In the present case, the relationship purportedly forming the basis for the constructive fraud claim was formed in a professional setting and is
(a) In the Cendant case, there are three misstatements identified in the CUC. They are the irregular charges against merger reserves, false coding of services sold to customers, and delayed recognition of membership cancellations. The irregular charges against merger reserves are affected by false recording revenues or reducing the expense or merger reserves in CUC. The false coding of services sold to customers is classified as fraud because CUC recorded the revenue into a different account. Instead recording the revenue as an income, CUC recorded as a deferred income.
Bank of America Fraud Case 2013 When one invests their time, money, and life into a business it is expected that everything is told to one and they are not mislead by a company or cooperation. Fraud is when one intentionally withholds information in order to have a positive impact whether it is financially or personally. Bank of America was charged by The Securities and Exchange Commission in 2013 for defrauding investors by not disclosing key risks and misrepresenting facts about underlying mortgages (Sec.gov). I believe that this is unacceptable and that Bank of America should have been straight forward and truthful about each and every account they had.
A Civil Action is a movie based on a true story about an epic courtroom showdown where Jan Schlichtmann, a tenacious personal-injury attorney files a lawsuit against two of the nation's largest corporations. He accuses, Beatrice Foods and W. R. Grace Company for causing the deaths of children from water contamination by the illegitimate dumping of chemical wastes into natural water sources. The first issue brought up in this movie is concealing or misrepresenting of the truth also known as deceit. Deceit occurs when an individual withholds or misrepresents information by making false statements with the intent of altering another person’s position on a matter. In the movie, Jan does some personal investigations after he notices that there’s
This extremely positive success rate was short-lived however as the high production demand was becoming overwhelming for the Hupmobile manufacturer, who were not equipped for this huge rate of sales. At this point, it was confirmed that the Graham-Paige
The fraud triangle is made up by three distinguished elements. These elements in the fraud triangle consist of pressure, opportunity, and rationalization. The overall representation of the fraud triangle can be seen as the specific model to spot any type of high-risk unethical and fraudulent performances being conducted by a company, in this case Cendant Corporation. Cedant Corporations actions can be analyzed by the fraud triangle by the way that their senior management/top management decisions fell into the three categories of pressure, rationalization, and opportunity. Cendant Corporation had the pressure to comply with their shareholders and to maintain a stable financial status to prove that they were a profitable organization with a bright company image.
Nonetheless, competitors of Wilkerson overlooked the opportunity to make profit for themselves in flow controllers, due to the fact that Wilkerson has increased the product price by 10% without losing any business. President of the Wilkerson Company was discussing the business’s operating results with his financial controller and manufacturing manager. Reason for this meeting was because; competitors were now reducing the price of their pumps, posing a threat to Wilkerson’s major product line. Since pumps where a commodity product for Wilkerson, they had no other choice but to match the competitors price in order to maintain volume. Unfortunately, Wilkerson’s price cuts led to a decline in their company profits, especially in the pump line.
Counterfeit intellectual property and product 5. Fraud on both companies and individual called as data compromise fraud. 6. Fraud which involves the conversion to his own use of funds or property by servant, an employment, an agent or any person who is entrusted al these by other person or company. 7.
Superior Pump 91250 Review Superior Pump 91250 is a light-duty utility pump suitable for common household requirements for lifting excess water from pools. It also works excellently as a sump pump upon some nominal modifications. This pump is suitable for removing water spills from basements and is effective at helping you during handling emergencies. Compact design and low consumption makes this pump highly user-friendly and application oriented. It is portable and fits in a bucket in case you want to carry it with you.
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).
On the one hand, all deals with the electricity conducted through subsidiaries, allowed to ‘inflate’ costs and, accordingly, - the selling price of electricity at the end. On the other hand, offshore companies process debts of the corporation, that it does not want to publish. In offshore the company dumped not profit, but losses. This statement arises question - why? This allowed them to significantly improve the financial performance of the corporation, so - rose in price of its shares.
1.0 Introduction Human behaviour is unique when it comes to an organisation, and studies shows it revolves around the performance and attitudes pertaining within a setting called organisation. It draws on theories as well as methods and disciplines based on the principles such as psychology, cultural anthropology including sociology to grasp virtually around groups and individual processes. 2.0 Daimler and Chrysler Established in 1924, Chrysler was the leading automobile casting distinctive automobile such as the Chrysler Six; one of the first modern cars to be built. Chrysler took over its opponent American Motors Corporations in 1987 (Holusha, 1987). Chrysler Corporation merged with German company Daimler on 12th January 1998, Chrysler
Continued Concealment of the act: - This element differs from the disguise element. The reason for disguise is to consummate the crime, it is part of the manner and means by which the fraud is committed. When the white collar crime continues, concealment and disguise will overlap, since postponing pursuit and maintenance of the facade of respectability enable repetitions of fraud. Even when there is no intent of the offender to commit further white collar crimes, concealment will be a continuing element of the original crime. Concealment often results in new crimes to cover old crimes, such as continuous repetitive alteration and falsification of records.
Introduction Misrepresentation is a form of distortion whereby a person is persuaded to enter into a contract entirely or partly by a false statement of fact, not opinion or intention made by the other contracting part. According to Law of Contract misrepresentation refers to a false statement of past or present fact, not law or opinion, made by one party to another before or at the time of the contract concerning some matter or circumstance relating to it . A misrepresentation may be made fraudulently, negligently, or non‐negligently (innocently). The Consequences of Misrepresentation • Cancellation of contract on the ground of fraudulent misrepresentation.
FORGERY: Forgery is the process of forging a copy or imitation of a document, signature, currency, cheque or some work of art. It can also be explained as the process of making, adapting, or imitating objects, or documents with the intent to mislead or make large amounts of money by selling the copied item. Copies, replicas of studio, and reproductions are not considered as forgeries, though they may be later confirmed as forgeries through knowing and intentional misrepresentations. Forging currency notes or money is more often known as counterfeiting.
