Fraud Articles

Financial advisor and accountant to the stars Kenneth Starr has been sentenced to 90 months in prison for defrauding his celebrity clients out of millions of dollars.

http://www.accountingtoday.com/news/Celebrity-Accountant-Starr-Sentenced-57464-1.html?ET=webcpa:e1322:158989a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=WebCPA_Daily_030411

A former Apple employee accused of accepting millions in kickbacks from international suppliers pleaded guilty in federal court to wire fraud, conspiracy, and money laundering.

Paul Devine admitted to a scheme that defrauded Apple between 2005 and 2010, according to the U.S. Attorney’s Office. Devine also admitted to transferring the proceeds from his scam between various bank accounts in the U.S. and overseas in order to hide his activity.

Devine provided Apple suppliers and manufacturers with confidential Apple information, like product forecasts, roadmaps, pricing targets, product specifications, and data obtained from Apple’s business partners. Those companies then paid Devine kickbacks for the information, which was used to secure more favorable contracts with Apple.

http://www.pcmag.com/article2/0,2817,2381173,00.asp

All organizations can use the free U.S. federal Excluded Parties List System during their procurement processes to find questionable vendors and reduce the risk of fraud. CFEs and auditors should use this little-known Internet database in fraud examinations.

http://www.fraud-magazine.com/article.aspx?id=4294969261

(Video from the ACFE) Jean-François Legault, CISSP, CISM, CIFI, outlines phishing and spear-phishing, just two of the many methods fraudsters use to commit online crimes.

http://www.facebook.com/home.php?#!/video/video.php?v=157392514315668&oid=112013025519576&comments

In December 2008, Bernie Madoff put the term “Ponzi scheme” back on the map. 2009 was declared the “Year of the Ponzi” by the Associated Press, during which time over 150 Ponzi schemes totaling over $16.5 billion were unraveled (excluding Madoff’s $65 billion scheme, which came undone in December 2008).
While 2011 has not unraveled anything close in terms of monetary damages to Madoff, Allen Stanford ($8 billion), Tom Petters ($3.65 billion) or Scott Rothstein ($1.2 billion), the Ponzi scheme has not disappeared.

http://www.diligentiagroup.com/due-diligence/the-ponzi-scheme-is-not-dead-yet/

The SEC alleges that Pompano Beach, Fla.-based DHB Industries (now known as Point Blank Solutions) engaged in pervasive accounting and disclosure fraud through its senior officers and misappropriated company assets to personally benefit the former CEO.

http://www.sec.gov/news/press/2011/2011-52.htm

CPAs are not exempt from fraud. According to court records, Anthony Tulli, 54, of Mandeville was charged with one count of mail fraud and 45 counts of wire fraud April 10, 2010. Court records claim that the mail fraud charge came about when Tulli allegedly devised a scheme to defraud a Northshore business out of $40,000. Tulli had a contract with the company to handle all of its payroll services, where Tulli was to issue pay checks, calculate tax withholdings and submit federal and state income tax taxes to the correct agencies. The indictment alleges Tulli nevr submitted the taxes to either the federal or state tax agencies. He hid the scheme by listing his business address as the point of contact, instead of the Northshore business. The IRS and Louisiana Department of Revenue would send delinquent notices to Tulli’s office instead of the business, while Tulli allegedly pocketed the tax money.

http://www.slidellsentry.com/articles/2011/02/04/news/doc4d4b4296e564d705607779.txt

Fraud can happen in any company or organization, but when it happens to a popular sitcom, it gets more coverage. Although this fraud was relatively fraud, there are lessons to be learned

http://www.hhcpa.com/blogs/non-profit-accounting-services-blog/2011/02/01/30-rock-accountant-charged-with-fraud/

Fraudulent electronic funds transfer transactions, in which a cybercriminal uses a software tool to take control of the victim’s computer and steals funds from the victim’s bank account, appears to be on the rise. Learn how to mitigate the risks.

http://www.journalofaccountancy.com/Issues/2010/Oct/20092174.htm

As millions of Americans are being forced out of their homes because of foreclosure, the overburdened foreclosure process is swamped with paperwork, opening the door to fraud. The system is filled with fake documents, forged signatures and lenders taking shortcuts when processing the files of borrowers. The problems are so widespread some judges just ignore them, and Ally Financial, the nation’s fourth-largest mortgage lender, has stopped evictions in 23 states.

http://www.washingtonpost.com/wp-dyn/content/article/2010/09/22/AR2010092206132.html