Latest "fraud" Posts

Jennifer Elizabeth Meehan Sentenced to Prison

“I became caught up in my own fantasy.”  That is true it was a fantasy and today Jennifer Elizabeth Meehan was sentenced today  to six months in prison and fined $50,000.  In addition, U.S. District Court Judge Madeline Haikala also sentenced Jennifer jennifer-elizabeth-meehanElizabeth Meehan, 40, to serve 18 months of home confinement, 40 months supervised probation. She also is to serve eight hours a week community service while on home confinement and probation.

An earlier article outlined her crime.  https://www.chuckgallagher.com/jennifer-elizabeth-meehan-attorney-charged-with-defrauding-gamma-phi-beta-sorority-house/

From an unpaid volunteer position, Meehan has now through her own doing lost her license to practice law for a set of dumb stupid choices.

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Posted by Chuck Gallagher in embezzlement, Financial Fraud, fraud, legal and tagged , , , , , ,

Bookkeeper Fraud: Tennessee First Presbyterian Church is a Victim

There is no point in dwelling on the “sickness” of bookkeeper Connie Parker. Between 2007 and July 2016, she stole at least $600,000 from a Tennessee First Presbyterian Church. She allegedly used the church’s credit card to charge everything from lavish vacations to household furniture.  This is accounting fraud or better stated bookkeeper fraud and likely one that is never expected.

Bookkeeper FraudAfter the many years of stealing, the axe finally came down on Parker. This resulted in two immediate outcomes: a hearing was held in front of a judge and the judge issued an injunction restraining Parker from selling or disposing of any property or assets. The church is scrambling to recover as much money as possible.  This is just part of the aftermath of bookkeeper fraud.

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Posted by Chuck Gallagher in Accounting Ethics, fraud, Fraud Pure and Simple and tagged , , , ,

Credit Union Ethics: It’s Fraud! What Were They Thinking

Having breakfast with my boss this morning, he shared that his wife woke him with a call that seemed rather urgent.  Seems one of their friends, who banked at the same institution they banked at, called to say that their account had a ZERO balance this morning.  She asked my boss (her husband) to check their balance to see if things were alright.  He did so immediately and all was Credit Union Ethicswell.  But apparently not so with their friend.  They were hacked and cleaned out over night.  Not something you’d like to wake up to.  It was apparent that fraud had taken place.  Which raises the question about credit union ethics – ethical practices and how safe our accounts really are.

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Posted by Chuck Gallagher in Financial Fraud, fraud, Fraud Pure and Simple and tagged , , , , , ,

Credit Unions – 4 Keys to Responding to Internal Fraud

Most financial institutions are diligent about preventing internal fraud, but according to data from the Financial Crimes Enforcement Network, in 2016 there were over 119,000 forms of reported fraud in the US thru June 2016.  While most of them are not internally generated, according to the NCUA (National Credit Union Association) reports, the number of suspicious incidents involving employees is on the rise.  A critical issue for Credit Unions and (for that matter) any financial institution is the importance of responding to internal fraud.

Responding to Internal FraudWhile my primary focus is ethics, the reality of the lack of ethical behavior often leads to illegal behavior and that is fraud pure and simple.  So let’s look at 4 keys to responding to internal fraud:

What’s Your Fraud Policy?

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Posted by Chuck Gallagher in Financial Fraud, fraud, Fraud Pure and Simple and tagged , , , , ,

Credit Union Fraud: Former Credit Union CEO Charged with Fraud

Credit Union fraud is never good.  The board of directors of the $42 million Toledo Metro Federal Credit Union told their former president/CEO Charles Robert Poore they wanted to ask him about numerous suspicious transactions on his corporate credit card.

Credit Union FraudThe next day, Poore resigned and was never seen again at the Toledo, Ohio-based cooperative.

Federal agents, however, found Poore in Pittsburgh and arrested him Tuesday on a felony charge of thrift and credit union theft, embezzlement or misapplication. After a hearing in U.S. District Court in Pittsburgh, Poore was released on a $25,000 bond.

A TMFCU internal investigation revealed from December 2011 through May 2014, the credit union paid a total of $269,593 to Visa for transactions Poore made on his corporate credit card. Most of those transactions primarily paid for office equipment and supplies, according to a federal affidavit filed in U.S. District Court in Pittsburgh.

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Posted by Chuck Gallagher in business ethics, ethics, Financial Fraud, fraud, Fraud Pure and Simple and tagged , , , ,

Michael Oppenheim: A Case of Embezzlement, Gambling and Bad Ethics

What happens when greed, opportunity and a gambling addiction form the perfect unethical storm? You get men such as Michael Oppenheim, a former JPMorgan Chase & Co investment adviser who stole more than $20 million from wealthy clients to fuel his gambling addiction. His unethical behavior will cost him five years in jail.

Michael OppenheimThe mechanism of Michael Oppenheim’s behavior was neither unique nor creative. He had about 500 clients listening to his advice; people who trusted him. For about seven years, he persuaded some of his clients (actually ‘marks’), to allow him to withdraw their money because he was going to invest it in low-risk municipal bonds. He had no such intention. He took most of the money and bet “whatever,” and then whatever was left over, he put down on high-risk options.

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Posted by Chuck Gallagher in Financial Fraud, fraud, prison and tagged , , ,

Banking Ethics: Two Bankers Seize Opportunity to Steal from Their Clients

Does a profession automatically insulate a person from committing an unethical act? Unfortunately, it does not over the course of time, we have witnessed the clergy, medical doctors, lawyers and stockbrokers all committing fraud even though they take oaths Banking Ethics: JPMorgan Chaseof all different varieties.  When it comes to banking ethics far too often folks have come to expect the worst.

Another profession that we have imagined to be above poor ethics is banking. We have been raised to think of the staid banker in his or her smart suit, passing impassive, analytical, numbers-based judgments, as being above scrutiny. They are seen as being honest to a fault and always having our best interests in mind. This is especially true of private bankers who handle the interests of the extremely wealthy. As it turns out, “not so fast.” Unethical behavior, it appears, has well-established itself in the banking industry.

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Posted by Chuck Gallagher in Banks, business ethics, Ethical Behavior, Financial Fraud, fraud and tagged , , , , , ,

Technology Fraud: Ethics Challenges abound in 2016

The opportunity for the unethical to commit fraud had not changed. While the technology in recent years has undergone the transition from snail-mail and telephone sales to computers and hand-held digital devices, the intent and the opportunity are still there to create technology fraud. As the holidays are quickly upon us, it is good to remind ourselves that little has changed in terms of the “hearts of the unethical.”

Technology FraudTomer Barel of PayPal, in an article for CNBC (December 10, 2015) entitled: “Five fraud predictions for 2016,” said that technology “will continue to change the battlefield for fraud.” It is not surprising that Millennials are particularly vulnerable to digital forms of technology fraud.

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Posted by Chuck Gallagher in Business and Personal Ethics, fraud, teen ethics, Youth and tagged , , ,

Ethics in Question: California Firefighting Academy Cheating Scandal

The news isn’t shocking although the California Firefighting Academy Cheating Scandal is just another of the many examples of the application of unethical behavior that we’ve come to expect. This is not really a post about firefighting, even though we admire firefighters for the job they do. It is a post about our society and how we relax rules to suit our sense of rules. The article appeared California Firefighter Cheating Scandalon FoxNews.com (December 07, 2015), and was entitled: “Accusations of cheating at California firefighting academy.” The scandal first appeared in the Sacramento Bee on December 6, 2015.

“Some of the cadets who would go on to fight California’s raging wildfires cheated on tests during their time at a fire training academy, and officials there let it happen…

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Posted by Chuck Gallagher in ethics, fraud and tagged

Caught in the PIT: Another Ponzi Scheme Collapses!

Concluding one of the largest Ponzi schemes ever seen in Southern California, two men who operated a Calabasas firm at the center of a scam that cost victims approximately $135 million were recently sentenced, with one man being ordered to serve nine years, and the other a decade, in federal prison.

Ponzi scheme Joel Barry Gillis, 75, of Woodland Hills, was sentenced to 120 months in federal prison, and Edward Wishner, 77, also of Woodland Hills, was sentenced to 108 months in prison in relation to a 13-year-long scheme they operated through their company, Nationwide Automated Systems, Inc. (NASI).

Gillis and Wishner used NASI to collect hundreds of millions from thousands of investors who were falsely told their money would be used to purchase profitable automated teller machines that would generate annual profits of at least 20 percent. More than 1,300 investors lost money when the scheme collapsed last year.

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Posted by Chuck Gallagher in fraud, Fraud Pure and Simple, ponzi scheme and tagged , , , ,