Fraud: Red Flags, Symptoms, and Lessons Learned

Running head: FRAUD 1
Fraud
Name:
Institution:
Date:

FRAUD 2
Facts of the case summary
On March 4th 2010, Mr. Thow pled guilty of twenty counts of fraud charges. The
former investment adviser was facing the charges after bilking his clients out of millions of
dollars. He persuaded his clients to invest in non existent schemes that included shares in a
Jamaican Bank and an initial public offer. He also advised his clients to borrow money,
mortgage their homes or liquidate their mutual investment. All these investors paid money to
Thow personally (Coenen, 2008,p.56). The security regulations commission ruled that Thow
was culpable of defrauding millions from hundreds of people when he was a senior vice
president of Berkshire Investment Group Inc.
Red flags and symptoms in a fraud
That's just the flag "instability in your personal life" - that's something you never
think about. It also sounds like the idea that the criminal past is far from determining a
fraudster. Close attention should be paid to persons who work in the most unusual way for
longer than the prescribed ones. For example people who have a weak personal moral code or
who do not consider themselves obliged to comply with internal corporate and other rules
("us the law not written "). Most of all, tend to justify the act of fraud. This was also a case
with Mr. Thow. In the risk group, employees who reluctantly disclose even controlled
documents to managers, not to mention those who without enthusiasm share their experience
with specialists to fulfill their job duties and who are not satisfied with their job, or suddenly
goes on vacation.
The expert in sphere of counteraction to swindle and on the following is accented.
Despite the fact that "greed is greed" , the difference in the fraud of superiors who perform