News Analysis: Forensic Accountants (FA’s), with Experience, are Priceless when looking for Fraudulent Accounting Irregularities. Those Individuals who “Cook The Books” are loathe to find “FA’s” reviewing their previous Numerical Machinations. The adage: “Figures do not Lie, But Liars Figure” apply to many. Embezzlers, “Ponzi Scheme” Operators, as well as a myriad of other ‘Slight of Hand’ Persons engage in ‘Bogus’ Accounting Entries in Financial Records.
As an example, Bernie Madoff, was the former Chairman of National Association of Securities Dealers Automated Quotations (NASDAQ). He was thought by “FA” Mr. Harry M. Markopolos to be engaged in a “Scam” against Investors. Mr. Markopolos reported his findings to the U.S. Securities and Exchange Commission (SEC), to NO AVAIL. In fact, it was reported that some even investigated Mr. Markopolos (the Messenger)! Both the SEC’s Inexperienced Accountants and Attorneys refused to believe that the former Chairman of NASDAQ “was a Crook”. A “FA” NEVER makes such a NAIVE CONCLUSION that Someone is Legitimate merely because of his or her former Occupation!
Some people, in retrospect, wonder if Monies were given to any SEC Attorneys to “Quash” or Delay any Investigations of Madoff? They opine: “If the Chairman of NASDAQ offers bribes, why would mere SEC Attorneys not have accepted? They do not earn much money and Bernie could pay. Look how many years he operated freely.”
Approximately Sixteen Years AFTER some suspicions were aroused about Bernie Madoff and his “Gang of Crooks” did the U.S. Government close down his Operations. PATHETIC! If the ‘SEC’ had PROMPTLY listened to Mr. Markopolos and sent EXPERIENCED “FA’s” to examine Bernie’s Books, the Ponzi Scheme would have been recognized and ended. Since it did not, Investors from All Over The World lost Billions of Dollars. Unfortunately, much money is still missing.
There are those who think that a Presidential Pardon for Bernie Madoff would allow him to enjoy his ill-gotten gains (as it occurred years earlier for Felon Marc Rich by being Pardoned by then-U.S. President William Jefferson Clinton; the last week of his term).
Corporations and Nations can do themselves a favor by recruiting and training “FA’s” to look at their Accounting Records and see where Embezzlement or other thefts may be occurring or may have occurred by their “Honest” Employees. Trust, But Verify.