11/20/2020 Financial Fraud Research Paper Resources: FIN4303 RVD RVE...

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11/20/2020 Financial Fraud Research Paper Resources: FIN4303 RVD RVE 1208
https:
fiu.instructure.com/courses/77489/pages/financial-fraud-research-paper-resources?module_item_id= XXXXXXXXXX/3
Financial Topic Research Paper Resources
Purpose
The purpose of the term‑paper is to make you an expert in some aspect of Financial Markets and
Institutions. This semester we will focus on Financial Fraud as it relates to Markets or Institutions.
More specifically, we will be doing work on: “The Metrics of a Fraud on one major Financial
Institution / Market.”
You will choose a very specific financial institution or a financial security and do an in-depth and
analysis of the Fraud. You will analyze a fraud that happened in the last 5 Years. Take a
quantitative approach to the problem and analyze it. Analytical and Quantitative/ Computer analysis
will be amply rewarded.
Suggested Structure
Notes:
These are “SUGGESTIONS” for Students.
You may follow this or use your own structure for preparing the paper.
There is “NO APPROVAL” required for the topic you are working on as long as it falls in the
guidelines stated in the Financial Fraud Research Paper Ru
ic
(https:
fiu.instructure.com/courses/77489/pages/financial-fruad-research-paper-ru
ic) (LMS Page).
The Only deliverable that is due is the “FINAL PAPER” on Nov 30, XXXXXXXXXXYou can submit it only
once. The Professor will not comment on any partial work, or suggest any topic, or idea as
“ORIGINALITY” is what we are aiming for in developing the pape
1. Choose one specific Institution (Say Wells Fargo) or one specific market (say, Cryptocu
ency
market)
2. Choose a recent fraud activity (past 5 years), a major fraud ($100 million or above)
3. Choose an activity for one where financial information or data is publicly available
4. Identify and analyses the metric and framework for fraud using past / historical pattern
5. Take a financial and analytical approach; not a descriptive, historical or psychological approach
6. Do extensive research by going to scholar.google.com or other internet sites and identify ten
major, relevant and focused article on this fraud
7. Do analysis and explain in your own words why it happened, how it happened, and what is
eing done to prevent such a fraud recu
ence.
8. This is not a ‘cut’ and ‘paste’ job of others work. The submitted papers are automatically run
through ‘Turinitin’ software. If the software finds similarity with others work there are penalties.
If there are more than 30%-50% your score will be reduced to by 25%. If there are more than
https:
fiu.instructure.com/courses/77489/pages/financial-fruad-research-paper-ru
ic
11/20/2020 Financial Fraud Research Paper Resources: FIN4303 RVD RVE 1208
https:
fiu.instructure.com/courses/77489/pages/financial-fraud-research-paper-resources?module_item_id= XXXXXXXXXX/3
50% -60% similarities your research paper score will be reduced 50%. If the similarities are
greater than 60% you will get a zero in the paper.
9. See also the Financial Fraud presentation
(https:
fiu.instructure.com/courses/77489/files/ XXXXXXXXXX/download) (PPT).
10. I suggest you use the Financial Fraud Research Paper Timetable
(https:
fiu.instructure.com/courses/77489/pages/financial-fraud-research-paper-timetable) (LMS
Page) as a guide for working on this assignment throughout the course.
Format
The paper should be well written and proper end‑notes and bibliography are required.
As a general guideline, the paper should be approxi mately TEN pages long, typed (1.5 spacing
Font size 11 and excluding references and appendices).
The paper is due on November 30, 2020 (Monday).
Follow the Financial Fraud Research Paper Ru
ic
(https:
fiu.instructure.com/courses/77489/pages/financial-fruad-research-paper-ru
ic) (LMS Page)
when developing your paper. Sample papers are available upon request.
You need to turn in an electronic copy of the paper also so that it can be checked with Turnitin
software
Appropriate Topics
Some appropriate topics are below, but please choose a topic of your own. The “first” criteria fo
grading the final project is the originality of the topic. No approval of your topic is required from
instructor.
1. Impact of Fraud on any individual financial security – Say Treasury Security
2. Impact of Fraud on any individual financial institution – Say Wells Fargo
3. Impact of Fraud on global financial
anking practices – Say Mobile banking
4. Impact of Fraud on any global financial market – Say Mexican Peso
5. Impact of Fraud on any electronic markets - Say Derivative Security
6. Impact of Fraud on any individual investors – Say Buyers of Insurance
7. Impact of Fraud on World Central Banks – Cyber attack
8. Impact of Fraud on World payment systems -Cryptocu
ency
9. Impact of Fraud on Global lending
Suggested, Appropriate Sources
Wall Street Journal
Business Week
Fortune
https:
fiu.instructure.com/courses/77489/files/ XXXXXXXXXX/download
https:
fiu.instructure.com/courses/77489/pages/financial-fraud-research-paper-timetable
https:
fiu.instructure.com/courses/77489/pages/financial-fruad-research-paper-ru
ic
11/20/2020 Financial Fraud Research Paper Resources: FIN4303 RVD RVE 1208
https:
fiu.instructure.com/courses/77489/pages/financial-fraud-research-paper-resources?module_item_id= XXXXXXXXXX/3
Fo
es
The Economist
Financial Times
International Finance Corporation’s publications
Numerous Online publications
Numerous Academic Publications
The Banker
Annual Reports.
IMF/World Bank publications.
Online Data Bases
Data-stream
Bloomberg
Yahoo
Google Scholar

financial-fraud-research-paper-resources-fin4303-rvd-rve-1208-lnsajiad.pdf

Riddhi · Accepted Answer

Financial Fraud by Wells Fargo Bank in 2016 
The Wells Fargo Bank is an American multinational company in the banking industry which was found in 1852. The bank has their headquarters in San Francisco, California with offices all over united states. It is the fourth largest bank in united states as per market capitalization of the company. The bank is ranked as the 26th Largest Bank as per Fortune 500 ranking of the companies with highest revenue. The bank had many products for its customers and the average sale of products to per customer was as high as 20 products. Wells Fargo was the largest bank as per market capitalization in united states in 2015 but then it lost its market share to Wells Fargo as a result of scam in 2018 for creation of 2 million fake bank accounts and there was illegal manipulation of accounts by the various employees of the bank. Today Wells Fargo is the fourth largest bank in the united states	 as per the market capitalization and asset value of the bank.  
The wells Fargo bank fraud account scandal included creation of millions of fraudulent savings accounts on behalf of existing client without their consent or knowledge. With these saving account employees were told to order credit cards in the name of client and the employees were told to use their own phone number to fill in details at the time of ordering credit cards. Because employees filled in their personal details it was impossible for the clients to have knowledge of their account being created and credit card being ordered on their behalf. The bank accounts were opened by forging signature of the client. 
The reason for opening this account was to move money from the clients account out of their credit cards and saving account and use it for some purpose unknown to the client. These accounts were created by using the method of pinning which will be “0000” for the clients. With these details’ bankers were able to control the accounts of clients and access their online banking accounts. The accounts used by these employees were of homeless people so that whenever the fee accrues, they may not be aware of it. The entire fraud was conducted by sales employees of the company to meet the desired target of cross selling. Cross selling shall mean number of products bought by a single customer. The track record of Wells Fargo was in cross selling was the best in the industry. This culture and strategy were introduced by the former CEO Richard Kovacevich of 1998. 
There had been various articles published in Los Angeles Times in 2013 wherein a publication was issued on the level of intense pressure on the bank managers of the bank to sell extremely aggressive and mathematically impossible numbers. The employees faced benefits in the form of bonuses for opening new bank accounts. The whole blame for this is because of high incentive plan with extremely higher goals introduced in the Bank.  	
One of the factors that let to this scam was setting unrealistic goals by the sales head and expecting them to be achieved at any cost, in case unable to achieve then firing employees or create a very unfavorable atmosphere wherein employees faced nausea, vomiting because of intense pressure etc. Such an atmosphere or environment is not acceptable in any Bank or organization. The position of the bank in terms of ranking was 1st in 2015, and to achieve such ranking in the bank had to engage employees in fraudulent practices. 
After the news of Wells Fargo Bank came to the notice of public, the CEO John Stumpf, took full responsibility of the act stating that it was a fraud that may be termed that way, but it was not intentional of the sales employees of the bank and efforts will be taken to ensure that the culture of sales is revived and nothing like this ever happens again.  
In September 2016, the bank was fined was creating unauthorized bank deposits accounts of 15,34,280 and credit cards of 5,65,433 from 2011 to 2016. On further audit of the entire activity of fraud the final number came close 35,00,000 accounts being created in 2017. The initial fine decided for the bank in September 2016 was fined $185 million for performing such an illegal activity out of which $100 million would be received by consumer protection, $50 million to be received by Los Angeles city Attorney and $35 million to be received by Office of Comptroller of the currency.
In December 2016, it came to the notice that the employees of Wells Fargo Bank had issued lot of unwanted insurance policies which acted as a red flag or whistle blower. On further investigation, the whole fraud by employees came to the light of the Insurance Companies.

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