November 2014 – Fraud Files Forensic Accounting Blog

Companies That Sue Critics Have Something to Hide

30 November 201526 November 2014 by Tracy Coenen

I am a firm believer that companies that sue critics (whether the critics are journalists, customers, forensic accountants, or otherwise) have something to hide.

This was the case with Medifast Inc., a multi-level marketing company that sued me (and others) for $270 million nearly five years ago. (They suffered a resounding loss against me, lost again on appeal, and now must pay my substantial attorneys fees… which of course they are claiming are inflated…. disregarding the fact that huge fees are a result of the need to defend against their shady litigation tactics.) Medifast didn’t like the fact that I expressed my opinion of its business model and business practices.

Other companies have tried such tactics:

Cheryl Abbate Wants Marquette to Censor?

4 April 201624 November 2014 by Tracy Coenen

Marquette University teaching assistant Cheryl Abbate doesn’t like the fact that Professor John McAdams criticized her for not allowing students to discuss gay rights. His article got noticed by Inside Higher Ed, so instead of defending her possibly indefensible actions, Cheryl Abbate cried to the publication:

Abbate, however, said she hoped Marquette would “use this event as an opportunity to create and actively enforce a policy on cyberbullying and harassment.” She added: “It is astounding to me that the university has not created some sort of policy that would prohibit this behavior which undoubtedly leads to a toxic environment for both students and faculty. I would hope that Marquette would do everything in its power to cultivate a climate where Marquette employees, especially students, are not publicly demeaned by tenured faculty.”

What is Financial Statement Fraud?

21 November 201424 November 2014 by Tracy Coenen

Tracy Coenen gives a brief overview of some of the most common financial statement fraud schemes.

The Golden Era of White Collar Crime

17 November 2014 by Tracy Coenen

Sam Antar is a legend in the fraud industry. He was the CFO of Crazy Eddie, an electronics retailer which pulled off (for a time!) a massive fraud in the 1980’s. He was interviewed by CNNMoney while attending the New Jersey securities fraud summit as a keynote speaker.

Antar said during the interview:

“We are in the golden era of white-collar crime. My biggest regret is I should’ve been a criminal today rather than 20 years ago.”

Scott Johnson on Amway Earnings Disclosure StatementsThe 2013 document is for the UK, not the U.S. You're welcome.

Ariel on Mary Kay Cosmetics: Destroying Half a Million Women a YearAll of the supporters of Mary Kay cannot answer this simple question. If the business is great and the products...

Tracy Coenen on Do-It-Yourself Divorce?That was great right up until the name change problem which sounds like a pain and probably cost you money!...

Lauren on Do-It-Yourself Divorce?I didn’t use her site as it wasn’t available in NJ but I used Wevorce and it worked pretty well....

Tracy Coenen on WorldVentures Pyramid Scheme LawsuitJason, you’re absolutely right that there are a handful of people who have gotten wealthy from MLM. That has been...

jason2556 on WorldVentures Pyramid Scheme LawsuitTracy Coenen I experimented in about two MLM Operations....The Module and product did not resonate with my background. But Tony...

Tracy Coenen on Primerica Financial Services: The Fake Job InterviewYes, Primerica is an MLM. Multi-level marketing. People are recruited into downlines.

Ron on Primerica Financial Services: The Fake Job InterviewPrimerica is NOT an MLM, it is, however, a Financial Service company that allows people to run their own business....