Frauds Against the Organization
Whoever commits a fraud is guilty not only of the particular injury to him who he deceives, but of the diminution of that confidence which constitutes not only the ease but the existence of society.
—Samuel Johnson, English poet and writer (1709–1784)
After studying this chapter, you should be able to:
In bankruptcy fraud, the fraudster files a notice of bankruptcy. All creditors receive a copy of the notice. The fraudster then approaches creditors individually, telling each in turn that they are a favorite and that he or she wants to see them get paid something out of what remains. The creditor frequently settles for a low percentage of the amount owed. After a settlement with one creditor is reached, the fraudster moves on to the next creditor, and the next, until all ...