The Securities and Exchange Commission is pressing charges against 29-year-old Illinois resident Anshoo R. Sethi, who sold over $145 million in securities and collected $11 million in administrative fees for the ‘supposed’ construction of a Chicago Convention Center and Intercontinental Regional Center Trust of Chicago. Most of the 250 investors were from China, and believed they were investing in the building of the “World’s First Zero Carbon Emission Platinum LEED certified” hotel and conference center in Spring of 2012. It is alleged that Sethi and his companies forged U.S. citizenship and Immigration Services documents to create provisional Visa’s for the investors, who believed they were investing in their path to U.S. citizenship through the EB-5 program. The program enhances the chances of foreign investors getting their green card if they in invest $500,000-$1 million in a program which creates jobs for U.S. workers. Although Sethi has spent almost all of the administrative fee’s he collected, the SEC may have caught Sethi in the nick of time and has put a lock on the remaining $145 million. $2.5 million had been directed straight into Sethi’s personal account in Hong Kong. To read more, visit: http://www.sec.gov/news/press/2013/2013-20.htm.
Tags: financial risk, Securities and Exchange Commission, EB-5 program, Anshoo Sethi, fraud, SEC, federal investigation, immigration services
The Securities and Exchange Commission has released news of its temporary suspension of trading in the securities of America’s Energy Company – AECo. The decision was based off a lack of filing of periodic reports set forth in the Securities Exchange Act of 1934. Brokers, dealers and shareholders are advised to beware that the AECo may give no quotes until they have provided the commission with the reports they have requested. To read more about this topic and who to contact with questions click here, and to see a list of other companies which have also been suspended- click here.
Tags: audit, Securities and Exchange Commission, trading, brokers, shareholders, stock market, Securities Exchange Act, fraud, SEC, federal investigation, audit deficiency, stock, AECo, American's Energy Company
Jesse Jackson Jr. admits to violating campaign finance law, spending funds on things such as a $40,000 Rolex watch and personal travel expenses for a friend. His plea comes in response to a federal investigation which may have led to his resignation from his congressional seat in November 2012. Jackson wife, Sandi Jackson, could also potentially be charged in the case for receiving $5,000 a month as a ‘political consultant’. Depending on the decision of the federal judge, Jackson could be facing probation or possibly prison time.
Tags: Internal Controls, campaign, congress, Jesse Jackson Jr., campaign finance, risk management, Sarbanes-Oxley, Vibato, fraud, government, federal investigation
Tags: Internal Controls, Sarbanes-Oxley Articles & Information, internal control, Sarbanes-Oxley, Internal Control Education, internal control tips, fraud, Internal Control Deficiency
Accounting fraud comes in many forms. Some fraud is quite complex and can last for decades, as we recently discovered with the Olympus accounting scandal. When executive management and even board members are in collusion it is very difficult to detect this kind of fraud.
