In 2017 my Website was migrated to the clouds and reduced in size.
Hence some links below are broken.
One thing to try if a “www” link is broken is to substitute “faculty” for “www”
For example a broken link
http://www.trinity.edu/rjensen/Pictures.htm 
can be changed to corrected link
http://faculty.trinity.edu/rjensen/Pictures.htm
However in some cases files had to be removed to reduce the size of my Website
Contact me at 
rjensen@trinity.edu if you really need to file that is missing

 

Accounting Scandal Updates and Other Fraud Between January 1 and March 31, 2018
Bob Jensen at
Trinity University

Bob Jensen's Main Fraud Document --- http://faculty.trinity.edu/rjensen/fraud.htm 

Bob Jensen's Enron Quiz (and answers) --- http://faculty.trinity.edu/rjensen/FraudEnronQuiz.htm

Bob Jensen's Enron Updates are at --- http://faculty.trinity.edu/rjensen/FraudEnron.htm#EnronUpdates 

Other Documents

Commercial Scholarly and Academic Journals and Oligopoly Textbook Publishers Are Ripping Off Libraries, Scholars, and Students ---
http://faculty.trinity.edu/rjensen/FraudReporting.htm#ScholarlyJournals

Many of the scandals are documented at http://faculty.trinity.edu/rjensen/fraud.htm 

15 Most Corrupt Nations in the World ---
http://247wallst.com/special-report/2016/01/27/the-most-corrupt-countries-in-the-world-3/?utm_source=247WallStDailyNewsletter&utm_medium=email&utm_content=JAN282016A&utm_campaign=DailyNewsletter

Resources to prevent and discover fraud from the Association of Fraud Examiners --- http://www.cfenet.com/resources/resources.asp 

Self-study training for a career in fraud examination --- http://marketplace.cfenet.com/products/products.asp 

Source for United Kingdom reporting on financial scandals and other news --- http://www.financialdirector.co.uk 

Updates on the leading books on the business and accounting scandals --- http://faculty.trinity.edu/rjensen/Fraud.htm#Quotations 

I love Infectious Greed by Frank Partnoy ---  http://faculty.trinity.edu/rjensen/Fraud.htm#Quotations 

Bob Jensen's American History of Fraud ---  http://faculty.trinity.edu/rjensen/415wp/AmericanHistoryOfFraud.htm

Future of Auditing --- http://faculty.trinity.edu/rjensen/FraudConclusion.htm#FutureOfAuditing 

"What’s Your Fraud IQ?  Think you know enough about corruption to spot it in any of its myriad forms? Then rev up your fraud detection radar and take this (deceptively) simple test." by Joseph T. Wells, Journal of Accountancy, July 2006 --- http://www.aicpa.org/pubs/jofa/jul2006/wells.htm

What Accountants Need to Know --- http://faculty.trinity.edu/rjensen/FraudReporting.htm#AccountantsNeedToKnow

Global Corruption (in legal systems) Report 2007 --- http://www.transparency.org/content/download/19093/263155

Tax Fraud Alerts from the IRS --- http://www.irs.gov/compliance/enforcement/article/0,,id=121259,00.html

White Collar Fraud Site --- http://www.whitecollarfraud.com/
Note the column of links on the left.

Bob Jensen's essay on the financial crisis bailout's aftermath and an alphabet soup of appendices can be found at
http://faculty.trinity.edu/rjensen/2008Bailout.htm

Bob Jensen's threads on fraud are at http://faculty.trinity.edu/rjensen/Fraud.htm

From CNN:  Clark Howard's Informative Advice About Shopping, Financial Planning, and Warnings About Scams ---
http://www.cnn.com/CNN/Programs/clark.howard/?iref=allsearch

Bob Jensen's warnings about scams ---
http://faculty.trinity.edu/rjensen/FraudReporting.htm

Bob Jensen's shopping helpers ---
http://faculty.trinity.edu/rjensen/Bookbob3.htm

Accounting Scandals
The funny thing is that I never looked up this item before now. Jim Mahar noted that it is a good link.

Accounting Scandals --- http://en.wikipedia.org/wiki/Accounting_scandals

Bob Jensen's threads on accounting scandals are in various documents:

Accounting Firms --- http://faculty.trinity.edu/rjensen/Fraud001.htm

Fraud Conclusion --- http://faculty.trinity.edu/rjensen/FraudConclusion.htm

Enron --- http://faculty.trinity.edu/rjensen/FraudEnron.htm

Rotten to the Core --- http://faculty.trinity.edu/rjensen/FraudRotten.htm

Fraud Updates --- http://faculty.trinity.edu/rjensen/FraudUpdates.htm

American History of Fraud --- http://faculty.trinity.edu/rjensen/FraudAmericanHistory.htm

Fraud in General --- http://faculty.trinity.edu/rjensen/Fraud.htm

AICPA Fraud Resource Center --- Click Here
http://www.aicpa.org/INTERESTAREAS/FORENSICANDVALUATION/RESOURCES/FRAUDPREVENTIONDETECTIONRESPONSE/Pages/fraud-prevention-detection-response.aspx

"New Report Shows Changing Fraud Environment," by Curtis C. Verschoor, AccountingWeb, March 18, 2013 ---
http://www.accountingweb.com/article/new-report-shows-changing-fraud-environment/221374

Today’s FBI: Facts and Figures 2013-2014—which provides an in-depth look at the FBI and its operations—is now available ---
http://www.fbi.gov/stats-services/publications/todays-fbi-facts-figures/facts-and-figures-031413.pdf/view

Identity Theft Information and Tools from the AICPA and IRS ---
http://www.aicpa.org/interestareas/tax/resources/irspracticeprocedure/pages/idtheftinformationandtools.aspx

Tax practitioners and their clients are concerned about the growing epidemic of tax-related identity theft in America - both refund theft and employment theft. At the end of fiscal 2013, the IRS had almost 600,000 identity theft cases in its inventory, according tothe IRS National Taxpayer Advocate. 

The AICPA shares members' concerns about the impact of identity theft and offers the resources below to help them learn more about this issue and advise clients. We have provided recommendations to Congress and the IRS Oversight Board on ways to further protect taxpayers and preparers.

IRS Identity Protection Specialized Unit at 800-908-4490

Identity Theft Resource Center --- http://www.idtheftcenter.org/
Note the tab for State and Local Resources

The IRS has an Identity Theft Web Page at
http://www.irs.gov/uac/Identity-Protection

FTC Identity Theft Center --- http://www.ftc.gov/bcp/edu/microsites/idtheft/

"IRS is overwhelmed by identity theft fraud:   Billions wrongly paid out as scammers find agency an easy target," by Michael Kranish, Boston Globe, February 16, 2014 ---
http://www.bostonglobe.com/news/nation/2014/02/16/identity-theft-taxpayer-information-major-problem-for-irs/7SC0BarZMDvy07bbhDXwvN/story.html

Bob Jensen's Fraud Updates are at
http://faculty.trinity.edu/rjensen/FraudUpdates.htm

The decision maker should review all charges from vendors. Time and time again vendors fail to give credit for returns or special price adjustments and the ever too present false charges to business credit cards cost companies.
Deadra Mayhew, CPA A CPA Secret to a Better Business
http://www.smartbrief.com/quote/01/10/14/better-bread-happy-heart-wealth-vexation#.VP2f5OFkZLc

How to improve fraud controls in complex accounting areas ---
http://www.journalofaccountancy.com/news/2017/mar/fraud-controls-in-complex-accounting-areas-201716236.html?utm_source=mnl:globalcpa&utm_medium=email&utm_campaign=22Mar2017#sthash.MJxTLEdz.dpuf

Rick Elam's List of the Worst of the Worst (Fraudsters over time)
http://professorelam.typepad.com/my_weblog/2017/06/whos-the-worst-2017.html
I think Rick missed a few
http://faculty.trinity.edu/rjensen/FraudUpdates.htm




The Worst Corruption Scandal in Each State ---
https://247wallst.com/special-report/2018/03/27/worst-corruption-scandal-in-each-state/?utm_source=247WallStDailyNewsletter&utm_medium=email&utm_content=MAR282018A&utm_campaign=DailyNewsletter

Jensen Comment
This is tough, because of definitions and money versus lives criteria. For example, the worst corruption scandal in Massachusetts was about lives rather than money. The worst scandal in New York may not have been the worst money scandal after victims received settlements.
Corruption, like beauty, is in the eyes of the beholder.

Bob Jensen's Fraud Updates are at http://faculty.trinity.edu/rjensen/FraudUpdates.htm


AICPA:  Phone scams and phishing featured in 2018's Dirty Dozen tax scams ---
https://www.journalofaccountancy.com/news/2018/mar/2018-tax-scams-201818623.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=21Mar2018

Bob Jensen's Fraud Updates ---
http://faculty.trinity.edu/rjensen/FraudUpdates.htm


The South Sea Company Bubble was a famous accounting scandal in the early 1700s ---
https://en.wikipedia.org/wiki/South_Sea_Company

Isaac Newton --- https://en.wikipedia.org/wiki/Isaac_Newton

How Isaac Newton Lost $3 Million Dollars in the “South Sea Bubble” of 1720: Even Geniuses Can’t Prevail Against the Machinations of the Markets ---
http://www.openculture.com/2018/01/how-isaac-newton-lost-3-million-dollars-in-the-south-sea-bubble-of-1720-even-geniuses-cant-prevail-against-the-machinations-of-the-markets.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+OpenCulture+%28Open+Culture%29

Bob Jensen's threads on accounting history ---
http://faculty.trinity.edu/rjensen/theory01.htm#AccountingHistory


Five Senators Want To Know Why The FBI Hasn’t Restored Missing Crime Data ---
https://fivethirtyeight.com/features/five-senators-want-to-know-why-the-fbi-hasnt-restored-missing-crime-data/

. . .

The annual Crime in the United States report, a collection of crime statistics gathered from over 18,000 law-enforcement agencies around the country, is considered the gold standard for tracking crime statistics in the United States. According to an analysis by FiveThirtyEight, the 2016 Crime in the United States report the first released under President Trump’s administration — contained close to 70 percent fewer data tables than the 2015 version did. The removal could affect analysts’ understanding of crime trends in the country.

 Continued in article

Bob Jensen's Fraud Updates ---
http://faculty.trinity.edu/rjensen/FraudUpdates.htm


Francine:  The investors duped by the Theranos fraud never asked for one important thing ---
https://www.marketwatch.com/story/the-investors-duped-by-the-theranos-fraud-never-asked-for-one-important-thing-2018-03-19
Founder Holmes raised $700 million from investors but never hired accountants to produce audited financial information


Brazil:  Deal with PwC brings Petrobras investors’ recovery to $3 billion ---
https://www.reuters.com/article/us-petrobras-classaction/deal-with-pwc-brings-petrobras-investors-recovery-to-3-billion-idUSKBN1FM26P

Bob Jensen's threads on troubles at PwC ---
http://faculty.trinity.edu/rjensen/fraud001.htm


The Atlantic:  For years he used fake identities to charm women out of hundreds of thousands of dollars. Then his victims banded together to take him down.---
https://www.theatlantic.com/magazine/archive/2018/04/our-time-com-con-man/554057/

Bob Jensen's Fraud Updates are at  ---
http://faculty.trinity.edu/rjensen/FraudUpdates.htm


South Africa is now also notorious for white-collar crime ---
https://www.theatlas.com/charts/SJs_xpf_M 


U.S. News Strips Ranking From Three Graduate Schools For Submitting False Data ---
http://taxprof.typepad.com/taxprof_blog/2018/03/us-news-strips-ranking-from-three-graduate-schools-for-submitting-fale-data.html

Paul Caron previously have blogged reports of over a dozen schools inflating their rankings by submitting erroneous data to U.S. News (BucknellClaremont McKennaCollege of CharlestonCreightonEmoryGeorge WashingtonIllinoisMissouri-Kansas City, TempleTulaneUniversity of Mary Hardin-BaylorVillanovaYork College of Pennsylvania).   U.S. News recently announced that it was removing the rankings of three graduate schools for submitting false data:

The University of Florida's College of Nursing originally reported its fiscal year 2016 NIH educational and practical initiative grants and expenditures at $1,684,495. The school informed U.S. News the corrected value for its fiscal year 2016 NIH grants was $0. ...

The University of South Florida's College of Nursing originally reported its fiscal year 2016 NIH grants and expenditures at $15,991,202. The school informed U.S. News the corrected value for its fiscal year 2016 NIH grants was $1,591,202. ...

Sam Houston State University's College of Education originally reported its fiscal year 2016 research expenditures conducted at the education school at $5.6 million. The school recently told U.S. News the corrected value for its 2016 research expenditures was $271,913

Bob Jensen's Fraud Updates ---
http://faculty.trinity.edu/rjensen/FraudUpdates.htm


Management professor admits to falsification, resigns ---
https://retractionwatch.com/2018/03/21/marketing-researcher-admits-to-falsification-resigns/#more-63410

Bob Jensen's threads on professors who cheat ---
http://faculty.trinity.edu/rjensen/Plagiarism.htm#ProfessorsWhoPlagiarize


Prosecutors demand 30-year prison term for South Korean President Park Geun-hye in landmark corruption case ---
http://www.businessinsider.com/south-korean-president-park-geun-hye-corruption-case-2018-2


From the CFO Journal's Morning Ledger on March 20, 2018

SEC announces its biggest whistleblower awards
The U.S. Securities and Exchange Commission on Monday announced its biggest-ever whistleblower awards, with roughly $83 million combined going to three whistleblowers who helped the regulator reach a $415 million settlement with Bank of America Corp.,
according to an SEC statement and a lawyer representing the whistleblowers.


South Africa:  Shareholders bring lawsuit against Steinhoff and Deloitte ---
https://www.accountancyage.com/2018/02/02/shareholders-bring-lawsuit-against-steinhoff-and-deloitte/

Bob Jensen's threads on troubles at Deloitte ---
http://faculty.trinity.edu/rjensen/fraud001.htm


Universities Fabricating Data to Improve Media Rankings ---
http://taxprof.typepad.com/taxprof_blog/2018/01/rankings-scandal-unfolds-at-temple-business-school.html

Bob Jensen's Fraud Updates ---
http://faculty.trinity.edu/rjensen/FraudUpdates.htm


Miley Cyrus is facing a $300 million copyright infringement lawsuit over her hit song 'We Can't Stop' ---
http://www.businessinsider.com/miley-cyrus-300-million-copyright-infringement-lawsuit-song-we-cant-stop-2018-3


Scam Warning from a Chronicle of Higher Education Newsletter on March 13, 2018

We’ve written frequently about predatory journals how they snare naïve young scholars, how they make money off those eager to be published for tenure, how they provide no peer review or editing, and how they pretend to be prestigious by adopting names very similar to those of genuine top journals, or by naming as their editors and board members real scholars who know nothing about how they are being used. Now there’s apparently a related scam afoot. How would you like to be the commencement speaker this spring at Harvard University? And how much would you be willing to pay for the distinction?

A community-college trustee in Arizona who’s an avid reader of the Briefing received such a solicitation recently, and he thoughtfully passed it on to us. “Harvard University is a huge fan of your work — and the way you are so impressive at that thing you do,” according to the email. After he spoke to Harvard graduates “about any topic,” the email said, he would receive an honorary degree. There was just one snag, it said. “We need to waive your no prior connection” with Harvard, and that would cost a cool $3,000, payable by Western Union to an address in St. Louis. The email was signed “Robinson Crusoe.”

Bob Jensen's Fraud Updates ---
http://faculty.trinity.edu/rjensen/FraudUpdates.htm


High School Diploma Mills
The D.C. Public School Attendance Scandal: Where's the Outrage?

https://www.edweek.org/ew/articles/2018/02/08/the-dc-public-school-attendance-scandal-wheres.html?cmp=eml-enl-eu-news2&M=58374719&U=2290378
FBI Investigating D.D. Public Schools ---
http://blogs.edweek.org/edweek/District_Dossier/2018/02/fbi_and_us_dept_of_ed_investigate_dc_schools.html?cmp=eml-enl-eu-news2&M=58374719&U=2290378


Lisa Marie Presley is suing her former business manager for the loss of almost all her $100 million inheritance ---
https://www.yahoo.com/news/lisa-marie-presley-sues-business-202440386.html
He ain't nuthin' but a hound dog!

Bob Jensen's Fraud Updates ---
http://faculty.trinity.edu/rjensen/FraudUpdates.htm


The Atlantic:  The Most Expensive Comment in Internet History ---
https://www.theatlantic.com/business/archive/2018/02/hogan-thiel-gawker-trial/554132/


SEC Settlement with Elizabeth Holmes:  Blood, Fraud and Money Led to Theranos CEO's Fall From Grace ---
https://www.bloomberg.com/news/articles/2018-03-14/theranos-ceo-holmes-accused-of-fraud-by-sec-jeraxw6a?cmpid=BBD031418_BIZ&utm_medium=email&utm_source=newsletter&utm_term=180314&utm_campaign=bloombergdaily

Bob Jensen's Fraud Updates ---
http://faculty.trinity.edu/rjensen/FraudUpdates.htm


50 Cent reportedly told the bankruptcy court that he never owned bitcoin, contrary to a report that he made $8 million in crypto ---
http://www.businessinsider.com/50-cent-told-bankruptcy-court-he-has-never-owned-bitcoin-2018-2


Time Magazine:  250 People Were Just Charged With Scamming Seniors Out of $500 Million ---
http://time.com/money/5173441/elder-fraud-justice-department-charges/?utm_source=time.com&utm_medium=email&utm_campaign=the-brief&utm_content=2018022413pm&xid=newsletter-brief

Criminals, take note. If you target older Americans, U.S. law enforcement officials are coming after you.

The Justice Department on Thursday spearheaded the largest coordinated sweep of elder fraud cases in U.S. history. The numbers in this action are astonishing: law enforcement officials in all 50 states went after over 250 people around the globe for defrauding over a million older Americans out of $500 million.

“Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are,” Attorney General Jeff Sessions said in a statement. “When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal.”

Law enforcement issued criminal, civil, and forfeiture actions against the operators behind a wide range of alleged scams, including IRS fraud, mass-mailings that announce recipients won the lottery, and telephone calls that trick seniors into believing their grandchildren are in trouble and need money.

As part of the sweep against fake lottery mailings, enforcement agencies coordinated strikes against 43 mass-mailing operators—searching premises in 14 locations, including Law Vegas and Florida. They also coordinated with Canadian authorities to execute another 20 warrants. Meanwhile, postal inspectors around the country executed search warrants on 12 locations that some of these same operators used to run their alleged scams.

“The defendants targeted elderly and vulnerable consumers both in the United States and abroad,” said Richard Donoghue, U.S. Attorney for the Eastern District of New York. “They sold false promises of life-changing prizes that never came true.”

Millions of older Americans fall victim to fraud every year. One study published in July in the American Journal of Public Health estimated that more than 5% of the elderly experience some sort of financial fraud or scam every year. Perhaps more alarmingly, a survey in New York State found that only 1 in 44 cases of elder financial abuse is reported.

Continued in article


San Antonio Accountant enters guilty plea for wire fraud, tax evasion ---
http://www.kristv.com/story/37627170/accountant-enters-guilty-plea-for-wire-fraud-tax-evasion

Bob Jensen's Fraud Updates ---
http://faculty.trinity.edu/rjensen/FraudUpdates.htm


Justice Dept. charges 36 alleged scammers for $530 million cyber-fraud scheme ---
http://www.zdnet.com/article/justice-department-indictment-february-cybercrime-ring/

Prosecutors said the case is "one of the largest cyber fraud enterprise prosecutions ever undertaken" by the Justice Department.

The Justice Department has charged 36 individuals with connections to a cyber-fraud ring that claimed more than $530 million in stolen funds in its seven-year history.

The group, known as the Infraud Organization, were charged with nine counts, including conspiracy to racketeer, wire fraud, and computer crimes.

The group acquired, sold, and disseminated stolen identities, compromised credit and debit cards, and other financial and personal information.

An indictment filed in Las Vegas detailing the charges was unsealed Wednesday, said the group's alleged administrator and founder, Svyatoslav Bondarenko, who created the forum on the dark web in 2010. The indictment said the founder billed the forum as the "premier destination for carding, and to 18 direct traffic and potential purchasers to the automated vending sites of its members, which serve as online instruments that traffic in stolen means of identification, personally-identifying information, stolen financial and banking information, and other illicit goods."

Prosecutors said that the Bondarenko, a Ukrainian national, dropped off the site's radar in 2015

Continued in article


Harvard:  CEO Pay is Even More Outrageous Than It Seems
https://hbr.org/video/5728073095001/ceo-pay-is-even-more-outrageous-than-it-seems


"The Pay-for-Performance Myth,"  By Eric Chemi and Ariana Giorgi, Bloomberg Businessweek, July 22, 2014 ---
http://www.businessweek.com/articles/2014-07-22/for-ceos-correlation-between-pay-and-stock-performance-is-pretty-random?campaign_id=DN072214

Aside from outrageous compensation levels of top executives, my biggest gripe is how executives are paid outrageous salaries and golden parachutes even when they fail


Cryptocurrency --- https://en.wikipedia.org/wiki/Cryptocurrency

Multisignature --- https://en.wikipedia.org/wiki/Multisignature

From a MIT newsletter on February 1, 2018
The plunder of more than $500 million worth of digital coins from the Japanese cryptocurrency

The plunder of more than $500 million worth of digital coins from the Japanese cryptocurrency exchange Coincheck last week has added to a growing perception that cryptocurrencies are particularly vulnerable to hackers.

It’s an expensive reminder that like many things in the cryptocurrency world, security technologies—and the norms, best practices, and rules for using them—are still emerging. Not least because of its enormous size, the Coincheck hack could go down as a seminal moment in that process.

First, hackers laid bare the fact that Coincheck had opted not to implement some basic security measures. The company’s executives told news reporters that the stolen coins had been stored in an internet-connected “hot” wallet. It’s far more secure to keep funds offline, in “cold” storage—often hardware specially designed for the task. Many exchanges already claim in their marketing material that they hold the vast majority of their users’ funds offline. Going forward, this will presumably become standard practice.

With that taken care of, there’s a more weighty question on the table. Every public cryptocurrency address is associated with a private key; without it, money can’t be moved from that address. If someone does acquire your private key, though, they can send your money away. That’s what happened in the Coincheck heist. So, how do we make the private cryptographic keys owners need to access their coins more secure?

One answer, known as a multisignature address, is conceptually simple: a “multisig” requires more than one cryptographic key in order execute a transaction. It’s a bit like the multi-factor authentication process you may use to access your email account. Business partners can use multisig technology to, for example, create a wallet that requires each of them to sign off on transactions. That would make it substantially more difficult for hackers to access funds.

Of course, multisig is not a silver bullet. In 2016, for example, hackers defeated a multisig system to steal $65 million from Bitfinex, one of the world’s largest exchanges. How exactly the perpetrators managed the feat isn’t clear, but
it’s possible there was a flaw in the specific implementation.

Should financial regulators require exchanges to use multisig technology to secure any funds they keep in a hot wallet? Japanese officials are conducting an emergency review of the security of the country’s exchanges, and that might be a measure they consider.

Jensen Comment
A billion here, a billion there --- pretty soon were talking about real money! These cryptocurrency scams boggle my mind.
I'm glad I'm not an accountant assigned to investigate/audit cryptocurrency frauds.


Scratching Each Others' Backs
Executives at some of the nation's top investment firms donated hundreds of millions of dollars to the University of Michigan while the university invested as much as $4 billion in those companies' funds ---

https://www.freep.com/story/news/local/michigan/2018/02/01/university-michigan-endowment-donor-funds/1066143001/?elqTrackId=c447a899aed945c59c64131be41e1d0e&elq=89a9c36b46e142b2b53e415c79f70aba&elqaid=17703&elqat=1&elqCampaignId=7797

Jensen Comment
There are other happenings with less money involved such as giving a $50,000 annual scholarship to XYZ Corporate CEO's child when XYZ makes a corporate gift to the university. In effect shareholders of XYZ are indirectly paying for a non-taxable fringe benefit for the CEO, a fringe benefit that is not even reported as compensation for the CPO.

Southern Illinois U. President Orders Investigations Into Hiring of Chancellor’s Kin ---
https://www.chronicle.com/article/Southern-Illinois-U-President/242416?cid=at&utm_source=at&utm_medium=en&elqTrackId=d938712858474ff2849e9c0a9bf959db&elq=0515db7ba933405d9a0b43dbf66fd755&elqaid=17702&elqat=1&elqCampaignId=7796

Jensen Comment
Be fair, the Chancellor's daughter and son-in-law were uniquely qualified for their jobs --- they had connections in high places.


Phony Tax Refund
Received a fake Treasury check in the mail today with no letter or anything to indicate as to why it was sent. Didn't put my name correctly per the government records (missed a little tidbit I won't mention here). When people cash these checks, the check is returned to whoever sent it per the routing info with your endorsement signature and your account number. Don't fall for it.
http://www.freerepublic.com/focus/f-news/3625473/posts

Jensen Comment
Purportedly some people are receiving these even before filing their taxes. It's not clear to me how this scam works but if you don't know why you're entitled to the check it's best to not try to cash it.

Remember if you do lose money on this scam that your bank is probably obligated to make good on payments from your account that you did not authorize. But don't take unnecessary chances.


Francine:  FDIC win against PwC could finally force auditors to look for fraud ---
https://www.marketwatch.com/story/fdic-win-against-pwc-could-finally-force-auditors-to-look-for-fraud-2018-01-04

Current and past editions of my newsletter called Fraud Updates ---
http://faculty.trinity.edu/rjensen/FraudUpdates.htm


Three Anonymous Guys Wiped $3 Billion Off South Africa Stocks in Four Days ---
https://www.bloomberg.com/news/articles/2018-01-12/faceless-men-upend-south-africa-stocks-on-fears-of-steinhoff-2-0

Bob Jensen's Fraud Updates ---
http://faculty.trinity.edu/rjensen/FraudUpdates.htm


New evidence reportedly puts North Korean hackers behind a list of high-stakes bitcoin heists ---
http://www.businessinsider.com/north-korea-lazarus-group-behind-cryptocurrency-cyber-attack-wannacry-sony-2018-1


Former Florida football player (Monty Grow) convicted of $20 million healthcare fraud conspiracy ---
http://www.miamiherald.com/news/local/article198487219.html

Bob Jensen's Fraud Updates ---
http://faculty.trinity.edu/rjensen/FraudUpdates.htm


Tax-avoidance schemes are being offered up to the wealthy like vacation packages ---
http://www.businessinsider.com/what-are-tax-avoidance-packages-2018-1


Peoplekind:  Canadian Prime Minister Declares the Word "Mankind" to be Politically Incorrect
http://www.freerepublic.com/tag/*/index?more=3629744
It's not clear whether Canadians must burn millions of history books.


From the CFO Journal's Morning Ledger on January 23, 2018

Former Fiat Chrysler executive pleads guilty to illegal payments
A former Fiat Chrysler Automobiles NV
executive pleaded guilty Monday to making illegal payments to United Auto Workers union leaders and to filling a false tax return that failed to include $840,000 in income illegally siphoned from the company.


Texas state Sen. Uresti arrested, turns himself in to FBI ---
https://www.expressnews.com/business/local/article/BREAKING-Texas-state-Sen-Uresti-turns-himself-11152908.php


Living on Intangibles With Negative Tangible Assets
England's Latest Billion Dollar Scandal:  Carillion KPMG auditors under fire
---
https://www.thetimes.co.uk/edition/business/carillion-auditors-under-fire-8xpnmlnw0

Questions over clean bill of health from KPMG

The accounting watchdog has warned that it may launch an investigation into KPMG over its audit of Carillion, the construction and services group that has collapsed into liquidation putting thousands of jobs at risk.

The Financial Reporting Council said that it would “follow due process and will make a further statement on this matter shortly”.

KPMG, which has audited Carillion since its creation in 1999, came under fire from experts who questioned why the outsourcing company had imploded only months after being given a clean bill of health for its 2016 accounts.

Prem Sikka, professor of accounting and finance at Sheffield University, said: “The accounts for 2016 were signed off on March 1, 2017, yet by July the company was in serious trouble.

“The auditor is supposed to satisfy itself that a company is a going concern. It must look at cashflow forecasts and what kind of margin of error is built in. It is very strange that within three to four months the chief executive walked and the forecast was erroneous.”

 

Tim Bush, head of governance and financial analysis at Pirc, the investor advisory service, questioned the large amount of intangible assets on Carillion’s balance sheet and the IFRS standard used for contracts, which allows companies to book revenues long before they are generated. Both “might be relevant factors” in Carillion’s collapse, he said.

A spokesman for KPMG said that the firm had promised to “co-operate fully” with any Financial Reporting Council inquiry, but emphasised that it had acted “appropriately and responsibly”. KPMG said that it had stepped up its work on Carillion over the summer. In June it had “accelerated some of the audit procedures in relation to underperforming construction contracts”, which involved “KPMG’s internal contract specialists, including quantity surveyors”.

That work was prompted by the company’s concerns about late payments on contracts. It was taken into account by Carillion when it reported £845 million of writedowns on construction contracts announced in its half-year trading update on July 10, KPMG said.

Carillion issued three profit warnings in five months last year, the first on July 10 when Richard Howson, its chief executive, also resigned. The second was in September and the third was in November.

The company hired EY, another accounting giant, to carry out a review of its finances after its July profit warning. At the time, analysts said that the move might help to shore up confidence in Carillion’s accounting methods.

A spokesman for EY said: “On July 14 the company appointed EY to support its strategic review, with focus on cost reduction and cash collection.”

Carillion, whose operations range from school meals to managing prisons, collapsed into liquidation yesterday after its banks refused to extend credit because of its debts and spiralling costs on several large projects. The demise has led to uncertainty about almost 20,000 jobs in the UK and the prospect that almost 30,000 people will suffer a cut to their pensions.

Some believe that there were warning signs about Carillion months before it revealed that it was struggling in the summer. Pirc said in a research note in April last year that Carillion’s “value of intangible assets, including goodwill, exceeds the value of its net assets, meaning that the company has negative tangible assets”. The company was “highly dependent on extracting the value from its intangible assets and goodwill”. Intangible assets are not physical and can include patents, trademarks and intellectual property.

Continued in article

Bob Jensen's historic threads on auditing firm (including KPMG) troubles over the years ---
http://faculty.trinity.edu/rjensen/fraud001.htm


South Africa's Audit Regulator Says Part of KPMG Probe Nearing Completion ---
https://money.usnews.com/investing/news/articles/2018-01-12/south-africas-audit-regulator-says-part-of-kpmg-probe-nearing-completion

Also see
https://www.dailymaverick.co.za/article/2018-01-12-sars-wars-kpmg-rogue-unit-independent-inquiry-grinds-to-a-halt/

Bob Jensen's historic threads on auditing firm (including KPMG) troubles over the years ---
http://faculty.trinity.edu/rjensen/fraud001.htm


Francine:  FDIC win against PwC could finally force auditors to look for fraud ---
https://www.marketwatch.com/story/fdic-win-against-pwc-could-finally-force-auditors-to-look-for-fraud-2018-01-04


India wants to force financial statement auditors to detect more frauds
Does India realize how much this could increase the cost of financial statement auditing?
From the CFO Journal's Morning Ledger on January 11, 2018

India bans PwC from auditing listed firms
India’s market regulator has banned PricewaterhouseCoopers LLP’s affiliates from auditing listed companies for two years as punishment for their failure to detect a billion-dollar fraud at outsourcer Satyam Computer Services Ltd.

 

 


From the CFO Journal's Morning Ledger on January 4, 2018

Petrobras to pay $2.95 billion to settle U.S. corruption suit
Brazilian state-run oil company Petroleo Brasileiro SA said that it would pay one of the highest-value settlements in history to end a class-action lawsuit by U.S. investors who had sought to recoup corruption-related losses.

Bob Jensen's Fraud Updates ---
http://faculty.trinity.edu/rjensen/FraudUpdates.htm


Consultant allegedly plagiarized US Air Force officer ---
http://retractionwatch.com/2018/01/02/consultant-allegedly-plagiarized-us-air-force-officer/


The (London) Times:
An undercover Insight investigation has discovered that Google makes millions
in profits from middlemen who prey on vulnerable people seeking treatment for addiction. Elite football clubs also face criticism for luring child fans into gambling.


Former Houston Community College trustee sentenced to 70 months in prison for taking bribes ---
http://abc13.com/education/former-hcc-trustee-sentenced-to-70-months-in-prison-for-taking-bribes/2912968/?elqTrackId=ad151e2f3d3f43c1a8d2f24a41cde0b1&elq=dd6538e2c28844309da3b3cc88d6f1fc&elqaid=17362&elqat=1&elqCampaignId=7569

Bob Jensen's Fraud Updates ---
 http://faculty.trinity.edu/rjensen/FraudUpdates.htm


Former Columbia U. Financial-Aid Director Is Accused of Taking Hundreds of Thousands in Kickbacks ---
https://www.chronicle.com/article/Former-Columbia-U/242220?cid=at&utm_source=at&utm_medium=en&elqTrackId=c241d9c56ae84c27a3753b3ace51b1c9&elq=f808e08456b74c22b79abf9e9b849875&elqaid=17422&elqat=1&elqCampaignId=7620

Bob Jensen's Fraud Updates ---
 http://faculty.trinity.edu/rjensen/FraudUpdates.htm


Why Blue States are Blue:  Gov. Jerry Brown: Courts Must Let California Slash its Public-Sector Pensions ---
http://reason.com/blog/2018/01/11/gov-jerry-brown-courts-must-let-californ

Jensen Comment
Many of those bloated pensions resulted from various kinds of frauds frauds that are costly to prosecute due to both cleverness of the frauds and frequency of the frauds.


New York Times:  Diane Butrus, a business executive from St. Louis, wandered the streets of Zurich, looking for a bank that would help her keep $1.5 million hidden from America tax collectors ---
http://taxprof.typepad.com/taxprof_blog/2018/01/ny-times-a-swiss-banker-helped-americans-dodge-taxes-was-it-a-crime.html

Bob Jensen's Fraud Updates ---
 http://faculty.trinity.edu/rjensen/FraudUpdates.htm


Cheating Issues in the Movie Lady Bird:  Christine's Repeated Academic Cheating is Not Trivial and She Knows it ---
https://www.chronicle.com/article/em-Lady-Bird-em-s/242392?cid=at&utm_source=at&utm_medium=en&elqTrackId=07abeb72b8cf4e8b91a08feffa6ae104&elq=0515db7ba933405d9a0b43dbf66fd755&elqaid=17702&elqat=1&elqCampaignId=7796

When I went to see Lady Bird I fully expected to enjoy it. I knew people who had and it was the sort of film, by description, I knew I would like. I did not expect to see a movie that presented academic dishonesty as a forgettable, perhaps even laudable, act.

To be clear, I don’t expect all good films to have a moral compass or message. I won’t be flogging a commentary decrying the lack of just deserts in A Clockwork Orange, or complaining that the Fast and Furious franchise encourages casual misuse of resources.

But Lady Bird is not an amoral film, nor is it a live-action cartoon, fable, or fairy tale. It’s a film praised for its realism, and one that repeatedly states its moral beliefs about interpersonal responsibility — loudly and clearly. Many characters — including Christine, the willful, complex, and lovable protagonist — commit numerous transgressions, all of which are judged and/or forgiven over the course of the movie, with one notable exception. Consider:

The film exhibits one example after another of interpersonal offenses and offers retributions or resolutions for each — except when it comes to academic cheating.

And Christine cheats. Quite deliberately. She destroys her math records and then lies about her grades to improve her standing. Then she cheats on an exam to continue improving her grade. And it is clear that she is concerned about grades, anxious to get into a good college, and understands that grades matter. Several scenes show her discussing grades, whether she can get into the college she wants, and so on.

Does being sweet and funny and interesting make cheating OK? Is that what we as faculty members should tell our students?

In short, the cheating is not a trivial act, and she knows it. Yet there is not a single moment in the film in which Christine acknowledges even to herself that it is wrong, or a moment in which she experiences any negative consequence that would suggest that academic dishonesty is, in fact, wrong.

At the end of the movie, she is off to her new life at an exclusive East Coast college, which she has gotten into by cheating, and it seems the new life will give her great insight into herself and her relationship with her mother. So, in fact: Yay cheating! The end.

As an instructor I’m wondering what to say to my students about cheating after seeing this movie.

Some threads in the film seem to suggest that the cheating is justified: We’re shown that Christine is talented and unique, desperate to escape her mother, and that she lacks resources others have. Her rich friend, after discovering that Christine has lied about her background, says she can’t imagine having to do that. The implication that rich people don’t have to lie — but the rest of us might — is clear. There is a suggestion that her older adopted brother got into Berkeley because he was a minority student, so as a white person Christine lacks that advantage. She has needs but not resources, so cheating is a legitimate response.

Or maybe the cheating is excusable because it demonstrates Christine’s ambitiousness. Her peers are content to stay in Sacramento and go to community college, or nearby universities. She wants more from life. She’s willing to go to the wall — i.e., cheat — to get it. So we should respect that. Which doesn’t sound at all like any politicians currently in office.

Perhaps she doesn’t know any better. Which is plausible … I guess? But there’s no suggestion that Christine should have known better, and no indication whatsoever that she has actually done something wrong by cheating.

Maybe the film’s failure to deal with her academic dishonesty is a statement about its very seriousness: It is such a violation that it can’t be rectified. Certainly there is no easy or subtle cinematic method to resolve it and still have Christine experience her happy ending at the college of her choice. A more thoughtful approach would have allowed the viewer to understand that cheating — the one act in the film that dramatically changes Christine’s life — wasn’t beyond judgment in this otherwise quite morally conventional film.

Continued in article

Bob Jensen's threads on academic cheating are at
http://faculty.trinity.edu/rjensen/Plagiarism.htm


 


 


 


 


 


 

 

 


 


 


 


 


 


 

 

 


 


 


 


 


 


 

 

 

 




Other Links
Main Document on the accounting, finance, and business scandals --- http://faculty.trinity.edu/rjensen/Fraud.htm 

Bob Jensen's Enron Quiz --- http://faculty.trinity.edu/rjensen/FraudEnronQuiz.htm

Bob Jensen's threads on professionalism and independence are at  file:///C:/Documents%20and%20Settings/dbowling/Local%20Settings/Temporary%20Internet%20Files/OLK36/FraudUpdates.htm#Professionalism 

Bob Jensen's threads on pro forma frauds are at http://faculty.trinity.edu/rjensen//theory/00overview/theory01.htm#ProForma 

Bob Jensen's threads on ethics and accounting education are at 
http://faculty.trinity.edu/rjensen/FraudProposedReforms.htm#AccountingEducation

The Saga of Auditor Professionalism and Independence ---
http://faculty.trinity.edu/rjensen/fraud001.htm#Professionalism
 

Incompetent and Corrupt Audits are Routine ---
http://faculty.trinity.edu/rjensen/FraudConclusion.htm#IncompetentAudits

Bob Jensen's threads on accounting theory are at http://faculty.trinity.edu/rjensen/theory.htm 

Future of Auditing --- http://faculty.trinity.edu/rjensen/FraudConclusion.htm#FutureOfAuditing 

 

 


 

The Consumer Fraud Portion of this Document Was Moved to http://faculty.trinity.edu/rjensen/FraudReporting.htm 

 

 

 

 

Bob Jensen's home page is at http://faculty.trinity.edu/rjensen/