Good Risk Governance Pays

Good Risk Governance Pays

Investment Best Practices | Risk Management | Valuation

Category Archives: Fraud

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Dr. Susan Mangiero Earns Certified Fraud Examiner (CFE) Credential at a Time When Global Fraud is Estimated at $3.7 Trillion Per Year

Posted in Fiduciary Liability, Fraud, Susan Mangiero
Dr. Susan Mangiero, financial expert and author, has earned the Certified Fraud Examiner (CFE) credential from the Association of Certified Fraud Examiners (ACFE), having successfully met the ACFE’s character, experience and education requirements for the CFE credential, and having demonstrated knowledge in four areas critical to the fight against fraud: Fraudulent Financial Transactions, Fraud Prevention… Continue Reading

Marshmallows and Financial Fraud

Posted in Compliance, Ethics, Fraud, Governance
Long deemed to be a seminal assessment of delayed gratification, the Marshmallow Test was designed by then Stanford University psychology professor Walter Mischel (now at Columbia University) and remains popular today. In a typical experiment, youngsters are told that they can have one sweet now or wait awhile and receive two as compensation for their… Continue Reading

FINRA and Financial Fraud Sanctions

Posted in FINRA, Fraud
In its just-released “Sanctions Guidelines,” the Financial Industry Regulatory Authority (“FINRA”) makes no secret of its goal to design disciplinary actions “that are meaningful and significant enough to prevent and discourage future misconduct.” Repeat offenders are unlikely to get away with a mere slap of the wrist, particularly if their actions demonstrate “a reckless disregard… Continue Reading

Financial Fraud At Ball State University

Posted in Broker Dealers, Compliance, Ethics, Financial Reporting, Fraud, Key Person, Trading
According to “Ex-prosecutor helps Ball State avert future fraud” (Indianapolis Business Journal, December 7, 2014), the university has hired a team to implement safeguards in the aftermath of losing more than $13 million in several investment scams. Using a reputable brokerage firm, establishing a third party managed hotline for whistleblowers and ensuring custodial best practices for securities are some… Continue Reading

Article About Foreign Corrupt Practices Act (FCPA) and Institutional Investors

Posted in Compliance, Disclosure and Transparency, Ethics, Financial Reporting, Fraud, International Investing, Litigation, Regulation, Risk Management
When I was asked to co-author something for The Corporate Counselor, I suggested an article about the Foreign Corrupt Practices Act (“FCPA”) and its implications for institutional investors and their counsel. I had not seen much on the subject yet knew that it was starting to percolate as an important topic for several reasons. First, it… Continue Reading

SEC Charges That Muni Bond Investers Were Defrauded

Posted in Disclosure and Transparency, Financial Reporting, Fraud, Municipal Bonds
  According to its July 29, 2013 SEC News Digest, the U.S. Securities and Exchange Commission (“SEC”) charged the municipal bond underwriter, City Securities Corporation (“City Securities”), and a debt securities issuer, Indiana-based West Clark Community Schools (“West Clark”), with “falsely stating to bond investors that the school district had been properly providing annual financial… Continue Reading

International Network for Financial Litigation Forms to Fight Fraud

Posted in Arbitration, Financial Expert, Fraud, Litigation
According to news accounts published on its website, the International Network for Financial Litigation (“INFL”) boasts twenty-two firms as members. Their goal is to pool information about global rules and regulations, business practices, current litigation and other legal developments as a way to help clients. See “22 Firms Form International Network to Fight Fraud” by… Continue Reading

SEC Examination Priorities for 2013

Posted in Compliance, Fraud, Regulation
In case you missed it, the U.S. Securities and Exchange Commission (“SEC”), Office of Compliance Inspections and Examinations has released its “Examination Priorities for 2013” (February 21, 2013). Areas of particular focus include: Fraud Detection and Prevention; Corporate Governance and Enterprise Risk Management (“ERM”); Conflicts of Interest; and Technology. As a risk management and fiduciary… Continue Reading

ERISA Pension Plans: Due Diligence for Hedge Funds and Private Equity Funds

Posted in Compliance, ERISA, Fees, Financial Expert, Fraud, Governance, Hedge Fund, Litigation, Pension, Private Equity, Risk Management, Valuation
Join me on May 1, 2012 for a timely and interesting program about alternative investment fund due diligence and other considerations for ERISA plan sponsors, their counsel and consultants. Click here for more information. This CLE webinar will provide ERISA and asset management counsel with a review of effective due diligence practices by institutional investors. Best practices… Continue Reading

$200 Million Settlement Paid Relating to Mortgage Backed Security Valuations

Posted in Broker Dealers, Compliance, Fraud, Mutual Funds, Regulation, Valuation
Investors rely on the net asset values (“NAVs”) provided to them as a way to make all sorts of financial decisions such as asset allocation, rebalancing, hedging and possibly exiting a particular money pool. In a recent case, the bear invaded the tent, eventually denying investors for several funds any illusion about security related to… Continue Reading

Financial Fraud, Madoff and Divorce Settlements

Posted in Fraud
Peter Lattman describes what could be a potentially huge – and wholly unexpected – fallout from the Bernie Madoff fraud. According to “Madoff Victim Seeks Divorce Do-Over” (New York Times, May 30, 2011), jurists will soon have an opportunity to decide the fate of a woman who thought the official end of her marriage was… Continue Reading