The Jailbird CFO: Fraud on the Rise
What's going on in the world of the CFO? The latest trend seems to find some CFOs caught with their hand in the cookie jar - caught in some sort of fraud scheme.
Take several examples that have recently made the news. Office equipment leases offered through Bennett Funding Corporation in New York landed CFO Patrick Bennett in jail. Paul Polishan, who was the CFO with Leslie Fay, was sent to jail based on indictments of 18 errors related to accounting misstatements.
Why is this happening, over and over, in a seemingly increased capacity? According to analysts, this kind of fraud has been occurring more so than has been caught to date. The reason: if a company misforecasts its earnings by just a narrow margin, eyebrows are raised and the company becomes a real target for speculation.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.