...Jordan Belfort or otherwise referred to as “The Wolf of Wall Street” is an American author, entrepreneur, and motivational speaker. He was the former kingpin of the notorious investment firm Stratton Oakmont. Jordan has been established as one of the most well known men of American finance. Belfort rose to his fame through his deceiving forms of stock market manipulation. At the age of twenty six Jordan was a multimillionaire making just shy of one million dollars a week from his Brokerage Firm. Belfort quickly became consumed in a life of sex, money and drugs. He was spending his money just as fast as he was making it. “I partied like a Rock Star and lived like a King” -Jordan Belfort. Drawing so much attention to himself even the FBI took...
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...1980s and 1990s. Jordan Belfort was engaged in a variety of fraudulent activities. Belfort’s heavy involvement in these activities led to a very time consuming investigation and eventually, a conviction. There were many devastating losses to investors from the white-collar crimes that Belfort participated in and promoted daily. Stratton Oakmont was the arena where Jordan Belfort, and his loyal band of trusted employees, came to battle everyday by pushing stock sales onto unsure investors. Belfort’s firm specialized in selling mid-range priced stocks to wealthy businessmen. The main operation behind the fraudulent activities at Stratton Oakmont was an illegal trading system known as the “pump and dump.” This is a type of Microcap stock fraud. Microcap companies are smaller than regular public companies, with securities trading at less than five dollars per share. They are not listed on a national exchange and are referred to as “penny stocks” (Wiley 160). “Pump and dump,” relies on positive information given by the brokers to the potential investors. This information is usually misleading or...
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...The Rise and Fall of Jordan Belfort Jordan Belfort was a natural businessman. He operated a meat and seafood business in the early 1980’s, but after that went bust, he began selling stocks and that’s where he became so successful! He started stock trading in 1987 and by 1990, was running his own investment company, Stratton Oakmont (Biography.com). He was on top of the world, making millions, investing in incredible assets, and living a fancy lifestyle. Then his world came crumbling down and no one was to blame other than himself. His first true business venture was selling Italian ice with a friend during the summer and due to his incredible salesmanship turned a $20,000 profit. Instead of using this money to buy something cool, being a teenager and all, he decided to use the profit for his next business venture. His first experience in a brokerage firm was as a “connector” at L.F. Rothschild. He saw how much money his fellow brokers were bring in, and decided he would try the same career path. He worked for multiple firms, but ultimately branched out on his own, and launched Stratton Oakmont. He started Stratton Oakmont in early 1990, and with his partner, Danny Porush, was using a “pump and dump” scheme to rake in the cash. He would push his clients to buy stocks in certain companies to inflate the prices, then his company would sell of its own holdings, turning a phenomenal profit! Belfort lived quite a reckless life. He was spending money left and right, buying...
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...Green climate fund frauds and corruption 1.0 Introduction Climate change especially global warming has been a heated issue these years. There are more and more countries, organizations and people caring about the global climate. And there are more and more organizations and fuds whose purpose is related to climate emerging, in order to counter climate change. In 2010, the United Nations Framework Convention on Climate Change set up the Green Climate Fund at the Conference of the Parties 16. The purpose of the Green Climate Fund is to provide help and support for developing countries to reduce the emissions of greenhouse gas. However there are many disputes about the Green Climate Fund also, one of which is that the Green Climate Fund exists risks of fraud and corruption. The purpose of this report is to have a better understanding of Green Climate Fund fraud and corruption by analyzing the factors causing fraud and corruption and the measures to eliminate fraud and corruption. This report consists of four sections. The first section is the brief introduction of Green Climate Fund. The second section is the analysis of Green Climate Fund fraud and corruption. The third section is how to prevent this kind of fraud and corruption. And the last section is the conclusion. 2.0 The factors causing Green Climate Fraud and corruption At the Conference of Parties 16 in 2010, decision 1/CP. 16 established the Green Climate Fund. The Green Climate Fund as an operating...
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...accounting fraud in small business and narrowing the topic to two main factors that allow the fraud to take place. The presentation will be specifically informational in nature. Once I have finished my presentation, the audience will have a clear understanding of my central idea, which is why limited staff and family trust are reasons that small businesses are victims of accounting fraud. The ideal audience for my presentation would be a meeting of a small business alliance, chamber of commerce, entrepreneur club, and any other group or class that would benefit from learning about accounting fraud in small businesses. My topic would benefit a more specific group of people such as those that are interested in or work in the field of accounting or business. Since my intended audience are adults that are working in the field of accounting or business or have an interest in these fields; my topic is appropriate for the age range, interests and general knowledge of my audience. The importance of my presentation to the audience is significant since the individuals in the intended audience will be either working or interested in business or accounting and quite possibly be involved in a small business at some level. It will be important for them to know about the reasons small businesses are the most common victims of accounting fraud. Once informed about the reasons, they will be able to apply what they have learned from my presentation towards identifying possible fraud in the small...
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...Financial fraud was a word rarely herd of before the 2000’s, but as the economy got worse and worse it became a leading headline. Americans began to find out that some of America top companies had been intentionally altering their accounting books to appear stable. Some of these companies were taking the money for personal use and some to convince people to still invest with them. As well as top company’s being fraudulent there were new highs hit as banks had the highest totals ever for fraudulent checks. Also spikes in identity theft and credit fraud. This should be no surprise since the economy started down sliding in 2001and times have gotten harder on every one. It is easy to commit financial fraud in the use. With the biggest motivation being that people can think they can get away with it. A wise teacher once said, a good accountant can make the numbers balance one way or another. This is the case, therefor it has become too easy and to tempting for some people. That explains the harsh prison sentences and threats of hefty charges for fooling around with finical fraud. One way or another the law takes down people who go after the quick buck. Whether it’s a minor check fraud scam or million dollars in fake expenses the law always wins. Finical fraud is every were and as an American citizen it is important to understand finical fraud, examples of finical fraud and how to protect and ovoid finical fraud. What is financial fraud? Financial fraud is “Financial fraud is a situation...
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...The IUCN Anti-Fraud Policy February 2008 – Version 1.0 Office of the Director General The World Conservation Union Rue Mauverney 28 1196 Gland, Switzerland Tel: +41 22 999 0296 Fax: +41 22 999 0029 www.iucn.org Policy Version Control and Document History: The IUCN Anti-Fraud Policy Title Version Source language Published in French under the title Published in Spanish under the title Responsible Unit Developed by Subject (Taxonomy) Date approved Approved by Applicable to Purpose IUCN Anti – Fraud Policy 1.0 released February 2008 English Politique de l’UICN de lutte contre la fraude Política para la Prevención de Fraudes de la UICN Office of the Director General IUCN Oversight Unit Fraud, Internal Control, Risk Management November 2007 Director General and Global Management Team All IUCN Staff Members world-wide The aim of the IUCN Anti-Fraud Policy is to safeguard the reputation and financial viability of IUCN through improved management of fraud risk. It sets out explicit steps to be taken in response to reported or suspected fraud, as well as measures that will be taken to prevent or minimize the risk of fraud. IUCN Internal Control Policy Framework COSO Standards IUCN Code of Conduct and Professional Ethics for the Secretariat Sent to all staff members world-wide, available on the IUCN Knowledge Network (intranet), provided for information to all partner organizations and suppliers with contracts with IUCN, and available publicly on request. Is part of Conforms...
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...Health Care Consumer: Trends and Marketing June 21, 2016 Professor Jack Heinen Financial management is a critical part of running and operating any business, and the health care industry is no different. In order for any health care industry to remain profitable and financially organized, it is extremely important for them to have someone designated to make sure that the finances are always current and monitored. It is also crucial that the organization utilizes the four elements of financial management. The four elements include planning, controlling, directing and organizing, and decision-making. Almost every industry that collects revenue sees some kind of financial fraud or abuse, and in the health care industry this has happened in many different ways. Making sure that there are accounting principles and ethical standards in place are an important way to try to avoid such chaos. The four elements of financial management are critical tools to help the financial manager keep a close eye on the finances from the start of a project to the very end. Planning is always the first element or step, and after assessing the business, the financial manager creates goals and objectives, based on the aims of the business. When making the plan, the financial manager will include the necessary steps to get there, what that will entail, and the end goal. Controlling is the step that comes after planning. Controlling is ensuring everything...
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...fraudulent account reporting of company finances. Scrushy and other executives from the finance and accounting departments (15 total) were later indicted in November 4, 2003. Richard Scrushy became the first CEO of any Fortune 500 company to be tried under the Sarbanes-Oxley Act of 2002 for any accounting fraud. During court proceedings other practices involving HealthSouth were uncovered. Things such as unethical behavior and corporate governance involving the Board of Directors (banks and creditors were suspected to be involved but were not indicted, only civil suits). Richard Scrushy was charged with money laundering, conspiracy, securities fraud, overstating HealthSouth's earnings, and 81 more counts. "The Commission's complaint, which was filed in the federal district court in Birmingham, Ala., alleged that since 1999, at the insistence of Scrushy, HealthSouth systematically overstated its earnings by at least $1.4 billion dollars. This was because they needed to meet or exceed Wall Street earning expectations" (n/a, 2013). Prosecutors believed that Scrushy intentionally allowed his financers and accountants to commit this fraud in order to control HealthSouth's company stock. Because of the fraud, personal assets for both him and the other founding CEO's of the HealthSouth increased profusely. By the end of 2003, the 15 executive finance and accounting members that were also indicted with Scrushy, pleaded guilty to fraud for a reduced sentence. Each member...
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...Reporting Practices and Ethics Starla Edwards Health Care Financial Accounting/HCS 405 October 17, 2011 Marjorie Romano Reporting Practices and Ethics Financial practices and ethics can play an important part of any organization including the health care environment. In order for the health care organization to be successful one must adopt an efficient financial practice and possess ethical standards. The management of finances for a health care organization may be a challenge for managers. This is why the health care manager will follow four basic elements for financial management. The basic elements include planning, controlling, organizing and directing, and decision making (Baker & Baker, 2011). Health care organizations have accounting principles generally acceptable and will comply with the financial practice and the practice of ethics to avoid fraud or abuse of the reporting practices. Elements of Financial Management Financial management has four basic elements, which assist the manager in making effective decisions for the health care organization. The first element of financial management is planning. The financial manager needs to identify the steps that he or she needs to take to accomplish the goals of the organization. However, first the manager must determine what the goal is for the organization and at that time determine what steps to follow to achieve the goal. The next element is controlling; a plan is in place that each area of the organization...
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...expenditure was revealed by the manager accounts payable within a few months (Donaldson, P. W, 2004).” In information system beside that the employees are performing well in accounts payable department which is the very sensitive department of hospital as it directly interact with the vendors and suppliers, two full time employees were terminated which increases the burden and department fails to cope with it because of which they have to hire a new employee on a temporary basis. As according to hospital rules temporary employees are not entitled for health insurance, vacation pay, disability insurance, etc. this thing force Matt Harris to do fraud as he is ill and have to cover medical expenses (Baskerville, R. 1. (1993). It’s the organizational procedure that every employ that is hired for sensitive departments like finance and IT, have to undergo through background...
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...Reporting Practices and Ethics Paper Cherelle Decarmo HCS/405 11/13/2014 Keith Parker Reporting Practices and Ethics Paper In any health care setting financial and ethical reporting is important to have a successful organization. Health care providers need to understand how effective financial management strategies. The paper will address financial reporting practices containing ethical standers in health care finance. Also, it will include a summary of acceptable practices and general financial ethical standards. There are four elements of financial management, this includes,” planning, controlling, organizing and directing, and decision making.” (Health care Finance, p.5.2011) Manager’s responsibilities are to make sure the organizations goals and objectives. Controlling helps with making sure the organizations plans are carried out and this comes from having feedback. Using available resources helps to be organizing. Mangers must work with their staff by directing daily with staff to make sure the goal is achieve. Financial mangers have to be capable of making decisions through evaluating and analyzing. When financial mangers apply and comprehends all these steps this helps organizations to be successful. Study’s show that U.S businesses pay $6,000 per year, extra due to employee who smoke cigarettes in the workplace break areas. This can be a financial burden for companies because, of the employee that smoke. Previous research that was done on cost of; smoke breaks...
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... * How to reduce risks in posting the receipt to the customer account ? Learning objectives : * Identify the exposure to risk that a firm faces with respecting of asset and data, including the fraud. * Understand how to reduce risk and exposure the highlighted in every situation. * Recognize how the separation of duties become a part of internal control system. * Understand about the risk exposure to business and the importance of internal control to minimize the risk. Solution a. A payroll clerk recorded 40-hour workweek for an employee who had quit the previous week. He then prepared a paycheck for this employee, forged her signature, and cashed the check. Violation: The payroll clerk only have an authority to prepare the paycheck, not to signature or cashed the checks. The signature of payroll is the duty of HR manager, while cashed the paychecks is the duties of the cashier, so, the payroll clerk has violated his/her job description and his/her authorities. Solution: To reduce the risk, the company must make a clear workflow, the payroll clerk must be ensured only has an authority to make the paycheck, then from the payroll clerk, every paycheck must be received to HR manager to check it, if it’s agreed, then from the HR, it will brought to finance department, and it must be received by the A/P department first, the A/P department...
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...manufactures and sells stereo headphones. KOSS went public in 1965. Over the last ten years, its stock price has ranged from $8 in July 2002, to its peak at $15 in July 2006 to its low at $4 in July 2010. The Chief Executive Officer (CEO), Michael J. Koss (MJK), the founder’s son, and his family directly or indirectly own in excess of 70 percent of the company’s 851,000 shares. A $34 million embezzlement of cash from the KOSS occurred over a 12-year period from 1997 through December 2009. QUESTIONS AND ANSWERS 1. What is the problem in the Koss Corporation case? This case evolves about a wide-ranging fraud committed by senior members of the accounting department of Koss Corporation. Over a period of years, Sachdeva, the Principal Accounting Officer, Secretary and Vice-President of Finance at Koss had stole over $30 million from the Company. Sachdeva used the embezzled funds to finance her extravagant lifestyle and for her personal spendings. Mulvaney, working in concert with Sachdeva, prepared false journal entries to disguise Sachdeva's misappropriation of funds. Sachdeva and Mulvaney attempted to hide the embezzlement in the Company's financial statements by overstating assets, expenses, and cost of sales, and by understating liabilities and sales. Over the last 12 years, Koss never realised the embezzlement made by the culprit. The embezzlement was revealed on December 18, 2009, when American Express (principal bank for Koss Corporation) notified the Company that funds were being...
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...investigate crimes such as bankruptcy, embezzlement, and fraud to provide evidence as to who, what, how, and where the financial crime occurred. A Forensic Accountant needs to integrate law knowledge and the understanding of accounting and finance. The career in Forensic Accounting is recently on high demand because of the increased financial inconsistencies within organizations. A Forensic Accountant finds employment opportunities in many settings, which include law firms, consulting firms, government agencies, and financial institutions (Justice, Law & Legal Studies Forensic Accountant and Fraud Examiner). A Budget Analyst A budget analyst is one of the career paths in accounting. This career involves the relationship between goals of the project and concerns of the budget. The work of the budget analyst is to organize business finances such as preparing budgets reports and checking organizational spending. Minimum requirements are a bachelor’s degree in accounting and in some cases, there is a requirement of a Master’s degree in accounting. Additional requirements include excellent numerical, analytical, and accounting skills. As with other careers, salary expectations upsurge with education and experience. The median annual salary exceeds $68, 000, while the highest annual range is more than $100,000, and the lowest earns at least $45,000 per year (How to Become a Budget Analyst). Question 2 Chief Finance Officer (CFO) The position of CFO plays a significant...
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