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Posts Categorized: Fraud Deterrence

Fraud Investigations Reveal How to Stem Purchasing Department Fraud

Do you have a purchasing department employee who suddenly started taking expensive vacations, wearing expensive jewelry or driving an expensive new car?  There are lots of reasons why an employee might appear to be living beyond their means.  Perhaps the employee or their spouse came into an inheritance, won the lottery, received a sizeable insurance… Read more »

Employee-Driven Retail Fraud Continues Despite Fraud Deterrence Measures

Despite increasingly stringent fraud deterrence measures, fraudulent activity in retail operations such as stores and restaurants continues to pose a significant problem, with the retail industry estimating a loss of nearly $3.2 billion to fraud in 2014. “Technological improvements and greater oversight have made it more challenging for fraudsters to steal cash and inventory from… Read more »

Forensic Accountants Simplify the Most Complex Data for Jurors

Presenting financial information to a jury, especially in complex matters, can seem a nearly impossible task.  Most jurors have little or no understanding of financial statements or financial analysis, and introducing large amounts of data and complex spreadsheets can be mind boggling and intimidating.  But the job of a forensic accountant providing expert witness testimony… Read more »

Fraud Tales: Fraud Investigation Tracks Tiny Fraud that Grew

As fraudulent activity goes, it was a seemingly miniscule theft — a mere $2,000 pilfered decades ago.  Hardly worth raising an eyebrow.  But the case of Mark Jenkins is a prime example of how a seemingly innocuous case of fraud can mushroom into a major theft, requiring a forensic accountant to conduct a fraud investigation… Read more »

Fraud Tales: Fraud Investigation Uncovers Medicare and Medicaid Fraud

Government payments to providers under the Medicare and Medicaid programs are based on an “honor billing system,” meaning it is up to providers to honestly and accurately bill the government for services or goods provided.  Not surprisingly, fraud investigations routinely uncover fraudulent activities that cost the government billions of dollars each year. “As a forensic… Read more »

Fraud Tales: Fraud Investigation Reveals Fraudulent Junior Partner

The senior partner at an auto dealership was a successful businessman who owned multiple businesses.  As a result, he relied heavily on his junior partner to act as the general manager of the dealership.  With the dealership running smoothly and turning a profit, the senior partner had no reason to suspect anything was amiss until… Read more »

Fraud Investigations Identify Common Expense Reimbursement Schemes

Expense reimbursement fraud is one of the most common and pervasive types of fraud affecting companies today.  While the amount stolen by any one individual is relatively low, fraud investigations have found that the sheer number of employees committing this type of fraud can translate into a significant loss for a company. “Many employees don’t… Read more »

Fraud Tales: Fraud Investigation Uncovers Theft in Auto Dealership

An auto dealership with a high volume of business established specific cash controls to assure that no car was delivered to a buyer until the dealership had received or accounted for all payments due from the sale.  Despite the required checks and balances, a fraud investigation found that a senior salesman was able to misappropriate… Read more »

Fraud Tales: Fraud Investigation Uncover Inventory Control Weaknesses

The anti-fraud controls in place at a shipping supplies company were extensive and outwardly thorough.  Incoming shipments were closely checked against the shipping manifest and outgoing shipments against the sales requisition that then became the invoice.  The warehouse had an alarm to prevent break-ins.  And the company conducted a detailed physical inventory at year-end to… Read more »

Fraud Tales: Fraud Investigation Reveals Fraud Scheme in Supplies Shipping

The Director of Operations at a large national financial services firm was very good at his job.  Asked to cut costs, the Director recommended the company centralize its purchase of office supplies, a move he said would save the company more than $50,000 a year.  Sure enough, during the first three years of the program,… Read more »

Fraud Tales: Fraud Investigation Finds Stolen Cash in Business

Cognizant of the rampant escalation of fraud in the business world, the owner of a mid-sized retail establishment took great care in establishing fraud deterrence measures to protect the company.  With more than 80 percent of the company’s sales paid in cash, multiple checks and balances were put into place to make sure each day’s… Read more »

Fraud Deterrence on Foreign Soil

Your company has decided to open a factory overseas, or to begin selling their products in a foreign country.  Do you understand the laws that will affect how your company operates outside the boundaries of the United States?  Which payments to foreign government officials are allowed and which are considered fraudulent?  A forensic accounting expert… Read more »

Fraud Tales: Fraud Investigation Reveals Loopholes in Checkbook Controls

Harry Johnson was a savvy businessman who was well aware of the perils of not having the proper fraud deterrence measures in place.  He took great care to see that his successful small business was adequately protected by anti-fraud controls that he created himself.  Then how did Harry end up losing more than $200,000 from… Read more »