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Bill Henck: Inside the IRS

Bill Henck: Inside the IRS | Global Corruption | Scoop.it
 I have personally witnessed improper giveaways of billions of dollars to taxpayers with inside access at the agency, bullying of elderly taxpayers, the cover-up of managerial embezzlement and misappropriation of thousands of dollars in government funds, and a retaliatory audit. I have also heard credible accounts of, among other things, further improper giveaways, blatant sexual harassment, and anti-Semitism. All of these matters have been swept under the rug. ...
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Global Corruption
Corruption is a particularly viral form of cancer. It is caught here and there but it reappears somewhere else as soon as vigilance is relaxed. It is not eliminated, just driven underground. The corrupt merely suspend their operations temporarily. It lingers, hovering always in the background for its next opportunity.
- Gerald E. Caiden
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Corruption Eruption E-Magazine > > > "On Planet Corruption every day a new Eruption"

Corruption Eruption E-Magazine >   >  >            "On Planet Corruption every day a new Eruption" | Global Corruption | Scoop.it

*** Key findings from PwC's 17th Annual Global Economic Crime Survey

*** Cyber crime: the Achilles heel of the business world
*** Ukraine’s $19-billion question of debt and corruption

*** FBI announces campaign to crack down on public corruption

*** Ukraine’s $19-billion question of debt and corruption

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Seniors Scammed for $1.1 Million in Online Romance Con

Seniors Scammed for $1.1 Million in Online Romance Con | Global Corruption | Scoop.it

A Maryland man romanced seniors he met online and then allegedly bilked them of $1.1 million to help him, his relatives and his business ventures...

Online dating has a dark side. And it proved to be costly to elderly victims who were looking for love on popular dating sites, including Match.com and Chemistry.com, authorities said.

A Maryland man was accused of targeting seniors who decided to cast a wider web in their search for romance. He allegedly swindled them out of more than $1.1 million in a so-called romance scam.

Krist Koranteng, age 32, of Maryland was charged with conspiracy, mail fraud, wire fraud and money laundering, according to the U.S. Attorney's office in Maryland and theOhio Attorney General's office, which helped with the case.

 

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DeKalb County commissioner resigns amid probe

DeKalb County commissioner resigns amid probe | Global Corruption | Scoop.it

The federal investigation followed Atlanta Journal-Constitution stories in March revealing that Boyer had rung up thousands of dollars in personal expenses with her county purchasing card. Her purchases included airline tickets, a ski resort booking, rental cars and personal cell phone bills.

The AJC has continued to examine Boyer’s use of taxpayers’ money and in recent weeks has identified other questionable spending totaling more than $90,000.

The newspaper has been seeking information about those expenses, but Boyer has repeatedly refused to talk and did not return messages Monday.

She told the TV station on Monday that she had been thinking about resigning for some time. “This is the moment,” she said.

Boyer also has been facing scrutiny on two other fronts. The AJC stories and related coverage by Channel 2 triggered a county spending audit, which started July 7 and will examine 10 years of purchase-card expenditures. The stories also prompted an investigation by the county ethics board, which has scheduled a preliminary hearing with Boyer in mid-September.

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Pyramid scheme investigation moves to Canada

Pyramid scheme investigation moves to Canada | Global Corruption | Scoop.it

Investigators tracking down the assets of the suspected pyramid scheme, Banners Broker, have successfully moved to Canada in a bid to recover money for investors in the internet marketing product.

They have obtained an order to take control of anything owned by Banners Broker International Ltd (BBIL) and compel its Canadian-based operators to give evidence as to the whereabouts of the company’s assets.

Papers filed with the court have thrown fresh light on the growth of the company; the manner in which it moved its assets; and the ongoing efforts by investors to chase down their funds.

They have revealed the nature of its business in Ireland and this country’s place in the global operation.

Affidavits filed with the court described a truly modern phenomenon.

“An online cloud-based business, BBIL’s operations were international in scope and it appears that its physical presence in any one jurisdiction was negligible”.

Irish investors were among the first to get sucked into the scheme.

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Australian Competition and Consumer Commission takes alleged pyramid scheme Lyoness to court

Australian Competition and Consumer Commission takes alleged pyramid scheme Lyoness to court | Global Corruption | Scoop.it

What is a pyramid scheme?

Pyramid schemes are illegal schemes that promise big returns on your money. They rely on the recruitment of new members so the people at higher levels of the pyramid earn money. The problem is, there needs to be an endless supply of members for the scheme to keep operating.

There are different types of pyramid schemes, but they all have one thing in common. The main source of income is the recruitment of members, rather than the sale of products or services. Usually, new members will pay money to join and they receive payments depending on the number of members they recruit. Sometimes there are products or services that are sold as part of the scheme, but they tend to be worth very little or they are not related to the returns that are promised.

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USDOJ: Manufacturer of Spinal Devices and Surgeon to Pay United States $2.6 Million to Settle Alleged Kickback Scheme

USDOJ: Manufacturer of Spinal Devices and Surgeon to Pay United States $2.6 Million to Settle Alleged Kickback Scheme | Global Corruption | Scoop.it

Omni Surgical L.P., doing business as Spine 360, a manufacturer of devices used in spinal surgery, and Dr. Jamie Gottlieb, an Indiana spinal surgeon, have agreed to pay $2.6 million to the United States to settle allegations that Spine 360 paid illegal kickbacks to Gottlieb to induce him to use the company’s products.  Spine 360 is based in Austin, Texas.

 

“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources, because such relationships can alter a physician’s judgment about the patient's true health care needs and drive up health care costs for everybody,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division.   “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”

 

The Anti-Kickback Statute restricts the financial relationships that medical device manufacturers may have with doctors who use or prescribe their products.  It is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based upon the best interests of the patient.

 

The settlement announced today involved payments that Spine 360 made between 2007 and 2009 to an entity controlled by Gottlieb.  Although the payments were purportedly made pursuant to a series of intellectual property agreements, the United States contended that those agreements were shams, and that the payments were intended to compensate Gottlieb for using Spine 360 products in his surgeries.

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What does a corrupt politician owe D.C. residents?

What does a corrupt politician owe D.C. residents? | Global Corruption | Scoop.it

Smith admitted that he conspired with Thompson to receive more than $140,000 in unreported campaign contributions; said he was involved in the illegal funding scheme and discussed the funding with Thompson; and acknowledged that he coordinated with others to hide the source and nature of the funds by channeling them from Thompson’s company through a charter school and a company controlled by Smith’s de facto campaign manager and close associate, identified as Campaign Manager A.

Court documents also show that Smith admitted he knew that in addition to the $140,000, Thompson further illegally funded Smith’s campaign through contributions he made in others’ names.

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Bob McDonnell: Is once popular Virginia governor headed for prison?

Bob McDonnell: Is once popular Virginia governor headed for prison? | Global Corruption | Scoop.it
Former Virginia governor Bob McDonnell and his wife Maureen face federal charges involving bribery and conspiracy for accepting lavish gifts from the promoter of a dietary supplement. The case goes to the jury next Tuesday.
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USA: Georgia Democrats to press for stronger whistleblower protections next year

USA:  Georgia Democrats to press for stronger whistleblower protections next year | Global Corruption | Scoop.it

“We simply cannot restore citizen trust and confidence in government if we seek to hide from our actions or suppress information,” said Henson, a Tucker Democrat. “Employees cannot fear retaliation if they bring to light information of wrongdoing...

Under the proposal, public employees would be required to disclose a violation to their superior and at least one law enforcement agency. If no action is taken within 60 days, and there’s a reasonable belief that the violation is still ongoing, the employee could disclose information to the media or others and still be protected under the whistleblower law.

A second prong seeks to give reporters added protection from being compelled to testify in some court proceedings. It would tighten Georgia’s shield law to block courts from requiring reporters to disclose sources except in limited circumstances, such as if the details involved an ongoing crime or fraud.

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Former Crystal Beach fire chief charged with felony theft

Former Crystal Beach fire chief charged with felony theft | Global Corruption | Scoop.it

 David Loop, the former fire chief for the Crystal Beach Volunteer Fire Department, was indicated Friday on two felony theft charges.

Loop, who was ousted as chief in January, is accused of stealing as much as $100,000 from the volunteer fire department over a four-year period, according to the felony indictments. 

 

Last fall a member of the Crystal Beach Volunteer Fire Department's Board of Directors went to the public integrity unit of the Galveston County District Attorney's Office after the board found thousands of dollars missing from department's bank account and charges on the fire department's credit card. 

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MACROCORRUPTION: Who's Next as the Top Cop at the Global Fund?

Just recently, Martin O'Malley, the third Inspector General in three years at the Global Fund to Fight AIDS, Tuberculosis and Malaria, announced he would step down in December, cutting short a six-year commitment to the quasi-private, intergovernment...

 

The OIG at the Global Fund, which is responsible for audits of grants and projects and investigations of fraud and corruption, is especially ill-fated because... It is the unhappy task of the Inspector General to inform the Global Fund board and management about where things have gone wrong. For John Parsons, the situation was unmanageable. Half of the board of directors, to which he reported, consisted of delegates from beneficiary countries where corruption tended to contaminate public health programs. They were not going to support an Inspector General who disrupted the status quo.

 

In fact, neither management nor the board was going to rock the boat. After touting itself for years as the answer to corruption in the international aid industry, the Global Fund cannot entertain the possibility that its new model of aid efficiency through private organizations may not be any better than the old one through governments.

Jim Wesberry's insight:

This is a classic case of the cover up of corruption by the very persons who should be fighting it. It is an incredible tale that has only been told by The Accountability Project.

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Global Anti-Corruption Legislation

Global Anti-Corruption Legislation | Global Corruption | Scoop.it
Global Anti-Corruption Legislation

Via Andre JACQUEMET
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D Michael Brown's curator insight, August 29, 9:50 AM

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EY Global Fraud Survey: Depressing but not Surprising

EY Global Fraud Survey: Depressing but not Surprising | Global Corruption | Scoop.it

The EY 12th Global Fraud Survey: Depressing yes, surprising, no...

 

Top two reasons to be “depressed”

 

1. “Rising Economical Risks and Slipping Ethical Standards.” The rising search for new business opportunities in lucrative yet low integrity markets leads to “slipping ethical standards.” In those areas, where there are weak state institutions (hello again, Matt Ellis), infinite demands for “small bribes” (see Transparency International Report), yet plenty of short-term business up for grabs, a “win-big, lose-big” mentality takes hold at the front line. Where you have financial incentives indexed to those wins: Peril for all.

2. “Weak controls, Failure to Follow Through on Tone from the Top.” I am with Ms. Knezevich all the way on her conclusion, that “inauthentic leadership that talks the anti-bribery talk but then doesn’t back it up with a solid program for employees is creating a very dangerous situation.” I remember exchanging perspectives with a colleague on anti-bribery programs, and asked him what his leadership was providing (he worked in a public company). He shared with me that his CEO told him “win the business but keep us off the front page of the Wall Street Journal.” Mixed message?

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Corruption Concerns Taint Burgeoning China-Africa Trade

Corruption Concerns Taint Burgeoning China-Africa Trade | Global Corruption | Scoop.it

At a summit on Africa hosted by the Obama Administration in August in Washington, corruption was high on the agenda. And, there were complaints that Beijing is not adhering to international anti-corruption conventions as it secures African business.

Meanwhile, U.S. corporations are bound by the U.S. Foreign Corrupt Practices Act, and also, the United Nations Convention Against Corruption (UNCAC). It is a crime for a U.S. entity to bribe or otherwise improperly gain business overseas. Because of that, the U.S. - Chinese economic competition in Africa can be described as an uneven playing field, analysts say.

“China is observing the United States and increasingly, many other wealthy western nations in the OECD [Organization for Economic Cooperation and Development] such as Germany enforce their anti-bribery laws,” said anti-corruption specialist Andrew Spalding at the University of Richmond. “China knows that this gives its own companies a competitive advantage. Accordingly, the more the west enforces anti-bribery laws, the greater the incentive for China not to enforce.”  

Spalding said that “China has passed a foreign bribery prohibition to satisfy its requirements under the UNCAC, but UNCAC does not require enforcement. It would seem [that] neither cultural or economic factors, nor its membership in UNCAC, will pressure China to address foreign corruption.”

But China has a fertile corruption field in Africa. The continent has long suffered from rampant corruption.

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DeKalb County, Georgia Corruption: “Public corruption is an equal-opportunity vice”

DeKalb County, Georgia Corruption: “Public corruption is an equal-opportunity vice” | Global Corruption | Scoop.it

The white girl outdid them all...

In recent years it has become accepted fact that DeKalb County is a mess. And within that narrative is a subplot saying much of the mess is due to corruption among some black politicians and government officials.

Now, it turns out that Commissioner Elaine Boyer, the board’s sole Republican, a white woman from North DeKalb and a good-government watchdog, was stealing money faster than a busy smash-and-grab crew.

Boyer, in office for two decades and seemingly an effective legislator, admitted last week to illegally funneling almost $80,000 to an evangelist posing as a consultant, who then kicked back some $60,000 to her. The money came from a $267,000-a-year office fund each commissioner controls. The kickbacks occurred at a time when Boyer’s family was experiencing financial difficulties. But, then again, those committing larceny usually have explanations.

The list of black pols or officials tinged with or splattered by charges of corruption in DeKalb has been growing.

Commissioner Stan Watson’s name came up in a corruption trial in South Carolina this year, when a construction exec testified two businessmen asked him to bribe the DeKalb pol to get some sewer work. The judge later tossed the allegations involving Watson, and he said he was vindicated.

Former School Superintendent Crawford Lewis was charged with racketeering and theft in an investigation that shook the school district to its foundation. He pleaded guilty to misdemeanor obstruction of justice charges.

Suspended county CEO Burrell Ellis is accused of shaking down contractors for campaign donations...

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New guilty plea in ‘gifting tables’ scheme

New guilty plea in ‘gifting tables’ scheme | Global Corruption | Scoop.it

A Guilford woman has plead guilty to a federal tax charge related to her participation in an illegal pyramid scheme known as "Gifting Tables." 77-year-old Eileen Brennan pleaded guilty to one count of willful failure to file a return, supply information or pay tax, a charge that carries a maximum term of imprisonment of one year…

 

According to court documents and statements made in court, a Gifting Table is configured as a four-level pyramid, with eight participants assigned to the bottom row, four participants assigned to the third row, two participants assigned to the second row, and one participant assigned to the top row. The top row participant is referred to as the “Dessert,” the two participants on the second row as “Entrees,” the four participants on the third row as “Soup and Salads,” and the eight participants on the bottom row as “Appetizers.” To join a Gifting Table, new participants were required to pay $5,000, typically cash, to the Dessert, that is, the participant occupying the top position on the pyramid. The $5,000 payment, which was fraudulently characterized as a gift, secured the new participant a position as an Appetizer on the bottom row. Participants progressed from the bottom row of the pyramid by recruiting additional people to join the Gifting Table.

When eight new participants joined a Gifting Table, each having made a $5,000 “gift” to the person occupying the Dessert position at the top of the pyramid, the Dessert left the Gifting Table and kept the $40,000 paid by the eight new participants. That particular Gifting Table was then split, with the two participants occupying the Entree position on the second row moving to the top position (Dessert) of two new pyramids. The other incumbent members of the Gifting Table moved up a row on one of the two newly-formed pyramids, and the search for 16 new participants began. The success of the Gifting Tables depended on new participants joining and making the $5,000 “gift.”
In 2008, 2009 and 2010, Brennan received $100,000 while participating in the Gifting Tables scheme. Even though she had been advised by an attorney that the money was taxable income and not a gift, she failed to pay federal income taxes on the money she received.

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How to spot the red flags of a Ponzi or pyramid scheme

How to spot the red flags of a Ponzi or pyramid scheme | Global Corruption | Scoop.it

Watch for red flags: 

These include unsolicited calls/emails, the promise of high returns with little risk, high-pressure sales tactics, suggestions that a company is about to be listed on an exchange and encouragement to recruit family and friends.

One of the first things investors should do is check to see if the soliciting person or company is registered on a national data base, said Sylvain Théberge of Quebec’s Autorité des marchés financiers.

“It’s not 100 per cent protection but, if you have that reflex to call us, you will increase that level of protection,” he said in an interview.

The challenge with Ponzi and pyramid schemes is that fraudsters like Jones and Madoff exploited the trust they built over a long period of time with the victims.

Both schemes fool investors with the promise of extraordinary returns, but are only self-sustaining as long as new money comes in to pay for outflows. Ponzis have a ring leader who promises a high level of return on an investment but merely transfers funds from one client to another. Pyramids provide returns based on recruiting new participants.

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Infomercial king and his alleged pyramid scheme

Infomercial king and his alleged pyramid scheme | Global Corruption | Scoop.it

Infomercial king Kevin Trudeau, who made millions off books and products and is now behind bars, also masterminded a pyramid scheme...

 

Infamous infomercial pitchman Kevin Trudeau—once referred to as "deceitful to the core" by a federal judge—in March was sent behind bars for 10 years.He failed to pay a $37 million judgment from the Federal Trade Commission for false health and diet claims in his book, "The Weight Loss Cure 'They' Don't Want you to Know About."

But convicted fraudster Trudeau wasn't just an author-pitchman. He had another scheme brewing—while he was in court facing book-related charges,according to investigators. While the FTC case on the book's claims was underway in 2007, Trudeau was in the middle of courting investors for the "Global Information Network," or GIN, investigators say.

GIN essentially was a $110 million pyramid scheme with more than 35,000 members, which the FTC's Jonathan Cohen tells CNBC was "largely for Trudeau's own benefit," and used to conceal millions of dollars in assets from the government.

Investors paid for access to expert financial advice and promises of wealth that never materialized, according to investigators. Now as Trudeau, 51, sits locked up inside Federal Prison Camp, Montgomery in Alabama, investigators are still searching for Trudeau's assets, including the revenue from GIN.

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USA: Proposed Law To Make Money Laundering A Lot Easier

USA: Proposed Law To Make Money Laundering A Lot Easier | Global Corruption | Scoop.it

Moving illegal cash through the financial system has long been barred by money laundering laws. But under a bill introduced by Rep. Blaine Luetkemeyer (R-Mo.), federal regulators would be forbidden from doing anything to "restrict or discourage" a bank from doing business with any company that has both a license to do business and a "reasoned legal opinion" from a lawyer claiming that the business doesn't break the law.

That's not a high hurdle to clear. Obtaining a business license and hiring a lawyer is a routine money laundering tactic for everyone from the mafia to terrorists to, more commonly, petty fraud scammers.

"It's completely whitewashing fraud," said Lauren Saunders, associate director of the National Consumer Law Center. "There are licensed companies that commit fraud all the time, and everybody's got lawyers who will try to justify what they're doing."

The GOP bill represents an escalation of the deregulatory fever that has gripped the party ever since President Barack Obama signed the 2010 Wall Street reform law. But the bill's proximate catalyst is a Department of Justice project combating consumer fraud called Operation Choke Point, which aims to cut off fraudsters from the banking system. The only public Choke Point action to date cracked down on North Carolina's Four Oaks Bank for processing payments on behalf of a host of undesirables: a Ponzi scheme that was busted by the Securities and Exchange Commission, online gambling agencies that settled with federal prosecutors and a horde of shady online payday lenders headquartered in places as far flung as Belize and Costa Rica.

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Moving illegal cash th...
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McDonnell trial puts focus on unlimited gifts to Va. elected officials

McDonnell trial puts focus on unlimited gifts to Va. elected officials | Global Corruption | Scoop.it

Some legislators expect the closely watched case to inspire even tougher standards than recent reforms...

 

This year’s legislation limited what any individual may give to an officeholder to $250 a year. It requires gifts to family to be reported. But there were no limits placed on intangible gifts, including meals, transportation and trips. Campaign contributions remain uncapped. Legislators also opted against strengthening stock-reporting requirements in a way that would have blocked the kind of financial maneuvering that federal prosecutors allege Maureen McDonnell undertook to evade disclosure requirements...

 

The issues not tackled, such as disclosure of loans to an officeholder’s business, might not be possible to solve through legislation, he said. McDonnell contends that he did not have to disclose $70,000 in loans from Williams because they were not to him personally but to a real estate partnership he owned with his sister.

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Mastermind of $800 Million Fraud Gets 20 Years in Prison

Mastermind of $800 Million Fraud Gets 20 Years in Prison | Global Corruption | Scoop.it

The man who masterminded an $800 million insurance scam that fleeced tens of thousands of investors in one of Florida's all-time largest fraud schemes was sentenced Friday to 20 years in prison.

U.S. District Judge Robert Scola gave Joel Steinger, 64, credit for pleading guilty to avoid a lengthy and costly trial and said Steinger's multiple medical problems -- he appeared in court in a wheelchair, with an oxygen tank -- argued against the maximum 50-year sentence sought by prosecutors.

But Scola said Steinger still deserved a lengthy prison term because, as chief executive of now-defunct Mutual Benefits Corp., he orchestrated a fraud scheme that victimized more than 30,000 investors in all 50 states and numerous foreign countries between 1994 and 2004.

"My understanding is that most of the time, on the major decisions, it was you making the decisions," Scola said. "It's clear that you were the mastermind of the criminal enterprise."

The Books Were Cooked in This Ponzi Scheme:
The company, first investigated in 2003 by the state Office of Insurance Regulation, bought life insurance policies from people with AIDS, cancer and other chronic illnesses and sold them to investors. The policyholder would get paid an upfront, discounted amount and the investor was promised a larger insurance payout when the person died.

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HONDURAS: INFOMERCIAL FOPRIDEH

HONDURAS: INFOMERCIAL FOPRIDEH | Global Corruption | Scoop.it

Video on HONDURAS Counterpart International Programa Impactos supported alliance for corruption resistant "Open Government. Activties include civil society led initiatives in: 1) Freedom of Access to Public Information, 2) Ethics in Civil Service, 3) Transparency & Accountability in selected areas (government budget, municipal operations, use of natural resources, public sector contracts, others) and 4) Citizen monitoring, asssesments and evaluation in areas of education and health.

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US SEC Announces $300,000 Whistleblower Award to Audit and Compliance Professional Who Reported Company’s Wrongdoing

US SEC Announces $300,000 Whistleblower Award to Audit and Compliance Professional Who Reported Company’s Wrongdoing | Global Corruption | Scoop.it

The Securities and Exchange Commission today announced a whistleblower award of more than $300,000 to a company employee who performed audit and compliance functions and reported wrongdoing to the SEC after the company failed to take action when the employee reported it internally.

 

It’s the first award for a whistleblower with an audit or compliance function at a company.

 

“Individuals who perform internal audit, compliance, and legal functions for companies are on the front lines in the battle against fraud and corruption.  They often are privy to the very kinds of specific, timely, and credible information that can prevent an imminent fraud or stop an ongoing one,” said Sean McKessy, Chief of the SEC’s Office of the Whistleblower.  “These individuals may be eligible for an SEC whistleblower award if their companies fail to take appropriate, timely action on information they first reported internally.”

 

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SUDAN: Secession was Grave Historical Mistake for Southerner

The Hague Centre for International Justice announced that the secession of South Sudan was a grave mistake for Southerners and that approximately 500 million Euros spent from the budget from the Dutch government supporting the government of South Sudan was spent on fake humanitarian relief projects.
According to the report, the money allocated for the construction of the state, executive institutions and civil society, along with proposals to strengthen the government and peace-building and security standards, but none of the money has been used for these ends. 
The centre said in its report on the situation in South Sudan, that after six months of civil war in the country, the Netherlands discovered that 500 million Euros from the Dutch government's budget disappeared. 

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‘Lady’ Chisholm Pleads Guilty To Welfare Fraud - CBS Minnesota

‘Lady’ Chisholm Pleads Guilty To Welfare Fraud - CBS Minnesota | Global Corruption | Scoop.it

A woman who once claimed to be Scottish royalty has now pleaded guilty to welfare fraud.

Andrea Chisholm and her husband, Colin, are accused of collecting more than $165,000 in welfare payments while living in a lake-front mansion.

Andrea Chisholm pleaded guilty to aiding and abetting, and wrongfully obtaining public assistance.

She claims it was her husband, Colin, who handled all of their financial dealings.

The Chisholms were living the good life, staying in lavish estates and million-dollar house boats, all while collecting public assistance from Minnesota.

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12th Global Fraud Survey - a place for integrity: Ernst & Young

12th Global Fraud Survey - a place for integrity: Ernst & Young | Global Corruption | Scoop.it

Though many companies have intensified their efforts to combat bribery and corruption, our 12th Global Fraud Survey suggest that much remains to be done...

 

Driven by market uncertainties and declining economic growth forecasts, many companies are struggling to maintain margins. With fewer remaining opportunities for cost-cutting, many businesses are now focused on opportunities in rapid-growth markets.

Even these markets, however, are feeling the effects of a weakened global economy.

In this environment, our 12th Global Fraud Survey's findings are, unfortunately, a further cause for concern.

They suggest that bribery, corruption and fraud remain widespread. At the same time, many countries are strengthening their enforcement regimes, for example the UK, with the introduction of the Bribery Act, and India, with a range of proposed anti-bribery/anti-corruption (ABAC) legislation.

As regulatory activity intensifies, the risk of external scrutiny of corporate activity also increases. Senior management must do more to ensure that they and their companies are not found wanting should their activities come under the spotlight.

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