Home Add to Favorite Contact Submit  
             29 March, 2024
 

    
Category:  Articles » Business » Ethics

 

Punishing Those Who Commit Fraud

Popularity:
         Views: 2196
2008-04-19 02:39:59     
Article by David S Roberts

It is a rare occurrence that someone who commits fraud on a business owner gets punished for their actions. Why? Because 90% of the fraud perpetrated on a small business owner is done so by a close friend, relative, or trusted employee. The small business owner entrusts them with what they appear to know, accounting. Many times the fraud occurs over years of time leading to the statistic which shows that the amount of loss by small businesses is greater than that of all the Enron type corporations combined. One man started his business, trusting that his brother in law would take good care of his finances. He expected the first year to be slow, but when he continued to bring in the money and still seemed behind suspicion didn't enter his mind for a long time that something wasn't right. His brother in law was stealing from him, and even had the audacity to loan him some of his own money when the business "needed" it.

In another case, a man's God-mother, over a period of four years, stole over $900,000 from his business. He decided not to press charges and is still recovering from the loss. In yet another case, a close friend took advantage of being promoted to manager and used company funds for everything from paying for his child's day care to paying off relative's credit cards and vehicles. The owner has been hurt, but is of such a good heart, that pressing charges was a very difficult decision for him to make.

In one county here in Florida, the county commissioner decided to put his friend, previously convicted of stealing money from a private school foundation, in charge of the finances for the county schools. Several million dollars later, he sees his decision as 'unfortunate'. The fact is that as it becomes easier and easier for the fraudster to commit his or her crimes, the conscience is dulled and they tend to repeat their actions elsewhere. In Orlando, the mayor gave a multi-million dollar project to a friend who had been experiencing financial difficulties, and now Orlando has several vacant uncompleted buildings in downtown. The mayor's friend has just recently declared bankruptcy for his business and himself.

No one forced these 'criminals' to do what they did. And no matter how sad the story, the result is the same, they were embezzling or stealing from someone else. Some business owners have insurance that will cover fraud, but the insurance company will insist on pressing charges, or the loss will not be covered. And sadly, some business owners walk away from that in an effort to feel better about not putting a friend or relative through the horrors of prosecution and imprisonment.

Believe it or not, some business owners keep the fraudster on in another capacity so that they can 'repay' what they have taken. As a small business owner, you have to understand that chances are, the fraudster will repeat his actions elsewhere if allowed to go free. If the previous business owner had pressed charges perhaps you would not be facing the loss you have. Do a favor for the NEXT business owner, punish the criminal, for while forgiveness of wrong actions is admirable, there is still the fact of personal responsibility that must be applied to those who have broken the law. Forgive them after the barred door shuts behind them.

David Roberts, CFE, CQBPA, MBA, lives in Kissimmee, Florida with four girls, three dogs, two snakes and one wife. He has been a member of the ACFE for four years and has been studying fraud for longer than that. He is the owner of Homesoon Accounting Services which specializes in Quickbooks Consultations and Fraud Prevention and Detection.

Specialized in: Punishing - Commit Fraud
Print article      Bookmark this page
Related Articles 
Earning Serendipity-Your Gateway To Make Opportunity Matter From Glenn Llopis (Popularity: ): Most of us believe in chance. Most of us accept it's by pure chance that success happens. Those who are successful are simply fortunate. And there is nothing one can do but wait and watch till fortune dawns all on a sudden. Thus we are awed by people around to whom good things always come, the flourishing tribe, the favorites of fortune. And we yearn to be like them, to ...
Ethical Theories in Practice - Do Self Interest and Good Ethics Conflict? (Popularity: ): Egoists would view our actions in any situation as being solely based on our own self interests. If exhibiting good ethics were the means to that end, then they are supported and encouraged. Egoists do not allow for motivations other than the self promotion of the individual or organization.In the corporate world the general belief seems to be that the interests of the corporation take precedence over the application of ...
Sales Incentives Are Unethical (Popularity: ): Free trips to Cancun. Week-long company 'retreats' in Hawai'i. Company-sponsored conventions in Vegas that just happen to take place over a four-day weekend. We've all heard of business perks like these, and likely know the type that regularly attends such lavish functions. They're typically the ones who are getting the top sales numbers at their companies, who sold more of Product A during Quarter 3 than any one has ever ...
An Ideal Worth Ten Thousand Pesos - Fighting For The Right To Party (Popularity: ): One man cannot speak for everyone. Each individual point of view can only be as educated as his experiences, which essentially is the fabric of his beliefs. I myself am a 23 year-old, Philippine-born Canadian woman. I came to Colombia nine months ago to teach English and learn a thing or two about her culture. There are many prejudices surrounding her beauty, among which are kidnappings involving FARC, drug trafficking ...
Business Ethics - Not All Money is Good Money (Popularity: ): Business ethics are sometimes hard to define. Have you ever been offered money to do something that didn't pass the "smell test"? You didn't know why, but you just had a gut feeling that something wasn't right. My advice...don't ignore that feeling. What you do in your business potentially effects more than just you; it effects your staff, your customers and your family.It Can Happen to AnyoneThe cases of Enron ...


Related Business 
Stumpp & Bond, LLP (Popularity: ): Specializing in investment fraud, stock fraud, securities fraud, commodities fraud.
Apeejay Institute Of Hospitality (Popularity: ): We commit to develop talented men and women, through a dynamic learning environment, to enable them to lead our industry into the future. We commit to instill in them timeless values of humility, reliability and integrity & encourage them to grow as individuals and excel as a team. We commit to being a leading educational institute based on our unique culture of hospitality.
Apeejay Institute Of Hospitality (Popularity: ): We commit to develop talented men and women, through a dynamic learning environment, to enable them to lead our industry into the future. We commit to instill in them timeless values of humility, reliability and integrity & encourage them to grow as individuals and excel as a team. We commit to being a leading educational institute based on our unique culture of hospitality.
Securities Fraud Attorney (Popularity: ): Securities fraud is a type of fraud that encourages investors to purchase securities, stocks or other investments under false pretenses. This type of fraud can occur when the companies and agents acting for the companies encourage fraud to occur. Investors typically make a purchase decision based upon false or misconstrued information and often lose large amounts of money.
Fraud-Aid - First aid for fraud victims (Popularity: ): Free online fraud victim assistance and education.
TransUnion LLC. (Popularity: ): If you are concerned about becoming a victim of fraud or identity theft, or suspect that you might be, a Fraud Alert can make it more difficult for someone to get credit in your name. It tells creditors and lenders to follow certain procedures to protect you. Once a Fraud Alert has been placed, you can choose to remove it anytime online.
Pennsylvania Insurance Fraud Prevention Authority (IFPA) (Popularity: ): Works to eliminate fraud in the insurance industry. Site describes types of fraud, and offers consumer information and Pennsylvania statistics.
Sentropi - Online Fraud Prevention and Detection (Popularity: ): Online Fraud prevention and Account Takeover protection for your online business. Sentropi is an online protection from chargebacks, account takeover, Identity theft and online scams. Its unique technology helps you identify and block the people trying to get the information out of your online business for Malicious use. Sentropi is one of the best Online Fraud detection security solution for Web fraud detection and mobile fraud detection.
Association of Certified Fraud Examiners (Popularity: ): Organization dedicated to fighting fraud and white-collar crime.
Birthday Challenge.com (Popularity: ): Devoted to lunatics that celebrate their birthdays by punishing themselves with various extreme athletic endeavors.