Big Business Bust

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

This week, Aventura Technologies in Long Island, allegedly tried to conceal the fact that Chinese-made surveillance and security equipment were made in America. Questions: Agents from which bureaus raided the company? How long has the scheme been going on and how does that compare to the ACFE’s average time for this type of fraud? Who… Read more »

Exxon Fraud Case Begins

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According to The Earth Island Journal, New York prosecutors working for then-Attorney General Eric Schneiderman issued their first subpoenas in 2015 to Exxon, claiming that the oil giant used two sets of books and misled investors by downplaying the potential costs of carbon emissions. Next week, the case is actually coming to trial. Questions: Is… Read more »

Nissan and Ghosn Fraud

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According to the Washington Post, Nissan will pay $15 million, and former chairman Carlos Ghosn will pay $1 million to settle allegations by U.S. regulators that they hid more than $140 million of Ghosn’s retirement benefits from investors. Questions: How long was Ghosn CEO of Nissan? What punishment did the SEC impose on Ghosn? Was it for hiding… Read more »

Deloitte Fined $5.4M

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Deloitte LLP was fined 4.3 million pounds for audit failures of a unit of Serco Group Plc. Additionally, audit engagement partner, Helen George, was fined 97,500 pounds for failure to act in accordance with the fundamental principle of professional competence and due care. Questions: After admission of misconduct by both Deloitte and Helen George, what… Read more »

A Tale of the Fake Heiress

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A penniless young woman, who left Russia in 2014 and faked her way to Manhattan as an “heiress,” is now facing up to 15 years in prison. How did Ms. Sorokin bilk a bank out of $100,000? What charges does Ms. Sorokin face? Why did Ms. Sorokin’s lawyer, Todd Spodek, argue that she had not… Read more »

Sears Sues

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According to CNN, the remains of defunct Sears Holdings is suing Eddie Lampert, the man who was its previous CEO and primary shareholder, alleging he improperly stripped the company of assets as it hurdled toward bankruptcy. Questions: In addition to Eddie Lampert, who else is named in the suit for the theft of Sears’ assets?… Read more »

Cars To Go

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According to Buzz Feed News, police are questioning more than a dozen people over the theft of 100 expensive automobiles in Chicago after a car sharing company reported that some of its fleet was stolen using its mobile app, forcing it to temporarily shut down the service in the city. Questions: What are most of… Read more »

Resignation of another CEO

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Herbalife’s chief executive has resigned over unspecified comments he made before taking leadership of the Los Angeles supplement maker. Questions: 1. What did his previous remarks relate to? 2. Who is CEO Goudis’ replacement and what is the replacement’s background? 3. Why has Herbalife been in the news since 2015? Source: Pazzanghera, J. (2019). Herbalife… Read more »

Chinese giant Huawei, the world’s largest telecommunications equipment maker’s fraud exposed and charged by the U.S. Justice Department

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According to the ACFCS News, federal prosecutors have charged a Chinese company, the world’s largest telecommunications equipment maker, a top official and two affiliates with fraud, money laundering, pilfering trade secrets, obstruction of justice and sanctions violations for hiding its dealings with Iran from partner banks. Questions: 1. How did these hidden dealings come to… Read more »

Lying and CEOs – New Analytics

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According to Business Insider, a software company called Amenity Analytics (AA) reviews earnings call transcripts, press releases, company research and more to try and help hedge funds spend less time looking for important nuggets of information and more time trading. Now they have turned their attention toward truth-telling by CEOs. Questions: 1. What type of… Read more »