In each of the following examples, I need assistance identify whether it is an employee embezzlement, management fraud, investment scam, vendor fraud, customer fraud, or miscellaneous fraud.
Marcus bought a $70 basketball for only $30, simply by exchanging the price tags before purchasing the ball.
Craig lost $500 by investing in a multilevel marketing scam.
The Bank of San Felipe lost over $20,000 in 2008. One of its employees took money from a wealthy customer's account and put it into his own account. By the time the fraud was detected, the employee had spent the money and the bank was held responsible.
The CEO of Los Andes Real Estate was fined and sentenced to six months in prison for deceiving investors into believing it made a profit in 2008, when it actually lost over $150 million.
The government lost over $50 million in 2008 because many of its contractors and subcontractors charged for fictitious hours and equipment on a project in the Middle East.
A student broke into the school's computer system and changed his grades in order to be accepted into graduate school.
1. Customer fraud - by switching the price tags.
2. He fell prey to an investment scam, there ...
The solution provides the answers for what type of fraud is present in each scenario listed. Types of frauds include employee embezzlement, management fraud, investment scam, vendor fraud, customer fraud, or miscellaneous fraud. The scenarios are answered correctly based on law, and from my experience as a fraud investigator.