The Corruption Of The Fraud - 1900 Words

Background Dixon, Illinois is a small town of about 16,000 people (US Census, 2015) located approximately 100 miles southwest of Chicago. Until 2012, Dixon’s claim to fame was being the town where, 40th President of the United States of America, Ronald Reagan grew up (City of Dixon). Today, in addition to hosting a future president for 22 years (City of Dixon), Dixon, IL is known as the location of the largest and longest municipal fraud in United States history (Mathieson, 2014). This paper will examine the main players in the fraud; how the fraud was carried out; the laws and procedures violated; the impact of the fraud; and the measures that could have been taken to prevent it. The Fraud Issue This issue at hand in this case is one of embezzlement (Hancox, 2014). In December of 1990 the Treasurer/Comptroller of Dixon, IL, Rita Crundwell, opened up a fake capital account in the city’s name. This allowed her to take city money, deposit it in this account, and withdraw it in her name. For 22 years Rita Crundwell fooled the city of Dixon, the mayor, the City Council, the State of Illinois, and the tenth largest public accounting firm in the United States (Inside Public Accounting , 2015). Drilling down even further, this is a classic billing scheme. According to (Wells, 2013, p. 96), a billing scheme is defined as â€Å"A scheme in which the fraudster causes the victim organization to issue a fraudulent payment by submitting invoices for fictitious goods or services†¦Ã¢â‚¬  As weShow MoreRelatedFRAUD AND CORRUPTION1062 Words   |  5 PagesVALUES AND ETHICS ASSIGMENT: FRAUD AND CORRUPTION TABLE OF CONTENTS Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...3 Ethical issues†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.....3 Impact on organization†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦....3 Measures to be enforced†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..4 References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦6 INTRODUCTION Fraud and corruption is one of the biggest issues thatRead MoreFraud, Corruption, Theft, Misappropriation, And Fraud1738 Words   |  7 PagesThere is no specific definition for fraud if looked at from different perspectives. The term fraud is used to describe acts such as deception, corruption, theft, misappropriation, false presentation, bribery, fault partnership, forgery etc. Some may even describe fraud as practical process of deception to gain an advantage, or to cause loss to another entity or individual. While some people might not even anticipate to commit fraud, others might do so if they contemplate they have a way to be covertRead MoreThe Corruption Of The Fraud Triangle1640 Words   |  7 Pageslikelihood of fraud increases when the three elements of the fraud triangle come together. Analyze how the three elements of the fraud triangle are important and how all three elements were present in Helen’s case. The three elements of the fraud triangle are Motivation or Pressure, Opportunity and Rationalization. After reading the case, it was revealed that all of the three elements are present the Helen’s fraudulent activities. Motivation: This is a reason for why the fraudsters commit frauds. It providesRead MoreCorruption Of A Fraud Investigation840 Words   |  4 Pagesissues in which fraud examiners and law enforcements agents deal with on a daily basis. The range of complexity vary; however, each case must imply specific procedures to obtain substantial evidence. The procedures vary from profession, which are used to collaborate to build evidence and abide legal aspects. Adherence to legal aspects are important in fraud investigations as such events can be used to dismiss a case. The procedures purpose are to reduce legal ramifications of a fraud investigationRead MoreCorporate Fraud, Greed, Corruption, And Ethics1598 Words   |  7 PagesI. Introduction Corporate fraud, greed, corruption, what company comes to mind when you hear those words? Enron! In this paper we will take a look into the corporate facts and history as well as, stakeholder relationships, organizational trust issues, ethical leadership and ethical culture at Enron. As well as where improvements could have been made to improve organizational trust and ethical culture before Enron’s collapse. II. Corporate Facts and History According to the Texas State HistoricalRead MoreCorruption And Voter Fraud : Mexico Is Not A Democracy?1791 Words   |  8 Pagestransparent 2000 presidential election. The lack of voter fraud evidence made it clear that it was one of the fairest elections to date for Mexico. During the PRI power Mexico was a hybrid regime. It was disguised as a democracy that only favored those who were higher up and gave not voting power to the citizens. Killings and voter fraud make it clear that Mexico was not a democracy. In 2012 when the PRI took over again allegations of corruption and voter right violations came up again and taking MexicoRead MoreEnron Corporation : A Foundation Of Fraud, Corruption, Greed, And Immorality1547 Words   |  7 Pagesdemonstrate that the Enron corporation was operating on a foundation of fraud, corruption, greed, and immorality; I will also reflect on the legal and financial consequences surrounding the scandal. The Enron corporation was formed in 1985 by the merging of two natural gas companies, Houston Natural Gas, and InterNorth; In the following year Kenneth Lay was appointed Chairman and CEO.2 Enron began its escapade of fraud and corruption in April of 1987 when it was discovered by Enron executives that LouisRead MoreClassification of Fraud Cases1382 Words   |  6 PagesIntroduction Frauds include an array of irregularities or errors and illegal acts characterized by deliberate deception against truth, justice, and equity. Frauds are word that has many definitions. Fraud is defined in Webster’s New World Dictionary as â€Å"international deception to cause a person to give up property or some lawful right† (International Journal of Business and Social Science, 2011) Besides, fraud is defined in Black’s Law Dictionary as â€Å"a knowing misrepresentation of the truthRead MoreEssay about Internal Accountants Report to Management1274 Words   |  6 Pagesunderstanding of how our company runs the business and issues that we can face if we enter into this contract. It is vital to visualize the actual impact of occupational fraud and abuse in the company. We also need to know how the US government oversees the accounting fraud and abuse and its affect on the company. What potential corruption schemes to be aware of within our company? Wh at kind of accounting evidence and methods of gathering such evidence to support the financial status review to chooseRead MoreOccupational Fraud : A Glance At Asset Misappropriation And Other Types Of Organisational Fraud Essay1074 Words   |  5 Pages II. OCCUPATIONAL FRAUD – A glance at Asset Misappropriation and other types of organisational fraud Now that we have tolerably defined ‘fraud’, we can move on to explain ‘Occupational Fraud’ which is an internal fraud i.e. generally committed by employees/members associated with an organisation, and more closely related to corporate governance. Occupational Fraud is defined as: â€Å"The use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing