Category Archive: Fraud

Apr 15

SEC Takes Action on Overly Restrictive Confidentiality Agreements Affecting Whistleblowers

A recent enforcement action by the Securities and Exchange Commission (“SEC”) is the first of its kind, concerning improperly restrictive language contained in a company’s confidentiality agreements that could potentially impede whistleblower rules and protections. The SEC charged KBR Inc. with violating Rule 21F-17 under the Dodd-Frank Act by requiring witnesses in internal investigations to …

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Permanent link to this article: http://betweenthenumbers.net/2015/04/sec-takes-action-on-overly-restrictive-confidentiality-agreements-affecting-whistleblowers/

Apr 12

Pro-Athlete Lending Firm is an Alleged Ponzi Scheme

A Florida based financial advisory involved in professional athlete lending has been charged with defrauding its clients. On April 7th the Securities and Exchange Commission (“SEC”) charged William D. Allen and his business partner Susan C. Daub with running a Ponzi scheme which promised investors 18% returns, however a sizable portion of these “returns” were …

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Permanent link to this article: http://betweenthenumbers.net/2015/04/pro-athlete-lending-firm-is-an-alleged-ponzi-scheme/

Apr 06

Massive Fraud in the Middle East

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 …

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Permanent link to this article: http://betweenthenumbers.net/2015/04/massive-fraud-in-the-middle-east/

Mar 23

GAO Reports Worsening Improper Payments

The Government Accountability Office (“GAO”) recently published a summary of the testimony of US Comptroller General Gene L. Dodaro regarding government efficiency and effectiveness.  The GAO reports annually to Congress on federal programs, agencies, offices, and initiatives (both within departments and government-wide) that are fragmented, overlapping, or duplicative.  It also identifies opportunities for cost savings …

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Permanent link to this article: http://betweenthenumbers.net/2015/03/gao-reports-worsening-improper-payments/

Mar 17

Good Deed Performed Too Early for SOX Award

The US Court of Appeals for the Second District has held that the Securities and Exchange Commission (“SEC”) was within its rights to deny a whistleblower award to Larry Stryker under Section 21F of the Dodd-Frank Act (“Dodd-Frank”), 15 U.S.C. § 78u-6. From 2004-2009, Mr. Stryker submitted information to the SEC regarding alleged wrongdoing by Advanced …

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Permanent link to this article: http://betweenthenumbers.net/2015/03/good-deed-performed-too-early-for-sox-award/

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 …

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

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 …

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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 …

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

Jan 21

Mathematical Rule Uncovers Several Hundred Thousand Dollar Fraud

An article recently published in the Wall Street Journal details how “the law of first digits”, also known as Benford’s Law, can uncover fraud. Benford’s Law, named after a 20th century American physicist, states that in nearly all real-world distributions of numbers the frequency of ones, twos, threes, and so on, in the first digit …

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Permanent link to this article: http://betweenthenumbers.net/2015/01/mathematical-rule-uncovers-several-hundred-thousand-dollar-fraud/

Jan 20

The Alarming Results of the First Independent Review of the G20’s Whistleblower Policies

The Australian division of Transparency International recently released a report assessing the adequacy of the G20’s whistleblower laws, regulations, and protections. The assessment was done in preparation for this past November’s G20 Summit, hosted in Australia, during which corporate and public fraud were top agenda topics. These nefarious activities have a substantial negative impact on …

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Permanent link to this article: http://betweenthenumbers.net/2015/01/the-alarming-results-of-the-first-independent-review-of-the-g20s-whistleblower-policies/

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