Fraud Schemes and Fraud Investigations. Using the Internet or Strayer databases, identify and...

Question

Fraud Schemes and Fraud Investigations. Using the Internet or Strayer databases, identify and research a  company with an employee(s) who was involved in corporate fraud.  Coordinate an investigation, identify various types of surveillance and  covert operations, identify red flags, and recommend a fraud prevention  plan. Write a four to five (4-5) page paper in which you: Based on your research, assume that you are fraud investigator  assigned to coordinate an investigation of the fraudster. Determine how  you would implement this investigation without the fraudster’s  knowledge. Provide support for your rationale.Assuming you are the fraud investigator on this case, assess what  types of surveillance and / or covert operations you would use to  collect evidence related to the fraud. Analyze technological options for  investigating fraud, indicating what you believe to be the most  effective option. Provide support for your rationale.During the investigation, assess the most significant red flags  which would have been an indication of possible fraud needing corrective  action by management. Based on your research, suggest key practices the fraud investigator  could have used in conducting interviews with the fraudster and the  company’s employees. Assess the various interviews and interrogation  questions available to you, and select the type of interview and  interrogation questions that would have been most appropriate for this  investigation. Provide support for your rationale.Recommend a fraud prevention plan for this organization. Determine  the positive or negative consequences that this fraud prevention plan  might have on employees’ morale and the public perception of the  organization. Provide support for your rationale.Use at least four (4) quality resources in this assignment. Note:  Wikipedia and similar Websites do not qualify as quality resources. Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with  one-inch margins on all sides; citations and references must follow APA  or school-specific format. Check with your professor for any additional  instructions.Include a cover page containing the title of the assignment, the  student’s name, the professor’s name, the course title, and the date.  The cover page and the reference page are not included in the required  assignment page length.  The specific course learning outcomes associated with this assignment are: Examine the basic concepts related to fraud investigations, red  flags that are an indication of fraud, and fraud prevention plans. Use technology and information resources to research issues in forensic accounting.Write clearly and concisely about forensic accounting issues using proper writing mechanics.

David · Accepted Answer

Assignment: Fraud Schemes and Fraud Investigations 
Student Name: 
Professor Name: 
Course Title: 
Date: 17.03.2015
Employee fraud is a significant problem faced by organizations of all types, sizes, locations 
and industries. While we would all like to believe our employees are loyal and working for 
the benefit of the organization (and most of them probably are), there are still many reasons 
why employees may commit fraud and several ways in which they might do it. According to 
the 2014 Report to the Nation on Occupational Fraud and Abuse (Association of Certified 
Fraud Examiners, Inc.), research shows, that a typical organization loses 5% of its annual 
revenue each year due to employee fraud. Timely detection and prevention of fraud are 
crucial to reducing this loss. Every organization should have a plan in place for fraud 
detection, as preventing fraud is much easier than recovering losses after a fraud has been 
committed. 
This study will focus on the case of Stanford Financial Group Company fraud in which the 
Robert Allen Stanford, chairmanof Stanford International Bank (SIB) was involved in a ponzi 
scheme defrauding nearly 30,000 investors in 113 countries involving $ 7 billion in 
fraudulent high interest certificates of deposits at Stanford International Bank (SIB). Gilbert 
T. Lopez Jr., the chief accounting officer of Stanford Financial Group Company, and Mark J. 
Kuhrt, the global controller of Stanford Financial Group Global Management, were also 
involved in the fraud. They were aware of and tracked Stanford’s misuse of SIB’s assets, kept 
the misuse hidden from the public and from almost all of Stanford’s other employees and 
worked behind the scenes to prevent the misuse from being discovered.  According to 
evidence presented at trial, Stanford continued the scheme by using sales from new CDs to 
pay existing depositors who redeemed their CDs. In 2008, when the financial crisis caused a 
slump in new CD sales and redemptions reached an all-time high, Stanford lied about 
personally investing $741 million as additional funds into the bank to strengthen its capital 
base. To support that false announcement, Stanford’s internal accountants inflated on paper 
the value of a piece of real estate SIB had purchased for $63.5 million earlier in 2008 by 
5,000 percent, to $3.1 billion, even though there were no independent appraisals or 
improvements to the property. Robert Allen Stanford was sentenced to 110 years in prison for 
his actions while Lopez and Kuhrtwere sentenced to 20 years imprisonmentand three years of 
supervised release for their role in the fraud. Lopez was further ordered to pay a $25,000 fine 
(www.justice.gov.in).
In this case,

Fraud Schemes and Fraud Investigations. Using the Internet or Strayer databases, identify and research a company with an employee(s) who was involved in corporate fraud. Coordinate an investigation,...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment