Posts Tagged: Fraud

Trolling for Patent Infringement Cases

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.

One of the most striking results of a new academic study is that in 2012, litigation by patent monetization entities now represents a majority of the patent litigation filed in the United States. Specifically, patent monetization entities filed 58% of the patent lawsuits in 2012. This is a sharp rise from 2007, when patent monetization… Read more »

Money Melting a Hole in Your Pocket?

Posted by & filed under Accounting Principles, All Articles, Financial Accounting, IFRS, Intermediate Accounting, International Accounting, Video Updates.

Canada started rolling out new, polymer-based $100 bills two years ago, followed by 50s and then, last November, 20s. The money, which isslick like a sheet of plastic, hard to fold and partly transparent, is more difficult to counterfeit than Canada’s old paper-and-cotton bills. Australia and New Zealand have used similar, plasticized notes for years…. Read more »

Justice for Dixon Illinois?

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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 »

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 »

Exploding Water Pipe – Fraud Alert

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Forty-five government entities are now joining whistleblower John Hendrix’s suit against JM Eagle. The suit alledges that the largest PVC pipe manufacturer committed fraud by intentionally selling pipe to governments, where the company’s internal quality controls showed 50 to 80 percent failure rates. Questions: 1. What was Hendrix’s position with the firm and what did… Read more »

An Ugly Tale: Double-Life and Secret Fortune

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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

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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 »