Fighting Fraud Video from the Center for Audit Quality

Posted by Alex Roweon April 9, 2013

The video touches on what motivates the average person to commit fraud; Pressure, Opportunity, and Rationalization. It also explains how accountability begins at the top level with the actions and attitude of the CEO, Board of Directors, and Audit Committee. Next it moves into suggestions for helping to prevent fraud, such as professional skepticism and training all employees to detect red flags. Last but not least, the video explains the importance of the Internal Auditor, who helps assess fraud risk and test the efficiency of internal controls.

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Tags: Internal Controls, Vibato, fraud, center for audit quality, internal auditor

CA lawyer charged with FRAUD for his opinion mill

Posted by Alex Roweon March 8, 2013

The Securities and Exchange Commission has charged a California based lawyer, Brian Reiss, with selling fraudulent legal opinion letters through his website. These documents were issued to transfer agents on behalf of holders, to lift restrictions on stocks to be freely traded again.

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Tags: brian reiss, Securities and Exchange Commission, photoshop, 144, stock market, fraud, SEC, reiss

Potential $1.7 mil. deal from insider trading of Heinz Stock

Posted by Alex Roweon February 20, 2013

The FBI and Securties and Exchange Commission are investigating illegal trading of Heinz (HNZ) stock, red flagged by a large purchase on 2/13/13 from a dormant Swiss account just one day before Heinz was bought by Warren Buffet’s Berkshire Hathaway (BRK.A) and 3G Capital. This acquistion was a $28 billion deal, which increased Heinz’s stock value by 20% in one day.

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Tags: Berkshire Hathaway, Securities and Exchange Commission, stock market, Acquisition, heinz, fraud, SEC, federal investigation, insider trading, 3G Capital

First female mayor of San Diego gambles $2 mil. of charity funds

Posted by Teresa Bockwoldton February 15, 2013

Most people who donate to charities do not expect their funds to be gambled with. However, former Mayor of San Diego, Maureen O’Connor believed it was okay to dip into her late husband’s charity foundation to ‘borrow’ $2 million for her online video poker addiction. Her defense ranged from a diagnosis of a tumor which inhibits her to control logic and judgment, to grief gambling after the passing of her husband and two siblings.

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Tags: san diego, mayor, gambling, fraud, charity, maureen o'connor, money laundering

More prevention = Less need for Detection

Posted by Alex Roweon February 13, 2013
New technology is helping seek out fraudulent behavior behind closed doors of companies. Ernst & Young’s Fraud Investigation & Disputes Services is releasing new software that searches for specific key words in company e-mails and detects a change of voice in a spoken press release. The most common fraud phrases are obvious but interesting:
1. Cover Up
2. Write Off
3. Illegal
4. Failed investment
5. Nobody will find out
6. Grey area
7. They owe it to me
8. Do not volunteer information
9. Not ethical
10. Off the books 

Check out more at: http://tinyurl.com/az78o8g
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Tags: Internal Controls, fraud prevention, Press Release, software, compliance, internal control, internal control tips, fraud, Ernst & Young, key words