Purell magazine and publishing house started construction of the office complex, Richard Green, who oversaw many construction projects was shown a series of invoices for expenses on the project. Several of the invoices had his signature forged. All the forgeries were from the Painting division controlled by James Small. It was discovered that Small launched a scheme of crafting false invoices. He took a copy of the invoice and used his home computer to create a replica and record slightly different hours for the trade workers. He would deliver the false invoices with the legitimate ones for the VP's signature and then return for them in a week. He was well-liked and had worked there for 15 years. He would forge the contractor’s name on the back of the cheques and endorse it to his name then deposit it. He started small at $1,200 and escalated to his largest invoice of $66,000. Joyce Williams, a secretary at the office was on Small’s bowling team, but she was also his neighbor. She took notice when Small’s behavior became somewhat extravagant. He showed up in his new Mercedes (one of five cars he bought) and talked about a new $18,000 boat. He also invested in real estate and purchased a second home costing $416,000. Joyce asked Small if he won the lottery. He explained that his father-in-law had recently died and left a substantial inheritance to his wife and him. Small’s father-in-law was quite alive, but no one ever bothered to check out the claim. After four years without a vacation, Small took what he considered a well-deserved trip to Las Vegas Upon his return, Small found himself confronted by the auditor, the vice president, and two attorneys from the district attorney’s office. He readily admitted guilt. “He said he had expected to get caught,” Small claimed there was no one else involved, and the sum total of his fraud was about $400,000.” But based on your review, you found that Small had forged endorsements on more than fifty checks in those four years, totaling $1,057,000. Determine the type of fraud committed and describe with examples the symptoms of fraud that are evident in the case study. Identify and describe, using examples, the elements of the Purell’s magazine fraud.
Purell magazine and publishing house started construction of the office complex, Richard Green, who oversaw many construction projects was shown a series of invoices for expenses on the project. Several of the invoices had his signature forged. All the forgeries were from the Painting division controlled by James Small. It was discovered that Small launched a scheme of crafting false invoices. He took a copy of the invoice and used his home computer to create a replica and record slightly different hours for the trade workers. He would deliver the false invoices with the legitimate ones for the VP's signature and then return for them in a week. He was well-liked and had worked there for 15 years. He would forge the contractor’s name on the back of the cheques and endorse it to his name then deposit it. He started small at $1,200 and escalated to his largest invoice of $66,000. Joyce Williams, a secretary at the office was on Small’s bowling team, but she was also his neighbor. She took notice when Small’s behavior became somewhat extravagant. He showed up in his new Mercedes (one of five cars he bought) and talked about a new $18,000 boat. He also invested in real estate and purchased a second home costing $416,000.
Joyce asked Small if he won the lottery. He explained that his father-in-law had recently died and left a substantial inheritance to his wife and him. Small’s father-in-law was quite alive, but no one ever bothered to check out the claim. After four years without a vacation, Small took what he considered a well-deserved trip to Las Vegas Upon his return, Small found himself confronted by the auditor, the vice president, and two attorneys from the district attorney’s office. He readily admitted guilt. “He said he had expected to get caught,” Small claimed there was no one else involved, and the sum total of his fraud was about $400,000.” But based on your review, you found that Small had forged endorsements on more than fifty checks in those four years, totaling $1,057,000.
- Determine the type of fraud committed and describe with examples the symptoms of fraud that are evident in the case study.
- Identify and describe, using examples, the elements of the Purell’s magazine fraud.
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