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Financial Statement Fraud Casebook: Baking the Ledgers and Cooking the Books

Book Description

A comprehensive look at financial statement fraud from the experts who actually investigated them

This collection of revealing case studies sheds clear insights into the dark corners of financial statement fraud.

  • Includes cases submitted by fraud examiners across industries and throughout the world

  • Fascinating cases hand-picked and edited by Joseph T. Wells, the founder and Chairman of the world's leading anti-fraud organization the Association of Certified Fraud Examiners (ACFE) and author of Corporate Fraud Handbook

  • Outlines how each fraud was engineered, how it was investigated and how the perpetrators were brought to justice

  • Providing an insider's look at fraud, Financial Statement Fraud Casebook illuminates the combination of timing, teamwork and vision necessary to understand financial statement fraud and prevent it from happening in the first place.

    Table of Contents

    1. Cover
    2. Title Page
    3. Copyright
    4. Dedication
    5. Preface
    6. Chapter 1: Keep On Trucking
      1. Atkins Trucking
      2. Always Learning
      3. Management by Intimidation
      4. Dreading the News
      5. About the Author
    7. Chapter 2: Too Good to Be True?
      1. Monarch
      2. Surprise from the SEC
      3. An Inexperienced Investigator and Bungled Due Diligence
      4. A Few Unhappy Executives
      5. About the Author
    8. Chapter 3: Trust Us . . . We Wouldn't Lie to You
      1. Growing Distribution
      2. The New Client
      3. Whom Can You Trust?
      4. Justice Is Not Always Served
      5. About the Author
    9. Chapter 4: Rotten from the Core
      1. Industry Trends
      2. A Redirection of Energy
      3. A Trickling Cash Flow
      4. Comparing Claims to Reality
      5. Imaginary Contract
      6. Falling Like Dominoes
      7. About the Authors
    10. Chapter 5: The Broken Trust
      1. An Important Call
      2. The Confirmation
      3. Very Slow Delivery
      4. Disappearing Customers
      5. The Straw That Broke the Camel's Back
      6. Interviewing for Admission
      7. Completing the Jigsaw Puzzle
      8. About the Author
    11. Chapter 6: The Perfect Family Business
      1. A Sense of Entitlement
      2. Welcome Home
      3. Ungrateful Relatives
      4. Into the Spotlight
      5. Not an Ideal Deal
      6. About the Author
    12. Chapter 7: Auditor's Loyalty
      1. Blissful Ventures
      2. Revealing Comparisons
      3. Trouble in Paradise
      4. Passing the Torch
      5. About the Author
    13. Chapter 8: Easy Come, Easy Go
      1. Picture-Perfect Start
      2. Alarming Sales Tactic or Ideal Growth Strategy?
      3. A Story Told Through E-Mails
      4. Forsaking Responsibility for Growth
      5. About the Author
    14. Chapter 9: Organized Crime Is Not Just for the Usual Suspects
      1. Growth and Ego
      2. Mr. Forme Goes to Washington
      3. Facing the Truth
      4. Form over Substance
      5. About the Author
    15. Chapter 10: The Spinster and the Investment
      1. Not Sly Enough
      2. Within the Matrix
      3. Change in Plans
      4. Holiday Presents for One and All
      5. Decisions and Consequences
      6. About the Author
    16. Chapter 11: This Might Sound Familiar . . .
      1. Forming a Team
      2. Out of Control
      3. Fool Me Once…
      4. Fool Me Twice…
      5. Restating and Sentencing
      6. About the Author
    17. Chapter 12: Pulling the Strings
      1. Hostile Takeovers
      2. Acquisitions, Whistleblowers and Qui Tams
      3. A National Investigation
      4. The Final Cut
      5. About the Author
    18. Chapter 13: A Tale of Two Books
      1. The Investigation Takes Off
      2. Full Disclosure?
      3. Too Little Too Late
      4. About the Author
    19. Chapter 14: The Family Man Behind Bars
      1. An Anonymous Caller
      2. Too Much Trust
      3. Digging up an Audit Trail
      4. Accountable Individuals
      5. About the Author
    20. Chapter 15: Net Capital Requirements
      1. Surebet Securities
      2. The DITs Were MIA
      3. Officer Loan Account
      4. Gertie's Recipe
      5. Superstitious Rationalization
      6. About the Author
    21. Chapter 16: Delaying the Inevitable
      1. Securitization of Loans
      2. Early SOX Violation
      3. Investigating a Bankruptcy
      4. Bad Loan Workouts
      5. The Process in Action
      6. Collecting Collateral
      7. Double-Pledging Assets
      8. Outcome
      9. About the Author
    22. Chapter 17: Power and Corruption in the Publishing Industry
      1. A True Success Story
      2. Let's Make a Deal
      3. One Thing Leads to Another
      4. The Specifics
      5. Secrets in the E-Mails
      6. Old Habits Die Hard
      7. About the Author
    23. Chapter 18: It Starts and Ends at the Top
      1. Growth and Decline
      2. Creative Inventory Procedures
      3. Unwelcome News
      4. Undeliverable Promises
      5. About the Author
    24. Chapter 19: The Triple-Three
      1. Establishing the Rules of Play
      2. Drugs, Money and Rumors
      3. The Importance of Planning
      4. Loans in Default
      5. Revealing Ratios
      6. About the Author
    25. Chapter 20: What Is 1 + 1? What Do You Want It to Be?
      1. EZ Street
      2. Friends and Family
      3. Sorting Through the Mess
      4. The Potato Chip Theory of Fraud
      5. About the Author
    26. Chapter 21: Take Two
      1. Naiveté and Ego
      2. Different Pieces of the Same Puzzle
      3. Unpaid Suppliers
      4. Dual Cash Accounts
      5. The Cash Connection
      6. Sizler Loses Again
      7. About the Author
    27. Chapter 22: Wade's WMD
      1. Breakfast at Denny's
      2. Men in Black
      3. Interesting Patterns
      4. The Chocolates
      5. Falsified Documents
      6. The Midnight Deposition
      7. Confessions
      8. The Outcome of the Investigation
      9. About the Author
    28. Chapter 23: Fraud Under the Sun
      1. Bright Future
      2. Suspicious Resignations
      3. A Key Witness
      4. Making Headlines
      5. Packaging it for the Investors
      6. About the Author
    29. Chapter 24: Franklin County Contractors: A Case of Concealed Liabilities
      1. Throwing Stones
      2. Unexpected Job Duties
      3. Escalating Debts
      4. The End?
      5. About the Author
    30. Chapter 25: The Fall Man
      1. Climbing the Social Ladder
      2. C.Case
      3. The Numbers Don't Add Up
      4. Sales Deviations
      5. Old Friends
      6. Off-Hours Meeting
      7. The Evidence in the E-Mail
      8. The One Who Got Away
      9. About the Author
    31. Chapter 26: The Happy Life
      1. Network of Collusion
      2. Happy Beginnings
      3. Performance Concerns
      4. Client Meeting
      5. Employee Tips
      6. Lack of Controls
      7. Tone at the Top
      8. The Outcome of the Investigation
      9. About the Author
    32. Chapter 27: A Very Merry Fraud
      1. New Holiday Traditions
      2. New Year, New Investigations
      3. Analysis and Exchange Rates
      4. There's No Friend Like an Old Friend…
      5. Worth the Wait
      6. About the Author
    33. Chapter 28: Missing Ingots
      1. A Beacon of Hope
      2. Declining Performance
      3. The Cost Analysts
      4. Working Hypotheses
      5. Suspicious Vendors
      6. About the Author
    34. Chapter 29: When Silver Spoons Are Not Enough
      1. Entrepreneurial Spirit
      2. Forming a Case Theory
      3. The Records Don't Lie
      4. The Final Tally
      5. About the Authors
    35. Chapter 30: Sales Commission and Fraud Perpetration
      1. New Management
      2. Living the High Life
      3. Too Busy to Comply?
      4. Inflated Commissions
      5. About the Author
    36. Chapter 31: Like Two Sides of the Same Coin
      1. Corporate Culture
      2. Contradictions in Sales Returns
      3. Generous Contracts
      4. And the List Goes On…
      5. Legal Advice
      6. About the Author
    37. Chapter 32: A President Illuminated
      1. A Bright Future
      2. An Unorthodox Executive Team
      3. In Plain Sight
      4. Out of the Rain
      5. Lights Out?
      6. About the Authors
    38. Chapter 33: Trouble in Tallahassee
      1. Starting Early
      2. Top-Heavy Organization
      3. What Happened in Vegas
      4. Welcome Back
      5. January 6
      6. January 7
      7. The Case Builds
      8. And in the End…
      9. About the Author
    39. Glossary
    40. Index