ipl-logo

SMF Energy With Fraud Case Summary

579 Words3 Pages

The case under analysis revolves around "fraud charges against four former SMF Energy Corp. officers". (SEC Charges Former Officers of SMF Energy With Fraud, n.d., para. 1). The problem is that some former officials of SMF Energy Corp. officers used their power to align the unfair schemes that helped them to obtain some extra benefits. It means that they "inflated SMF’s revenues through a fraudulent billing scheme" (SEC Charges Former Officers of SMF Energy With Fraud, n.d., para. 2). SEC (security and Exchange Commission) states that SFM overbilled some customers by charging for fuel that was not delivered (Lincoff, 2015). The given scheme could be characterized as unfair and it obviously helped the company to obtain extra benefits. The overbilling began in 2004 (Gorman, 2015) and it was used by the company. However, it triggered the growth of the dissatisfaction among the customers and lead to the trial. Additionally, the problem became more complicated because of the announcement of the SFM`s bankruptcy because of the fall of its revenues. Thus, it should also be said that the main figurants of this case deny their fault, saying that there were no unfair schemes used by SFM and …show more content…

First of all, it should be said that the situation is complicated by the theoretical bankruptcy of the company. Additionally, it should be said that the agents involved in the conflict have their own perspectives on the given situation and try to protect their interests. Thus, customers like USPS and some other companies were overbilled and obviously had some losses. It means that they might have the right to strive for the compensation for loss from the company or the former officers of SFM. At the same time, these very officers also have the right to protect themselves and prove the fact that all actions of the company were fair and organized in accordance with the existing

Show More
Related

Summary: The United Bank Fraud Case

263 Words | 2 Pages

I am filing a complaint against United Bank, 129 Main Street Beckley, WV 25802. Former United Bank Vice President MIchael Farris, and a senior United Bank official at United Bank 's Parkersburg branch, engineered a fraud-for-profit at the Beckley branch. Mr. Farris, and other United Bank employees perpetrated the criminal enterprise via HELOC 's. United Bank continued Beckley 's criminal enterprise, after Judge Irene Burger, sentenced, United Bank Vice President Roy L. Cooper, to a five-year prison sentence. Mr. Cooper 's charges included aiding and abetting mortgage fraud, On December 28, 2007, Former United Bank Vice President Michael Farris attached coterminous mortgages on real estate I litigated--since June 2004.

Read More

The Sarbanes-Oxley Act

296 Words | 2 Pages

During the late 90’s and early 2000’s, several key companies in the United States were exposed for fraudulent reporting profits

Read More

Chevron Underpaying Royalties

658 Words | 3 Pages

The False Claims Act states, “Any person who knowingly submitted false claims to the government was liable for double the government’s damages plus a penalty of $2,000 for each false claim” (Department of Justice, 2011). The company was found out committing this fraud by Harrold Wright in the case U.S. ex rel. Wright v. Chevron USA, Inc. et al., 5:03-CV-264 (E.D. Tex.). Under the qui tam provision, a private person, referred as relator, is allowed to file suit for violation of the False Claims Act on behalf of the government (2011).

Read More

False Reporting Case Summary

185 Words | 1 Pages

A woman diagnosed with BPD was involved in a custody battle for her young children. One day, her ex-husband returned the children home after a visit. Shortly after this she began to scream that he had hurt her. He immediately left without incident, but he was soon served with an arrest warrant for assaulting her. One of the small children stated that he “pushed Mommy and he hurt her”.

Read More

Sunbeam Fraud Case Summary

613 Words | 3 Pages

1. Determine the relevant facts. o Sunbeam was a small household appliances company that employed over 30,000 people. Sunbeam made 1.3 billion in annual sales. o

Read More

Monsanto Fraud Essay

590 Words | 3 Pages

The fraud was uncovered after a Monsanto employee decided to whistle blow to the SEC and thus the SEC began the investigation in 2011 after they uncovered that they in fact did improperly accounted for millions of dollars of incentive rebates offered to distributors of its Roundup herbicide. This led to Monsanto having to correct the improper accounting practices and required Monsanto pay $80 million in penalties. As a result, the SEC charged three midlevel employees with orchestrating the fraud and were demanded to pay $135,000 in fines and 2 of those employees which were accountants have been barred. Due to the Dodd Frank act this allowed the Monsanto Employee to come forward and uncover the fraud that was going on and put a stop to it. The first red flag that was missed was how Monsanto was able to shift the costs of the rebates into the fiscal year of 2010 while keeping the sales associated with the rebates in 2009.

Read More

Schwab Case Summary

703 Words | 3 Pages

In 1995-96, the internet primarily represented a disruptive technology to Schwab, threatening their commission revenues, and competitive edge within the discount brokerage industry. In 1993 Schwab was utilizing the internet with its “Equalizer and StreetSmart Software”, providing their customers with the convenience of online trading of stocks, bonds and mutual funds. Schwab was focused on their customer needs, like any successful corporation, providing them with innovative tools to access their accounts and trade online, utilizing technology, reducing costs and passing those savings back to their customers.

Read More

The Comptronix Fraud Case

734 Words | 3 Pages

After reading the Comptronix, Inc. narrative and analyzing the supporting excel files, I have based my risk assessment of the company on my analytical risk assessment procedures performed. In the subsequent paragraphs, I will perform analytical risk assessment procedures related to Comptronix and an overall analysis of the case in terms of the fraud risk factors discussed in the readings. Analytical Procedures AU-C Section 500 defines analytical procedures as, “evaluations of financial information through analysis of plausible relationships among both financial and nonfinancial data.” My firm performed analytical procedures to look at the relationship of net income to cash flows from operations, and changes in inventory, accounts payable, sales, and cost of sales from prior period to current period. We did not identify any one account to be a significant deviation from another.

Read More

Charles Schwab Case Summary

1424 Words | 6 Pages

In 2004, Charles “Chuck” Schwab came out of retirement to reclaim his position as CEO and to keep the once industry leader’s net income from declining. The financial services firm was finding it difficult to maximize benefits when providing services that fall between full-service brokerage and discount brokerage. As a result, competitors like Merrill Lynch, a full-service brokerage, and Ameritrade and E*Trade, discount brokerages, were cutting into Charles Schwab’s profits. As competition intensified and technology grew to become a major tool for investors to trade independently, Schwab’s net income decreased 39%. Traditionally, Investors relied on their brokers for advice and guidance when making financial and investment decisions.

Read More

2014 Report To The Nation On Occupational Fraud

519 Words | 3 Pages

Employee fraud is a significant problem faced by all types of organizations. According to the 2014 Report to the Nation on Occupational Fraud and Abuse, research shows that the typical organization loses 5% of its annual revenue each year due to employee fraud (Reed 1). Every organization should have a plan in place as preventing fraud is much easier than recovering from the losses after a fraud has been committed. In the field on accountancy, fraud can be broken into three categories: financial statement fraud, asset misappropriation and corruption. Financial statements fraud causes most median loss as it involves misstating information in the company financial reports.

Read More

The Stakeholders In The Broderick Corporation Case

970 Words | 4 Pages

In 1998, Waste Management “avoided depreciation expenses on their garbage trucks by both assigning unsupported and inflated salvage values and extending their useful lives…[etc.]…the company acknowledged that it had misstated its pre-tax earnings by approximately $1.7 billion (Newkirk 1).” A new CEO, A. Maurice Myers, analyzed the books and transactions, and he discovered the fraudulent behavior. The penalties to Waste Management were that the company had to settle a shareholder class-action lawsuit with the amount of $457 million, and the Securities and Exchange Commission (SEC) fined the prior CEO, Arthur Andersen, $7 million. Moreover, once the news became viral, Waste Management’s shareholders lost over $6 billion in the market value and stock prices dropped about 33%. If Prior commenced in increasing the useful life and salvage values of the equipment, then history would repeat itself, and Broderick Corporation would face the same, if not higher, amount of penalties.

Read More

American Apparel Mission Statement

632 Words | 3 Pages

This issue caused them to have to fire those employees which in turn affected every aspect of business. They were unable to adequately complete orders in a timely manner and meet the consumers demands, which overall caused product depletion or “stock outs”. Due to this occurrence, the company had a 92% decrease in operating profit from 2008 ($36million) to 2009 ($3million). The net profit fell from $14 million in 2008 to $1 million in 2009 and the operating income went from $24 million to -$50 million in 2010. To sum it all up, for a business to run smoothly in all areas, they must have people to carry out those functions and if businesses fail to consider that as a huge function to success, it can’t succeed which is the example this company

Read More

Sarbanes-Oxley Act Fraud Case Study

794 Words | 4 Pages

The Sarbanes-Oxley Act of 2002, passed due to series of failures designed to help protect the interest of the investors. The SOX Act created a total revision of regulations for public accounting and professional auditing. The SOX Act is considered to be the most useful legislation affecting public corporations and independent audits in the late 1930’s. Despite the Sarbanes-Oxley Act fraud and abuse still may exist in the corporate world. Since the SOX Act, corporations have used significant resources to access and improvement their internal and external audits, and they are a better position to deter fraud before it happens.

Read More

Nortel Failure Essay

1820 Words | 8 Pages

Mentioned in this paper are suggestions of how the company failed and mentions of how they could have implemented practical business behaviors

Read More

The Worldcom Fraud Case

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 SMF Energy With Fraud Case Summary

Open Document