5 Awkward Situations That Led to the Discovery of a Fraud Scheme

5 Awkward Situations That Led to the Discovery of a Fraud Scheme

We’ve all found ourselves in an awkward situation from time to time. As uncomfortable as they are, it can sometimes be hard to avoid them. 

You’re at the grocery store when someone unexpectedly waves at you so you wave back, only to realize they were waving at the person behind you.

You nod off at your desk right when your boss walks by.

It’s the end of the date and you say bye, but then you both start walking in the same direction. 

Yikes. 

Those are all pretty cringe-worthy moments, but they don’t compare to these five awkward situations that ultimately led to the discovery of a fraud scheme. Unfortunately for these fraudsters, they couldn’t just walk away and pretend it didn’t happen.

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One Lawyer, Four Siblings and $12 Million Worth of Tax Evasion

One Lawyer, Four Siblings and $12 Million Worth of Tax Evasion

After nearly a decade of legal proceedings, Manhattan District Judge Kevin Castel has condemned four siblings to jail sentences, each of less than a year, for an extensive tax fraud scheme. The siblings — Suzanne, John, Henry and Yvonne — were all children of Harry Seggerman, a vice chairman of Fidelity Investments who made millions by investing in Japanese and Korean companies. When Harry died in 2001, he left his children a vast estate worth $24 million. This included $12 million in a secret account in Switzerland, stashed there to evade taxes. Faced with the decision to report the inherited money or to maintain their father’s legacy of tax fraud, the siblings chose to keep up the farce, a decision that is finally bearing consequences.

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Fraud Is the New Black: 3 Frauds Perpetrated From Prison

Fraud Is the New Black: 3 Frauds Perpetrated From Prison

In the most recent episode of the ACFE’s podcast, Fraud Talk, Julia Johnson, CFE, Research Specialist at the ACFE, breaks down three recent case studies of frauds that were committed from behind bars. She explains how the schemes were perpetrated and what fraud examiners can learn from each case.

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"Fake It 'Til You Make It" Socialite On Trial for Grand Larceny and Theft of Services

"Fake It 'Til You Make It" Socialite On Trial for Grand Larceny and Theft of Services

Last month, the New York State trial against Anna Sorokin, the 28-year-old wannabe socialite who fooled Manhattan’s elite into believing she was the heiress of German billionaires, officially began. Known among other fixtures of New York City’s social scene by her fake name, Anna Delvey, Sorokin faces charges of theft of services and grand larceny after her 10-month stint staying in luxury hotels, jetsetting to high-end vacations, and racking up a nearly $275,000 debt while emulating the lifestyles of the rich and famous.

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A New Threat That Preys on Parents' Fears

 A New Threat That Preys on Parents' Fears

A new type of scam preys on parents’ protective nature toward their children in order to coax them into wiring high ransoms. To do this, scammers make a phone call claiming they’ve taken a victim’s child, and they threaten to harm the child unless parents pay ransoms ranging from $5,000 to $6,000. In each reported case so far, there was actually no abduction. The child was discovered to be safe, often just at school or out with friends, but usually only after the parent had already paid the ransom.

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