Supply disruptions and the need for vigilance

Insights
FROM THE PRESIDENT AND CEOBruce Dorris, J.D., CFE, CPAFrom paper to computer chips, products we once took for granted have become precious commodities as the global supply chain cracks under the weight of labor shortages and renewed demand in the wake of the COVID-19 pandemic. And as every fraud examiner knows, whenever there’s a need for a product or service, fraudsters are there to exploit it for their own gain.These schemes are already happening amid news of unscrupulous vendors selling bogus goods to desperate companies struggling to source vital components. But the situation also creates the economic pressures that can push executives within a company to resort to fraudulent activities.In this issue’s cover story, Fraud Magazine explores the supply-chain problem and the types of fraud that could emerge due to the economic…
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Elizabeth Holmes Found Guilty on Four Charges of Fraud

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GUEST BLOGGERMason Wilder, CFEACFE Research ManagerAfter seven days of deliberations, a jury in California found Theranos founder Elizabeth Holmes guilty on four out of 11 federal fraud charges on January 3, 2022; nearly four years after Holmes and Theranos agreed with the U.S. Securities and Exchange Commission (SEC) to settle civil charges of securities fraud. Each charge carries a maximum prison sentence of 20 years.The charges Holmes faced during her 15-week trial included nine counts of wire fraud and two counts of conspiracy to commit wire fraud. Four of the charges (three counts of wire fraud and one of conspiracy to commit wire fraud) were related to the defrauding of patients, while the remaining seven were related to the defrauding of investors. Holmes, a former darling of Silicon Valley, managed…
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Fraud Talk: Why Psychological Safety is Pivotal for Ethical Company Cultures

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During the 2021 ACFE Fraud Conference Canada, the founder of Sheriff Consulting, Garth Sheriff, CPA, discussed the importance of psychological safety for ethical decision making – and how the lack of it in an organization can lead to disaster.In the excerpt below from episode 114, Garth begins to tell us about a research study that questions if psychological safety impacts a company’s culture, and how so. Download the full transcript in PDF form or listen to the episode at the bottom of this post.Garth Sheriff: The question is, what is psychological safety? The reason I really enjoy this term and I like exploring this is that psychological safety is a research-based organizational psychology/behavior-based term that comes from some prominent researchers. It was first brought into my perception and my understanding…
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