At the time of his plea, prosecutors said Grass admitted to a series of illegal activities, from backdating contracts and severance letters to misleading the company and federal investigators about a $2.6 million real estate deal. They said he also met with employees called to testify before the grand jury and encouraged them to lie. During Grass' time at the head of the Camp Hill-based company founded by his father, Alex Grass, its stock price soared as Rite Aid engaged in an aggressive expansion effort. But the grand jury said the boom years were accomplished by "massive accounting fraud, the deliberate falsification of financial statements, and intentionally false SEC filings." Less than a year after
This source is relative to my auditing collusion research because it discusses audits that are failing due to collusion and many other facets of fraud in the work place. Chauhan, A., & Kenkre, M. (2011). Fraud Investigations - Employee Fraud. Credit Control, 32(3/4), 8-17. Retrieved from
Maxwell Case Fraud Investigation Summary This report deals with the internal investigation of fraudulent activities committed by Anna Thomas of Maxwell and Company. The investigation determined that Anna had been making personal charges and cash withdrawals on Rusher Automotive’s credit card for two and a half years. Introduction The accounting profession believes there are three conditions necessary for fraudulent behavior, as well as a responsibility to to perform quality services with integrity, objectivity, and professionalism. Accounting firms have the responsibility to hire and monitor competent personnel, so they can fulfill their assigned responsibilities. This report will explain how all three conditions were present in Anna’s actions, how Max and Company failed to uphold quality, and describe Anna’s background.
A criminal investigator is the one who looks for evidence to establish whether a crime has taken place (Bratton, William, 2002, p. 24). When a crime has been committed, a criminal investigator will try to uncover who committed the crime. Several investigation techniques are applied in order to find the specifics needed as evidence for a case. Depending on the depth of the crime committed, it is sometimes necessary to use people convicted of crimes to help convict other people doing similar crimes. This is necessary since law enforcement officers are committed to criminal investigations involving accounting fraud.
Bernie Madoff Scandal-The King of Ponzi Schemes This particular ethics case scrutinizes Bernie Madoff scandal in detail. This is an intriguing case that delves into how Bernie Madoff was able to conceal such large scale fraud for number of years. With this said, an appropriate problem statement for this specific case would be, “The SEC, along with number of those who had knowledge of the fraudulent activity simply swept the scandal under the rug”. Although the single largest issue concerning this case was Bernie Madoff’s blatant disregard for other in conducting the fraud, this fraud could have been detected at a much earlier stage. As the case illustrated, there were dozens of serious and valid red flags that SEC was bombarded with by efforts made from Harry Markopolos.
Composition 2 | Confessions and False Confessions | In the Criminal Justice | Stephanie Gordon 12/19/2011 | When a crime is committed in the justice system, investigators look for witnesses and suspects. One of the steps in this process is when the investigators sit a witness or a suspect in a room and question them; the questioning can turn into an interrogation if the police feel that they have the person who committed the crime. What the investigators will then do is try to get you to confess. Confessions in the law are statements used by the guilty party that justifies blame and punishment (Samaha, 2012). Confessions can be a tough thing to get out of a person, or sometimes the investigators can be so tough on a person that it can cause a person to give a false confession.
“Knowledge is Power” Malcolm X, born Malcolm Little and also known as El-hakk Malik El-Shabazz, was a street hustler convicted of robbery in 1946. He spent six years in prison and used this time to enhance his education level simply by reading. After his release from prison, he became an influential leader, and member of the Nation of Islam. Malcolm X became a heroic advocate for the rights of blacks and has been called one of the greatest and most influential African Americans in history. After hitting rock bottom in 1946, at age 20, Malcolm x was sentenced to six years in prison for larceny and breaking and entering.
Case Study 1: And the Fraud Continues 1. Discuss the internal control weaknesses that existed at MCI that contributed to the commission of this fraud. The internal control weaknesses that existed within the MCI Corporation that contributed to the perpetration of the fraud committed by Walt Pavlo were present long before he began working for the corporation. Walt Pavlo, who holds an engineering degree from West Virginia University, as well as an MBA from Stetson School of Business at Mercer University began his career at MCI began in 1992, as a manager in the collections division. Due to the fact that telecommunications companies and long-distance carriers existed in an infantile state and the operations of these companies were complicated, the doors were wide open for motivated, driven personnel to build operation procedures as they saw fit.
Empress Luxury Lines Strayer University MGT 500 Abstract Antonio Melendez is faced with a serious ethical and legal dilemma. All indications are that a supervisor and the CFO at the company Antonio works for, Empress Luxury Lines, are collaborating to commit insurance fraud. With that being said there will have to be some strategies developed that will address the situation at hand. Once there is a strategy identified there will have to be some pros and cons in each of the strategy. These pro and cons will have to be measured by risk and how it will effect the company.
Cases like Enron, Madoff and other fraud cases have left companies vulnerable regarding how to resolve potential problems that may be related to fraud. Fraud risk assessments, which is a series of assessments used to determine the likelihood of a member or organization “using deception to make a personal gain dishonestly for oneself and/or create a loss for another (Samociuk & Iyer, 2010).” Through the evaluation of the importance of fraud risk assessment and the elements of a good fraud risk assessment, one can better understand how fraud risk assessments can positively affect the success of a company. Fraud risk assessment is an important element of a successful corporation for several reasons. Most of these reasons revolve around a company's naivete to the potential for fraud. Most corporations state that they did not realize that they had a high risk of fraud, which causes one to ask whether fraud could be prevented (Samociuk & Iyer, 2010).