Header graphic for print
Cady Bar the Door Insight & Commentary on SEC Enforcement Actions and White Collar Crime

Category Archives: Financial Fraud

Subscribe to Financial Fraud RSS Feed

Executive Assistant Embezzles $1 Million from Hewlett Packard; as yet, SEC Doesn’t Care

Posted in Financial Fraud, Investigations, Non-scienter-based Violations

Surely you remember the SEC’s case against Polycom from this spring.  In it, the SEC alleged that Polycom CEO Andrew Miller had “created hundreds of false expense reports with bogus business descriptions for his personal use of company dollars to pay for meals, entertainment, and gifts.”  It’s hard to tell exactly how much is at… Continue Reading

The SEC Doesn’t Love Secret Perks for Executives

Posted in Accounting Fraud, Administrative Proceedings, Compliance, Financial Fraud, Non-scienter-based Violations, SEC Litigation

If you find yourself as the CEO of a public company, you’ll probably find pluses and minuses.  You’ll have to work really hard, but it can be lucrative, too.  You can get paid a lot of money.  And your company can pay you whatever it wants.  But there is one catch: your company has to… Continue Reading

Securities Enforcement Forum 2014 — Financial Reporting and Accounting Fraud

Posted in Financial Fraud

Today I’m blogging from Securities Enforcement Forum 2014, Bruce Carton’s excellent one-day conference, this year being held at the Four Seasons hotel in Washington, D.C.  The posts will be fairly raw, and certainly not verbatim accounts of what is being said. This post covers the accounting fraud panel. Marty Wilczynski at FTI Consulting moderating. Steve Cohen… Continue Reading

Keeping Internal Investigations Independent and Conflict-Free

Posted in Accounting Fraud, Auditors, Financial Fraud, Investigations

Internal investigations can arise in a number of different ways and can concern a number of different subjects.  Allegations of financial misconduct, employment-related missteps, and breaches of fiduciary duty, among others, can all lead a company in that direction.  Grand jury subpoenas, search warrants, target letters, media reports, whistleblower claims, audit reports, and routine risk… Continue Reading

SEC Sues Auditor for Failing to Audit

Posted in Accounting Fraud, Auditors, Financial Fraud, Microcap Fraud, Non-scienter-based Violations

This world has a lot of problems that require fixing, but I dare say that scratch-off lottery tickets is not one of them.  Still, that is the problem that Lee Cole and Linden Boyne ventured to solve through Electronic Game Card, Inc. (EGMI), a company that tried to develop credit card-sized electronic games that could… Continue Reading

SEC Charges Thornburg Mortgage Executives with Financial Fraud

Posted in Accounting Fraud, Auditors, Financial Fraud, SEC Litigation

Perhaps the SEC, at least for the time being, is finding its groove with respect to financial fraud matters.  For the second time in a two-month span, the Commission has brought a case for fraudulent disclosures regarding the health of a residential loan portfolio.  In January, the SEC filed suit against Florida-based BankAtlantic and its… Continue Reading

SEC Sues BankAtlantic for Mischaracterizing Its Residential Loan Portfolio

Posted in Accounting Fraud, Financial Fraud

A curious aspect of the SEC’s enforcement program in recent years has been the lack of significant accounting fraud cases.  The Enforcement Division has created a number of specialized units, including ones studying structured products and hedge funds, but dismantled its financial fraud task force in 2010, reasoning that accounting fraud was the specialty of… Continue Reading