Monthly Archive: May 2015

May 31

The Cancer Fund of America and Its Related Charities Are Called a Fraud

An alleged fraud was recently uncovered at The Cancer Fund of America and its related entities, including The Breast Cancer Society and The Children’s Cancer Fund of America. James Reynolds and his family members are believed to have stolen $187 million from donors in these charities over five years and spent the monies on lavish …

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Permanent link to this article: http://betweenthenumbers.net/2015/05/the-cancer-fund-of-america-and-its-related-charities-are-called-a-fraud/

May 21

Court Requires Expert Witness to Have a Body and a Brain

A recent case addressed the interesting question of whether a corporation could serve as an expert witness.  The matter involved a breach of fiduciary duty case coordinated with an appraisal proceeding, in re Dole Food Company (“Dole”).  The defendants designated Stifel, Nicolaus & Company, Incorporated (“Stifel”), a corporation, to serve as their expert witness regarding …

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Permanent link to this article: http://betweenthenumbers.net/2015/05/court-requires-expert-witness-to-have-a-body-and-a-brain/

May 17

Investors Allegedly Defrauded by ITT Technical Institute Executives

On Tuesday May 12, 2015 the Securities and Exchange Commission (“SEC”) charged the CEO and CFO of ITT Educational Services Inc. (NYSE: ESI) with fraud.  The company which runs a popular nationwide chain of for-profit technical colleges under the name ITT Technical Institute (“ITT Tech”) allegedly defrauded investors by materially misstating the financial performance of …

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Permanent link to this article: http://betweenthenumbers.net/2015/05/investors-allegedly-defrauded-by-itt-technical-institute-executives/

May 16

GAO Tells SEC to Look in the Mirror Regarding Internal Control Failures

The U.S. Government Accountability Office (“GAO”), a government watchdog group, recently reported the results of its 2014 audit of the Securities and Exchange Commission (“SEC”) financial statements.  The findings included (i) troubling reports of internal control failures at the very agency tasked with policing the reporting activities of others and (ii) warnings of vulnerability to …

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Permanent link to this article: http://betweenthenumbers.net/2015/05/gao-tells-sec-to-look-in-the-mirror-regarding-internal-control-failures/

May 06

IRS Workers Found to Have Evaded Tax Payment

A recent report indicated that over a 10 year period approximately 1,600 Internal Revenue Service (“IRS”) employees willfully evaded their tax obligations.  The wrongful activity included: failing to file timely claiming improper dependents claiming improper first-time homebuyer credits The law calls for the termination of such employees unless it is waived by the IRS commissioner. …

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Permanent link to this article: http://betweenthenumbers.net/2015/05/irs-workers-found-to-have-evade-tax-payment/

May 04

Compliance Officer Gets Whistleblower Award

The U.S. Securities and Exchange Commission (“SEC”) recently announced an award of $1.4 – $1.6 million provided to a compliance officer of a large company. Neither the company’s nor the officer’s name was made public due to confidentiality laws, but the information was reported to having pertained to significant financial harm to the company and/or …

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Permanent link to this article: http://betweenthenumbers.net/2015/05/compliance-officer-gets-whistleblower-award/