Category Archive: Forensic Accounting

Mar 13

Golf Channel May Lose Millions in Stanford Ponzi Clawback

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 …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2015/03/golf-channel-may-lose-millions-in-stanford-ponzi-clawback/

Mar 10

DWP audit finds LA lost hundreds of millions

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 …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2015/03/dwp-audit-finds-la-lost-hundreds-of-millions/

Feb 24

FBI Business Email Compromise Alert

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 …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2015/02/fbi-business-email-compromise-alert/

Jan 28

Tax Deduction Available for Ponzi Scheme Related Theft

The current tax season brings some small consolation to victims of Ponzi schemes and certain other financial fraud, with the Internal Revenue Service (“IRS”) allowing duped investors to obtain partial relief in the form of a theft loss tax deduction.  Internal Revenue Code (“IRC”) 165(a) provides that a theft loss incurred in a transaction entered …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2015/01/tax-deduction-available-for-ponzi-scheme-related-theft/

Dec 19

Forty Under 40 Honored by the National Association of Certified Valuators and Analysts

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, …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2014/12/forty-under-40-honored-by-the-national-association-of-certified-valuators-and-analysts/

Sep 09

Fraudulent Revenue Recognition Causes Rift at the SEC

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, …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2014/09/fraudulent-revenue-recognition-causes-rift-at-the-sec/

Jul 11

Internal Control Failings At The IRS

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 …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2014/07/internal-control-failings-at-the-irs/

Jun 20

New Rules Aimed At Increasing Auditor Scrutiny Of Critical Fraud Areas

With its new audit standards and amendments aimed at specific transaction types, the Public Company Accounting Oversight Board (“PCAOB”) has targeted three critical areas in its ongoing efforts to combat financial reporting fraud.  A more comprehensive article found here describes the new rules to heighten auditor scrutiny regarding (i) related-party deals, (ii) significant unusual transactions, …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2014/06/new-rules-aimed-at-increasing-auditor-scrutiny-of-critical-fraud-areas/

Jun 16

Better Accounting Controls Would Likely Have Prevented Inventory Fraud at Jewelry Company

The Securities and Exchange Commission (“SEC”) filed a claim stating that DGSE Companies Inc. (“DGSE”) and its former chief financial officer (“CFO”) engaged in accounting fraud by manipulating inventory accounts.  DGSE transacts in jewelry, diamonds, fine watches, rare coins, precious metals and other collectibles and valuables.  DGSE’s CFO allegedly made numerous false accounting entries that …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2014/06/better-accounting-controls-would-likely-have-prevented-inventory-fraud-at-jewelry-company/

May 28

$2.3 Billion of Taxable Income Disappears Via Alimony Reporting

Tax reporting for alimony payments is a relatively straightforward process.  Those who pay alimony deduct the amount on their tax return when calculating their taxable income.  Those who receive alimony must report the amount received as taxable income.  These requirements should result in a shifting of taxable income without changing the total amount.  In order …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2014/05/2-3-billion-of-taxable-income-disappears-via-alimony-reporting/

Older posts «

» Newer posts