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Reliastar's Fraud Case Study: Mueller Case

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Communications and enforcement of integrity help to minimize and lower the elements of fraud triangle include pressure, opportunity and rationalization. An overall background check with financial status should have done on Mueller from ING before directly transfer him to the company from ReliaStar. Mueller was living on his check by check at ReliaStar; he also had college debts and a pregnancy wife. ING should have spotted a big change within the company’s environment when Mueller went from a normal living style to a new “luxury” lifestyle with high-ended cars, costly Las Vegas Trip, extravagant watches and expensive nightclub entertainment. ING must imply employee support programs to assist employee struggle with financial problems in this case, which is a main source can lead to fraud. Under ING, more business risks were rising after they acquired ReliaStar. Mueller was in a lead role on transitioning his older …show more content…

Authentication controls identify is on loose under ING since Mueller had the power to access either SUB or CW’s computer with password. This show a lack of secure and authorization control within the company. ERP controls ensure that only legitimate users can access the system, these including passwords, smart cards, and ID identifiers. In Mueller case, his fraud could have been prevented if the company had use multifactor authentication, perhaps by running both password and smart card interested into a card reader or scan their ID badge to identify the user. Additionally, ERP system control help to measure the value of transitions in manner that permit recoding their proper monetary value in financial statements. Every year Mueller took out a quite big chunk of money, the control system should help manager to pay more attention to larger transactions from vendors to make sure they are really

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He also rationalized his fraudulent activities by hiding the customer’s late payment in order to be benefitted himself, but said that he was helping people more than he was helping himself. 2. Given that Mr. Pavlo’s fraud was restricted to an accounts receivable embezzlement scheme, what symptoms might auditors observe?

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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.

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Rita Crundwell was the treasurer and comptroller of Dixon, IL from 1983 to 2012. She worked for the city during high school, and was quickly promoted. Crundwell was also a horse breeder and owner, as she grew up on her family farm. During her time as treasurer, she was the owner of RC Quarter Horses. She had hundreds of horses, and trained dozens of world champions.

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2. Discuss the incentives that Diamond Food executives had to commit this accounting fraud? Diamond food’s highly ambitious and competitive culture could have increased organizational pressures for fraud. The company

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However, not much information is shared outside of the FBI’s, SEC’s, Finra’s, FERA’s, etc, respective agencies. This puts “white-collar criminals at a great advantage” as the “[j]ealousies and rivalries among investigators and among investigative and prosecutorial agencies need to be reduced and if possible eliminated”. Most of the agencies share little to no information because of competition and rivalries between them, this allows important information to slip past an agency focused on a single case. With the dilution of the FBI’s white-collar crime division, more information will be lended to other white-collar crime agencies in order to solve more cases. The FBI’s information would be critical as they have “43 pending investigations on large companies”, and “2,346 probes of potential mortgage-related fraud”, this information will help with the investigations at the SEC and FERA.

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This three element fraud is often referred as a fraud triangle by the researchers (Cohen, Ding, Lesage & Stolowy, 2010, p. 276). On the other hand the theory of planned behavior focuses on the intentions behind the planned behavior. Ajzen (1991, p. 188) explains this as “attitude toward the behavior… refers to the degree to which a person has a favorable or unfavorable evaluation or appraisal of the behavior in question”. Cohen, Ding, Lesage & Stolowy (2010) have combined the fraud triangle and theory of planned behavior to understand that how the two theories can be collectively studied to find out the reasons behind the unethical activities that results in corporate frauds. Cohen, Ding, Lesage & Stolowy (2010) in their work studied various organizations including WorldCom and identified following: • WorldCom’s management had an excessive interest in maintaining the entity’s stock price and earning trends (p. 287).

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