What is the Obama “ACORN” voter fraud connection?
Tuesday, August 17th, 2010 at
11:55 pm
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Archive for August, 2010
Why a Bad Economy Leads to Accounting Fraud
Tuesday, August 17th, 2010 at
11:47 pm
Accounting fraud seems to escalate in a bad economy. There are many reasons for this, and some of them may surprise you. When the economy is bad, people become desperate to maintain their lifestyles, or even to just survive. Under these conditions, some people turn to fraud.
In a bad economy people do not make as much money, there are not enough jobs to go around, and the stress of trying to make ends meet can be overwhelming. Some people turn to fraud as a quick fix for their financial problems. There are many types of fraud, from the employee of a large corporation taking advantage of access to secure documents to investment fraud.
But why would people take such drastic measures, considering the severity of the consequences? If caught, criminals convicted of fraud can be subject to large fines and jail time. In a bad economy, these measures do not seem as drastic as the thought of losing one’s home or having to alter one’s lifestyle. Living beyond one’s means is a common financial ailment in America, one that quickly becomes severe with the economy goes bad.
Part of living beyond one’s means entails accruing a significant amount of debt. Things have to be paid for somehow, and the credit card has long been a best friend of those who wish to buy more than they can afford. Excessive debt can ruin a person’s lifestyle and may make someone more likely to commit fraud, especially in a bad economy.
Another drain on one’s financial resources that may lead to fraud is child support. Child support, and alimony, are often both taken directly out of one’s paycheck. This causes a significant decrease in the amount of money one is making, and can lead to desperate measures, such accounting fraud, in a bad economy.
Obviously not everyone with these hard to maintain lifestyles resorts to fraud, but the risk does increase in proportion to the amount of financial stress. Other contributing factors are personal, such as addiction, legal issues, or a criminal history. These circumstances all require an excess of money, and heighten the risk of a person committing accounting fraud in a bad economy.
While a bad economy does not guarantee that people will commit accounting fraud, the odds of it happening get higher as the economy gets worse. When people feel there is no financial way they can survive, many will resort to criminal behavior.
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Keiser Report №58: Markets! Finance! Scandal!
Tuesday, August 17th, 2010 at
11:47 pm
This time Max Keiser and co-host, Stacy Herbert, look at the latest scandals of groveling monarchs, democratic politicians calling their taxpayers hobos and stray animals and BP and Goldman as targets of RICO. In the second half of the show, Max talks to journalist Teri Buhl about Timothy Geithner, RICO and more.
Bankruptcy Fraud; Three Ways Of Doing It
Tuesday, August 17th, 2010 at
10:02 pm
Bankruptcy allows an individual or a business to be cleared of all debts if it is considered that they are unable to repay their debts. When you commit bankruptcy fraud it is considered a federal crime. There are three ways to commit bankruptcy fraud.
One of them is concealment of assets. This is one of the most common types of fraud whereby the debtor hides his assets so that they are not liquidated. This usually occurs when he debtor is supposed to declare his assets during the declaration part of the bankruptcy process. When a debtor fails to list all his assets or transfers ownership to friends and family or move the assets to an off-shore account, then they are committing bankruptcy fraud.
When you file for bankruptcy in more than one state, you are committing a this type of fraud known as multiple filings. This is also done so that the debtor can avoid liquidating his assets. Another form of multiple filings would be when the debtor files for bankruptcy under a fake name.
The third and worst form of bankruptcy fraud is petition mills. Here, the debtor may respond to an advertisement for a company that claims it will help tenants avoid eviction from their rental houses. The company will then take all the debtors details and charge high fees with they claim that they are protecting the debtor’s interests and preventing eviction. However, the harsh reality is that they have filed for bankruptcy, drained all the cash avenues and ruined the debtor’s credibility. If you are found guilty of committing any of these offences, you can be fined for an amount of up to $250,000 US dollars and/or five year prison sentence.
Mercy Maranga writes content on Finance and Debt Management. Visit her site here for more information on Finance and how to effectively Manage your debts. Bankruptcy
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Mortgage Fraud Proving Difficult to Eradicate
Tuesday, August 17th, 2010 at
7:47 pm
Mortgage Fraud Proving Difficult to Eradicate
AGOURA HILLS, Calif.—-Communities that are currently struggling from the effects of fraudulent mortgage transactions may still be suffering years from now, according to research released today by Interthinx.
Read more on Business Wire via Yahoo! Finance