Fraud Casebook

JOSEPH T. WELLS, CPA, CFE, is the founder and Chairman of the Association of Certified Fraud Examiners (ACFE) and a former adjunct professor of fraud examination at the University of Texas at Austin. He writes, researches, and lectures to business and professional groups on fraud-related issues and is frequently quoted in the media. He has won top writing awards from both Internal Auditor and the Journal of Accounting magazines, and he is a winner of the Innovation in Accounting Education Award presented by the American Accounting Association. For his landmark research in fraud detection and deterrence, Mr. Wells has been inducted into the American Institute of Certified Public Accountants' Business and Industry Hall of Fame and named to Accounting Today's list of top 100 most influential people for the last nine years in a row.

• PrefacePART 1 Asset Misappropriation 1CHAPTER 1 High Art, Low Value: How a Connoisseur Became a Convict 3 by Ellen A. FischerCHAPTER 2 The Ambitious Payroll Manager 16 by John TonsickCHAPTER 3 The Insider 25 by Craig R. SinnamonCHAPTER 4 Aloha, Hawaii! 36 by Dominic A. D’OrazioCHAPTER 5 What About Pete? 44 by Michael GoldmanCHAPTER 6 Check, Please 54 by Peter ParilloCHAPTER 7 The MoJo Skim Twins 61 by John F. KronickCHAPTER 8 The Mole 71 by Manuel PereiraCHAPTER 9 Her Passion for Fashion 79 by Bethmara KesslerCHAPTER 10 An Unaffordable Complex 91 by Jeffrey D. BarskyCHAPTER 11 A Taxing Problem 100 by Andrew H. KautzCHAPTER 12 Phantom Links In The Supply Chain 108 by Christopher J. KellyCHAPTER 13 The Trusting Business Owner 117 by David H. GlusmanCHAPTER 14 The $13 Million Man 126 by John FrancollaCHAPTER 15 They Didnt Know Jack 137 by Janet M. McHardCHAPTER 16 The Skim Sisters 145 by Adam K. BowenCHAPTER 17 No Such Thing as a Free Lunch 156 by Suzanne CogginsCHAPTER 18 The Dirty Custodian 164 by Paul J. HarveyCHAPTER 19 The Video Game 172 by Carlos L. HoltCHAPTER 20 Bet Your Life on It 183 by Howard B. Grobstein and Joshua R. TeepleCHAPTER 21 When Petty Cash Isn’t Petty 195 by Karen FreyCHAPTER 22 Where Did My Money Go?203 by Robert BarrCHAPTER 23 Three Strikes and You’re Out! 212 by Mary BestCHAPTER 24 Country Club Fraud — What a Steal! 222 by John BoekwegCHAPTER 25 Where in the World Is Dina Sanchez? 233 by Briana J. PaciorekCHAPTER 26 School of Fraud 242 by Nessan RonanCHAPTER 27 Price Check on Register One 251 by Dwight TaylorCHAPTER 28 The Sky Is the Limit 260 by Brian E. BrowningCHAPTER 29 Supplemental Income 268 by James E. WhitakerCHAPTER 30 An Innocent Perpetrator 276 by Howard C. SparksCHAPTER 31 Dr. Amy 285 by Stephen A. PedneaultCHAPTER 32 Patriotic Game 295 by James LeeCHAPTER 33 Would You Like the Special Poutine, If You Know What I Mean? 305 by Richard ElliottCHAPTER 34 Three-Ring Circus: An Exposé of a Corporate Commission Embezzlement 316 by David A. SchneiderCHAPTER 35 One Bad Turn Deserves Another 327 by Forrest Bowman Jr. and Charles F. G. Kuyk IIICHAPTER 36 Dialing for Dollars 337 by Ian HendersonCHAPTER 37 Wake-Up Call 343 by Michael SpeightCHAPTER 38 The Dental Queen 351 by Kenneth J. WilsonCHAPTER 39 Shirley A. Little Wouldn’t Hurt! 358 by A. T. “Chief” SchwyzerCHAPTER 40 Just When You Thought It Was Safe 368 by Frank D. Moran Jr.CHAPTER 41 How Many Ways Can I Defraud You? 378 by David ClementsPART 2 Corruption Schemes 389CHAPTER 42 A Contract of Convenience 391 by Robert B. Walsh Jr.CHAPTER 43 Corruption by Seduction 404 by Douglas M. WatsonCHAPTER 44 “Big Easy” Business 418 by Patrick W. Malik and Jeffrey R. SebreeCHAPTER 45 Unlucky 13 425 by Graham J. ThomsonCHAPTER 46 It ’s 11 p.m. Do You Know What Your IT Director Is Up To? 434 by John KulaCHAPTER 47 These Weights Didn’t Measure Up! 444by Joseph R. DervaesCHAPTER 48 Swimming with the Sharks 455 by Pedro FabianoCHAPTER 49A New York State of Fraud 466 by Martin T. BiegelmanCHAPTER 50 Information Superhighway 477 by Barry DavidowPART 3 Financial Statement Fraud Schemes 491CHAPTER 51 Banking on Fraud 493 by Jason LeeCHAPTER 52 Just a Matter of Time 502 by Margaret SmithCHAPTER 53 Bury Me Not in Guyandotte 510 by John W. BurdissCHAPTER 54 The Woolly Mammoth Eats Its Prey 519 by Paul Pocalyko and Charles N. PersingCHAPTER 55 Double Damage 527 by Matthias K. KopetzkyCHAPTER 56 How to Steal a Million Dollars Without Taking the Cash 536 by Richard A. RileyPART 4 Other Fraud Schemes 547CHAPTER 57 This Land Is Your Land, This Land Is My Land 549 by Andrew PappasCHAPTER 58 Paradise Lost 560 by Pierre E. LautischerCHAPTER 59 BODIES FOR RENT 568 by Rebecca S. BuschCHAPTER 60 The Million-Dollar Breach of Trust 577 by Holly Frook GrahamCHAPTER 61 Troubled Water 587 by Dimiter Petrov DinevCHAPTER 62 Con Artists Gone Wild 596 by Heinz IckertIndex 607

"Don’t just read this book. Read it and then look at your organization and evaluate your company's risks. Implement the lessons learned and the recommendations to prevent future occurrences so that you won't have to go through what I and the other people in this book experienced." (Strategic Finance, August 2008)