22 Feb

A Correlation Between Gambling and Fraud?

Employee fraud always has a “cause.” The “cause” is the motive, desire, or need that is being filled by the theft from one’s employer. A need doesn’t have to be a true need in order for fraud to occur, but can be a perceived need on the part of the thief. One common impetus for fraud is an addiction. Addictions are expensive, and the money has to come from somewhere. The employer is sometimes the logical answer to the problem.

But addictions aren’t limited to drugs, alcohol, and similar vices. They can and do include gambling, and the news is full of incidents of fraud with a gambling connection. A known addiction can be a red flag of fraud, meaning that the addicted employee is statistically more likely to commit fraud and therefore usually merits further monitoring.

Defining Gambling Addiction
People didn’t talk much about gambling addictions in the old days. They may not have even realized it existed. But just like a chemical addiction such as alcohol or drugs, it has now been found that gambling can cause changes in the brain that can become addictive. Read More

09 Feb

Herbalife Victims Video: Almost Everyone Loses Money in MLM

Multi-level marketing is not a business. I’ve written numerous times about the fact that more than 99% of participants in multi-level marketing (MLM) lose money. Companies like Mary Kay Cosmetics promote the “income opportunity,” but when the vast majority of MLM distributors say they lost money, the story changes to “they didn’t really want to make money,” or “they just did it for fun,” or “they didn’t try hard enough.”

The truth is that MLM is not a “business opportunity.” Almost everyone who participates is guaranteed to lose money. You can follow all the instructions, talk to everyone you know, invest money in the scam, and you will still lose money. Why? Because MLM is nothing but a pyramid scheme in which all the people at the bottom of the pyramid will lose money.

Check out this new video featuring victims of the Herbalife “business opportunity.” They put lots of money, time, and effort into their “businesses” and ended up losers. Read More

02 Feb

Bring Out the Big Guns?

When companies have big problems, they usually bring out the big guns. The benefits of using large law firms, audit firms, and other professional service firms are undeniable. These firms offer a depth of experience that is invaluable, and they have seemingly unlimited resources in terms of manpower. A large firm often has the ability to mobilize an engagement team quickly, and can bring in experts from around the world.

Does bigger mean better? Certainly the perception exists that larger firms provide better services. No one can fault an executive who chooses a big firm when trouble is brewing. There is an undeniable comfort level that comes with the big firms because they have established reputations and many resources. Even if the project goes poorly, no one can fault the executive who chose the large firm. Read More