Posts tagged "fraud"

Non-Profit Defrauded by Head Employee Wafa Abboud Nearly $1 million Lost

Wafa Abboud – the head of a Long Island not-for-profit organization swiped nearly $1 million in “consulting fees” to pay for her lavish lifestyle, which included cosmetic surgery, family vacations, spa treatments and her $1.3 million home, federal authorities in Brooklyn charged.

Wafa Abboud allegedly ripped off $900,000 from Human First Inc., a social-services provider for those with autism and other developmental disabilities, between January 2011 and May 2016, according to a criminal complaint.

She served as executive director of the nonprofit from 2010 through May 2016, when she was fired. The organization paid at least $16,000 a month — and sometimes more — to consulting firm MPB Management, a company run by one of Abboud’s cohorts, Marcelle Bailey, court papers say.

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

Credit Union Ethics: Former Credit Union Head Guilty of $2.5 million Embezzlement

Fraud happens for a variety of reasons.  Most fraudsters will tell you that they never intended to destroy their lives by perpetrating a fraud and break trust.  Most, like myself, started out with the best of intentions.  But there are some bad apples in every bunch Credit Union Ethicsand, it appears that Linda Lee Clark, 68, of Corydon, Iowa was a bad apple.  Clark who began working at the SCICAP Credit Union in Chariton, Iowa in 1978 admitted to embezzling  $2,494,809 of funds from the credit union from the day she started until she resigned in 2015.  This case represents a blatant violation of accounting ethics from someone who knew better.  Whether credit union ethics, banking ethics or accounting ethics – this case is nothing more than fraud pure and simple.

Credit Union Ethics (or lack thereof)

It is unclear what Linda Lee Clark did before her initial employment at SCICAP Credit Union.  According to media reports from the beginning, Clark redirected account holders’ deposits into her own personal account and the accounts of her children; and initiated unauthorized withdrawals of funds from member accounts into her own personal account and the accounts of her children. Clark concealed the embezzlement by maintaining two sets of accounting records on the Credit Union’s data processing system. When it comes to credit union ethics, it’s clear that Clark started with the intent to deceive and was smart enough to create a credible paper trail that worked for some period of time.

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Posted by Chuck Gallagher in Credit Union Ethics and tagged , , , ,

Fraud: Is Your Business at Risk?

Reverend Bobby thought it a bit strange when his wife, with her hand cupped over the phone, said that Sargent Willis was on the line and had some questions. Sargent Willis wasn’t a member of his congregation and the last time he could remember he had fraud-is-your-business-at-risknever had any cause for the police to want to ask him questions. He thought, “Did I run a red light and a traffic cam catch me,” he wondered.  His question led to a surprising outcome which raises the question about Fraud: Is Your Business at Risk?

The Shock Of A Collapsing Illusion

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Posted by Chuck Gallagher in Business and Personal Ethics, Choices and Consequences, Ethical Behavior, Fraud Pure and Simple and tagged , , ,

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.  http://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 , , , , , ,

IRS Collection Scams – Don’t be Deceived!

This post will hopefully serve two purposes: a lesson in unethical behavior targeting Americans, and second, as a public service announcement.  IRS Collection Scams are widespread and quite effective especially if you’re elderly and gullible.

irs-collection-scamsLet me briefly start with the public service part of the equation. If you have an elderly parent or friend, please tell him or her that organizations such as the IRS do not collect money over the telephone and to never give out credit card information to anyone who calls representing themselves in any official capacity. I am afraid this is yet another argument for the elderly to get rid of their landlines and to buy a decent smartphone.  IRS collection scams are real and something to guard against.

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

Patricia Driscoll – Theft from a Military Charity?

Though the players in this ethical scandal are celebrities to an extent, this should not be an example of a celebrity “gone wild,” rather a person who was allowed to operate without consequences or expectations. Needless to say, this example of unethical behavior could not have occurred without many other people looking the other way.  In a piece published on September 20, 2016 patricia-driscoll-indicted-fraud(Associated Press) entitled: “Kurt Busch’s ex charged with stealing from military charity,” we get another glimpse into the life and times of Patricia Driscoll.

According to the article:

“Court documents don’t say how much prosecutors believe Patricia Driscoll took from the District of Columbia-based Armed Forces Foundation, whose mission is to support service members, veterans and their families.”

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Posted by Chuck Gallagher in 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 , , , , , ,

Fraud Pure and Simple: The Gerova Scheme – A Wall Street Fleece

Sometimes, in fact, most times the consequence of unethical illegal activity comes far too late.  The company in question – Gerova Financial.  It’s backers included Jason Galanis, 45, and his father John, 72.  This is fraud pure and simple with an outcome that will never make those fleeced whole.

Fraud Pure and SimpleManhattan U.S. Attorney Preet Bharara said: “As alleged, Jason Galanis and his co-conspirators used their Wall Street credentials and the veneer of a legitimate-sounding financial firm to manipulate the market and fleece investors. Their alleged market manipulation brought them nearly $20 million in profits, but now also a federal indictment.”

According to the Indictment, the defendants engaged in the following fraudulent schemes:

The Gerova Scheme

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

Accounting Ethics? Cooked Books Earns former CPA Prison Time

Marc Wieselthier, a certified public accountant and partner at a New York accounting firm (the “Firm”), pled guilty to participating in a scheme to obtain millions of dollars in loans by making false statements and providing false and fraudulent Accounting Ethicsdocuments to two commercial banks based in New York (the “Banks”) concerning the financial condition of a Florida-based cosmetics company (the “Company”) that was one of his clients.  Here’s an example of accounting ethics at its worst!

Manhattan U.S. Attorney Preet Bharara said: “Marc Wieselthier has admitted to lying about the financial condition of a company to induce banks to lend the company millions of dollars.  Relying on false information, the banks made loans that ended up defaulting with nearly $5 million still owed.  Wieselthier now joins his co-conspirators in awaiting sentencing for his crime.”

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Posted by Chuck Gallagher in Accounting Ethics and tagged , ,

Unethical Scam in San Clemente Water Park Project

Fraud can come in numerous ways, but always at the heart of it is an opportunity for the unethical to commit a crime in a situation where no checks, balances or expectations in place.  The San Clemente Water Park Project, a water park and miniature golf course, was the kind of investment that was easy to understand, and appealed to most everyone. Who doesn’t like to travel San Clemente Water Park Projectdown a water slide?

The problem was that the water park never got built, and indeed there was no plan to build it. The four partners involved in the scheme collected more than a million dollars from unsuspecting investors and then they spent the money on themselves. The four pleaded not guilty, of course, and they could each face anywhere from 16 to 24 years for their fraud.

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Posted by Chuck Gallagher in Ethical Behavior, ethics, Ethics - Political, Political Ethics and tagged , ,