Compliance Week article: Koss Fraud Spotlights Small Filers’ Internal Control Issues
An article in today’s Compliance Week, Koss Fraud Spotlights Small Filers’ Internal Control Issues (subscription required), quotes me on internal controls and the auditors as it relates to the huge fraud committed by VP of Finance Sue Sachdeva at Koss Corp (NASDAQ:KOSS).
I’m no fan of Sarbanes-Oxley because I believe it was ridiculously expensive, and hasn’t [...]
Marketing Fraud: Why multi-level marketing pyramids and financial ponzis are ignored by law enforcement
Dear Colleagues, Consumers and Pyramid Scheme Alert Supporters,
A new essay recently posted on the False Profits Blog addresses a question many of you have raised.
Why are multi-level marketing pyramids and financial ponzis able to ensnare so many people today? What is the power behind this Main Street epidemic?
This question goes beyond the lack of law [...]
Sachdeva and Koss Corp.: The indictment, the clothes, and the auditors
The case of the alleged theft of at least $31 million by Sue Sachdeva from Koss Corp. (NASDAQ:KOSS) carries on. Last week, Sachdeva was charged with 6 counts of wire fraud. Experts are saying this indictment came much faster than usual, as the Feds usually spend much more time thoroughly investigating cases. They’re speculating that [...]
The move to IFRS: All about greed
Professor David Albrecht wrote a great piece today about the push to move from U.S. GAAP (Generally Accepted Accounting Principles) to IFRS (International Financial Reporting Standards). His conclusion? The push to switch is motivated purely by greed.
Accounting standards exist so that financial statements have some uniformity. Users of financial statements outside of the companies producing [...]
Usana Health Sciences knows it products are being sold illegally in China
Almost thre years ago, Barry Minkow and Fraud Discovery Institute released a report on Usana Health Sciences (NSDAQ:USNA), listing ten red flags of fraud he and his team (which included me) uncovered about the company. The report criticized the company’s business model, essentially calling it a pyramid scheme in which recruiting is the focus (rather [...]
Koss Corp.: Commit the fraud and cover it up
I’ve been talking here, at DailyFinance.com, and to the media about the massive fraud at Koss Corp. and how I think it may have been committed and covered up. The time has come to get more specific about how I think it happened, and why I think the auditors did not find it.
Disclaimer: I have [...]
Stories on Koss Corp. fraud
Here’s the list of news stories related to the fraud by Koss VP of Finance Sue Sachdeva which I’ve written or been quoted in:
Accountants cite lessons learned in Koss scandal
Koss Corp: Anatomy of an Alleged $31 Million Fraud
Fraud Case Feeds Sarbox-Exemption Critics
Koss Corp. Fraud: Defending Grant Thornton? No.
I have been criticized for “defending” Grant Thornton, the auditors of Koss Corp, which has suffered a fraud loss of at least $31 million at the hands of the company’s Vice President of Finance, Sue Sachdeva. In fact, my comments relating to this case are not a defense of Grant Thornton, in the least. They [...]
Medifast continues to mislead shareholders
This week multi-level marketing expert Robert Fitzpatrick released his second report in the last year on Medifast (NYSE: MED) and their Take Shape For Life multi-level marketing division. The report highlights how little money the company’s “health coaches” actually earn from selling the products, and makes it clear that the real money (if there is [...]
More on the endless chain recruitment scheme of Medifast and Take Shape For Life
Yesterday I referenced a new report on Medifast and Take Shape For Life by multi-level marketing expert Robert Fitzpatrick.. Here is more from his report. I want to highlight these things because they’re the facts that many pushers of MLMs will never tell you.
Those recruiting for MLMs are quick to tell you about how much [...]
