Fraud News Update 01.29.15

Fraud News

01.29.15 – This week’s edition of the Fraud News Update features: Maintenance Mayhem (Fraud: Revenues Over Passenger Safety?), The Scoop On This Poop (Cash Cow Fraud). Fraud (Deadly To Businesses), Pledging Allegiance (Maybe Not The Truth, The Whole Truth And Nothing But The Truth) and Police Chaplain Gone Wild (No Goodwill Here),

As leaders in the fraud consulting arena, read on for more topical information and our insights, observations and unique commentary on the weekly fraud news.

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Maintenance Mayhem

Can you say maintenance fraud?

Try not to think about this fraud news story the next time your butt’s 30,000 feet in the air on an American Airlines flight.

Is AA putting revenues over passenger safety by pressuring mechanics to “cut corners” on repairs and push planes back into service before they’re ready?

That’s exactly what a local mechanics union is alleging in a lawsuit they recently filed against AA.

AA counters claiming that there are no safety concerns in their maintenance program…for the traveling public’s sake let’s hope they’re right!

The Scoop On This Poop

The number of fraud related stories spread across different industries never ceases to amaze me.

This reminds me of a classic line from the 1969 musical Hello Dolly (Barbra Streisand)…”Money, pardon the expression, is like manure. It’s not worth a thing unless it’s spread around, encouraging young things to grow.”

This fraud news story just broke about an Alaska dairy-farming operation and would you believe there’s a Sarah Palin connection? Go figure.

Yup, during the former Gov’s tenure, the state-run Matanuska Creamery was closed. Palin helped pave the way for a privately held commercial enterprise to commence dairy operations using state-owned dairy-farming assets and grants.

The new operation ultimately flopped amidst allegations of financial mismanagement and fraud. Sarah didn’t come out lookin too good in this deal!

Apparently, cows steal. Who knew?! (Side note: Cows have been seen telling people around the U.S. to “eat mor chikn” so it really shouldn’t surprise anyone that they aren’t fiscally responsible!).

According to the feds, fibbing to the USDA about grants, loans, operations and equipment is a “no-no” and two of the players (people…not cows) in the Matanuska Creamery operation were recently convicted.

Hanging The Closed Sign On The Door

Over the years, I’ve made this comment hundreds of times: “Fraud may be the difference between being profitable and hanging the ‘out of business’ sign on your door.”

After saying that, people often come up to me in disbelief, challenge me on the comment and say something like “prove it.”

For those disbelievers, I always have an example waiting but the reality is that fraud kills!

With the economy still in the porcelain fixture and profit margins being thin, the difference between success and failure is often razor-thin.

But for those of you who still don’t believe…this fraud news story about a long-term, large dollar, embezzlement at the Pepsi Cola Federal Credit Union ultimately contributed to the demise of the financial institution.

Wonder if COKE snitched her off to the NCUA?! Inquiring minds want to know…

I Pledge Allegiance To The Flag…

Living in the U.S., is clearly one of the greatest freedoms we have.

In this fraud news story, a Vermont man found out the hard way that if you lie on a citizenship application about never having given false information to U.S. officials (i.e. you lied about a lie – very philosophical) you risk getting convicted, losing your citizenship, going to prison and being deported.

The “lie about the lie” was the basis for the conviction in a jury trial, not the heinous war crimes the individual allegedly committed.

Oh yeah, one more thing…allegedly attempting to bribe witnesses in the country where the war crimes supposedly took place probably doesn’t help one’s cause any, especially when it comes to the attention of the U.S. Attorney’s Office.

Police Chaplain Gone Wild?

Lastly, there are so many things wrong with this fraud news story, I don’t even know where to start.

Headline: Brownsburg pastor arrested in Goodwill theft

Goodwill Theft: I think this is another case which is now in the running for the 2015 oxymoron of the year!

Everyone’s presumed innocent and all that…but this is a really sad commentary on human nature to be sure.

Fraud News – The Bottom Line

Fraud – empowering people to break the law. It’s a way of life for some and every fraud has a story. At Fraud Solutions, fraud is our world and we’re passionate about prevention. Being proactive is key, so, follow us each week as we cover the fraud beat with added insights, information and unique commentary on stories making the fraud news.

Those are our insights. What are yours?

For more information on how we can help your businesses prevent risk, reduce major fraud losses and improve operational ROI, contact us to schedule an initial consultation. No obligations…just unique insights from an industry leader.