ipl-logo

Case Study Of Crazy Eddie's Fraud Case

1687 Words7 Pages

Introduction “We are not undersold, we will not be undersold, we cannot be undersold, and we mean it! Crazy Eddie – his prices are – I-N-S-A-N-E!” This standard disclaimer, screamed by a manic actor in Crazy Eddie’s commercials for 17 years, accurately sums up how the chain operated. Crazy Eddie would do anything to make a sale, even if that meant committing 18 years’ worth of fraud. While this fraud case may not have the financial audacity of more recent crimes, the variety of frauds and the timespan over which they occurred makes it a fascinating example of what some people will do to make money and gain power. • 1969: The Crazy Eddie chain of appliance stores, originally named “Sights and Sounds,” was founded by three men – Eddie Antar, …show more content…

 Manager might be paid $5,000 on the books and $50,000 off the books. o Phony warranty claims: The firm would submit claims to manufacturers to repair appliances that were not damaged. o Insurance fraud: The firm would submit false insurance claims for damaged & destroyed merchandise. • 1971: Eddie buys Ronnie’s 1/3 share of the store for $25,000. • 1972: Fair trade regulations ends, meaning retailers can sell at prices lower than MSRP; Eddie changes store to “Crazy Eddie.” • 1975-1980: Eddie sends Sam E. to college to study finance and accounting. • 1980: Sam passes CPA exam; Works as unofficial CFO for Crazy Eddie; Works for Penn & Horowitz. o Clearly a conflict of interest, so Sam E. kept Crazy Eddie job a secret and was paid off the books. o Worked at P&H in order to: 1. Fulfill auditing experience requirement to obtain CPA license. 2. Learn how to take advantage of auditors when Crazy Eddie went public. • 1980: Reduction in skimming begins in order to prepare Crazy Eddie to go public. o $3MM/year in 1979 to $0 in 1984. o Pro forma annual profits grow from $1.709MM in 1980 to $7.975MM in 1984 (factoring in new store openings, pro forma profit/store grew from $219,975/unit in 1980 to $617,738/unit in 1984). ****GRAPH

Show More
Related
961 Words | 4 Pages

Seeking revenge against the government, Timothy McVeigh knowingly, intentionally, willfully and maliciously carried out the deadliest act of domestic terrorism within the United States history. McVeigh and Nichols planned a violent act against the Alfred P. Murrah Federal Building and its occupants. McVeigh attempted to recruit others to assist in the act of violence. On September 22, 1994, McVeigh rented a storage unit in Herington, Kansas using the name of Shawn Rivers. On September 30, 1994, McVeigh and Nichols purchased forty fifty-pound bags of ammonium nitrate in McPherson, Kansas under the name of Mike Havens (Fox News, 2001).

Read More
742 Words | 3 Pages

In this paper I will be analyzing the research on Mickey Monus and his fraud crimes. I will exam the fraud and how it applies to this course, such as where it belongs on the fraud tree. Along with what type of fraud was committed, and how they got away with it for so long. Mickey Monus, the former president of the most successful multi-billion-dollar discount drug chain in American history, is from a town in Ohio called Youngstown.

Read More
539 Words | 3 Pages

The shop windows displayed signs boasting ‘nothing over 1/-’, yet even the ever-optimistic owner gJ Coles was unprepared for the rush of customers who came that day, keen to take advantage of the bargains in this innovative new style of shop. what followed has been a century of delivering quality, service and value to the australian public, and yet, the Coles story doesn’t really begin with the opening of that

Read More
932 Words | 4 Pages

The Tweed Ring’s existence came into light between 1866 and 1871, and it begins when William ‘The Boss’ Tweed and his company made it so that all bills to the city would be at least fifty percent fraudulent, later raised to eighty five percent. The affluence went to William ‘The Boss’ Tweed, the city financial officer, the county treasurer, and the mayor. Furthermore, twenty percent of the share would go into bribing officials and businessmen, which led to a diverse following; William ‘The Boss’ Tweed loved to keep them around, and in order to maintain this regime, he ‘provided for all’. Unfortunately, Tweed was very sufficient in keeping up this scam, by fooling even the ‘best’ people by using his silver tongue and having a controllable idiosyncrasy. Being the amazing nineteenth-century

Read More
216 Words | 1 Pages

Page 1 of 2 Caterra Bruno05/17/2018HS115A medical assistant was sentenced today to 36 months in prison for his role in a conspiracy to defraud the Medicare program, the Departments of Justice and Health and Human Services announced. Guy Ross was also sentenced by U.S. District Judge Denise Page Hood in the Eastern District of Michigan to three years of supervised release following his prison term and was ordered to pay $472,623 in restitution. Ross, 51, pleaded guilty in July 2010 to one count of conspiracy to commit health care fraud. According to court documents, Ross received kickbacks from the owners and/or operators of two Detroit-area home health agencies, Patient Choice Home Healthcare Inc. and All American Home Care Inc., in exchange

Read More
506 Words | 3 Pages

A sad day for the family of a young woman named Wykesha Reid, evidence conducted from an ongoing investigation lead to her death from butt-injections. The suspect being charged with the Homicide of Mykesha are Jimmy Clarke and Denise Rochelle. The two suspect operate a business which provide eyelash extensions to the public. Nevertheless, up until the death of Wykesh Reid it seems their business have been performing butt-injections on the Black Market. Upon questioning Jimmy Clarke a transgender woman told detectives that.

Read More
1649 Words | 7 Pages

The Corinthian Colleges Debacle: Holding For Profit Colleges Accountable The Corinthian Colleges Debacle unveiled many areas of non-compliance, not only by the for profit private postsecondary education institutions, but also by the control agencies at the state and federal level. The closure of the Corinthian Colleges revealed the inefficiency of the states to provide oversight and enforcement to mandate compliance based on their authority as outlined in existing state laws. The Corinthian Colleges is just one of many for profit private postsecondary education institutions that have faced or will be facing closures. We’ll provide background on what happened that lead to the closures, the impact this has had on student loans, and what factors have

Read More
167 Words | 1 Pages

Predication: On 11/28/16, Point Of Contact (POC) Asset Protection Manager (APM) David Jenny contacted APM Jakub Orlando regarding Service Clerk (SVC) Roberto Agosto who was suspected of gross negligence as SVC Agosto which resulted in a $200 loss. Facts: On, 12/06/16, APM Orlando reviewed POS transaction and CCTV footage that revealed that during a gift card transaction that was scanned for $500 SVC Agosto only collected 310 dollars. SVC Agostos was seen counting the money twice and placing the funds into the register. On 12/06/16, APM Orlando interviewed SVC Agosto with Assistant Store Manger (ASM) Shaniqua Britton as a witness.

Read More
1012 Words | 5 Pages

TRADER JOE’S – INDUVIDUAL ASSIGNMENT 1 Part 1 – Introduction What Joe Coulombe did was opening an ordinary supermarket into the industry but the strategies he took were separating the Trader Joe’s from its rivals. What he did was to offer products targeting sophisticated costumers who were searching for good bargains. The offerings of Trader Joe’s were so unique which are not found at rival shelfs. Another crucial decision he made was to take advantage of recent environmental movements such as the rising trend of costumers searching organic foods. The company also decided on selling private labelled products with lower prices than other brands of the same product.

Read More
485 Words | 2 Pages

Their idea is that convenience is what Bob’s was trying to sell in a price conscience market that was focused on saving money because of the economic down turn in 2008. (Parnell, 2014). In the article, “The Changing Face of Food Retailing” the article describes the economic change that is penetrating the country described as “The rapid spread of supercenters and deep-discount food retailers illustrates Porter’s threat of the entry of new competitors, after supermarkets had been the predominant food retail format for several decades. The growth of private-label products reflects both Porter’s risk of substitute goods and the power of product buyers. In terms of technology, the analysis of the point-of-sale (POS) data generated by checkout scanners and barcodes has helped shift bargaining power from the product suppliers to the increasingly-concentrated retailers” (Senauer & Seltzer, n.d.).

Read More
1256 Words | 6 Pages

The Plutus and ATO fraud cases involved tax fraud. Plutus is a payroll company that a criminal syndicate used to obtain $165 million that was meant to be paid as taxes. Plutus undertook to process the payrolls of legitimate companies. The money was taken from the clients and transferred to several subcontracted companies. These tier two companies made payments to the employees of the clients.

Read More
993 Words | 4 Pages

This case involves the unlawful intentional theft on the part of three employees of POP 'S Barbershop. Willy, Jay and B, all employed by Pops the sole owner of the POPS Barbershop, intentionally stole fifty boxes of merchandise while picking up 50 boxes of distribution items for POP 'S Barbershop from Cordell Stoke 's Uptown Distributing Company. While packing, they intentionally packed 50 boxes of merchandise belonging to one Manny Martinez. It was also reported that 50 boxes of merchandise were taken from the packaging plant accidentally. These packages belonged to another customer Misty.

Read More
1963 Words | 8 Pages

PART I PRELIMINARY 1.1 Background If you see a news show on television, the most frequent topic dibicarkan is a corruption or fraud committed by individuals, non-profit organizations, corporations, and Government.

Read More
424 Words | 2 Pages

No one who lived in New York City area from the late 1970s through the mid-1980s can forget the frenetic “Crazy Eddie” television commercials imploring potential buyers to frequent their discount electronics store chain because their prices were “insaaaaaane!” The Crazy Eddie retail chain, technically known as ERS Electronics, was originally founded in 1969 by Eddie Antar, his cousin, Ronnie Gindi and his father, Sam E. Antar (“the Antars”). The business went public in September 1984 and grew to a reported $300 million in sales and 43 stores by the end of 1986, Nevertheless, by 1987, the company and its officers were facing criminal investigations by the SEC and the New Jersey Attorney General, alleging various securities fraud violations as

Read More
2107 Words | 9 Pages

Background WorldCom, once known as one of the most powerful telecommunication organizations of the world, is now studied as a case of a fraudulent company that carried out unethical financial activities to cover its weakening position in the market. After some aggressive investment decisions, the company started to witness huge financial pressure. The management used various forged accounting entries to conceal its weakening position. Cynthia Cooper, Vice President Internal Audit, discovered the unethical activities and raised the issue with the management and relevant departments and received bitter responses. She carried out internal audits in her own capacity with her colleagues and compiled evidence against fraudulent activities.

Read More

More about Case Study Of Crazy Eddie's Fraud Case

Open Document