Insights

The recently reported case of fraud involving loans backed by receivables for imported auto parts shows clearly that, in financial fraud, what matters is not simply the existence of documentation, but verification of what that documentation actually represents. At the center of this case was a scheme in which documents that could be generated through an automobile repair cost estimation system were packaged as if they were confirmed receivables tied to future insurance paymen

“The balance looked intact, but the cash was already gone.” A recently reported domestic embezzlement case shows that financial misconduct does not end with the diversion of funds. It can also be concealed through the manipulation of documents submitted to outside parties. At the center of this matter was a finance employee who allegedly used access to company bank accounts and the corporate seal to divert company funds to a personal account over an extended period, and then

“Approved as a purchase, but paid as something else.” — It was approved as a purchase, but paid as something else. A recently reported Intel-related procurement fraud allegation illustrates that procurement fraud is no longer limited to fictitious purchase orders or fabricated invoices. At the center of this matter is an alleged scheme in which an employee and a supplier colluded to reclassify what should have been a component purchase requiring delivery confirmation and rece