July 22, 2018

Fraud

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Suspect Someone of Fraud? Give Them a Promotion

The trick to fraud is maintaining control. If you’re siphoning company funds into a bank account that you own through a dummy vendor, it’s key that you’re the person who approves those transactions and it’s even ideal if you can literally or figuratively cut the check. Yes, those are atrocious internal controls, but as we’ve documented […]

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Auditors and Fraud: Where Does Responsibility Lie in the Wake of the FDIC’s Win Against PwC?

In the waning days of 2017, a judge in Alabama found PwC was negligent in its audit of Colonial Bank. The Federal Deposit Insurance Corporation had sued the firm for failing to detect the fraud at the root of Colonial’s 2009 failure. Although Judge Barbara Jacobs Rothstein denied other claims brought by FDIC and the […]

auditor fraud pwc colonial fdic

Controllers, Don’t Skim On These 6 Tips to Thwart Fraud

It’s not every day that you come across a controller who had worked on the Allen Stanford and Bernie Madoff Ponzi scheme investigations. But Bridget Meacham Kowalski, CPA, CFE, did just that. Now the controller of the Pittsburgh Symphony Orchestra, Kowalski was working as a financial and litigation consultant for FTI Consulting at the time […]

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Sarbanes-Oxley 15 Years Later: Accountants Need to Speak Up Now More Than Ever

This Sunday, July 30, 2017, marks the 15th anniversary of the enactment of the Sarbanes-Oxley Act (“SOX”) of 2002. SOX emerged after the “smartest guys in the room” caused Enron to implode, and WorldCom magically erased billions in earnings overnight. The scandals shook the public’s confidence in the reliability of financial reporting and led to […]

Tesco Bank Deals with Digital Heist

Cybersecurity experts and IT auditors better saddle up — the world just experienced its first successful digital bank robbery. The Tesco heist Last weekend cyber criminals executed a sophisticated attack on Tesco Bank (subsidiary of the British grocery chain) and successfully stole £2.5 million (~$3.1 million) from customer accounts. While the money was refunded quickly […]

White-Collar Crime Watch: An Online Dating Scam, A Fake CPA, and A Tax-Evading Stripper

My grandma got wrapped up in an illegal money-making scheme once. She started taping movies off TV, editing out the commercials, hand-labeling the VHS tapes, and selling them for $3 out of a cardboard box on her driveway. When I caught her, I quickly shut her new business venture down. Luckily, it's 2016 and none […]

IRS Phone Scam Mastermind Given 175 Months to Think About His Life Choices

If you or someone you know have been thinking about getting into the IRS Crank Yanker business, you might want to be aware of the consequences should the authorities come calling: Sahil Patel was sentenced to 175 months in prison and $1 million in forfeiture for his role in organizing the U.S. side of a […]

Madoff Auditor Better at Cooperating Than Auditing, Won’t Serve Time

Auditors facing over 100 years in prison should take note: Madoff auditor David Friehling to get 2 yrs supervised release which includes 12 months home detention. So no prison time — Matthew Goldstein (@MattGoldstein26) May 28, 2015 Friehling given credit for cooperation which included days of testimony at long criminal trial last year. DOJ called […]

“Just Ask the Guy” Not Always a Futile Fraud Detection Method

Boonlomp Soonthornchai handled trustee, executor and accounting services as a partner at Yount, Hyde and Barbour in Middleburg, Virginia.   In 2004, he began depositing client funds into his personal accounts, concealing the "the source of the money in his personal ledger." He then admitted to the embezzlement, "[w]hen confronted by firm board members and […]

Are You One of the 6.5 Million Americans Over Age 112 with an Active Social Security Number?

According to my halfassed research, the oldest person in the world is Jeraleen Talley. She’s 115 years old, and her hobbies include sleeping, eating hog’s head cheese, and not dying.    And, as the defender of the title “World’s Oldest Person,” she’s the reigning champ in the world’s longest-running death sport. Keeping her title is […]