Posts Tagged: Fraud

The Last Act

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After years of continually beating the market with quarterly revenue targets, Parker H. Petit, CEO of MiMedx Group, Inc., was sued by the SEC for  allegedly engaging in a “wide-ranging fraud” to inflate revenue. Questions: What is the industry type in which MiMedx operates? What were the ways in which the company perpetrated the fraud?… Read more »

Falsified Data

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According to the Associated Press, an investigation showed that the Kansas City School District falsified attendance data for three years in a bid to regain full accreditation from the state. Questions: 1. What was the result of overreporting attendance? 2. How many officials were involved in the 3-year scam from 2013 to 2016? 3. How… Read more »

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

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

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

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

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

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

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

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

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

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

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 »