Executive FraudExecutive FraudExecutives that commit fraud are stealing out of your pocket! Learn about fraud protection from this blog for things such as credit card fraud. Awareness is crucial to ensure that they are not allowed to continue committing fraud.
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Subprime Mortgage Credit Derivatives - Fabozzi New Release
2008-05-13 19:42:00 Subprime Mortgage Credit Derivatives by Frank J. Fabozzi Subprime mortgage bonds and ABS CDOs have become the biggest credit and risk management failure in history. Their story is one of how a small, inconsequential part of the mortgage market grew into a monster large enough to shake the very foundations of the U.S. financial system. It is a story with some elements that are old and some that are new, and it is a story that is far from over. In the meantime, analysts and investors are left wondering about how the $700 billion of outstanding subprime securities should be valued. Written by an expert team of practitioners from UBS?the world's largest wealth manager and a top tier investment banking and securities firm?and Frank Fabozzi of Yale University, Subprime Mortgage Credit Derivatives offers readers the best strategies and risk management tools for dealing with today's growing and currently volatile subprime mortgage credit derivatives market. The authors examine the fa... More About: Release , Subprime
HSBC $4.6 Billion Writedown
2008-05-13 19:32:00 http://www.bloomberg.com/apps/news?pid=20 601087&sid=aR0DO3lgYJuw&refer=home That would make it $15 billion on the year and $27 billion over a two year period. All I can say is WOW... More About: Mortgage Fraud , Billion
Subprime Task Force - NY Prosecutors
2008-05-06 22:39:00 http://www.reuters.com/article/bankingFin ancial/idUSN0538798120080505 We've already seen a handful of NY State Supreme Court subprime related cases, it appears they are only the start of it. More About: Force , Subprime , Task
Warren Buffett on Subprime Mortgage Crisis
2008-05-06 22:36:00 http://network.nationalpost.com/np/blogs/ tradingdesk/archive/2008/05/06/dumb-subpr ime-lenders-and-investors-should-not-get- help-warren-buffett.aspx ?Capitalism without failure is like Christianity without hell,? Mr. Buffett said. He added that ?lenders and investors who were dumb enough to deal in subprime mortgages should not receive any special help,? but if homeowners were deceived about the terms of an adjustable mortgage, they should be helped. I completely agree, but I'm still curious what happened with his plan to start a financial guarantor company. Originally when AMBAC and MBIA were taking heat for their subprime exposure and writedowns there was talk of Buffett bailing one out or starting his own under the Berkshire Hathaway name. Guess we will have to wait and see. More About: Mortgage Fraud , Warren Buffett , Warren , Mortgage
Credit Suisse Foreclosure Estimate - 6.5 M Loans by 2012
2008-04-26 18:51:00 http://www.reuters.com/article/bondsNews/ idUSN2233380820080422 Falling home prices have made an increasing number of U.S. homeowners more vulnerable to default, they said. Nearly a third of subprime borrowers owed more than their home was worth at the end of last year, and that figure will double to 63 percent in 2009 It is interesting that borrowers facing these circumstances tend to walk away from their homes while continuing to make their credit card payments. Although falling home prices is one factor in this problem, many people forget most of these subprime loans were option ARMs. Most of the option ARM loans had low teaser rates that led not only to payment shock at the reset date but also allowed borrowers to defer payments that were added to the principle of the loan (negative amortization). The gamble made by most borrowers was that home prices would continue to increase by the same amount (or hopefully more) then the increasing principle of the loan. Since home price... More About: Credit , Loans , Mortgage Fraud , Foreclosure , Credit Suisse
Lehman Brothers Executive Claims Tension in Credit Markets Beginning to Let
2008-04-17 13:22:00 http://www.forbes.com/facesinthenews/2008 /04/16/rishard-fuld-lehman-markets-face-c x_md_0415autofacescan03.html I'd be optimistic too if I made $51.7 million during 2007. More About: Credit , Mortgage Fraud , Brothers , Markets , Lehman Brothers
Subprime Litigation 2007 Filings Study - Navigant Consulting Inc.
2008-02-15 15:43:00 http://www.reuters.com/article/marketsNew s/idUKN1445024020080214?rpc=44 Borrowers, investors and other plaintiffs filed 278 civil lawsuits in federal courts related to subprime lending in 2007, and the trend is expected to continue this year, according to the report released on Thursday. Last year's subprime tally was equal to about half of the 559 legal actions brought over a multiple-year period following the savings and loan crisis, according to the report by Navigant Consulting Inc. The subprime fallout has frequently been compared with that of the S&L crisis, which cost the government more than $100 billion. "The S&L crisis has been a high-water mark in terms of the litigation fallout of a major financial crisis," said Jeff Nielsen, managing director of Navigant, which provides business, regulatory and financial advisory services. "The subprime-related cases appear on their way to eclipsing that benchmark." More About: Study , Mortgage Fraud , Subprime , Litigation
Subprime Mortgage Writedowns - JP Morgan Chase
2008-01-17 12:48:00 http://www.reuters.com/article/managerVie ws/idUSHOL73257020080117 JP Morgan Chase reports $1.3 billion in markdowns on subprime positions and an rapid increase in higher credit costs. Following Citigroup's $18.1 billion subprime markdown it appears that JP Morgan's writedown will be well recevied by the market. More About: Mortgage Fraud , Mortgage , Subprime
Fraud Prevention - SAP Software
2007-11-07 13:02:00 http://news.zdnet.co.uk/security/0,100000 0189,39290606,00.htm CRM giant SAP is working with the Queensland University of Technology in Australia on software to hunt down fraudulent employee behaviour. According to SAP, the new software will have the capacity to detect fraud in real time by analysing user behaviour for activities that might indicate fraudulent behaviour ? such as creating a fake supplier or employee to divert company funds. When a potentially fraudulent activity is discovered, the company is alerted and a manual investigation prompted. The university said that the main source of current fraud detection is retrospective financial auditing, which enables any employees involved to change records of fraudulent transactions and cover their tracks before an audit. More About: Software , Fraud , Fraud Prevention , Prevention
Class Action Lawsuit Federal Court Certificates Classes of Ticket Buyers to
2007-10-29 12:55:00 http://home.businesswire.com/portal/site/ google/index.jsp?ndmViewId=news_view&news Id=20071025006470&newsLang=en Plaintiffs allege that Clear Channel monopolized the market for tickets to rock concerts and therefore caused those ticket buyers to pay more for their tickets to Clear Channel's rock concerts. The class action lawsuit has been filed in the following cities: Los Angeles, Chicago, Boston, New York and Denver. More About: Action , Lawsuit , Class Action Lawsuit , Classes , Class
Mortgage Fraud - Clarification of the Subprime Crisis and the Credit Crunch
2007-09-08 06:55:00 Subprime Crisis To start off, I think its important to clarify the vague over simplifications you hear in the news describing the "Subprime Crisis" or the "Credit Crunch ." The story begins with commission hungry brokers and ends with consumers struggling to keep their homes as their adjustable rate mortgages (ARMs) begin to reset after their teaser rate period expires. After a quick look at the players in the lending industry it becomes clear what happened to the Subprime market. Subprime Market Subprime lending is typically for borrowers that have lower credit scores and do not qualify for prime rates. Understandibly, the bank requires a higher interest payment for taking on a higher risk of default. Now as a borrower, if you wanted a loan you would seek out a broker that works with the loan originator (local bank branch) to close your loan. Keep in mind that most brokers are paid on commission for loans that they close. The approval and submission of loans that may not be cr... More About: Fraud , Mortgage Fraud , Mortgage
Cash Larceny - Fraud Detection and Fraud Prevention
2007-06-15 00:33:00 http://www.executivefraud.com/Fraud _Blog. php/2007/06/14/cash_larceny_fraud_detecti on_and_fraud_p Cash larceny is the theft of cash that has already been accounted for in the books. Since there generally is a paper trail it is considered to be one of the easiest frauds to detect and prevent through the use of internal controls. In this section, I'll discuss the different ways fraudsters can steal incoming cash. 1. Stealing Cash from the Register Register theft is the most common form of cash larceny for the obvious reason that it is an easily accessible point of contact with cash receipts. At the time the cash is stolen from the register there already is a record of the transaction on the register tape. Register theft creates an imbalance between the cash in the drawer and the transaction totals on the register tape. In order to detect register theft it is necessary to reconcile both cash balances and track individual cashiers to ensure there are not employees that consisten... More About: Fraud Prevention , Prevention , Detection
Cash Larceny - Part 2
2007-06-14 09:34:00 http://www.executivefraud.com/Fraud_Blog. php/2007/06/14/cash_larceny_part_2 Continued from Cash Larceny Part 1 4. Register Tape Removal Stealing the register tape or destroying it would allow the employee to cover the amount of money that they were able to steal from the register. A big problem with this method is that there needs to be an explanation of what happened to the register tape when it turns up missing and it would be rather obvious if it were to happen repeatedly. In order to prevent this from happening companies could install surveillance cameras that are pointed to all the cash registers therefore creating a record to go back to verify what happened to the register tape. 5. Cash Count Alteration During the reconciliation process it is important that the cash count is correct or there would not be a means of comparison for the register tape. In order to ensure that there is not the opportunity to manipulate the count it is important to segregate duties where the c... More About: Fraud Prevention
Student Loan Fraud - Financial Aid 101
2007-05-08 04:52:00 http://www.executivefraud.com/Fraud _Blog. php/2007/05/07/student_loan_fraud_financi al_aid_101 Finding the best financial aid package is never easy. But experts say there are things students and families can do to minimize their debts and avoid problems. 1. Get free money first. Look for grants and scholarships before you assume debt, and don't be shy about asking financial aid staff for help. 2. Use cheaper federal loans before you turn to other forms of debt. Some lenders may encourage you to take out private loans that aren't backed by the U.S. government, but they're typically more expensive than Stafford or Perkins loans. 3. Know yourself. If you're unlikely to pay your bills on time every single month, seek loan discounts - for electronic payments or the waiving of origination and default fees - that don't disappear if you miss a payment. 4. Ask questions and read the fine print. Make sure all the benefits you've been promised will stay with the loan forever, even if i... More About: Student , Mortgage Fraud , Financial , Loan
Student Loan Fraud - Preferred Lenders of the Financial Aid Office
2007-05-08 04:50:00 http://www.executivefraud.com/Fraud _Blog. php/2007/05/07/student_loan_fraud_preferr ed_lenders_of_ Student loan fraud has been investigated in the relationships between universities and large financial banks. The cause for concern is that certain universities have been accused of exclusively directing their students to lenders in exchange for revenue sharing opportunities or extravagent gifts related to their role in giving students higher rate loans. From a review of college arrangements with banks done by the St. Petersburg Times explains the following relationships: - At Florida State University, the financial aid director sits on the advisory board of preferred lender Student Loan Xpress, which has seen nearly half of its board members suspended by their schools recently for allegedly accepting hefty consulting fees or owning stock. - With thousands of competing lenders to choose from, Florida A&M University students were, until recently, directed to use one of two lenders ba... More About: Credit Card Fraud , Office , Mortgage Fraud
Securities Fraud - Stock Scheme that Uses Your Computer
2007-05-05 19:29:00 http://www.executivefraud.com/Frau d _Blog. php/2007/05/05/securities_fraud_stock_sch eme_that_uses_ Many of you may have been exposed to the original online stock scheme where spammers will send out stock picks on penny stocks creating buzz that artificially drives up the price of these worthless stocks. As the price hits the daily high the spammers liquidate their own holdings and walk away with the profits leaving those buyers with the worthless stock. This old fraud scheme has been manipulated and redirected at users of public computers specifically hotel users. Online criminals have developed software that will track the key strokes of these computers especially when these guests are checking out their online portfolio accounts. By stealing their accounting identity the fraudsters are able to buy large holdings in these penny stocks to drive up the price then they are able to liquidate their position while leaving the stolen account stuck in the those stocks. Companies such ... More About: Computer , Stock , Securities
Mortgage Fraud and Identity Theft - DreamLife Financial Executive Fraud
2007-05-02 02:22:00 http://www.executivefraud.com/Fraud _Blog. php/2007/05/01/mortgage_fraud_and_identit y_theft_dreaml The Former CEO with DreamLife Financial was ordered to repay $6.7 million to lenders and clients that had been defrauded. Beyond repayment, Tony Daniloo has been sentenced to 7 1/2 years in prison for 122 counts of fraud and money laundering. The most disappointing part of this scandal is that Tony used the identities of his family members in order to hide the fraud. More About: Mortgage Fraud , Identity Theft , Mortgage
Asset Misappropriation - Skimming
2007-05-01 18:01:00 http://www.executivefraud.com/Fraud_Blog. php/2007/05/01/asset_misappropriation_ski mming Skimming is the removal of cash for a victim company before the transaction is entered into the accounting system. Since skimming is an off the books type of fraud (it is never recorded) there is no direct audit trail therefore making the fraud difficult to detect. The employees with an opportunity to commit skimming schemes are those who deal directly with customers or those that handle their payments. This article will cover the four main categories of skimming schemes and discuss some of the red flags for detection of the fraud. Unrecorded Sales The most common form of skimming is not recording the sale of goods but collecting the money from the customer. Despite controls such as register tape, managers, and surveillance equipment, employees may be able to manipulate the system in order to prevent fraud detection. In some examples of unrecorded sales, the fraudster manipulates the reg... More About: Fraud Prevention , Ming , Asset , Sapp , Prop
Occupational Fraud - Common Motivators to Commit Fraud
2007-04-29 19:29:00 http://www.executivefraud.com/Frau d _Blog. php/2007/04/29/occupational_fraud_common_ motivators_to_ From a study by Keith Howe, Marshall Romney, and Steve Albrecht, the following are the most common motivations of perpetrators of occupational fraud: 1. Living beyond one's own means 2. An overwhelming desire for personal gain 3. High personal debt 4. Close relationships with customers 5. A feeling of inequity of payment and contribution to employer 6. A wheeler-dealer attitude 7. Strong challenge to beat the system 8. Gambling problems 9. Pressure from family or peers Published in their book Deterring Fraud: The Internal Auditor's Perspective More About: Common , Comm , Motiva
Forensic Accounting and Fraud Investigation for Non-Experts
2007-04-16 00:57:00 Forensic Accounting and Fraud Investigation for Non-Experts by Howard Silverstone, Michael Sheetz A reference for every business professional, Forensic Accounting and Fraud Investigation for Non-Experts, Second Edition is a necessary tool for those interested in understanding how financial fraud occurs and what to do when you find or suspect it within your organization. With comprehensive coverage, it provides insightful advice on where an organization is most susceptible to fraud. More About: Vest
Katrina Fraud - More Indicted on Mail Fraud Charges
2007-04-16 00:52:00 Mail Fraud Louisiana sees another three people recently indicted in federal court for abusing services provided by a hurricane disaster relief program. Of the two charges the most serious one is mail fraud which carries a maximum sentence of 30 years and/or a $1,000,000 fine. The second charge is illegal conversion of government property that was using a FEMA check. Pretty bad when they are taking away from those that really needed the support during tough times. More About: Mail , Katrina , Charge , Trina
Guide to Forensic Accounting Investigation
2007-04-15 04:48:00 A Guide to Forensic Accounting Invest igation by Thomas W. Golden, Steven L. Skalak, Mona M. Clayton Today's demanding marketplace expects auditors to take responsibility for fraud detection, and this expectation is buoyed by such legislation as the Sarbanes-Oxley Act and the Auditing Standard (SAS99), which requires increased performance on the part of the auditor to find material financial statement fraud. Written by three of the best forensic accountants and auditors, Thomas W. Golden, Steven L. Skalak, and Mona M. Clayton, The Auditor's Guide to Forensic Accounting Investigation explores exactly what assurances auditors should provide and suggests alternatives to giving the capital markets more of what they are requiring-greater assurances that the financial statements they rely upon for investment decisions are free of material error, including fraud. It reveals the surprising complexity of fraud deterrence, detection, and investigation, and offers a step-by-step approach to... More About: Vest
Healthcare Fraud Settlement: Tenet Healthcare Corp.
2007-04-15 04:26:00 Tenet Health care Corp. recently settled a civil penalty to the Securities and Exchange Commission (SEC) of $10 million. The investigation originated in response to allegations of Medicare fraud that Tenet had inflated the costs of providing care for sick Medicare patients. In the midst of this fraud was an investigation into an accounting scandal related to managed care contractual reserves. The former CFO has settle a personal investigation for $150k and the CAO has settle a civil penalty as well of $240k. Looks like they are just paying to get this to go away. I think the SEC should come down harder on them if they truly want to discourage healthcare fraud. The individuals received a slap on the wrist when compared to their incomes as executives. More About: Fraud , Healthcare , Men , Care
Tax Fraud - Jackson Hewitt
2007-04-05 16:55:00 Ignorance is NOT an Excuse for Tax Frau d Jack son Hewitt is currently under investigation for maintaining a business environment that is conducive to filers committing tax fraud by using fake W-2 forms or taking false deductions. Allegedly employees of the franchise were told to overlook clear signs of fraud for the sake of filing more returns. As the Justice Department has begun sampling the returns filed they have found approximately 31% of Farrukh Sohail's franchises have contained fraudulent information. A major area of most tax fraud emerges from the over use of the Earned Income Tax Credit that is designed to give large refunds to lower income tax payers. This is a large profit business area for companies such as Jackson Hewitt therefore there is a motivation to increase their return amounts. These franchises have withheld from the government approximately $70 million in tax revenue for the government. As Internet free filing services become more popular I sense that ...
Certified Fraud Examiners Manual
2007-04-02 15:06:00 2006 Frau d Exam iners Manual by the ACFE Section I: Financial Transactions and Fraud Schemes ? Learn about the vast landscape of fraud in business and government including the responsibilities of managers and auditors in fraud detection, as well as the schemes used to commit most business fraud. Section II: Law ? This section serves as a ready, permanent reference for the courtroom with relevant statutes and common law principles involved in prosecuting a defendant in both the criminal and civil systems. It also includes a complete set of US Federal Rules of Civil and Criminal Procedure and the US Federal Rules of Evidence. Section III: Investigation ? Possess the tools and techniques necessary to gather evidence and information when conducting a fraud examination. This section also contains samples of useful forms, such as report forms, fraud examination checklists, and engagement and opinion letters. Section IV: Criminology and Ethics ? Take an in-depth look at the criminal... More About: Miner , Mine
Credit Card Fraud - Banks Can't Identify Your Thief!
2007-04-02 14:30:00 Banks around the country have been faced with larger instances of credit card fraud while victims are often times left to foot the bill. On the chance that you are protected under your coverage it is often the case that banks are unable to reveal the source of the fraud. Their response is often that they must remain silent because there is currently a police investigation of that particular location/person. It seems to reason though if card holders where told where they were being defrauded from they would consider avoiding credit card use while in those areas. There seems to be a disconnect between stopping the credit card fraud and providing consumers with enough information to properly handle fraud prevention. More About: Credit Card Fraud , Card , Credit , Fraud , Banks
Sarbanes Oxley - Third Prosecution
2007-03-29 05:12:00 Steven Garfinkel, CFO of the medical equipment manufacturer DVI Inc., was recently sentenced in the third prosecution to occur under the corporate accountability section of Sarbanes Oxley. This fraud case involved Garfinkel pledging the same assets as collateral for two separate loans. When the company tanked, Fleet Bank was left with a loss of $51 million from DVI. Since Garfinkel as CFO had signed filed with the SEC that the financial statements were free from fraud and an accurate representation of DVI's financial position under Sarbanes Oxley he was liable for personal liability. Pending appeal he is currently being sentenced to 2 1/2 years in prison and must pay back the $51 million in restitution. More About: Prose , Rose , Bane , Sarbanes-Oxley , Third
Sarbanes Oxley - Third Prosecution
2007-03-29 05:12:00 Steven Garfinkel, CFO of the medical equipment manufacturer DVI Inc., was recently sentenced in the third prosecution to occur under the corporate accountability section of Sarbanes Oxley. This fraud case involved Garfinkel pledging the same assets as collateral for two separate loans. When the company tanked, Fleet Bank was left with a loss of $51 million from DVI. Since Garfinkel as CFO had signed filed with the SEC that the financial statements were free from fraud and an accurate representation of DVI's financial position under Sarbanes Oxley he was liable for personal liability. Pending appeal he is currently being sentenced to 2 1/2 years in prison and must pay back the $51 million in restitution. More About: Prose , Rose , Bane , Sarbanes-Oxley , Third
Fraud Services - Federal Government Sources of Information
2007-03-27 04:09:00 1. Department of Defense ?Maintain records on all military personnel whether they are active or not. ?Collect information involving threats to national security. ?Investigators use their records to help search for hidden assets of military personnel by using their previous addresses. 2. Department of Justice ?Enforces the federal and civil laws. ?Maintains the records related to detection, prosecution, and rehabilitation of offenders. ?Includes US Attorneys, US Marshals, DEA, and FBI. 3. Bureau of Prisons ?Includes federal prisons, correctional institutions, and community treatment facilities. ?Information regarding repeat offenders can be important evidence when making a case against a suspect. 4. Internal Revenue Service ?Enforces all internal revenue laws except alcohol, firearms and tabacco. ?IRS records are not open to the public so investigators need the involvement of law enforcement. 5. Secret Service ?Responsible to protect president and federal dignitaries. ?Handle... More About: Government , Services , Fraud , Men
Fraud Services - Federal Government Sources of Information
More articles from this author:2007-03-27 04:09:00 1. Department of Defense ?Maintain records on all military personnel whether they are active or not. ?Collect information involving threats to national security. ?Investigators use their records to help search for hidden assets of military personnel by using their previous addresses. 2. Department of Justice ?Enforces the federal and civil laws. ?Maintains the records related to detection, prosecution, and rehabilitation of offenders. ?Includes US Attorneys, US Marshals, DEA, and FBI. 3. Bureau of Prisons ?Includes federal prisons, correctional institutions, and community treatment facilities. ?Information regarding repeat offenders can be important evidence when making a case against a suspect. 4. Internal Revenue Service ?Enforces all internal revenue laws except alcohol, firearms and tabacco. ?IRS records are not open to the public so investigators need the involvement of law enforcement. 5. Secret Service ?Responsible to protect president and federal dignitaries. ?Handle... More About: Government , Services , Fraud , Men 1, 2 |
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