I recently read an article about fraud within the Massachusetts State Police (MSP). The author, a former MSP trooper, outlined an investigation by the U.S. Department of Justice (DOJ) and the Massachusetts Attorney General’s Office. The investigation involves a minimum of 46 troopers with the allegations including payroll fraud and conspiracy, among other federal violations. …
Crime is big business both domestically and across the globe and, as a result, money laundering activities are extensive. In fact, the United Nations Office of Drugs and Crime reports that “[t]he estimated amount of money laundered globally in one year is 2% – 5% of global GDP, or $800 – $2 trillion in current …
I recently received a call from a lady identifying herself as an agent of the Internal Revenue Service. She said I owed a large sum of money to the IRS in back taxes and that if I did not pay up, I would find myself being prosecuted to the fullest extent of the law and …
Several years ago, I wrote about the Fraud Triangle. A recent case I read about shows once again how relevant it is. In 1973, Donald Cressey published the results of his research on embezzlement in Other People’s Money: A Study in the Social Psychology of Embezzlement. Mr. Cressey’s hypothesis has become known to many as …
We hear the term forensic all the time, and it holds a special place in pop culture thanks to TV shows like the fictional CSI and the “real-life” Forensic Files. The news also inundates us with stories about legal proceedings involving forensic accountants, psychiatrists, pathologists, toxicologists and others. However, when pressed, most people don’t really …
This past April, the Association of Certified Fraud Examiners (ACFE) released the 10th edition of its global study on occupational fraud, the Report to the Nations – 2018 Global Study on Occupational Fraud and Abuse (the “ACFE Report”). The ACFE Report summarizes statistics based on 2,690 cases that resulted in over $7 billion in damages. …
CPAs who perform litigation support and forensic accounting services are retained as expert witnesses to provide reports and to testify on their reports on such matters as: Determining income of mother or father from an owned business for child support or spousal maintenance purposes, Determining lost profits of a business in owner disputes, Determining the …
My heart, as many others, goes out to the people of Houston and the surrounding cities and towns affected by Hurricane Harvey. I experienced the storm surge created by Hurricane Isabel in 2003. My home was within inches of flooding and my next door neighbor completely lost his home simply because the typography of his …
“Tone at the Top” is an often used term when talking about corporate fraud and how to prevent it. Essentially “tone at the top” refers to the ethical and cultural atmosphere created in the workplace by leadership. If an organization’s leadership displays integrity, the employees are inclined to follow their lead. If however, employees believe …
Betty opened up her email and scanned through her messages. One in particular stood out, from the Internal Revenue Service (IRS), so she clicked on it and began to read. It appeared that there was an issue processing her refund, and the IRS needed some additional information from her. So, she clicked on the link …