ipl-logo

Reliastar's Fraud Case Study: Mueller Case

621 Words3 Pages

Communications and enforcement of integrity help to minimize and lower the elements of fraud triangle include pressure, opportunity and rationalization. An overall background check with financial status should have done on Mueller from ING before directly transfer him to the company from ReliaStar. Mueller was living on his check by check at ReliaStar; he also had college debts and a pregnancy wife. ING should have spotted a big change within the company’s environment when Mueller went from a normal living style to a new “luxury” lifestyle with high-ended cars, costly Las Vegas Trip, extravagant watches and expensive nightclub entertainment. ING must imply employee support programs to assist employee struggle with financial problems in this case, which is a main source can lead to fraud. Under ING, more business risks were rising after they acquired ReliaStar. Mueller was in a lead role on transitioning his older …show more content…

Authentication controls identify is on loose under ING since Mueller had the power to access either SUB or CW’s computer with password. This show a lack of secure and authorization control within the company. ERP controls ensure that only legitimate users can access the system, these including passwords, smart cards, and ID identifiers. In Mueller case, his fraud could have been prevented if the company had use multifactor authentication, perhaps by running both password and smart card interested into a card reader or scan their ID badge to identify the user. Additionally, ERP system control help to measure the value of transitions in manner that permit recoding their proper monetary value in financial statements. Every year Mueller took out a quite big chunk of money, the control system should help manager to pay more attention to larger transactions from vendors to make sure they are really

Show More
Related

  • Horatio Van Bliven Fraud Report

    293 Words  | 2 Pages

    After looking at the information and evidence laid out before us, we have came to the conclusion that Mrs. Horatio Van Bliven was a fraud. First of all, the glass was shattered from the inside. We think this way because, the glass shards were found on the outside balcony. If the glass was shattered from the outside, the glass would have fallen inside of the hotel room. This eliminates Samuel Schmidt from committing the crime because he could not have broke the glass from the inside.

    Read More

  • Cobb V. Pennsylvania Life Ins: Case Study

    252 Words  | 2 Pages

    In the present case, the relationship purportedly forming the basis for the constructive fraud claim was formed in a professional setting and is

    Read More

  • Guy Ross Health Care Fraud Case

    216 Words  | 1 Pages

    Page 1 of 2 Caterra Bruno05/17/2018HS115A medical assistant was sentenced today to 36 months in prison for his role in a conspiracy to defraud the Medicare program, the Departments of Justice and Health and Human Services announced. Guy Ross was also sentenced by U.S. District Judge Denise Page Hood in the Eastern District of Michigan to three years of supervised release following his prison term and was ordered to pay $472,623 in restitution. Ross, 51, pleaded guilty in July 2010 to one count of conspiracy to commit health care fraud. According to court documents, Ross received kickbacks from the owners and/or operators of two Detroit-area home health agencies, Patient Choice Home Healthcare Inc. and All American Home Care Inc., in exchange

    Read More

  • Rita Crundwell Case Study

    1168 Words  | 5 Pages

    Rita Crundwell was the treasurer and comptroller of Dixon, IL from 1983 to 2012. She worked for the city during high school, and was quickly promoted. Crundwell was also a horse breeder and owner, as she grew up on her family farm. During her time as treasurer, she was the owner of RC Quarter Horses. She had hundreds of horses, and trained dozens of world champions.

    Read More

  • Medicare Fraud Research Paper

    301 Words  | 2 Pages

    Medicare fraud is a very common occurrence in the United States. However, there are whistleblowers who are working hard to stop Medicare fraud. The vast majority of people who report Medicare fraud are healthcare professionals. This includes people such as ambulance drivers, physicians, nursing home workers, hospice workers and nurses. There have been some changes recently to the United States whistleblower laws.

    Read More

  • Ab171 Unit 6 Business

    1199 Words  | 5 Pages

    An employee discovers a loophole in the security whereby the access to personnel records of other employees in the company is open. The personnel records include employee names, addresses, social security numbers, disciplinary actions, annual reviews, and salary information. Busy working on a time sensitive project, the IT administrator do not fix the problem for two weeks. While fixing the problem, it is discovered that several employees have accessed personnel records using the loophole.

    Read More

  • Federal Bureau Of Investigation Essay

    994 Words  | 4 Pages

    However, not much information is shared outside of the FBI’s, SEC’s, Finra’s, FERA’s, etc, respective agencies. This puts “white-collar criminals at a great advantage” as the “[j]ealousies and rivalries among investigators and among investigative and prosecutorial agencies need to be reduced and if possible eliminated”. Most of the agencies share little to no information because of competition and rivalries between them, this allows important information to slip past an agency focused on a single case. With the dilution of the FBI’s white-collar crime division, more information will be lended to other white-collar crime agencies in order to solve more cases. The FBI’s information would be critical as they have “43 pending investigations on large companies”, and “2,346 probes of potential mortgage-related fraud”, this information will help with the investigations at the SEC and FERA.

    Read More

  • The Patriot Act Essay

    388 Words  | 2 Pages

    When it comes to suspicious activity reporting included in Section 352 of the USAPATRIOT Act, “suspicious may not necessarily mean the same thing to all people”. “An activity that may seem suspicious to an auditor or examiner may not raise the same red flag with a community bank executive, or even another examiner”(Proctor, 2003, p.1). This causes a serious problem in the way institutions comply with the requirements of suspicious activity reporting. With that said, suspicious activity reporting forms the cornerstone of the anti-money laundering goals set out by the USAPATRIOT

    Read More

  • The Phar-Mor Fraud Case

    804 Words  | 4 Pages

    This is primarily a case of gluttony and self-indulgence. Phar-Mor received a bill for inventory that was not received from Tamco, its sister company. To make matters worse, when it came to properly recording inventory that was received from its sister company, Phar-Mor dropped the ball drastically and failed. With the unsound bookkeeping it made it difficult to separate the products received. Michael J. “Mickey” Monus, the then Vice President, took over 15 million dollars and transferred to the World Basketball League (WBL) in order to offset their loss.

    Read More

  • Income Smoothing Case Study

    1491 Words  | 6 Pages

    The fraud triangle is made up by three distinguished elements. These elements in the fraud triangle consist of pressure, opportunity, and rationalization. The overall representation of the fraud triangle can be seen as the specific model to spot any type of high-risk unethical and fraudulent performances being conducted by a company, in this case Cendant Corporation. Cedant Corporations actions can be analyzed by the fraud triangle by the way that their senior management/top management decisions fell into the three categories of pressure, rationalization, and opportunity. Cendant Corporation had the pressure to comply with their shareholders and to maintain a stable financial status to prove that they were a profitable organization with a bright company image.

    Read More

  • Al Capone Fraud Case

    1099 Words  | 5 Pages

    It is a repeated scenario in American Law. A high-risk criminal is arrested, tried, and found guilty. All for a minute crime that is not the charge they should be held responsible for. This is exactly what happened in the case of H.H. Holmes all the way back in 1895. Herman Webster Mudgett, alias Dr. H.H. Holmes, was a serial killer who terrorized Chicago in the early 1890’s.

    Read More

  • Fraud Case Of Wykesha Reid

    506 Words  | 3 Pages

    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 Mykesha are Jimmy Clarke and Denise Rochelle. The two suspect operate a business which provide eyelash extensions to the public. Nevertheless, up until the death of Wykesh Reid it seems their business have been performing butt-injections on the Black Market. Upon questioning Jimmy Clarke a transgender woman told detectives that.

    Read More

  • Describe The Rationalizations Used By Mr Pavlo

    425 Words  | 2 Pages

    He also rationalized his fraudulent activities by hiding the customer’s late payment in order to be benefitted himself, but said that he was helping people more than he was helping himself. 2. Given that Mr. Pavlo’s fraud was restricted to an accounts receivable embezzlement scheme, what symptoms might auditors observe?

    Read More

  • Lehman Brothers: Financial Fraud In 2008

    2178 Words  | 9 Pages

    Executive Summary Lehman Brothers were an investment bank involved in transactions worth billions of dollars and one of the most powerful investment banks in the world. Lehman Brothers collapsed in 2008 following bad investment in the sub-prime mortgage market and used bad accounting practices called Repo 105 transactions to try and cover up the bad assets. This report sets out the use of the fraud triangle when describing the actions which led to the collapse. The pressure applied on the bank, the opportunity due to the lack of regulation to carry out the actions and the ability of the bank to rationalise their decision making.

    Read More

  • The Worldcom Fraud Case

    2107 Words  | 9 Pages

    This three element fraud is often referred as a fraud triangle by the researchers (Cohen, Ding, Lesage & Stolowy, 2010, p. 276). On the other hand the theory of planned behavior focuses on the intentions behind the planned behavior. Ajzen (1991, p. 188) explains this as “attitude toward the behavior… refers to the degree to which a person has a favorable or unfavorable evaluation or appraisal of the behavior in question”. Cohen, Ding, Lesage & Stolowy (2010) have combined the fraud triangle and theory of planned behavior to understand that how the two theories can be collectively studied to find out the reasons behind the unethical activities that results in corporate frauds. Cohen, Ding, Lesage & Stolowy (2010) in their work studied various organizations including WorldCom and identified following: • WorldCom’s management had an excessive interest in maintaining the entity’s stock price and earning trends (p. 287).

    Read More

More about Reliastar's Fraud Case Study: Mueller Case

Open Document