

Here are the facts. Four-year college graduates’ pay advantage over high school grads has doubled over the past 30 years. However, in 2010, student debt exceeded credit-card debt for the first time and in 2011, it surpassed auto loans. In March 2012, the Consumer Financial Protection Bureau announced that student debt had passed $1 trillion… Read more »

The Business Model of Overstating Benefits: How Harmful or Ethical?

Posted by & filed under Accounting Principles, Advanced Accounting, Auditing, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Video Updates.

It is estimated that between 50,000 to 100,000 patients died or had a heart attack as a result of taking the drug Advandia. For seven years, GlaxoSmithKline (GSK) failed to report data that indicated Advandia increases the risk of heart attack by 40%. As we reported back in July, in the biggest health care fraud… Read more »

Are you Suspicious? Maybe you should be!

Posted by & filed under Accounting Principles, All Articles, Auditing, Fraud Accounting, Uncategorized.

A few years ago, Todd Rutherford was part of the marketing department at a company that provided services to self-published writers. These services included persuading traditional media and blogs to review the books. Then he realized that there were not enough reviewers to go around. So he started a website, GettingBookReviews.com, which eventually earned him… Read more »

Private Equity Firms and A Tax Strategy Investigation

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting.

Eric Schneiderman, the New York attorney general, is investigating abusive tax strategies at some of the nation’s largest private equity firms. As part of these efforts, last week, he subpoenaed documents from more than a dozen firms hoping to uncover conversion of certain management fees collected from their investors into fund investments, which are taxed… Read more »

A New Trend?

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Video Updates.

According to the Associated Press (AP), Chinese companies are withdrawing from the US stock market amid accusations of improper accounting by some companies, as well as complaints that low share prices do not reflect the true value of Chinese companies. On top of this, the AP note that a state bank has provided $1 billion… Read more »

Robo-Signing Redux

Posted by & filed under Accounting Principles, Advanced Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting, Managerial Accounting.

Debt collection practices focusing on erroneous documents, incomplete records and generic testimony from witnesses in lawsuits by credit card companies is mirroring problems similar to those in the mortgage foreclosure process. According to Noach Dear, a civil court judge in Brooklyn, about 90% of the cases he sees are flawed and cannot prove who the… Read more »