My Employee Stole From Me, Should I Seek Criminal Prosecution?

Has your company ever been a victim of employee fraud? After discovering the fraud, you probably first experienced a mixture of emotions including disbelief, shock and anger, as well as uncertainty about what approach and next steps you should take. One question business owners grapple with is whether to file criminal charges against the dishonest …

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What Can A Small Business Do As Its First Defense Against Employee Theft?

The Association of Certified Fraud Examiners (“ACFE”) reported in its 2012 Report to the Nations on Occupational Fraud and Abuse (“the Report”) that of 1,388 cases of occupational fraud investigated, 87% involved asset misappropriation schemes.  And, it’s not the new employees who are causing the greater fraud losses.  According to the Report the higher fraud …

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Is Your Spouse Hiding Assets? A Review of Tax Returns May Uncover Some Red Flags

If you are in the process of divorce and believe your spouse may be hiding assets, a review of your tax returns may provide some indication of those assets.  Of course, the spouse who controls the preparation of the tax return does not always report income relating to hidden assets, (hence the word “hidden”).  However, …

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The Fraud Triangle – 40 years later

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 the “fraud triangle.”  The factors identified 40 years ago as an explanation of why someone would commit embezzlement are still relevant today …

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You’re A Forensic Accountant? What’s That?

Like most people, I am often asked what I do.  My typical answer is “I’m a forensic accountant.”  This gets me some puzzled looks and usually prompts a few questions.  “What does that mean?” “Do you do accounting on dead bodies?”  (One of my favorite questions ever?) “OK… what is that?” So what is Forensic …

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Is Small Business Safe from Fraud?

Many small business owners have a feeling of invincibility when it comes to employee fraud.  Their “dedicated” and “loyal” employees would never steal from them.  Or maybe they are just too small to make any theft worthwhile.  The Association of Certified Fraud Examiners (ACFE) thinks otherwise and has the statistics to back it up. Recently …

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ACFE 2012 Global Fraud Study Findings Relating to Occupational Fraud Prosecution and Litigation

The Association of Certified Fraud Examiners (ACFE) recently issued its 2012 Global Fraud Study entitled “Report to the Nations on Occupational Fraud and Abuse.” The Report provides an analysis of almost 1,400 fraud cases investigated worldwide and contains data and findings related to the nature and costs of global fraud. As a forensic accountant specializing …

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Can I Trust My Employees?

“I’m not upset that you lied to me, I’m upset that from now on I can’t believe you” – Friedrich Nietzsche Although trust is a significant factor when maintaining good relationships with your employees, it can be misplaced or abused.   In fact, statistics reveal that acts of embezzlement and theft are frequently committed by trusted …

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Integrating Excel and Access – Responding to Clients’ Needs for Data Analysis

At Henry & Horne we often deal with requests that involve a heavy data analysis component.  Most of these requests can be handled with Microsoft Excel.  The multifaceted spreadsheets, in addition to the formulas and macros, allow for complete data articulation.  However, Excel does have its limitations.  In one recent project we had for a …

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Ponzi schemes: an overview

Often, when people find out I am a forensic accountant, they will ask me about widely publicized cases involving fraudsters, such as Bernie Madoff, who is currently serving a 150 year sentence in prison for orchestrating a multi-billion dollar Ponzi scheme. During 2010, the SEC filed forty-seven enforcement actions involving Ponzi schemes. Sometimes I am …

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