Agreement between Ken Lay’s Estate and Department of Labor

The Department of Labor reached a settlement with the estate of Kenneth Lay, former Enron executive. Lay was convicted on fraud and conspiracy charges earlier this year, and died on July 5th. The settlement gives DOL a $12 million claim against Lay’s estate on behalf of participants in Enron’s pension plans. The actual amount recovered … Read more Agreement between Ken Lay’s Estate and Department of Labor

Reggie Bush accused of accepting substantial gifts while in college

Yahoo! Sports writers Charles Robinson and Jason Cole have been investigating Heisman Trophy-winning running back Reggie Bush and the allegations that he received improper financial benefits from sports agents while still in college. In the article entitled Cash and Carry, the writers detail the gifts (money and otherwise) that Bush and his family received while … Read more Reggie Bush accused of accepting substantial gifts while in college

Tyco Owes IRS $50 Million in Back Taxes

Tyco International Ltd. still owes the Internal Revenue Service $50 million in income taxes related to capital gains that were not reported in its 1999 federal tax return. The company’s former vice president of taxation, Raymond Scott Stevenson has been charged with filing a false corporate tax return, which underreported capital gains by $170 million. … Read more Tyco Owes IRS $50 Million in Back Taxes

More questions raised about Lance Armstrong and doping

According to Sports Illustrated, new questions have been raised about the possiblity of Lance Armstrong participating in doping. Two of his former teammates have admitted to doping (themselves), but have not implicated Lance. From the SI article: In Tuesday’s New York Times, two of Armstrong’s former U.S. Postal Service teammates admitted to having used EPO, … Read more More questions raised about Lance Armstrong and doping

Scam Busting: The Father of the Pyramid Scheme

Charles Ponzi could be described as a clever businessman, or a ruthless cheater, depending upon how you look at him. I view him primarily as a charismatic leader who was able to convince people to give him large sums of money, even when they did not understand his investment scheme.

After an unremarkable professional life and a stint in prison, Mr. Ponzi devised a scheme utilizing .postal reply coupons. in the early 1900s. These coupons were included with letters to family, and the family could redeem the coupon at the post office for postage on a return letter. Mr. Ponzi.s scheme seemed simple: trade international postal reply coupons to turn a profit.

Read moreScam Busting: The Father of the Pyramid Scheme

The Elusive World of “Nonfinancial” Fraud

Compliance Week
By Tammy Whitehouse

Now that Sarbanes-Oxley has made big progress buttoning down internal controls over financial reporting, the next great frontier for potential abuse is emerging: nonfinancial fraud.

That’s the lesson, at least, from companies like BP and State Farm, both caught up in accusations that employees manipulated nonfinancial information in ways that seemed to achieve some immediate gain for the companies.

BP, for example, either ignored or pushed the limits on pipeline maintenance, leading to the catastrophic failure of a stretch of pipeline in Alaska that caused a 270,000-gallon spill and sent oil prices soaring earlier this year. The company is under investigation not only for neglecting its duty to maintain corrosion-free pipes, but also for potential violations of safety rules and possible manipulation of propane prices.

Read moreThe Elusive World of “Nonfinancial” Fraud

A tribute to John Patrick Tierney, one of the 2,996 victims of 9/11

John Patrick Tierney was born and raised in Staten Island, New York. He attended local schools St. Charles Catholic Elementary School, St. Joseph by the Sea Catholic High School. He graduated from St. John’s Catholic University in Staten Island in 1997 with a degree in psychology. Johnny was a new firefighter, with only 8 months … Read more A tribute to John Patrick Tierney, one of the 2,996 victims of 9/11

Jeweler Charged With Money Laundering

Milwaukee area jewelery Harry C. Glinberg has been charged with money laundering, and has been accused of significantly underreporting his income to the IRS. He was arrested last week and is currently free on a signature bond.

Glinberg is accused of selling expensive jewelry to drug dealers for cash. The jewelry store is known for selling watches costing thousands of dollars, including diamond encrusted watches that retail for $30,000.

Read moreJeweler Charged With Money Laundering

Convicted felon Boris Gokhman ordered to pay $90,000

Milwaukee real estate developer Boris Gokhman was ordered to pay $90,000 in a civil lawsuit related to his defrauding of Medicaid. The civil forfeiture equals $5,000 each for 18 fraudulent claims submitted to Medicaid. The civil and criminal cases relate to an investigation of the now defunct Cares R Us Home Health Care Agency Ltd. … Read more Convicted felon Boris Gokhman ordered to pay $90,000