Expert in Koss Case Blames Michael Koss and Management for Fraud

It has been almost four years since the massive fraud committed by Sujata Sachdeva against her employer, Koss Corp., was uncovered. A year after the discovery, Koss sued Park Bank for failing to find the fraud.  The company says that Park Bank should have known that a fraud was occurring when Koss employees with proper authority withdrew funds from the Koss bank account and had Park Bank make out cashier’s checks with the funds. Koss says that Park Bank should have realized that the endorsements on the cashiers checks did not match the payees. (For example, a cashier’s check made out to N.M. was endorsed by Nieman Marcus.)

If you know anything about fraud, you know how absurd these claims are. It is the company’s responsibility to prevent and detect fraud. This is not the first time that the company made silly claims against parties it was suing in order avoid taking responsibility for Michael Koss’s own mismanagement of the company. Mind you, the company was sanctioned for its own part in the fraud, including lack of oversight, inadequate accounting controls, failure to reconcile accounts, and failure of Michael Koss to review figures before certifying the financial statements.

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Scamming Obamacare (Legally)

There is an awesome provision in Obamacare (thoroughly inappropriately named the Affordable Care Act) that will allow anyone who receives a subsidy to scam the system.

Here’s how it works: Pay your subsidized premium for one month, then stop paying. Under the law, you must continue to be covered for three additional months, referred to as the grace period. That’s buy one, get three free!

I’m sure the intent behind this was good.  If someone unexpectedly loses a job and can’t pay the health insurance premiums, the family is still covered. However, it’s obvious that this provision will be abused extensively. There is no way to differentiate between those who legitimately cannot pay, and those who choose not to pay.

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