2 more case studies in tragedy of fraud

February 1, 2014, 6:06 pm

For a couple of years I’ve been looking at a few specific fraud incidents as case studies of fraud in general. It has been fascinating to dive deep into an embezzlement at a nearby megachurch and a corruption case in a nearby city. I’ve blogged about those extensively and even turned my blog posts into an e-book, Tragedy of Fraud.

Two more case studies have surfaced — one I’ll just mention and the other I’ll see what I can find for several more posts.

“Googlable”

Here’s a consequence of fraud I’d not pondered before:  

Explaining to your young children that mommy is a felon before they have the opportunity to start searching the internet. Better to explain your record before they read about it.

That’s what one woman had to do with her young twin boys, as described by Dr. Michael Shaub in his blog post Redemption. Please read the short post to hear her story of going to federal prison for a creative accounting deal that didn’t give her anything.

Barry Minkow

Mr. Minkow is the other case study I’ll start focusing on.

My post is titled: Fraudster turned fraudbuster turned pastor turns fraudster again: Pleads guilty to stealing from his church

Dr. Shaub has a post also:  Barry and Me.

He has a longer description of Mr. Minkow. It’s

… a rags to riches to orange jumpsuit to crime fighter to clerical collar to fraudulent short-seller to multimillion dollar church embezzlement story.

The professor has followed Mr. Minkow for many years, read several (most?) of his books, and even used his books in class.

Apparently the felon-again had a movie about his life in production. I’m guessing, along with the professor, it won’t be released anytime soon.

Read the full post as a further intro to the amazing life of a no-longer-alleged triple felon.


Price cut on my newest e-book, “Tragedy of Fraud”

June 17, 2013, 9:26 am

Price reduced to only $0.99, now available here.

“Tragedy of Fraud – The Ripple Effects from Fraud and the Wages Earned” describes the tragic consequences from fraud.

There are ripple effects that spread out to harm innocent bystanders. The perpetrator draws a wide range of well-deserved wages that will be paid in full.

The book looks at two fraud incidents to learn what happens after a fraud is discovered. One took place in a local megachurch and the other in the mayor’s office of a small city.

This book is a compilation of blogs posts that have been previously published at Nonprofit Update and Attestation Update. The posts have been edited slightly and reorganized for easier reading.

Major sections of the book:

  • Tragedy of Fraud – The Ripple Effects from the Embezzlement Fraud in a Local Church.
  • Wages of Fraud – Consequences from the Corruption Fraud in a Mayor’s Office.
  • Why is it Difficult to Find Fraud? – The lack of documentation inside an organization makes it even more difficult to identify a fraud scheme.
  • The Fraud Triangle – A discussion of the three sides of a fraud triangle. That’s the idea that three components need to be present for a fraud to take place – opportunity, motivation, and rationalization. Great danger is in play when all three factors are present.

The other book I have available at Amazon is Once Upon Internal Control.


Consequences of insider trading

April 20, 2013, 9:26 am

Is the possibility of jail the only bad thing in store for a CPA accused of insider trading?

No way. There are a lot of really bad consequences visible on the horizon.

Background in one sentence

Read the rest of this entry »


Tragedy of fraud – another case study

March 29, 2013, 9:39 am

Fraud devastates an organization. The damage to the fraudster and loved ones is also severe.

A series of posts on my other blog, Attestation Update, explores the ripple effects of one specific fraud.

Mrs. Amy Wilson embezzled from her employer. After completing her prison term, she started rebuilding her shattered life. She is sharing her story.

Here are my posts in this series: Read the rest of this entry »


“Tragedy of Fraud” e-book now available at Amazon

February 7, 2013, 9:43 am

“Tragedy of Fraud – The Ripple Effects from Fraud and the Wages Earned” describes the tragic consequences from fraud.

There are ripple effects that spread out to harm innocent bystanders.  The perpetrator draws a wide range of well-deserved wages that will be paid in full.

The book looks at two fraud incidents to learn what happens after a fraud is discovered. One took place in a local megachurch and the other in the mayor’s office of a small city.

The book closes with a discussion of the fraud triangle. That’s the idea that three components need to be present for a fraud to take place – opportunity, motivation, and rationalization. There are steps an organization can take to reduce those factors.

You can find the book at Amazon here

This book is a compilation of blogs posts that have been previously published at Nonprofit Update and Attestation Update. The posts have been edited slightly and reorganized for easier reading.

Major sections of the book: Read the rest of this entry »


Wages of fraud – loss of licenses

September 11, 2012, 6:44 am

The sad tragedy of fraud in a neighboring city is in the next to last chapter. Yesterday one of the admitted middleman in the Upland bribery scandal was sentenced to a year and a day in federal prison.

The Inland Valley Daily Bulletin discusses the case and sentencing in their article Co-defendant in Pomierski case is sentenced to one year.

Previously I described the wages earned from a felony conviction.

Add to the high cost the probable loss of any professional credentials or state licensing necessary to do your job.

Read the rest of this entry »


Another chapter in the Tragedy of Fraud

April 30, 2012, 8:50 am

Prison.  Bankruptcy.  Publicity. Civil litigation.

Such are the wages of fraud.

It is such a tragedy.  Such a waste.

The mayor of a neighboring city provides the next example of the devastation from fraud.

I’ve discussed this case in my other blog, Attestation Update, over the last year from the perspective of an auditor. See my update for developments this week:  Guilty plea in corruption trial mentioned a year ago.

Here is my short version of the government’s accusation, based on reports in the local paper, mostly this article from the Daily Bulletin.

Read the rest of this entry »