Category: Forensic Accounting

Is IRS Whistleblower the New Caped Crusader?

He strikes again. The IRS whistleblower known only as “Mr. ABC” has claimed his third payout for assistance in bringing down tax cheats.  Mr. ABC has been critical of the government’s ability to identify and investigate sophisticated tax shelters.  Whether motivated by a sense of justice or the pursuit of yet another seven figure reward, …

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Permanent link to this article: https://betweenthenumbers.net/2012/11/is-irs-whistleblower-the-new-caped-crusader/

Government Crackdown is a Reminder for Businesses to Examine Credit Card Policies

There has been a lot of press (some of which is discussed in a prior post) about various government agency employees taking extreme liberties with their government issued credit cards.  Back in July 2011, the Senate approved a reform measure for additional controls and stricter penalties that is finally set by signature by President Obama. …

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Permanent link to this article: https://betweenthenumbers.net/2012/09/government-crackdown-is-a-reminder-for-businesses-to-examine-credit-card-policies/

Funds donated to well known charities are mostly going towards further marketing

Recent allegations that funds intended for veterans and mistreated animals is actually mainly dedicated to further marketing efforts (and lining the pockets of one marketing company in particular) are causing anger among many donors. SPCA International raised $27 million dollars, but CNN.com reports that it spent nearly the same amount on direct mail services purchased …

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Permanent link to this article: https://betweenthenumbers.net/2012/06/funds-donated-to-well-known-charities-are-mostly-going-towards-further-marketing/

Investment fraud and financial exploitation of seniors is an epidemic

Results of a study entitled “Elder Investment Fraud and Financial Exploitation Survey” were released on June 13, 2012. 762 responses from primarily state securities regulators, adult protective services workers, social workers, medical professionals, and financial planners provided an unequivocal message that the elderly are being taken advantage of to an alarming degree. The results include: …

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Permanent link to this article: https://betweenthenumbers.net/2012/06/investment-fraud-and-financial-exploitation-of-seniors-is-an-epidemic/

Fraud School?

Six men in Britain have been convicted of not only selling fraudulent documents, but effectively operating a “school” to teach customers how to perpetuate frauds with the documents they purchased.  Confidential Access, the website at the center of the multi-level fraud, sold (mostly stolen) full credit profiles to its 11,000 customers for approximately $8,500 a …

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Permanent link to this article: https://betweenthenumbers.net/2012/06/fraud-school/

Another 100+ Years for a Ponzi Schemer

Allen Stanford was facing up to 230 years for bilking investors out of $7 billion in one of the largest frauds in US history.  As a reminder, Bernie Madoff, the most famous name in Ponzi schemes aside from Charles Ponzi himself, received a sentence of 150 years for his $20 billion fraud.  So in the interest of …

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Permanent link to this article: https://betweenthenumbers.net/2012/06/another-100-years-for-a-ponzi-schemer/

MF Global Trustee Reports Significant Management Malfeasance

On June 4, 2012, James Giddens, the SIPA (Securities Investor Protection Act) Trustee for MF Global, issued a detailed 275 page report that provides enormous detail of what happened at MF Global before it became the eighth-largest U.S. bankruptcy.  MF Global appropriately received even greater attention because substantial amounts of customer deposits were missing.  The …

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Between the Numbers of Salesforce.com

Salesforce.com.com (NYSE: CRM) reported its yearly earnings in February. As a publicly traded company, Salesforce.com is required to issue annual financial reports in accordance with Generally Accepted Accounting Principles, or “GAAP”. While Salesforce.com presents GAAP-based earnings in its SEC filings, its management touts a different metric as the preferred method of measuring the company’s performance.  …

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Recent Crackdown Demonstrates the Magnitude of Medicare Fraud

The US has charged over 100 individuals in the largest Medicare fraud crackdown to date.  The falsely submitted billings total over $450 million, approximately $60 million of which had been paid out.  The number of doctors, nurses, social workers and various other support personnel involved in this sweep demonstrates the pervasive nature of the fraud …

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Filmmaker wins key victory in deducting losses

In T.C. Memo 2012-115 (April 19, 2012), a taxpayer won a notable tax case involving the hobby loss rules. The Tax Court framed the issue as follows:  We must decide whether petitioner’s documentary film production activity was a trade or business or a labor of love. Respondent asserts that Smile ‘Til It Hurts was the …

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Permanent link to this article: https://betweenthenumbers.net/2012/04/filmmaker-wins-key-victory-in-deducting-losses/