Posts Tagged: Financial Statement Fraud

Federal Financial Aid Fraud

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

A federal lawsuit was filed by seven former employees against Harris School of Business and its for-profit parent education company, Premier Education Group, which owns more than two dozen trade schools and community colleges operating under several names in 10 states. The suit alleges that school officials routinely misled students about their career prospects and… Read more »

Royal Fraud?

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

Spain’s Princess Cristina was questioned in court over whether she and her husband illegally used company funds for personal expenses, including lavish parties at their modernist Barcelona mansion. Her her husband, Inaki Urdangarin, former Olympic handball medalist turned businessman, is accused of defrauding regional governments of millions of euros of public money. Questions: 1. Summarize… Read more »

How do Nonprofit Organizations Deal with Fraud?

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

Nonprofit organization, all too often take a common approach of foregoing legal action against fraudsters rather than prosecuting them. This article covers a recent fraud and explains why many nonprofits bypass legal action in exchange for cash. Questions: 1. Summarize the case of fraud at the Progressive Policy Institute and include red flags of fraud… Read more »

Do you have to be Good at Accounting to Embezzle $16.6 M from a Small Business?

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

A fruitcake company, the Collin Street Bakery, in Texas just found out the answer to this question! The company’s controller, Sandy Jenkins, 64, of Corsicana, Texas, was arrested by special agents of the FBI on a federal criminal complaint charging 10 counts mail fraud and allegations that he wrote 888 checks totaling $16.65 million to… Read more »

A Dragnet for Astroturfing

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

As a result of a year-long investigation, New York regulators will announced on September 23, 2013 that they would crackdown on deceptive and fake Internet reviews on products and services. Agreements have been reached with 19 companies to cease their misleading practices and pay a total of $350,000 in penalties. Questions: 1. Where were some… Read more »

Why is the IMF chief in court?

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

Recently, Christine Lagarde was grilled by a French court in regards to a business settlement with disgraced tycoon Bernard Tapie in 2007. Questions: 1. What is the IMF? Why was the IMF in the news in 2011? 2. What is the controversy about? Is anyone alleged to have profited from the incident? 3. What does… Read more »

Just helping a friend

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

On Thursday, April 4, federal prosecutors and the Securities and Exchange Commission filed criminal and civil charges against fired KPMG accounting partner Scott London for conspiracy to commit securities fraud through insider trading. The accountant provided confidential information about KPMG audit clients Herbalife Ltd., Skechers USA Inc., Uggs maker Deckers Outdoor Corp., RSC Holdings and… Read more »

Who is the most Indebted Man in the World?

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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 »

An Ugly Tale: Double-Life and Secret Fortune

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.

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 »

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 »