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Accounts Receivable Fraud
Profile of a Potential Fraudster
According to new research, it may be harder to pick out a fraud suspect than companies think. Offenders generally have no prior fraud charges or convictions, they are commonly between the age of 31-45 and are somewhat more likely to be male than female.
Accounting WEB
9/6/2010
SEC Charges Two Koss Accountants with Embezzling $30M
The Securities and Exchange Commission has charged two Koss Corp. accountants with fraud amounting to more than $30M. The SEC claims the two accountants were embezzling money from Koss to pay personal bills and hid the fraud by overstating assets and understating liabilities.
Accountancy Age
9/1/2010
City Employee Charged with Embezzlement
The former clerk-treasurer of Mapleview city, Texas has been charged with embezzlement of public funds for allegedly issuing herself duplicate payroll checks and mishandling fire relief funds.
Austin Post-Bulletin
8/27/2010
FSA Fines Financial Institutions for Inaccurately Filing Transaction Reports
The Financial Services Authority has fined the London financial institution Societe Generale £1.5m for failing to provide accurate transaction reports. This is the sixth case in the last year where the FSA has taken action against a financial institution for failing to make accurate transaction reports.
Accountancy Age
8/25/2010
Four Men Arrested for Bank Fraud
Four business associates were arrested and accused of bank fraud, wire fraud and mail fraud for allegedly conducting a scheme to obtain $21 million in bank loans.
NJ News
8/20/2010
Former Basic Employees Plead Guilty to Invoicing Scheme
Three former Basic Energy Services employees have pleaded guilty to felony mail fraud for using a series of false invoicing schemes to steal more than $500,000 in goods and services from their former employer.
Sidney Herald
8/19/2010
Former Accountant Sentenced for Stealing Nearly $20M
Sonya Causer, former senior accountant, has been sentenced to eight years in prison for stealing nearly $20 million from retailer Clive Peeters to fund her property investments over a two-year period.
AAP
8/19/2010
Arizona Developer Pleads Guilt in Fraud Case
John Wanek, an Arizona developer, has pleaded guilty in a $38 million in a fraud case where he gave false inflated financial information to banks to purchase homes.
Yahoo News
8/17/2010
Card Payment Fraud: How to Control It
With card payments fraud becoming a growing concern, industry experts are wondering what should the Feds do about card payment fraud in the U.S.?
Payment Views
8/16/2010
When Companies are Most Vulnerable for Fraud
Companies are most vulnerable when sales are up, the company is doing well and the biggest problems seem to be where to fit all the new equipment and employees. Success can distract managers from seeing financial issues like collection payroll taxes and verifying the accuracy of bills.
The Wall Street Journal
8/16/2010
Notorious Credit Card Criminal Arrested
Vladislav Horohorin, a Russian credit card fraudster considered to be one of the most notorious stolen data sellers, has been arrested in France on charges in the U.S.
Tech Central
8/16/2010
Small Businesses a Target for Fraud
Small businesses are victims of fraud more often than bigger companies, according to a recent survey by the Association of Certified Fraud Examiners. Thirty-one percent of all business frauds nationally were in companies with fewer than 100 employees.
The Wall Street Journal
8/16/2010
14 Charge with Fraud
Thirteen Hawaii residents and one Washington state resident have been charged in an alleged scheme to defraud lending institutions by submitting false loan documents. One of the indictments charges 10 defendants in 56 counts of conspiracy, wire fraud and false statements on loan applications.
Business News
8/12/2010
Former MCSi CEO Pleads Guilty to Fraud
Michael Peppel, former CRO of MCSi, Inc., a computer sales company, pleaded guilty to one count each of conspiracy, securities fraud, and money laundering for improperly reporting company revenues.
TMC Net
8/11/2010
Former Town Director Pleads Guilty to Embezzling
Joseph Lydick, the Purchasing Director for North Andover, Mass., has pleaded guilty to embezzlement in a scheme where he sold town equipment and pocketed over $20,000.
Eagle Tribune
8/11/2010
ICTV's CFO Accused of Accounting Fraud
Karl Redekopp, former CFO of International Commercial Television Inc., allegedly turned millions of dollars of quarterly losses into profits by falsely accounting for ICTV's sales of the Derma Wand, a skin care appliance.
Accountancy Age
8/10/2010
Employee Theft on the Rise
Employee theft is on the rise with one in every thirty workers caught stealing. The average employee steals just under $1,000 before they are caught, totaling more than $69.8 million apprehended last year.
Times Herald-Record
8/7/2010
Woman Arrested for Embezzling
Crystal Hatfield is facing 21 charges in relation to the alleged fraud against two former employers. Hatfield allegedly was taking checks and depositing them into her own account. The current total amount allegedly stolen is unknown.
Metro News
8/5/2010
Three Suspects Arrested for $12M Fraud Scheme
Three suspects are being charged with conspiracy to commit bank fraud in a $12 million scheme, according to police. Luis Perez, Berta Sanders and Richard Garcia are accused of conspired to submit false loan applications to Wachovia Bank in order to gain $12 million in commercial lines of credit.
Miami Herald
8/4/2010
Two Charged in Credit Fraud Case
Karen Hawkins and Gerald Williams have been charged for helping at least three people build false credit histories that allowed them to obtain millions of dollars in loans, the first-of-its-kind credit fraud case.
Associated Press
8/4/2010
Two Men Charged for Embezzling Over $200,000
Jason Winanecki, former manager, along with Emil Devcic, partial owner of ASC Inc., have been charged with embezzling over $200,000 from the City of Fond du Lac using a false invoicing scheme.
FDL Reporter
8/4/2010
GE Settles with SEC for $23 Million
General Electric has settled with the Securities and Exchange Commission for $23.4 million on charges that it violated Foreign Corrupt Practices Act accounting and internal-controls provisions.
CFO.com
7/27/2010
Former CEO Sentenced for Fraud
Former GlobeTel CEO Timothy Huff was sentenced to 50 months in prison for charges involving a $22 million securities fraud where he misrepresented GlobeTel's accounts receivables.
BNO News
7/26/2010
Four Executives Arrested in $21M Bank Fraud Scheme
Four Manhattan businessmen were arrested for an alleged scheme to defraud Amalgamated Bank out of $21 million in loans. The men allegedly book fictitious sales, prematurely recognized sales and made older accounts receivable appear to have been incurred more recently in order to obtain $21 million in loans.
New York Post
7/24/2010
City Find that Whistleblowers Value Anonymity Over Cash
Richmond City Council, in Va., found that whistleblowers are more interested in keeping their identity a secret than receiving a cash reward. They have found over the years that employees are more concerned with co-worker retaliation then being compensated for revealing fraud.
WatchDog
7/20/2010
U.K. Accountant Sentenced to Four Years in Prison for £1.3M Fraud
A U.K. accountant has been sentenced to four years in prison for fraud worth £1.3 million at the auto dealership where she worked. Tracey Laws, former accountant at Preston Hall BMW, committed fraud by issuing checks to herself and disguising the transactions as corporation tax payments.
Accountancy Age
7/19/2010
Couple Pleads Guilty to Fraud Conspiracy
Gary and Toni Jo Wilder, an Illinois couple who owned and operated Wildwood Industries, pleaded guilty to conspiring together and with others to defraud lenders of more than $213 million to fund manufacturing equipment that did not exist.
eNews
7/15/2010
Small Businesses Struggle with Accounting Errors and Fraud
Most experts say the difference between accounting errors and fraud is a question of intent. When in comes to small businesses, both errors and fraud are common problems. More than 30 percent of all fraud occurs in small companies, a startling fact when considering the estimated fraud losses for businesses of all sizes were nearly $2.9 trillion in 2009.
Accounting WEB
7/12/2010
Most Common Fraud Risk: Financial Statement Fraud
According to a recent survey by Deloitte, financial statement fraud is the most commonly expressed type of fraud risk that companies are concerned about in the next 12 months.
Accounting WEB
7/6/2010
Former AR Employee Arrested on Suspicion of Stealing $1.6M
Daunielle Martin-Campbell, former administrative secretary of Blue Daisy Cement Products in charge of accounts receivable, was arrested on suspicion of embezzling nearly $1.6 million. Martin-Campbell was allegedly depositing company checks into her account, then deleting the invoices from the company computer over a four-year span.
Daily Breeze
6/29/2010
Women Gets Sentenced for Embezzling from Dad's Firm
Shirley Scheets, a former office manager in charge of accounts receivable and payable, was sentenced to 18-months in prison and to paying over $124,000 in restitution for embezzling from her father's business bank accounts.
KY3
6/29/2010
Courts Stop Scheme that Led to $10M in Unlawful Charges
A federal court has stopped an international scheme that used identity theft to place more than $10 million in charges on consumers' credit and debit cards. The defendants used phony company names and information taken from identity theft victims in the US to open more than 100 merchant accounts with companies that process charges to consumers' credit and debit card accounts.
Collections & Credit Risk
6/28/2010
Former Enron CEO Fraud Case to be Reviewed
The conviction of former Enron CEO Jeffrey Skilling is being questioned after a US court decided to put his case up for review. The judge rules that Skilling's fraud conviction used law that only covered bribery and kickbacks, where his alleged misconduct did not include either.
Accountancy Age
6/25/2010
Australia Reports Growing Amount of Employee Fraud
A recent collapse of an Australian retailer, Clive Peeters, a company whose experienced financial troubles due to an employee embezzling $20 million, has shed new light on the growing amount of employee fraud cases.
The Australian
6/25/2010
BDO Seidman $521.7M Punishment Reversed
BDO Seidman LLP, a New York accounting firm who had previously been ordered to take responsibility for a clients' financial losses for failure to detect fraud, won't have to pay Portuguese client Banco Espirito Santo SA $521.7 million, according to a Florida appeals court.
Business Week
6/23/2010
Man Charged with Bankruptcy Fraud
A Kansas City man, James Moser, has been convicted of bankruptcy fraud for hiding assets during a bankruptcy liquidation proceeding.
Business Journal
6/22/2010
CPAs Going Beyond Traditional Services
CPA firms are going beyond their traditional services and helping businesses who want to establish a reputation for transparency and trustworthiness. Due to the amount of security breaches, unethical and shoddy work practices and fraud in business these days, many CPA find they are stepping it up and assisting their clients with trust and transparency.
Web CPA
6/17/2010
Former Cameron Financials Executives Accused of Fraud
The former president and CEO of Cameron Financials, a lending company currently in chapter 7 bankruptcy proceedings, have been accused by the trustee handling the bankruptcy case of fraud, negligence and misrepresenting their financial dealings.
The Tribune News
6/17/2010
Michigan Credit Card Scam Sweeping the State
Michigan Police are warning businesses of a credit card fraud scheme sweeping across the state. The scam artists are scrambling stores satellite signals using tin foil, then using stolen credit card purchasing items and taking off. The foil makes it so the businesses credit card systems are offline, so the culprits are able to get away without the business realizing it.
WWMT
6/13/2010
Diebold Settles with the SEC
Diebold Inc., automated-teller-machine (ATM) maker, has agreed to pay $25 million in a settlement with the Securities and Exchange Commission over their case on alleged fraudulent accounting.
The Wall Street Journal
6/3/2010
SEC Charges Three Former Diebold Finance Executives
Three former finance executives, including two CFOs, from Diebold Inc. have been charged by the Securities and Exchange Commission with accounting fraud. The SEC filed a civil suit against Gregory Geswein, Kevin Krakora and Sandra Miller, claiming they have manipulated the company's books to meet earnings forcasts from 2002 through 2007.
The New York Times
6/2/2010
Wisconsin Woman Sentenced for Bankruptcy Fraud
Pamela Kohlheim, a Milwaukee woman who collected over $540,000 from the states child care program, was sentenced to a year in federal prison, $40,000 in restitution and two years probation for hiding some of her day care income from bankruptcy court.
Journal Sentinel Online
5/202010
New Century Owner Charged with $5.8M Bank Fraud
Kwong Hung "Eric" Lam, president and sole owner of New Century Enterprise Inc., has been arrested for allegedly defrauding an Israeli bank out of nearly $5.8 million by misrepresenting New Century's accounts receivables.
Capital
5/12/2010
Former Detroit Public School Employees Charged with $3M Fraud
Stephen Hill and Christina Polk-Osumah, two former Detroit Pubic School risk management executives, have been indicted by a federal grand jury on charges that they stole more than $3 million form the school system.
Business Insurance
5/11/2010
Former Office Manager Sentenced to Four Years for P-card Fraud
Kimberly Palmer, former office manager at Valley Metal Buildings, has been sentenced to four years in prison and ordered to pay approximately $144,000 in restitution for fraudulently using her company-issued p-card. Palmer was in charge of accounts payable, accounts receivable, payroll and bookkeeping.
Great Falls Tribune
5/8/2010
Attorney Convicted of Bankruptcy Fraud
Patrick Anderson, a West Virginian attorney, has bee convicted of committing fraud in a former client's bankruptcy case. He was charged for one count of bankruptcy fraud and one count of fraudulent transfer and concealment of assets. He faces a maximum of 10 years in prison, and a $500,000 fine.
The Record
5/6/2010
Former CEO Pleads Guilty to Fraud
Rich Ghilarducci, former CEO of Humboldt Creamery, pleaded guilty to fraud. Gilarducci stated he made false statements to creditors inflating the value of the creamery's accounts receivables and inventory.
Contra Costa Times
5/6/2010
Woman Sentenced for Embezzling Over $2.5 Million
Jamie Hoff, a former Expand International of America employee, has been sentenced to 33 months in prison after pleading guilty to an embezzlement scheme amounting in over $2.5 million from her employer.
Hartford Courant
4/30/2010
Accountants Role in Detecting Fraud
Accountants are often exposed to fraud without even realizing it; not noticing the signs and signals of fraud can make it difficult to detect. Keeping current on laws and regulations can make it so accountants are able to identify the red flags of fraud to better assist their company.
Journal of Accountancy
May 2010
Former Farm Treasurer Accused of $2M in Fraud
Gary Gross, the former treasurer for Niman Ranch, was arrested for allegedly defrauding his former employer of nearly $2 million. Gross was allegedly making unauthorized transfers form Niman's bank accounts into personal accounts, and adjusting the books to cover his tracks for nearly two years.
San Francisco Chronicle
4/23/2010
Former Ernst & Young Employee Pleads Guilty to Millions in Fraud
Lily Aspillera, former executive assistant at Ernst & Young, pleaded guilty to mail fraud and tax evasion embezzling between $1 million and $2.5 million. She did this in many ways, including issuing over $1 million worth of checks to herself, overpaying employees so they would return the amount to her to keep, and paying her bills with company purchasing cards.
Ethiopian Review
4/20/2010
SEC Accuses Goldman Sachs of Fraud
The Securities and Exchange Commission filed a civil complaint against Goldman Sachs claiming they fraudulently sold an investment that was preordained to fail. Goldman is speaking out against these allegations, claiming they "would never intentionally mislead anyone, and certainly not our clients."
USA Today
4/20/2010
Former AP Supervisor Pleads Guilty to $230,000 Embezzlement
Mary Herrmann, former accounts payable supervisor for General Dynamics Advance Information Systems, pleaded guilty to embezzling over $230,000 from her employer. Herrmann created fake invoices from vendors, and then transferred the funds to a personal bank account. Herrmann faces a maximum sentence of 20 years in prison.
Faxts News
4/15/2010
Study Questions Effectiveness of Whistleblowing Laws
According to a recent study by Bentley College and the University of New Hampshire, most reports of fraud through whistleblowing are ignored by management. The study questions the effectiveness of whistleblowing laws, and whether it is improving corporate governance.
Pittsburgh Post-Gazette
4/11/2010
Boston Man Charged with $1 Million in Fraud
Joseph Boldiga, a former collection specialist at the Waltham software company, has been arrested for defrauding his employer of $1 million by redirecting collected accounts receivables to himself.
FBI Boston
4/9/2010
FBI Arrests Eight Men in Credit Card Scandal
Eight Ohio Men were arrest by the FBI for allegedly using consumers credit card information fraudulently to buy over a million dollars worth of merchandise.
Collections & Credit Risk
4/8/2010
Man Sentenced for Overstating Accounts Receivable
John Burns, owner of Central Construction, was sentenced to three-years in prison for overstating his accounts receivable by $1 million to obtain $750,000 in loans from Northim Bank.
Alaska Dispatch
4/2/2010
Couple Charged with Embezzling $1.75 Million from U.S. Marine Corps
Eric Schmidt, a U.S. Marine Corps captain, and his wife Janet have been charged with conspiracy to commit wire fraud and filing a false tax return, which cost the government $1.75 million. The Schmidts allegedly embezzled the money through an inflated invoicing scheme where they overestimated the costs of merchandise the Marine Corps was providing, profiting from the overestimation.
The Press-Enterprise
4/2/2010
AmerLink CEO Faces Pleads Guilty to Fraud
AmerLink's CEO John Barth Jr. is facing up to five years in prison for pleading guilty to fraud in bankruptcy proceedings. Barth admitted to stealing company money and customer deposits for personal items. He faces a maximum $250,000 fine.
Rocky Mountain Telegram
3/30/2010
Former AP Clerk Sentences to 27 Months in Prison
Michelle Cote, former accounts payable clerk and administrative assistant of Lamb's Construction Corporation, was sentenced to 27 months in federal prison for embezzling over $200,000 from her employer. Cote was issuing business checks to herself to pay for personal items and was misusing her company purchasing card.
The Eagle Tribune
3/30/2010
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