Books, Crooks & Rooks: Internal Corporate Fraud Investigations

Last week I spent three days in the Atlanta area providing training for the Georgia CPA Society. One of the topics I presented was an in-depth session on internal investigations, called Books, Crooks & Rooks: Internal Corporate Fraud Investigations. Here are a few pointers for companies attempting to do internal investigations: Create an investigative policy … Read more Books, Crooks & Rooks: Internal Corporate Fraud Investigations

Former CEO of HealthSouth convicted of bribery

Richard Scrushy, founder and former CEO of HealthSouth Corp., has been convicted of paying $500,000 in [tag]bribes[/tag] to receive a spot on a state board that approves hospital construction projects. The guilty verdicts on six charges included [tag]bribery[/tag], [tag]conspiracy[/tag], and [tag]mail fraud[/tag]. The maximum sentence is 20 years in [tag]prison[/tag], but sentencing won’t happen until … Read more Former CEO of HealthSouth convicted of bribery

Stolen Confidence: Business Owners Shake Off Sting of Worker’s Theft

The News Leader
By Brad Zinn

WAYNESBORO – As the office manager at Central Virginia Rental since 1997, Lori M. Guyer took in money, balanced the books, made the deposits and handled the company credit cards. She also made off with more than $170,000 before her job was terminated in 2003.

As the undetected thefts and financial losses piled up, president and co-owner Danny Showalter was forced to shut down the company’s other store on Greenville Avenue in Staunton. “We just couldn’t put our hand on what was taking place,” Showalter said. Finally, a clue pointed directly to Guyer. “She issued a refund for a credit card from a closed account” at the Staunton location, he said.

Read moreStolen Confidence: Business Owners Shake Off Sting of Worker’s Theft

Tenet Healthcare Will Pay $725 to Settle Medicare Case

The justice department has been investigating Tenet Healthcare since late 2002, after questions were raised about the company’s Medicare revenue. The case started when questions came up about Medicare payments for outliers, a hospital’s sickest patients.

Outlier payments are bonuses paid to hospitals by Medicare, and are intended to compensate the hospitals for the unusually expensive care of these very sick patients. This type of payment was created in order to encourage hospitals to treat the sickest patients.

Tenet found a way to exploit Medicare’s system of complicated formulas. Most Medicare reimbursements are tied to diagnosis codes, but the outlier payments are calculated based upon the hospital’s chargemaster (a price list for treatments). Tenet found that if chargemaster prices were raised sharply, the hospital would automatically begin receiving increased payments.

Read moreTenet Healthcare Will Pay $725 to Settle Medicare Case

Prosecutors Can’t Pressure Companies to Stop Paying Legal Fees For Indicted Employees

The federal judge in the KMPG accounting fraud case in New York ruled that federal prosecutors cannot pressure companies to stop paying legal fees for indicted employees. In doing so, the government would get an unfair advantage and violate due process for the indicted employees. Companies such as KPMG, Enterasys, and HealthSouth have not paid … Read more Prosecutors Can’t Pressure Companies to Stop Paying Legal Fees For Indicted Employees

The Future of Fraud


Massive frauds at companies such as Enron, Tyco, and WorldCom brought significant attention to the subject of fraud in public companies. The frauds became real as jobs were eliminated, investors lost millions of dollars, and families lost their savings.

Faith in the executives and financial statements of companies was rocked to the core. Regulations were implemented to help restore that faith and direct the business practices of companies. While the publicity and the regulations have altered the way companies do business, how significant is that effect and how long will the effect last?

The answer really lies in what the stakeholders of companies are willing to do about fraud. Will the shareholders and employees hold upper management to a higher standard than was necessary in the past? Or will they let executives run companies in a manner that is sometimes reckless, unchecked, and unaccountable?

Read moreThe Future of Fraud

Problems Exposed in Milwaukee Fire and Police Commission

The city of Milwaukee hired the Los Angeles-based Police Assessment Resource Center to analyze police oversight in the city. The group determined that the Milwaukee Fire and Police Commission spends too much time on personnel issues, and almost no time on investigating complaints received. Another problem cited is the appeals process for fired police officers, … Read more Problems Exposed in Milwaukee Fire and Police Commission

Wisconsin’s Taxes Are Sixth Highest

The Wisconsin Taxpayers Alliance has analyzed state and local taxes and U.S.Census data, and has determined that the state is sixth highest in taxes as a percentage of personal income. If measured per capita, Wisconsin ranks twelfth. And if only income, sales and property taxes are measured Wisconsin is third. The taxes as a percentage … Read more Wisconsin’s Taxes Are Sixth Highest

Sentence Handed Down for Murder That Involved Identity Theft

A Fargo, North Dakota judged sentenced convicted murderer Dennis Gaede to life in prison without parole yesterday. Gaede was found guilty of killing Timothy Wicks, a Milwaukee-area drummer and house painter. After stealing his identity and moving to North Dakota, Gaede later killed and dismembered Wicks. Gaede was awaiting sentencing on a felony conviction when he stole the identity and moved out of state.

The headless and handless body of Wicks was found in 2002 near the Menominee River, which separates Wisconsin and Michigan. The head was found two weeks later, but the hands were never found.

Read moreSentence Handed Down for Murder That Involved Identity Theft

Women of Influence: Where Are They Now?

The Business Journal of Milwaukee TRACY COENEN, 2002 Women of Influence Awards Tracy Coenen continues to expand the reach of Sequence Inc. through consulting, writing, and speaking. In addition to running a successful forensic accounting practice, she regularly authors fraud-fighting articles for industry publications and presents anti-fraud training to organizations across the country. Tracy was … Read more Women of Influence: Where Are They Now?