PriceWaterhouseCoopers settles for $8.25 million

The Milwaukee office of PriceWaterhouseCoopers has settled a lawsuit over its audits of two collapsed Heartland Advisors Inc. mutual funds for $8.25 million. A judge will still have to approve the settlement, and that is not expected to happen before April. The matter came to light in 2000 when Heartland Advisors marked down the value … Read more PriceWaterhouseCoopers settles for $8.25 million

Refco’s Broker-Dealer Unit Owes Customers $4.16 Billion

The unregulated broker-dealer unit of Refco Inc., Refco Capital Markets Ltd, says it owes customers about $4.16 billion. This is $486 million more than previously estimated by the parent company. Refco Inc. has filed for bankruptcy protection, and in those filings, it showed Refco Capital Markets owing $3.68 billion to customers. Total liabilities for the … Read more Refco’s Broker-Dealer Unit Owes Customers $4.16 Billion

Sarbanes-Oxley Cost Versus Benefit

The New Yorker recently printed a commentary on Sarbanes-Oxley. While the legislation was viewed by politicians as an important step toward protecting investors from fraud, corporate executives aren’t so impressed.

Corporate executives believe that the high cost of implementing the Sarbanes-Oxley regulations is not justified by the small benefits. The cost of implementation is particularly high for smaller companies, which may discourage them from going public.

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Financial Statement Fraud in the Katrina Aftermath: A Whirlwind of Opportunities

Written by Tracy L. Coenen, CPA, CFF

Fraud Magazine – January/February 2006

Hurricane Katrina altered lives forever. Thousands of displaced survivors have lost their jobs as businesses struggle to survive. However, other opportunistic firms shamelessly have taken advantage of the disaster by altering their financial statements. Here’s how auditors and fraud examiners can find this hidden crime.

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