1. Studies have revealed that although certain white-collar crime cases have been aggressively prosecuted, most do not gain the interest, and support, of our prosecutors, whether at the local, state, federal, or international level. Ponder why this is the case and what changes we can recommend that would help gain more â€œbuy inâ€ from these key players.
View the video below titled: â€œWhite Collar Crime 101: How to Defraud a Company.â€ The video focuses on Sam Antar, a convicted white-collar criminal. Ponder what our government could have done to prevent this type of crime from occurring.
Reading: Mehmet, M., Wijesekera, D., & Buchholtz, M. F. (2013). Money laundering detection framework to link the disparate and evolving schemes. Journal of Digital Forensics, Security & Law, 8(3), 41-70.
2. A senior executive was caught in Puerto Rico after leaving his New York City apartment. He is wanted on a federal kickback charge back in the United States. As a federal investigator, you would like to obtain some information from him about this illegal activity. In addition, his cooperation against the other defendants in the case would be highly desirable.
He has been given his â€œMiranda rights.â€ In this discussion, answer the following questions:
1. What rights does a defendant have during an interview by law enforcement? Please be specific.
2. What are some of the methods that can be used to solicit information from him, especially if he is being generally uncooperative?
View the video below, which discusses the issue of pre-Miranda silence and its implication in court testimony. Feel free to integrate the concepts mentioned in the video into your discussion posting.
Reading: Alalehto, T. (2011). The rate of white collar crime: The hot spot of white collar crime in Sweden during the 2000 decade. Journal Of Current Issues In Crime, Law & Law Enforcement, 4(4), 459-468.
3. You have been asked to review a database of invoices for possible fraudulent billings to a fictitious company that is allegedly controlled by an employee. What steps would you use to set up such an investigation? What would you need to take into account when planning the investigation?
View the video below, which discusses a January 2015 billing scheme estimated to defraud $900,000 from the Chicago Public School System. Feel free to integrate concepts from this video in your discussion posting this week.
Reading: Hussain, S. N., & Manzoor, S. R. (2014). Enhancing firm financial position by reducing white collar crime through financial crime control remedies: a study of KP Hospitals.Pakistan Journal of Commerce & Social Sciences, 8(2), 384-398.
4. In this discussion, compare and contrast skimming and cash larceny.
View the video below, which presents a 2014 case of cash larceny in the city of Healdton, Oklahoma.
What internal controls could uncover this type of fraud? Make sure you develop reasonable anti-fraud strategies for application. Feel free to utilize the concepts discussed in the video as part of discussion response.
Reading: Mei, F., Chan, L., McVay, S. E., & Skaife, H. (2015). Does Ineffective internal control over financial reporting affect a firm’s operations? Evidence from firms’ inventory management. Accounting Review, 90(2), 529-557. doi:10.2308/accr-50909
5. Address the following three questions in the discussion board this week:
a. List and define 3-5 expense schemes.
b. How can overstated expense reimbursements be detected?
c. Which financial statements would be impacted from this type of fraud?
View the video below of a federal agent who pled guilty to an elaborate expense account scam. Feel free to integrate concepts from the video into your discussion board posting.
Reading: Sanchez, M. (2012). The role of the forensic accountant in a Medicare fraud identity theft case. Global Journal of Business Research (GJBR), 6(3), 85-92.
6. Evaluate the audit test for detecting corruption based on the content presented in Chapter 13 in the textbook. Then, analyze and identify the strengths and weaknesses of this forensic test.
Read the article below on a Detroit principal accused of stealing $1 Million in a kickback scheme. Ponder if these audit tests could have prevented the occurrence.
Reading: Holland, R. (2014). Of discounts and dangers: Swapping, discounting, and the anti-kickback statute. Journal of Health Care Compliance, 16(1), 37-40.
7. Assume the role of a fraud investigator. You are preparing for court as an expert witness for a financial fraud scheme that took place from January 2013 to June 2014 at ABC Investment Company.
What financial analysis would you use to support your investigation and why?
Most of the assets were improperly depreciated. It was also brought to your attention potential embezzlement and inventory mismanagement took place. Please identify the financial tools and analysis used to support your answers.
Review the article link below detailing former broker Bryan Andersonâ€™s case of financial fraud. Feel free to integrate concepts from the article into your discussion posting.
Reading: Seitz, J., Oeding, J., & Wiese, M. (2015). Is it ethical for the U.S. government to offer financial awards to potential whistleblowers of financial statement fraud and internal control violations?Journal of Theoretical Accounting Research, 10(2), 68-90.
8. You have been engaged by an attorney to search for concealed assets. The client, a major U.S. corporation, has a vendor who has filed for bankruptcy. The vendorâ€™s owner, Joe Scam, is allegedly hiding money in a Panama company that was set up as a â€œshell company.â€ In 2-3 paragraphs, outline the procedures for how you would conduct research on finding and collecting the cash. Also, outline possible laws that may have been violated by Joe S. Be sure to integrate the investigative report writing skills reviewed in this module.
View the video below, which illustrates how easy it is to set up a â€œshell company.â€
Also view the following video, which discusses the 2014 case of Mario Guggino, an Albuquerque charter school administrator who used shell companies to embezzle millions of taxpayer dollars.
Feel free to integrate insights and/or information from either or both videos in your response.
Reading: Sanchez, M. H., & Zhang, S. W. (2012). The role of the expert witness in accounting fraud cases. Global Journal of Business Research (GJBR), 6(1), 103-111.
Each response must be well written, include supporting statement with citations, each response 250 words minimum. APA requirements