Telephone fraud: beware of the big prize promise

I know an elderly lady who is disabled and in early stages of dementia. Her name is Doris. Doris was the recent victim of a telephone scam. Doris’ four adult children recently told me that two months ago their mother received a telephone call, out of the blue, from Jamaica. It was from a slick …

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Did the Fraudster Act Alone? The Impact of Collusion on Fraud

When performing forensic accounting engagements to detect or quantify employee theft or other types of fraud that has occurred in organizations, we often find that there is more than one person involved in the fraudulent scheme. A recent study discussed in Fraud Magazine analyzed the impact of collusion on fraud. In the study, convicted fraud …

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Property Management Fraud

A former Tucson real estate agent was indicted on more than 20 counts related to real-estate fraud. The agent began operating a property management company in 2008 after suffering declines in his personal income due to the real estate crash which hit Arizona. By 2012, numerous clients had filed complaints with the Arizona Department of …

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A Time to Reflect

We just rang in the New Year, 2015, and it is now a time for reflection on 2014. First and foremost, I wish to thank all the clients we served during the past year. Henry & Horne ’s Business Valuation and Litigation Support Services Group (H&H BV/LS Group) provided forensic, valuation and litigation services to …

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Fraud in Non-Profits?!

It can’t be. After all, these organizations are meant to help those less fortunate than ourselves. Why would anyone commit fraud against a non-profit organization? Unfortunately, because they can is too often the answer. Many non-profit organizations simply don’t have the staff or the budget to implement proper internal control procedures to help mitigate the …

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Expense Reimbursement Schemes – Are Your Employees Stealing from You?

Expense reimbursement schemes are extremely common in companies. Employers may underestimate the costs of this type of fraud. Perpetrators of these schemes range from administrative employees buying company supplies to highly compensated executives with million dollar travel budgets. One of my first assignments in the beginning of my career was to audit the expense reports …

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Camaraderie or collusion: encourage one, but not both

Management teams across the nation are encouraging team building among staff to encourage and promote employee friendships and to boost morale. I commend these organizations for promoting a healthy work environment which provides a social support network at both a personal and a professional level. Positive employee morale can lead to reduced employee turnover, reduced …

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Employee fraud: how to spot a fictitious vendor billing scheme

Billing schemes are a type of asset misappropriation employee fraud. According to the 2018 Report to the Nations published by the Association of Certified Fraud Examiners, billing schemes typically account for 20% of all employee fraud and cost employers $100,000 per incident. One type of billing scheme we have seen is the “Shell Company” or …

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Forensic Accounting & Alternative Solutions to Resolving Disputes

As a forensic accountant, I was recently involved in the mediation process of a very complex divorce case. Due the nature of the case, preparing for trial would be a long and expensive process for my client. In addition, in order to resolve the issues satisfactorily for both parties, a creative, and somewhat nontraditional, approach …

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