25 Aug

Former Koss Employee in Talks to Settle SEC Case

Doris Hajewski – Milwaukee Journal Sentinel

A year and a half after the embezzlement of $34 million from Koss Corp. was discovered, former accounting employee Julie Mulvaney is negotiating with the Securities and Exchange Commission to settle the regulatory agency’s case against her. Mulvaney was an assistant to Sujata “Sue” Sachdeva, former vice president of finance at Koss.

Sachdeva is serving an 11-year prison term at the Federal Correctional Institution in Danbury, Conn. Mulvaney was not charged with any crime but is fighting a lawsuit against her and Sachdeva in federal court in Milwaukee. Sachdeva has settled with the SEC.

In papers filed in court Wednesday, Mulvaney’s attorney asks for more time for the case, while at the same time attempting to reach a financial settlement with the SEC.that.
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25 Aug

Former Koss Employee in Talks to Settle SEC Case

Doris Hajewski – Milwaukee Journal Sentinel

A year and a half after the embezzlement of $34 million from Koss Corp. was discovered, former accounting employee Julie Mulvaney is negotiating with the Securities and Exchange Commission to settle the regulatory agency’s case against her. Mulvaney was an assistant to Sujata “Sue” Sachdeva, former vice president of finance at Koss.

Sachdeva is serving an 11-year prison term at the Federal Correctional Institution in Danbury, Conn. Mulvaney was not charged with any crime but is fighting a lawsuit against her and Sachdeva in federal court in Milwaukee. Sachdeva has settled with the SEC.

In papers filed in court Wednesday, Mulvaney’s attorney asks for more time for the case, while at the same time attempting to reach a financial settlement with the SEC.that.
Read More

21 Aug

Food Stamps Create Jobs, and Other Government Delusions

It’s hard to believe that our elected officials and the people they appoint to important jobs can be this stupid. But it’s true. They are.

Recently, Agriculture Secretary Tom Vilsack stated in a interview on MSNBC that food stamps and welfare are stimulus programs. As if that wasn’t funny enough, he went on to claim that every dollar given out in food stamps creates $1.84 in economic growth.

Are you done laughing yet? Read More

19 Aug

SEC Discards Documents Regarding Matters Under Investigation (MUIs) According to Agency Policy

The big buzz this week is an article in Rolling Stone regarding the SEC’s policy of destroying documents related to Matters Under Investigation (MUIs) which do not result in any agency action being taken.

At first blush, it may appear to be some sort of cover up, and that’s exactly what Rolling Stone writer Matt Taibbi wants you to think. Under further scrutiny, however, it appears that nothing improper is being done. All smoke, and no fire. Read More

11 Aug

Committed to Fraud Prevention

As regulators focus on corruption crackdowns, companies are turning to compliance committees to help them stay on the right track.

Tracy L. Coenen – CFO Magazine

Do a Web search for corporate compliance committees, and you’ll get hundreds of thousands of results. As compliance issues move front and center thanks to the new U.K. Bribery Act and a renewed focus on the Foreign Corrupt Practices Act (FCPA), compliance committees have become a hot new topic.Because legislators and regulators in the United States and abroad are paying more attention to bribery and corruption, companies have been forced to reevaluate their compliance efforts and improve them on the fly. In the past, compliance committees have been most prevalent in the health-care industry, but now companies in other industries are creating them as well.

To be effective, a compliance committee needs access to the data needed to identify problems and force changes within the company. That’s where a CFO can help. However, the committee members must also be able to access data — and employees — independently to ensure the integrity of the information they review.

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10 Aug

Behind the Numbers: Critical Financial Analysis in Litigation

Wisconsin Law JournalThe financial portion of a lawsuit is often high-stakes. This is especially true in cases of divorce, breach of contract, securities fraud, tax fraud, money laundering, and white collar criminal defense. Whether the other side is an individual, a company, or the government, you need an accurate analysis of the numbers for the benefit of your client. Read More

04 Aug

Financial Analysis in Defense of White Collar Crime Cases

From my Thought Leadership series at Securities Docket:

White collar crime cases tend to focus on the flow of money. Government investigators analyze the finances of a company or individual to determine where money came from and where it went. It is this trail of money that leads to evidence of a crime.

Sometimes the financial evidence is direct, but often it is indirect. Consider a case of alleged tax fraud, in which the government is trying to prove that a person or business had unreported income. The evidence may be large unexplained deposits to a bank account. If the source of the funds is unknown, the government may consider the deposits indirect evidence of unreported taxable income. Making such assumptions is often necessary when investigating financial frauds, as those committing fraud deliberately try to hide the true sources and uses of funds. Read More

02 Aug

Are Public School Teachers Underpaid?

I have addressed the issue of teacher compensation multiple times in the context of Milwaukee Public Schools (MPS) and the constant budget problems the district claims to have. The administrators claim that they need more money, yet time and again it is demonstrated that the district has been getting more money on a per-student basis, and in spite of the increased funding children are not being taught to read and write. Read More