Accounting Fraud

ACCOUNTINGFRAUD FINANCIAL INSTITUTION FRAUD STATISTICAL ACCOMPLISHMENTS IN FY 2011 FOR FIF: Cases pursued by $1.388 $116.3M S15.7M the FBI resulted in 521 restitutions fines seizures informations and indictments PENDING FIF CASES FROM FY 2007 THROUGH FY 2011 3000 2,732 429 FY 2011 2500 2,364 FY 2010 2,301 1,887 2000 1,719 FY 2009 1500 FY 2008 1000 FY 2007 convictions of FIF criminals 500 MONEY LAUNDERING ACCOMPLISHMENTS MONEY LAUNDERING ACHIEVED FOR THE WCCP IN FY 2011 $18.4M IN RESTITUTIONS 303 CASES SAN9 414 N EDVENES resulted to 37 & 45 IN RECOVERIES S983.536 WFIES indictments convictions PENDING MONEY LAUNDERING CASES FROM FY 2007 THROUGH FY 2011 600 548 FY 2011 500 FY 2010 402 400 350 FY 2009 323 303 300 FY 2008 200 FY 2007 100 FRAUDS COMMITTED BY 85% had never been previously charged or convicted for a fraud-related offense 80% OWNERS AND EXECUTIVES The most common behavioral red flags displayed by the perpetrators in the ACFE report WERE MORE THAN JX AS COSTLY AS FRAUDS COMMITTED BY frauds identified in Report to 43% the Nations were committed by individuals in one of six departments: living beyond their means MANAGERS Accounting, Operations, Sales, Executive/Upper Management, Customer Service, Purchasing AND MORE THAN 9X AS COSTLY AS FRAUDS COMMITTED BY 36% experiencing financial difficulties RANK-AND-FILE EMPLOYEE A TYPICAL ORGANIZATION LOSES NEARLY FRAUD IS MUCH MORE LIKELY TO BE DETECTED BY TIPS, 5% OF ITS ANNUAL REVENUE THAN BY ANY OTHER MEANS. TO FRAUD WITH THE MEDIAN LOSS AT ABOUT S160,000 SMALLER COMPANIES ARE DISPROPORTIONATELY VICTIMIZED BY FRAUD, AS THEY USUALLY LACK A SUFFICIENT LEVEL OF NEARLY ONE-QUARTER OF ALL REPORTED FRAUD EXCEEDED S1 MILLION CHECK AND BALANCES PENDING MONEY LAUNDERING CASES FROM FY 2007 THROUGH FY 2011 210 INVESTIGATIONS INITIATED INDICTMENT/INFORMATIONS 195 181 PROSECUTION RECOMMENDATIONS 108 SENTENCED 74.1% 54 INCARCERATION RATE MONTHS TO SERVE SOURCES: http://www.forensicperspectives.com/tags/management-fraud/ http://www.fbi.gov/stats-services/publications/financial-crimes-report-2010-2011 http://www.accountingtoday.com/ato_is- sues/25_12/the-not-so-usual-suspects-61054-1.html?ET=webcpa:e2034:204049a:&st=email&utm_sour ce=editorial&utm_medium=email&utm_campaign=Accounting Today_121311 B Billys Billing billysbilling.com