According to Bloomberg, China’s securities regulator blacklisted six executives for their role in a $4.2 billion accounting scandal at Kangmei Pharmaceutical Co., one of the country’s biggest drugmakers. Questions: What did the executives do? What did the firm admit to that allowed the fraud to occur? What was the problem with the fine ordered for… Read more »
Posts Tagged: fraud triangle
Beware of the Imposter!
Jeremy Wilson spent 25 years fabricating new aliases, leaving behind a thicket of confusing and falsified records. Along the way, he had more than 27 aliases in five states. Now he is at Rikers Island, awaiting trial. Questions: 1. How did Mr. Wilson use these various identities to commit fraud? 2. What does the article… Read more »
Corporate Culture Sinks the Firm
The chief executive of Toshiba and two of his predecessors resigned, along with several lesser executives, over accusations that they drove the company to overstate its earnings by $1.2 billion over the last seven years. The figure is equal to about a third of the pretax profits that Toshiba reported during that period. Questions: 1…. Read more »
A Legalized Scam?
Most people do not shop around for title insurance when they buy a home. Instead, they usually just go to the title insurance company that the real estate agent recommends.This article highlights the problem with this model. Questions: 1. Using the fraud triangle, discuss what factors are at work in the title insurance industry. 2…. Read more »
Payroll Accounting Fraud
A former accountant for the University of Sioux Falls has been indicted for wire fraud for reportedly collecting more than $25,200 in unearned paychecks. Brent Alan Fowler, 52, faces 20 counts of wire fraud for individual payroll deposits. Questions: 1. What is the potential jail time for Mr. Fowler, if he receives the maximum punishment?… Read more »
Where in the world are all the vinyl records going?
Hoarding goes beyond compulsive collecting, affecting finances and other areas of the hoarder’s life. Unable to stop buying records, Zero Freitas, a wealthy Brazilian businessman, follows a therapeutical quest to acquire precious and neglected records that haven’t been preserved or transferred to digital files. This post examines what is going on with the world’s vinyl… Read more »
Donald Trump is in the News Again!
New York Attorney General, Eric Schneiderman, has sued Donald Trump for $40 million as a result of what he terms a fraudulent educational program through “Trump University.” The program promised to make students rich but instead steered them into expensive and useless seminars. They also failed to deliver promised apprenticeships. Questions: 1. Instead of meeting… Read more »
Academic Fraud
In the summer of 2011, Diederik Stapel was accused of research fraud. It became the lead story in the Netherlands and would dominate headlines for months. Overnight, Stapel went from being a respected professor to perhaps the biggest con man in academic science. Questions: 1. How did Stapel commit the fraud? 2. Why did Stapel… Read more »
Number One Winner!
A new study by the nonprofit, Integrity Florida, ranks the Sunshine State as the nation’s most corrupt state. Since 1976, 1,762 of Florida’s public officials have been convicted of public corruption, with an average of 71 convictions per year over the period from 2000 to 2010. The study gives Florida a C minus grade on… Read more »
Caught in a Lie
In May 2006, well-known Denver DJ, Steven B. Williams’ body was found dead off the in the waters off Santa Catalina Island with one bullet in his head. The case was cold until a salesman and ex-cop, Joe Parsetich, at a Great Falls, Montana, car dealership decided to check out a story from co-worker, Harvey… Read more »