Forensic Accountants

Bad Nuts Can Ruin Fruitcakes; Trust But Verify

News Analysis: “Bad Nuts Can Ruin Fruitcakes; Trust But Verify” is an admonition for Family Operated Companies as well was Public Corporations. Outside Forensic Accountants should be hired to examine Company Books INDEPENDENTLY of normal In-House and other Outside Auditing.

Typically, an Embezzler will do most damage from a high position in a company (C.F.O.?) not as a lower level employee (there are fewer ‘eyes’ above the Miscreant). Bribery and Embezzlement go hand in hand to keep the theft detectors at bay. A Crook will use his Employment Position and Guile to appear beyond reproach (Colorful Snakes do not always Hiss).

Businesses need to have continuous but random times for Records Examinations by Forensic Accountants. A Corporation that does NOT have  Zero Tolerance For Thieves, “Gets What It Gets”.

Reality.

Reference: http://tinyurl.com/mk6g8xk

Uruguay Sold Its PLUNA National Airline’s Aircraft For Free?

News Analysis:  Uruguay allegedly has not received payment for the sale of Seven Bombardier CRJ-900’s Aircraft.  PLUNA Primeras Lineas Uruguayas de Navegacion Aerea (First Uruguayan Air Navigation Lines) sold the Airliners to a local businessman when the Government ceased the Airlines’ operations. Many citizens of Uruguay wonder was this sale effectively  a “Gift” to the gentleman; Bombardier CRJ-900 Aircraft are not inexpensive.

Perhaps, with the assistance of Forensic Accountants, an examination can determine if payment for all of the aircraft had been made but not credited properly. Perhaps the “Holiday Spirit” influenced the Uruguayan Transportation Authorities to indulge in Aircraft “Gift Giving” on an extraordinary scale.

Reference: http://www.buenosairesherald.com/article/148031/uruguays-economy-minister-quits-amid-airline-scandal

☆ European Union Banking: A “Haircut” And “Shave” For Everyone?

News Analysis: The European Union Banking Agreement recently agreed to, some say, gives False Hope regarding Control Over and Liquidation, if necessary, of ‘Non-Performing’ Banks. Contractually, many various groups would assess the viability of a Bank, and if needed, Bond Holders, Stock Holders, and DEPOSITORS would have to pay for the pending debacle (as was done in Cyprus). In this manner, Governments would not be financially  liable for Bad Management at Banks. Why a Mere Depositor who has NO CONTROL over Banking Decisions nor Ownership directly or indirectly, in the Bank, should be held liable is baffling to many people. This would be analogous to sending One’s Shirts to a Laundry and being liable for that Business’s Debts! What is the difference? As to Depositors, Very Specious Thinking brought about such a European Union Banking Decision, one might argue. 

That various groups composed of a total of over 100 persons are to efficiently and quickly assess a Bank is a ‘Mental Fantasy’, some Bankers say. Debate for weeks is not acceptable during such events.

A 55 Billion Euro Fund is to be developed for the cover collapses of Banks; many people think that is too little.

Also, are there ANY provisions to have Forensic Accountants review a “Collapsing” Bank’s Books, immediately prior to default? This, to see if any Illegal Financial Machinations occurred by the Bank’s Management? If not, why not? What Punitive Measures are in force for illegal or ‘tainted’ Banking activities?

“Bankers, in their role of ‘Bankers’, control the Monies of OTHERS, Not Their Own.” All too often, it seems that this Simple Premise ‘Escapes’ the conscious mentality of Bankers; that is when Defalcations and other problems arise.

It appears to many Europeans that, as regards to this ‘Banking Solution’, “Improper Medication” to a Patient may make him sicker than his Actual Illness.

Reality.

Reference: http://www.spiegel.de/international/business/weak-eu-banking-union-could-have-dangerous-side-effects-a-940065.html

Forensic Accountants (FA’s), with Experience, are Priceless

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.

Reference: http://www.bloomberg.com/news/2013-12-03/madoff-behaved-like-a-lunatic-over-fund-probe-jury-told.html