Did you know that cash absorbs the smell of marijuana?

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.

John Davis, CEO of Northwest Patient Resource Center, runs two medical marijuana dispensaries in Seattle. In Washington state, Davis runs a legal enterprise that generates thousands of dollars each quarter in state tax revenues. However, since selling pot is still a federal crime and banks are regulated by the Federal Deposit Insurance Corporation, banks are… Read more »

Another Slap in the Face!

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The first round of payments covered under the foreclosure settlement against the nation’s largest banks, who were accused of wrongful evictions and other abuses, bounced due to insufficient funds this week. Questions: 1. How long did it take to resolve the federal investigation into the foreclosure abuses? 2. Approximately how many people either delayed cashing… Read more »

Just helping a friend

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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 »

Justice for Dixon Illinois?

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, Uncategorized.

In November 2012, Rita Crundwell, comptroller of Dixon, Illinois, pleaded guilty to wire fraud and admitted that she stole approximately $53 million, admitting she stole the money from the city of Dixon while she was comptroller. She still faces 60 separate but related state felony charges for theft in Lee County. She has pleaded not… Read more »

Who spilled the ketchup? Unknown Traders, Of Course!

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UPDATE 2/22/13: After the traders failed to appear at a hearing today in Manhattan, U.S. District Judge Jed Rakoff agreed to freeze the Goldman Sachs Group Inc. account until the case is resolved. The SEC on Feb. 15 sued the “unknown” traders over suspicious purchases of Heinz options through the account. Judge Rakoff was quoted… Read more »

Are you Due any Lost Funds?

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Ohio has returned more than $3.4 million in unclaimed funds to Elyria in what it says is the largest such payment in state history. Questions: 1. Where did the funds originate? 2. Are there unclaimed funds in every state? If so, how do you access the list in your state? 3. How do you think… Read more »

Hyundai & Kia overstated mileage

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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?

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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 »

Long Island Stock Broker Creates Complex Web of Deceit

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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

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.

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 »