Wealth & Risk Management Blog

William Byrnes (Texas A&M) tax & compliance articles

Posts Tagged ‘Fraud’

Holding Financial Institutions Accountable for Fraud

Posted by William Byrnes on April 3, 2015


International Financial Law Prof Blog

Two recent cases show fraudsters have become more sophisticated.  It used to be that fraud schemes depended on the willingness of unwitting consumers to hand over their hard-earned savings in person or through the mail.  Today, the interconnectedness of our electronic banking system means a crook just needs to find a way to acquire one piece of information—a bank account number.  Once he has it, and a means to access the banking system, a bank account—and transfer its money— into his hands.   read about these cases on International Financial Law Prof Blog

Posted in Financial Crimes | Tagged: , , , | Leave a Comment »

Penny Stock Frauds, Kick Backs Schemes, and FBI Stings

Posted by William Byrnes on September 23, 2014


International Financial Law Prof Blog

… arise out of a fraudulent scheme in which insiders of publicly-traded penny stock companies paid secret kickbacks to a purported corrupt hedge fund manager, who was in fact an undercover agent with the Federal Bureau of Investigation (“Fund Manager”), in exchange for the Fund Manager’s purchase of restricted stock of the penny stock companies on behalf of his purported hedge fund (“the Fund”), which did not actually exist. …

Posted in Financial Crimes | Tagged: , , | Leave a Comment »

Goldman Sachs’ $3.15 billion Settlement with FHFA

Posted by William Byrnes on August 25, 2014


International Financial Law Prof Blog.  … Under the terms of the settlement, Goldman Sachs will pay $3.15 billion in connection with releases and the purchase of securities that were the subject of statutory claims in the lawsuit FHFA v. Goldman Sachs & Co., et al., in the U.S. District Court of the Southern District of New York …

Posted in Compliance | Tagged: , , , | Leave a Comment »

Preventing Tax Preparer Fraud: IRS Initiatives and the Loving case

Posted by William Byrnes on March 28, 2014


by Dawna E. Snipes

Why the Increase in Tax Preparer Fraud?

Tax preparer fraud has become more paramount with taxpayers choosing to have their federal tax returns prepared by paid return providers.  When unadvised and vulnerable taxpayers choose unqualified and unscrupulous preparers, they potentially face IRS penalties for filing false returns.

26 U.S.C. §7701(a)(3) defines a tax return preparer as “any person who prepares tax returns for others for compensation.”[1]  The Internal Revenue Service (IRS) has estimated that approximately 60 percent of taxpayers use paid tax preparers to file their taxes.  However, between 2012 and 2013, the IRS successfully obtained permanent injunctions against over 30 preparers operating throughout the country.  Some reasons for the increase in tax preparer fraud are (1) lack of federal regulations, (2) an arduous tax code, and (3) overly-burdened enforcement agencies.

Read the full article at http://www.advisorfyi.com/2014/01/preventing-tax-preparer-fraud-irs-initiatives-and-the-loving-case/

Posted in Taxation | Tagged: , | Leave a Comment »

Advisor Fakes Death to Avoid Fraud Charges

Posted by William Byrnes on November 10, 2010


An investment advisor accused of fraud faked his own death by parachuting D. B. Cooper-style out of his single-engine plane with ninety pounds of gold strapped to his chest, leaving behind a trail of twisted metal and offshore bank accounts.

Plot summary of the latest New York Times best seller?  Nope. It is the true story of Marcus Schrenker, an Indiana financial advisor who was recently sentenced to prison for defrauding investors—including family members and friends—out of over $1 million.

Read this complete article at AdvisorFX (sign up for a free trial subscription with full access to all of the planning libraries and client presentations if you are not already a subscriber).

Posted in Uncategorized | Tagged: , , , , , , , | Leave a Comment »

 
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