Chapter 7 Case Study 4 & Chapter 8 Case Study 1
Case 4
Case Study 4
A number of years ago, General Motors experienced a $436 million fraud committed by a Long Island automobile dealer. The dealer was borrowing money from General Motors’ financing division and using the money to buy vans that didn’t exist. Supposedly, he was shipping the vans overseas where they were being used for temporary housing for low-income people.
- What kind of physical evidence would you gather to investigate this fraud?
- How would you go about making sure this kind of fraud didn’t happen again?
Chapter 8
Case 1
Case Study 1
John Doe, a fraud examiner, has been hired by ABC Corporation to investigate a shortage of cash, which management thinks is being caused by fraudulent behavior. John Doe could spend his time and money pursuing witnesses to the crime or collecting documents that would confirm fraudulent activities. As with most fraud examiners, he chooses to collect sup- porting documents instead of pursuing witnesses.
Explain why John and most other fraud examiners prefer documents over witnesses; then describe elements of good document care.
