Embedded Files
Below you'll find various articles and resources on all things fraud. I try to update this page periodically when a news story breaks and catches my eye. With each story, I'll share my professional expertise as a CPA and Certified Fraud Examiner on techniques that could have been implemented to prevent/deter the fraud. If you find the takeaways useful and want a more customized training for your organization, let's connect. I use publicly-available cases to provide real-life examples, including an Excel-based case study where participants can find the fraud themselves! If you want more detailed case studies, I can connect you with my former employer; the team has hundreds of private cases and dozens of case studies, including the "real fake documents" identified in their investigations.
July 22, 2025 - MEDC Grant Issue
July 22, 2025 - MEDC Grant Issue
The key recommendation: Vet your recipients for the appearance of conflicts of interest.
Bonus recommendation: If you want to verify news reports yourself, there are lots of ways to dig into publicly-available information.
This one is too early for me to give a funny or strong opinion, but since it's right here in Michigan, wanted to share. The MEDC, which is a quasi-public agency, awards grants to non-profits. One of these grants, $20M to Global Link International, is under investigation and tied to a lot of politics. I'd link the original Detroit News article quoted by the link I provide, but it's paywalled. Essentially, the grantee doesn't appear to have been formed until after it won the award. In addition, the CEO of the grantee received a $550,000 annual salary, and also happened to be on an MEDC committee at the time. No charges have been filed (and again, it's early in the process). This doesn't look good, and at the very least, a policy/prohibition on grants that even appear to be a conflict of interest would be a good thing for your organization to have if you issue grants.
As to the the bonus tip, you can find a lot of info about nonprofits yourself if you wanted to dig into details for any reason. For example, you can look up their IRS filings here. I found that their exempt status was effective July 11, 2022; the grant was earmarked on July 1. You can find the salary of the CEO through that same lookup. It's fascinating what's available!
https://michiganadvance.com/2025/07/14/beydoun-grant-scandal-could-lead-to-needed-state-economic-development-reforms/
April 14, 2025 - Hey Dude, Not Cool
April 14, 2025 - Hey Dude, Not Cool
The key recommendation: Fraud escalates; stop it early.
Bonus recommendation: If you steal $570K, you can afford better shoes than Hey Dudes. Actually, everyone can. They're a stain on society.
Not a lot of details on how she got away with this fraud, other than using credit cards. Make sure your organization is reviewing credit card activity!!! But to my key recommendation, the article lays out the amounts by year nicely. The fraud grew from $40K in 2019, to $90K, then $100K, then $125K, then $123K before being caught at some point in 2024 at $90K. People will test the waters first with smaller frauds, then get more brazen as time goes on (plus they grow into their lifestyles). The earlier you are able to catch a fraud, the better off you will be!
https://www.wilx.com/2025/04/13/woman-accused-embezzling-more-than-half-million-dollars-church/
February 10, 2025 - This HOA President is a HOE (allegedly)
February 10, 2025 - This HOA President is a HOE (allegedly)
The key recommendation: Friends don't let friends be board members (unless they don't want to actually be supervised).
Bonus recommendation: HOAs tend to be a racket anyways.
This dude is on the run after stealing $1M from his condo association. He put his friends on the board that was supposed to be overseeing his actions. Funnily enough, I am learning all about agency theory in my accounting courses and how boards can help monitor agents (such as a CEO) to prevent them from taking advantage of their principal (the firm) due to different incentives. Theory can get very boring and wordy, but this simple case study is a perfect example.
If I lived in an HOA, I would do my best to be on the board with access to review financial information, and encourage you to do the same. A little bit of actual review, especially in those earlier years, would have gone a long way in reducing fraud here!
November 18, 2024 - If you're a celeb reading this blog, protect your money (or donate it to me)! Also, happy Fraud Week!
November 18, 2024 - If you're a celeb reading this blog, protect your money (or donate it to me)! Also, happy Fraud Week!
The key recommendation: If you have someone managing your money, make sure you're watching it too. You don't have to be rich, like Dennis Rodman, Ricky Williams, or Shohei Ohtani. Maybe it's your company and you have someone who does your books for you. Maybe you run a department and are responsible for the budget. Maybe your aging parents have a rainy day fund for which your twice-removed cousin is still the executor on the trust.
Bonus recommendation: If you're working for these super famous/wealthy people, maybe just enjoy the ride instead of taking more.
This is old news, but I've been watching an HBO documentary called "Rich and Shameless". They had an episode on the money manager (same person) for Ricky Williams and Dennis Rodman, who took advantage of that position and funded a lavish lifestyle. In more recent news, Shohei Ohtani's interpreter was convicted of embezzling around $17M for funding a gambling addiction.
So what should you take away from this story? Trust, but verify. You might have a trustworthy person in charge of your/your company's funds, but you need to have controls in place. This can be as simple as checking balances/transactions yourself. If you can't seem to find the time, find an independent third party who can (and I'm talking more than just a standard financial statement audit). I always thought a cool public accounting practice would be to be the "forensic examiner" of celebrities' funds. Someone else can manage the money, but give me read-only access to your bank/investment accounts and I will verify your manager (or interpreter) isn't robbing you blind.
September 30, 2024 - Surprise, Surprise, Animal Abuser Also Steals
September 30, 2024 - Surprise, Surprise, Animal Abuser Also Steals
The key recommendation: When doing business with another entity (even if that means donating to a charitable organization), make sure they're providing the services or goods that you're paying them for!
Bonus recommendation: Don't steal from your mom. And don't be an animal abuser.
As a dog dad, I'm really holding back on some personal thoughts about this person. However, I'll keep it short and sweet and to the fraud point. She "allegedly" used a non-profit status to take $50K in supplies and cash. On top of that, she stole over $160K from her mom, which doesn't even include the credit card debt she also amassed in her mom's name, for personal expenses.
So what should you take away from this story? Vet (animal pun intended) your vendors if you're a business. Getting their I-9 is a good first step, but doesn't mean your diligence is done. Make sure they have a website. Look for reviews online. If it's a non-profit, check them on Guidestar. If you're spending a substantial amount of money with a vendor, consider putting in vendor audit clauses or mandated vendor site visits into your contract. I imagine most of the donations to this lady were from individuals with big compassion for dogs, but imagine if it turned out that your company's "charitable organization of the month" was something like this. You'd probably have a lot fewer employees willing to help out.
September 6, 2024 - The Personal Assistant
September 6, 2024 - The Personal Assistant
The key recommendation: As a business owner or executive not involved in the day-to-day finances, pick 10 checks a month and review the payee to make sure they're reasonable. Same goes for credit card transactions and other banking activity. Make sure your finance employees know you're doing this.
Bonus recommendation: If you're going to get arrested for embezzlement, look proudly into the camera. You got away with it for so long, might as well have some pride!
A classic tale of using a company credit card and bank access for personal use (allegedly. Throwing that in there as a disclaimer. Innocent until proven guilty.) If you're going to grant others in your organization signatory authority (or even if you're a large organization with many signatories), you need to be reviewing bank activity regularly. I'm not saying you should look at every transaction, as nobody has that kind of time, but at least look at a sample. For example, let's say you're a real estate company like this one. If you see payments to Louis Vuitton, you may want to take a closer look. While that may sound simple, it is amazing how many frauds of this nature occur just like it! Note that this article doesn't indicate how the funds were spent other than for personal use, but luxury goods are often tied to these schemes. Why not buy a $2,000 bag when it's not your money?
Page updated
Google Sites
Report abuse