$3 Million paid to mystery SEC whistleblower

17 July 2015

Be advised: The SEC is serious about guarding identities of SEC whistleblowers, but maybe not so serious about backing up claimed awards. Today’s SEC announcement of a $3 million-plus whistleblower award sounds great but, except for the fact and amount of the alleged award, provides scant information. The SEC’s press release offers a few additional data […]

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Michigan M.D. Farid Fata sentenced to 45 years

10 July 2015

With a 45-year prison sentence for Medicare fraud weighing him down, it is safe to say that if former M.D. Farid Fata misbehaves in the future, he will do so entirely within the confines of the federal prison system. Not the happiest send-off for the weekend, to be sure. But it is good to see this kind of […]

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Should America put Inspector Javert in the board room?

29 April 2015

The DOJ is renewing its aggressive push for companies to affirmatively search for and deliver evidence of employees’ criminal behavior. Is deputizing the corporate HQ good for the law, business, or neither? Michael P. Kelly’s Corporate Counsel breakdown asks how harboring permanent Inspectors Javert in corporate headquarters will impact the trust that gives life to free markets. At the […]

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WSJ discovers Benford’s Law

5 December 2014

At WSJ.com today, in Accountants Increasingly Use Data Analysis to Catch Fraud, Jo Craven McGinty reports on recent innovations in auditing that could make it harder to get away with embezzlement and financial statement fraud. The article is primarily about Benford’s Law. Money quote from yours truly: “It [Benford’s Law] has the potential to add some […]

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OECD bribery report: 50 percent of cases involve senior management

4 December 2014

The latest OECD report on foreign bribery analyzes bribery cases prosecuted between 1999 and 2014, finding that 31 percent of the 427 cases were self-reported to law enforcement and that, of these, 17 percent were first reported internally by whistleblowers. A full 50 percent of all cases involved “senior management,” highlighting that when it comes to controlling this type of fraud, […]

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Missing SEC laptops: Good News, Bad News

9 October 2014

Ruh-roh. Hundreds of SEC laptops are apparently missing. Good news: The SEC OIG has disclosed they’re missing. Bad news: While the IRS and EPA “lose” only emails, the SEC loses entire laptops. More bad news: SEC laptops should contain lots of really sensitive information about ongoing investigations and the people involved, most of whom will never […]

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Statistician & SAS 9.3 win big ruling in TN False Claims Act case

29 September 2014

Today was a banner day for statistics and SAS 9.3 in federal False Claims Act cases. In United States ex. rel. Martin v. Life Care Centers of America (1:08-cv-251), the U.S. District Court for the Eastern District of Tennessee denied, on the basis of its own detailed analysis of proffered expert testimony, a defense motion to exclude […]

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Duke University Hospital pockets $69.7 million peddling discounted drugs

4 April 2013

Wondering why your private insurance rates and taxes are so high? It’s not all Obamacare. Duke University Hospital may be using your insurance plan and tax dollars to subsidize its budget. Supposedly a “non-profit” corporation, Duke Hospital has mastered the art of buying drugs low and selling them high, thanks in part to what U.S. […]

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What lurks in Deloitte’s Longtop Financial audit work papers?

3 April 2013

Deloitte’s China unit (DTTC) is hiding something. Why is an open question. The firm’s continuing refusal to comply with a May 2011 SEC subpoena for audit work papers will inevitably fuel speculation. A bizarre May 2, 2011 resignation letter from DTTC to Longtop Financial Technologies Ltd touched off the SEC’s investigation. The letter reads, in part, […]

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Guilty: IRS examiner admits exposing whistleblower

13 March 2013

Today’s object lesson in whistleblower risk and regulatory capture comes to us courtesy of the IRS. As reported in Accounting Today: Dennis Lerner, 60, a former international examiner in the IRS’s New York office, pleaded guilty Monday in a Manhattan federal court before U.S. District Judge John F. Keenan. He was arrested last September and […]

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