The Fraudies Awards

SEC didn’t buy it, found the fraud and lap dancers

Fraudies — Wed, 06 May 2009 14:08:47 +0000

Misleading accounting was the norm at this Northbrook, Illinois-based investment firm…but sporting events and lap dance receipts raised eyebrows. Read more here on Bloomberg.com in “Bankruptcy Sleuths Find Cash in Trader Receipts for Lap Dancers.” The SEC found more than they thought they would.

$850M is a BIG diversion

Fraudies — Fri, 17 Apr 2009 18:16:52 +0000

Look at this WSJ.com article about $850 million being “diverted” by a family running a Tajikistan bank.

This makes the case for continuous auditing by pointing out how bad things can get in the other extreme of only auditing once a decade. Independent oversight is so important. After all Barney Fife had it right when he said, “Nip it in the bud.”

Corruption Schemes Hit Education Organizations

Fraudies — Tue, 14 Apr 2009 17:44:12 +0000

Internal Auditor reports on studies showing that “27 percent of all occupational frauds” are corruption schemes. The education industry numbers are especially interesting.

Taxpayers foot bill for air purifier, mouse pads

Fraudies — Mon, 13 Apr 2009 18:46:01 +0000

Where is the transparency? Check this out. The devil is in the details. If you’re looking for this kind of stuff continuously, you’ll find it before the waste grows too large. These type of problems are indicative of a poor tone at the top where you end up seeing a more broadly, poorly-run implementation project.

New Jersey Man Admits $80 Million Real Estate Ponzi Scheme

Fraudies — Thu, 09 Apr 2009 19:56:50 +0000

Washington Mutual Inc., Greenpoint Mortgage Funding Inc., and Credit Suisse Group AG were all defrauded in addition to investors. Read more here.

Overbilling and defrauding in Jacksonville

Fraudies — Thu, 09 Apr 2009 19:51:05 +0000

Lee and Cates workers arrested on fraud charges. Read more on the BizJournals.com.

Phony invoices and lots of expenses including money for a wedding

Fraudies — Tue, 07 Apr 2009 20:52:33 +0000

Former Columbia University employee pleads guilty to a whole lotta fraud. Read more here.

Fraudster-In-Law

Fraudies — Tue, 31 Mar 2009 23:58:06 +0000

One man falsified corporate books after embezzling $645,000 over a 12-year period. The scam was uncovered by the company’s CEO, who coincidentally happens to be the man’s brother-in-law, when he installed surveillance cameras only to find the thief ripping up receipts and stashing cash payments into a backpack.

Jack of All Trades, Master of None

Fraudies — Tue, 31 Mar 2009 23:57:35 +0000

A California Lamborghini dealer is facing charges this month for scamming the financing company that gave him millions to purchase the luxury sports cars and put them on his lot. He deceived the company into thinking he hadn’t yet sold the cars while he secretly used the profits to pay off debts in his other businesses including another car dealership, commercial real estate, and a wine vineyard.

The Woman Who Cried Cancer

Fraudies — Tue, 31 Mar 2009 23:56:31 +0000

A Fortune 500 company in the medical industry was supportive when one of its employees used her sick days for cancer treatments. The support turned to disdain when they found out that the “cancer treatments” were actually hotel spa treatments for the perfectly healthy employee. Worse, the so-called patient charged these visits to her corporate credit card, disguising them as legitimate travel charges.