May 17
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 …
Permanent link to this article: https://betweenthenumbers.net/2015/05/investors-allegedly-defrauded-by-itt-technical-institute-executives/
May 16
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 …
Permanent link to this article: https://betweenthenumbers.net/2015/05/gao-tells-sec-to-look-in-the-mirror-regarding-internal-control-failures/
Apr 06
The New Yorker magazine recently ran a scathing review of the collapse of The International Banking Corporation (“TICB”), the largest credit default and potential Ponzi scheme ever experienced in the Middle East. At its core was a man named Maan al-Sanea, a son-in-law to a prestigious Saudi Arabian family, who borrowed billions of dollars from …
Permanent link to this article: https://betweenthenumbers.net/2015/04/massive-fraud-in-the-middle-east/
Apr 04
The American Institute of Certified Public Accountants (“AIPCA”) recently released the findings of its most recent Survey on International Trends in Forensic and Valuation Services (“Survey”). The Survey polled 443 professionals, including 55% who worked in public accounting and/or consulting firms. The remainder were professionals working in business and industry, education, law enforcement, and government. …
Permanent link to this article: https://betweenthenumbers.net/2015/04/the-results-are-in-for-the-2014-aicpa-trends-in-forensic-and-valuation-services-survey/
Mar 13
The Ponzi scheme orchestrated by R. Allen Stanford is among the most notable of our time and the Golf Channel might find itself among its extensive list of victims. The Fifth Circuit has given the go-ahead for the receiver to pursue $6 million of advertising fees paid by Stanford to the Golf Channel. The basis …
Permanent link to this article: https://betweenthenumbers.net/2015/03/golf-channel-may-lose-millions-in-stanford-ponzi-clawback/
Mar 10
A recent audit of DWP billings following problems with its new billing system revealed that over $680 million was lost due to faulty billings. The massive revenue impact is further exacerbated by the fact that the system cost $70 million to originally implement, followed by over $40 million spent so far on efforts to address …
Permanent link to this article: https://betweenthenumbers.net/2015/03/dwp-audit-finds-la-lost-hundreds-of-millions/
Feb 24
The FBI has issued a warning for increasing levels of a type of fraud known as “business email compromises” that target companies that regularly wire funds to foreign third parties. In this scheme, an accounting officer is targeted with an email that appears to be originating from a company executive. In fact, upon closer inspection …
Permanent link to this article: https://betweenthenumbers.net/2015/02/fbi-business-email-compromise-alert/
Dec 19
Forty “rising stars” in the field of business valuation and forensic accounting were recently honored by The National Association of Certified Valuators and Analysts (“NACVA”). Following a nationwide examination of practitioners in the field, the NACVA named its “Forty Under 40” list of top, up-and-coming valuation experts. The honorees exemplified the founding principles of the NACVA, …
Permanent link to this article: https://betweenthenumbers.net/2014/12/forty-under-40-honored-by-the-national-association-of-certified-valuators-and-analysts/
Sep 09
A settlement agreement has been reached In the Matter of Lynn R. Blodgett, Adm. Proc. File No. 3-16045 (August 28, 2014), but without consensus on the part of the Securities Exchange Committee (“SEC”) as to the appropriate penalty. The underlying circumstances involve a financial fraud action against two executives at Affiliated Computer Services, Inc. (“ACS”), Lynn Blodget, …
Permanent link to this article: https://betweenthenumbers.net/2014/09/fraudulent-revenue-recognition-causes-rift-at-the-sec/
Jul 11
The U.S. Government Accountability Office (“GAO”) recently issued “Management Report: Improvements Are Needed to Enhance the Internal Revenue Service’s Internal Controls”, describing how the Internal Revenue Service (“IRS”) continues to have internal control deficiencies, both new and old. The purpose of the report is to present internal control deficiencies identified during the GAO’s audit of …
Permanent link to this article: https://betweenthenumbers.net/2014/07/internal-control-failings-at-the-irs/
