Divorce Fraud – Hidden Income Find It!
It’s always stunning to me how many families represent almost no taxable income but live in splendor in vast palatial estates in fancy neighborhoods. They often have a matched pair of incredibly expensive German cars in the driveway. Their kids go to private schools and the family passports are stamped from a variety of exotic getaways. Then a separation prior to divorce occurs. The in-spouse (controller of the business) represents to the family law courts almost no income. The out-spouse is enraged, but can’t prove the family income because they have limited records. Doomed to a life of despair among…
City of Stockton Bankruptcy Approved
What does bankruptcy approval for the City of Stockton mean for other California cities? Perhaps it paves the way for other California cities (such as the City of San Bernardino who filed for bankruptcy protection in August) to do the same. According to Cal Watchdog, Your Eyes on California Government, the City of Stockton owes more in pensions than it can pay, and through bankruptcy, it can modify pension contracts, relieving them of some of their obligations. Will having the ability to modify pension contracts be incentive for other struggling California cities to file for bankruptcy? Maybe, but maybe not…….
Municipal Fraud Prevention-West Linn, Part 3 of 3
Municipal Fraud Prevention Part 3 of 3 – Have checks and balances, and routinely ask yourself if loopholes exist – Cheap comes out expensive, hire external auditors, forensic accountants, and certified fraud examiners – Turnover in your finance department isn’t always a bad thing- in some cases, an extensive level of familiarity breeds corruption – “Crime don’t pay” Ok, ok, so the last one was pretty facetious but some individuals not only lack fiscal ethics, but are actually in need of professional help- but I’m no shrink. Under a new chief financial officer and staff, the City of West Linn…
Municipal Fraud Prevention- West Linn, Part 2 of 3
Municipal Fraud Prevention- West Linn Part 2 of 3 The current West Linn Finance Department (after the 1.42 million dollar scandal), much like a Phoenix rising from the ashes, crafted a new mission statement. The forward moving department proclaims proudly “being good stewards of taxpayers’ monies is the Finance Department’s main focus, but that alone is not enough. We strive to develop healthy partnerships with the community; we strive to be transparent with the City finances; and we always look for cost efficiencies in all City operations.” Nowadays the city has a fraud hotline and holds regular audit committee meetings….
Municipal Fraud- West Linn, Part 1 of 3
Municipal Fraud- West Linn Part 1 of 3 Municipal fraud is all around us explains Richard Seals CFE, CPA, CMA in his recent article: From First to Worst in Fraud-Magazine. http://www.fraud-magazine.com/article.aspx?id=4294977156 West Linn, Oregon’s former city finance director, Elma Magkamit, was a compulsive gambler. She also lied about being both a college graduate and a CPA. The former director had unprecedented control over the city’s finances, and for almost every month between 2000-2005, wrote herself a check for $30,000 (on average) from the city’s accounts payable voided check stock. This ended up being a 1.42 million dollar embezzlement scheme according…
School District Fraud – Santa Clara
As moneys become tight and budgets continue to be squeezed, financial vigilance must be increased. Anti-fraud controls must be developed. Systems must continue to be reviewed and analyzed to reduce the chance of fraud. This problem at the Santa Clara Unified School District may have been averted with proper internal oversight. The link will also link to the actual audit report!