Phar Mor Fraud Case

Two days later, the Phar-Mor board confronted him with two books that had been found. The board had found that one of the books had largely inflated profits. This revealed that with the board, banks, and investors deceived, Monus was able to pull in more pay and sell stock at inflated prices to keep everything afloat. “To cover up the continuing losses, Pat Finn was now faxing falsified financial reports to the board of directors and to David Shapira every week. But in November of 1990, a secretary mistakenly faxed a report with the real numbers to Shapira. Here in black and white was a report which no CEO could ignore” (Media n.d.) This is when David Shapira took action; he notified the feds, investors and the public, changing the locks, and laying off 1,000 workers, firing the alleged accomplices, and shutting down the league and pride

Maria Messina felt that she had connections to both Livent and Deloitte, and these ties would be harmed whichever way that she reported the wrong doings in the bookkeeping or the audit process. Regardless of what she believed, Messina was to blame since she knew about it on the Livent section and she knew what was wrong on the Deloitte section. Whichever way she looked, Messina felt that she had some piece of obligation regarding detailing the fraudulent activities of Livent and Deloitte. After finding the fraud, one must report them and change the methods for the how they are displaying the fraud. Unmistakably, she knew there was fraud occurring and she could have done significantly more to help settle the circumstances and clear things

During the late 90’s and early 2000’s, several key companies in the United States were exposed for fraudulent reporting profits

Auditors started to notice that when the actual payments did not come in (Celizic, 2008). There might be some other symptoms were noticed by the auditor by observing Mr. Pavlo’s lifestyle. They might have been watched about Pavlo’s salary versus his cost of living, i.e., chartering plane, luxury vacation and driving fancy cars. Auditors may have also watched his bank account transactions.

Irregularities can be aroused within different accounting department at Apollo Shoes. To find out the irregularities, an audit program will be designed to achieve the task. Apollo Shoes has recognized that the major loss can be, due to irregularities in cash inflow and outflow and payroll. Therefore, audit program will be divided in three parts:

Ninety-year-old Samuel Sonora suffers from dementia and was taken in by relatives out of what seemed to be a compassionate concern for his well-being. Not long after being taken in by relatives, Mr. Sonora was found wandering in a bus terminal 1,000 miles away from home without any recollection of how he ended up there and returned to his relatives. Due to the suspicious circumstances surrounding the situation, Adult Protective Services investigated Mr. Sonora’s finances and found the relatives had taken thousands of dollars from the elderly man’s bank account under the disguise of maintenance work that had never been done. Nor could they explain how Mr. Sonora ended up 1,000 miles away from home in light of his current physical and mental condition (National Adult Protective Service

A sad day for the family of a young woman named Wykesha Reid, evidence conducted from an ongoing investigation lead to her death from butt-injections. The suspect being charged with the Homicide of

The false accounting records were unethical because it means management was enriching themselves. They were getting earnings based on the false availability of funds. They also did this to keep their jobs. When a company is not performing financially well the top positions are the ones usually at risk of being retrenched, as a result of implying the company was financially stable they were protecting their jobs.

The article summarized the fraud activities that was taking place at Elmina Inc. Assisted Living in Miami. He was sentenced for thirty months in prison. The Department of Justice discovered that he was involved in kickback scheme that funneled patients to a fraudulent mental health provider. He was ordered to pay $165, 881 in restitution. Rammarine participated in the fraud resulted in more than $445,025 in fraudulent billing to the medicare program. Medicare fraud forces are operating in nine cities across the country, and 1,333 defendants.

Thanks for sharing your thoughts. Medical fraud and abuse are the serious problems for health care system, which need to be prevented from reducing the health care cost and providing quality of services to the people who need care. It is most important to educate health care worker and new employees about these issues so that they will be aware providing patient 's personal information to others. Also, potential providers need to be surveyed to ensure that they are reasonable providers or

Bernard Madoff, born on April 29, 1938, has been running three successful companies until December 2008. The first one was a brokerage firm, the second was a proprietary trading firm and the third one was an investment advisory firm. The latter one has collapsed in December 2008 due to the biggest Ponzi scheme in financial history. Investors have entrusted him in total $20 billion. He pretended to invest the money in investment funds. In reality he did not invest any money he has received, but distributed it to family members and close friends. Not even his sons, which were running the other two businesses, knew about his fraudulence.

Enron is an example of corporations that has faced bankruptcy in the recent past because of the numerous problems it had with federal and state governments for manipulation of financial statements. While these problems are not only attributed to organizational issues, accounting firms are also blamed for such incidents. Enron's bankruptcy is mainly attributed to ethical and moral issues experienced by the firm's management and leadership

A company profit-sharing arrangement is a matter of auditor concern because it provides an incentive for employees to generate artificially high income figures. These individuals can receive direct financial benefits from the manipulation of reported earnings. This potential problem is even more of a concern in the Lakeside engagement because controls are weak and each store is geographically isolated from the oversight provided by the administrative offices.

WorldCom, once known as one of the most powerful telecommunication organizations of the world, is now studied as a case of a fraudulent company that carried out unethical financial activities to cover its weakening position in the market. After some aggressive investment decisions, the company started to witness huge financial pressure. The management used various forged accounting entries to conceal its weakening position. Cynthia Cooper, Vice President Internal Audit, discovered the unethical activities and raised the issue with the management and relevant departments and received bitter responses. She carried out internal audits in her own capacity with her colleagues and compiled evidence against fraudulent activities.

As a whole this source tries to explain about how the management is pressuring accountant to conduct the false information just for personal gain. As this source shows a part that the accountant are not ethical for their own gain but because of the pressure from management.