All financial crimes have common elements that are seen throughout them. Employee fraud is just as common as other corporate crimes that take place on a higher corporate level. For this particular assignment, employee fraud of Patton State Hospital employees. The employees had committed an accounting fraud against their employer. According to Verver (2013) employee fraud is not the number one concern for CFOs, CROs, and CAEs but it is considered to have a significant drain on the bottom line along with other negative impacts on an organization. Due to this, organizations need to be diligent in ensuring that employees are not given the opportunity to commit any kind of fraud against the corporation.
Background of Patton State Hospital Employees Four former Patton State Hospital employees where caught for embezzlement and other felony charges in connection with payroll
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With a fixed point surveillance the investigator should choose a location of the scene that is to be observed, anticipate the actions that are thought to occur here and keep a detailed log or record of observations (Albrecht et al, 2012). For this type, the investigator should choose the scene of the hospital’s accounting department and observe the four employees that work in the hospital and see how they are committing the fraud. It will also give the investigator access to the hospital’s accounting records. Tailing should be used to observe how the employees communicate with one another to commit the fraud as they all work in varying departments of the hospital. Electronic surveillance is recommended but it is harder to implement as only law enforcement officials with a warrant are able to use it, especially in the case of employee fraud investigation as employees’ privacy in the workplace is a concern (Albrecht et al,
I believe that asset misappropriation by accounts payable fraud is occurring at Wayland Manufacturing Company due to a lack of proper internal controls. Making the company’s Chief Accountant responsible for additional day-to-day functions provides him with opportunity to commit by creating fictitious vendors with his information and then creating fictitious invoices. Newbaker can then conceal his fraud by approving the invoices for payment. Employees working at an organization for more than five years are more likely to commit fraud. Therefore, Newbaker’s six-year history with the company has made him trustworthy and very knowledgeable, which could indicate involvement in asset misappropriation. The high employee turnover could represent a past fraudster leaving before getting caught or employees refusing to continue with the asset misappropriation. In addition, the varying monthly accounts payable transactions ranging from the lowest being April 2014 and
Ulinski, Michael. "AN ANALYSIS OF SMALL COMPANY FRAUDS AND." American Society of Behavioral Society. Dept of Business, Pace University. 05 Feb. 2008.
Worker's Compensation is a service that provides reimbursement for lost wages to employees who have sustained injuries from work or work-related tasks. It is also one of the services that is most often the victim of fraud. Each of the three types of fraud, claimant, employer, and provider, is defined by the same characteristics, outlined by the Ohio Board of Workers Compensation:
For instance, in determining their sales quotas, Wells Fargo should have ensured that their goal was not only specific, measurable, and time-bound, but also aligned with the organizational culture and realistic for employees. The difference in those two types of goals is that Wells Fargo did have a sales quota that was specific, there was a time marker set on it, and it could be measured by whether or not their employee opened the amount of accounts expected. However, what Wells Fargo did not take into account in putting forth this goal was whether or not it would be realistically attainable for their employees and if it aligned with company values and goals. Because an overwhelming number of employees felt the need to lie and cheat in order to meet the quota, I would conclude that the goal was not realistic and it did not align with company values because of the unethical
In reviewing the recent scenario at Plutonium, there appears to be a number of pressures that could make the employee Chris potentially commit fraud. The opportunities that exist to commit fraud by Chris will also be looked at. Some of the rationalizations that Chris may have for committing fraud will also be explored. A look at some of the symptoms that show fraudulent activity may indeed be going on with Chris will be evaluated. Will also be looked at with Chris’s supervisor, Jonathan, could and possibly should have done to eliminate some or all of the opportunities by his staff at Plutonium to commit fraud.
Over the past several years our country has been inundated with different scandals from different organizations or individuals. Unfortunately, scandals end up costing the average citizen money because of the selfishness of others creating these crimes. The latest scandal that the media has addressed is with Wells Fargo Bank. A team of roughly 5,300 employees came up with a scheme that would result in them receiving high paid bonuses and hitting their monthly and quarterly goals. In most cases, companies set unrealistic goals to encourage their employees to produce more revenue for the company. During the scandal the employees opened over 2 million phony accounts to boost their sales averages and paychecks. Per Egan (2016), “The way it
An ENRON Scandal Summary of the demonstrations of Embezzlement attempted by ENRON Executives may be characterized as the criminal action including the unlawful and deceptive achievement of monies and subsidizing by workers; regularly, finances that are stolen are expected for organization use in lieu of individual use. While the ENRON administrators were taking the speculation stores from clueless financial specialists, those assets were being stolen from the organization, which brought about the insolvency of the
Fraud is best defined as “a knowing misrepresentation of the truth or the concealment of a material fact to induce another to act to his or her detriment” (What Is Fraud 2017). Fraud can be committed internally through occupational fraud, externally through bid-rigging and bribery, or against individuals through Ponzi and phishing schemes. Occupational fraud is classified into three categories: corruption, asset misappropriation, and financial statement fraud. The potential fraud occurring at Wayland Manufacturing Company is asset misappropriation, which occurs when “an employee steals or misuses the employing organization’s resources” (The Fraud Tree-Asset Misappropriation 2016). Therefore, the type of asset misappropriation supposedly
While there is no way to prevent any of these crimes entirely, leading by an ethical example without a sliding scale sets a precedence that any unethical, let alone illegal, act will not be tolerated. As mentioned, background checks and pre-employment agreements would also assist in reducing any illegal acts. Regular ethical training, I believe is necessary to deter the “I didn’t know” excuse on illegal or ethical behavior. New employees should be reviewed after 30 days, 90 days and then on an annual basis – unless there are behavioral or performance-related issued requiring follow-up.
Employer fraud occurs when a business knowingly falsifies records to avoid paying appropriate premiums or prevent employees from receiving workers’ compensation benefits to which they are entitled.
The definition of Health Care fraud is knowing and willful executing, or attempt to execute, a scheme or deceit to defraud a health care insurance or benefit program, or to obtain by fraudulent means any benefit or payment from the program. Health care fraud and abuse is purposely misrepresenting identity, symptoms, or other facts, for the intention of receiving more money or greater benefits from the insurance company. Healthcare providers can also commit fraud as well by billing insurance companies for services not performed, or by billing for a more complex service than was actually performed. There has been a rise in Healthcare fraud and abuse, causing companies billions of dollars.
Occupational crimes are crimes committed by an employee and can include individual corruption and payoffs, sweetheart contracts, embezzlement, and insider trading (Hagen, 2013). As technology has increased these crimes have become easier for individuals to commit yet at the same time it is technology has also given law enforcement the upper hand when it comes to discovering and convicting the criminals.
The Hollate Manufacturing case provided by Anti-Fraud Collaboration has well illustrated how several common issues in an organization contributed to the fraud’s occurrence. These issues can be categorized into two major groups: ethical culture (internal aspect) and internal control system (external aspect). By taking effective actions to enhance these two aspects, an organization can protect itself against the largest frauds, which result in financial and reputational damage.
Workplace surveillance can take place in many forms but they fall into four main categories. These are data surveillance, visual surveillance, audio surveillance, and tracking surveillance (United Nations office...
These individuals support the vision of the organization with their ethical and moral behaviors. It can be argued that this individuals are the image of the company because they constantly interacting with customers. They have the ability and opportunity to impact someone’s life whether is selling a product or offering a services. Moreover, employees reach a level of trust where they do not have a personnel or staff member monitoring their work. They are responsible for incorporating honesty and integrity in every area they are accountable for. These qualities are dependable one from the other and are an important part of the development of faith in a human being. An individual that practice dishonesty does not possess integrity. Integrity “involves acting in accordance not with any value system, but with a morally justifiable one”(Becker, 1998). The Bible states, “The integrity of the upright guides them, but the crookedness of the treacherous destroys them”(Proverbs 11:3, English Standard Version). It is essential for an employee to make decision that goes align with the organizational culture. “When it is not in alignment, then either one’s own morality should be examined, or the organizational culture may need