It’s that time again… Time to share your predictions for fraud in 2013

Gypsy looking at an eight ball to predict the futureEach year, I ask readers of this blog to share their predictions regarding fraud in the following year.

If you have time, please visit the poll I created on LinkedIn.

I’ll share the results at the end of January.

Thanks for voting!

Paul McCormack

Need a writer that understands fraud? When you hire me to write an article, blog post, newsletter or white paper you get an accomplished writer that is also an expert in fraud.

paul@mccormackwrites.com

Old enough to know better?

Mary Ella Hixon, what are we to do with you?!?

The 91-year-old former mayor just pleaded guilty to stealing $201,000 from River Falls, in southern Alabama.

The judge sentenced Mary to 10 years in prison. However, luckily for Mary, he suspended the sentence due to her age. She will instead be placed on probation for five years.

All going well, at age 96, Mary will be free to do whatever 96-year-old people do, sleep I guess…

Did the judge make the right decision? Should age play a role in the sentencing of white-collar criminals?

Need a writer that understands fraud? When you hire me to write an article, blog post, newsletter or white paper you get an accomplished writer that is also an expert in fraud.

paul@mccormackwrites.com

Who is to blame for $10.2 million embezzlement?

Just when you think you’ve heard it all…

This case involves the Pope, travel on corporate jets, the Superbowl, and a celebrity chef. In fact, it is so unusual that I had to include it in our proprietary global knowledge center (enter 8688JGT for 3 months free access). Since it is included in our database, we have already analyzed the case and provided a list of lessons learned. Before I share some of that information here, let’s learn about the fraud.

Patricia K. Smith, the former controller for Baierl Acura, pleaded guilty to taking $10.2 million from the dealership over a 7 year period. Smith moved money from the dealership’s business accounts to her personal account using over 800 Automated Clearing Housing (ACH) transfers. Smith then used the proceeds to fund the following expenses:

•    $1.8 million billed to American Express for private jet charters; travel to seven countries in Europe and four islands in the Caribbean

•    $44,500 for four club-level tickets along with full hospitality at Super Bowl XLV

•    $32,500 for a luncheon for six people prepared by Food Network star Ina Garten at her barn in East Hampton, NY

•    $5,000 for “The Vatican Package,” which included Mass in Papal Audience with VIP seating, air fare for four, VIP tour of the Vatican Museum with a private tour guide, and a private tour of the Sistine Chapel with family before it is open to the public

•    $2,500 for a Phantom of the Opera experience, including costume fitting, wig fitting, an escort onstage during the Hannibal Opera sequence, and four seats for the performance.

She also purchased the following assets which will be subject to forfeiture:

•    Four houses— three in Pennsylvania and one in Georgia

•    10 vehicles, including three Acuras, four Hondas, and a Mustang convertible (At least she remained loyal to Acura / Honda)

•    Stocks, jewelry, cash, gold coins and personal property, including flat-screen televisions, a mink coat and a baby grand piano.

I have my own thoughts on who is to blame, but I would like to hear your perspective before I weigh in. Please register your vote in the poll at the top of the article. I’ll share my thoughts in a subsequent blog post.

FBI Press release

Need a writer that understands fraud? When you hire me to write an article, blog post, newsletter or white paper you get an accomplished writer that is also an expert in fraud.

paul@mccormackwrites.com

Grab your Magic 8 Ball

I’d love to hear your thoughts on fraud in 2012. Several industry associations are predicting that we will see a significant increase in corporate fraud. Others believe that we are over the worst and that fraud losses may actually decrease. Your turn… please take 2 seconds to submit your vote.

Also, if you would like to share your thought process in the comments section, please do so! You may be the “lone voice”, or in the majority. Either way, you’ll find out!

Thanks for taking the time to vote!

Need a writer that understands fraud? When you hire me to write an article, blog post, newsletter or white paper you get an accomplished writer that is also an expert in fraud.

paul@mccormackwrites.com