Category: Fraud

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/

Whistleblower Protection Has Limits

The efforts to encourage and protect whistleblowers have been wide-reaching. However there are differences between the rewards and the protections based on the agency and laws involved. A recent case entitled Gary Vander Boegh v. EnergySolutions, Inc. demonstrated that not all protections are equal. Mr. Vander Boegh had previously engaged in a range of protected …

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Permanent link to this article: http://betweenthenumbers.net/2014/12/whistleblower-protection-has-limits/

A Fishy Application of the Sarbanes Oxley Act

The Supreme Court has been asked to decide the case of a commercial fisherman accused of harvesting fish too small to meet federal fishing guidelines.  The reason the highest court in the US will hear the case?  Federal prosecutors have applied provisions of the Sarbanes-Oxley Act in trying their case. The scope of such application is …

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Permanent link to this article: http://betweenthenumbers.net/2014/12/a-fishy-application-of-the-sarbanes-oxley-act/

Whistleblower Program to Pay Big on Late Report from Overseas

The Securities and Exchange Commission (“SEC”) has announced that it will award over $30 million in its latest high profile payout to a whistleblower who provided key original information that led to a successful SEC enforcement action. The award is getting a lot of attention for a number of reasons. This $30 million amount is …

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Permanent link to this article: http://betweenthenumbers.net/2014/10/whistleblower-program-to-pays-big-on-late-report-from-overseas/

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, …

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

Over $100 Billion In Improper Federal Payments Occur Each Year

The U.S. Government Accountability Office (“GAO”)  testified before Congress to describe the breakdown of over $100 billion of improper federal payments in 2013.  Such errors included tax credits for those not entitled to them, unnecessary Medicare payments, and unemployment benefits for “under the table” workers, among others.  Shockingly, these types of monumental errors are generally repetitive and …

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Permanent link to this article: http://betweenthenumbers.net/2014/07/over-100-billion-in-improper-federal-payments-occur-each-year/

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 …

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

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, …

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

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 …

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

By some measures, US corporate transparency lags behind China, Russia

In order to have efficient markets, stakeholders must have access to clear and accurate data and related disclosures that allow for insight and interpretation of that data.  The Western world has long touted the importance and benefits of such corporate transparency and has numerous organizations and government agencies tasked with defining appropriate practices and policing …

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Permanent link to this article: http://betweenthenumbers.net/2014/05/by-some-measures-us-corporate-transparency-lags-behind-china-russia/