Fraud

ITT/ESI Fraud Investigated by the SEC

False Promises of Jobs and Student Loan Defaults are Ethical Concerns Perhaps you heard that ITT Educational Services, Inc (ESI) is involved in an enforcement action with the SEC. The SEC has taken issue with ESI's handling and disclosure of complex accounting issues that arose several years ago and disclosures... Read more →


Tax Fraud on the Rise: Surprise, Surprise

IRS Paid $5.8 Billion in Fraudulent Refunds I recently read that the IRS paid $5.8 Billion in fraudulent refunds from 2011 through October 2014. Over time, the IRS has stopped 19 million suspicious tax returns and protected more than $63 billion in fraudulent refunds. This past tax filing season identified... Read more →


Ernst & Young Settles Lehman Lawsuit

Has the Financial Services Industry Learned its Lesson? On September 10, 2008, one day after Lehman Brothers Holdings Inc. stock lost nearly half its value amidst investor concerns about the firm’s ability to raise capital in the aftermath of an accounting fraud, the investment bank reported an expected quarterly loss... Read more →


The Ethics of Whistle-Blowing and Employment Confidentiality Agreements

SEC Agreement with KBR over treatment of Whistle-blower Strengthens Dodd-Frank Whistle-blowing has become a more accepted practice in business in order to stem the tide of financial fraud and other criminal offenses by corporations in the aftermath of the passage of the Dodd-Frank Financial Reform Act by Congress in 2010.... Read more →


Are we headed for another period of Financial Scandals?

Using the Giving ‘Voice to Values’ Approach to teaching Ethics to College Students I fear that another scandal in business may be just around the corner. A federal regulator recently said increased risk is creeping back into the financial system, warning in a report that U.S. banks are relaxing loan-underwriting... Read more →


Gender Representation on Company Boards of Directors

Should Women have a more prominent role as CFOs? Women should be given a more prominent role to play in top management especially when it comes to the CFO position. That is the proposition I am putting forth in this blog. If we take a look at the organizational structure... Read more →


Causes and Solutions to Small Business Fraud

Spotting the Red Flags is Key to Fraud Prevention and Detection All companies are vulnerable to fraud, but small businesses are particularly vulnerable because decision-making and other responsibilities are often concentrated in a few key positions. Small business owners tend to be overly-trusting of employees, especially those in sensitive financial... Read more →


Robust Compliance Systems Needed to Combat Violations of the Foreign Corrupt Practices Act

Bribery Payments Illustrate the Failure of Ethical Leadership at Alstom and Avon Violations of the Foreign Corrupt Practices Act (FCPA) seem to be occurring at a more rapid rate than at any time since the 1970s when bribery by companies such as Lockheed led to the passage of the Act... Read more →


Cal Poly Professor Steven Mintz Ranked High in Ethics Research

FOR IMMEDIATE RELEASE December 12, 2014 Contact: Robyn Kontra 805-756-5331; rkontra@calpoly.edu Cal Poly, Professor Earn High Ranks for Research in Accounting Education, Ethics SAN LUIS OBISPO­ — A 2014 survey published by the journal Issues in Accounting Education ranks Cal Poly No. 32 overall for research in accounting education over... Read more →


Is it Ethical to Pay Money to be Included on the List of The Most Ethical Companies in the World?

Ethisphere list Includes Companies with Questionable Behavior Last week I read a piece about the most ethical companies that caught my eye because it suggested that Blue Shield and other companies pay Ethisphere to be considered one of the most ethical companies in the world. Ethisphere develops a list each... Read more →