Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Posts Tagged ‘Upland

Where are they now? 3 of 4 defendants in Upland bribery case are in prison

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Four men have been convicted and sentenced in the Upland bribery case.  The mayor had a scheme to shake down two owners of a local business in return for helping them get back their business license.

Where are they now?

Three are in federal prison and the fourth has not reported in.

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Written by Jim Ulvog

December 29, 2012, 9:26 am at 9:26 am

Posted in Fraud

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Other posts about the corruption case in neighboring city

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I have two posts on my other blog, Nonprofit Update, regarding the bribery case in a city next to where I live. I’ll link to those here so all of my posts about the case are visible on this blog.

If you’re interested, check out: Read the rest of this entry »

Written by Jim Ulvog

October 6, 2012, 8:13 am at 8:13 am

Posted in Fraud

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Final defendant sentenced in city corruption case

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The Daily Bulletin reports that Final defendant in Pomierski case sentenced to one year, one day.

The fourth defendant was sentenced to 12 months and one day in federal prison for his role as middleman in the bribery case involving the mayor of a city next to where I live.

There was one guilty conviction and three guilty pleas. The sentences are two years, one year & one day, one year & one day, and six-month prison & six months home detention. That wraps up the sentencing.

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Written by Jim Ulvog

October 2, 2012, 8:48 am at 8:48 am

Posted in Fraud

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2 year prison sentence for corruption case

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I’ve been following the corruption case in the city next to where I live. Links to earlier discussions are at end of this post.

The mayor was accused of accepting bribes from a local business in return for helping them get back in business. In April 2012, he pled guilty to one count of bribery. The remaining 9 charges were dropped at the sentencing.

Yesterday he was sentenced to two years in federal prison.

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Written by Jim Ulvog

August 7, 2012, 8:46 am at 8:46 am

Posted in Fraud

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Q: Why are corruption and bribery frauds so difficult to discover?

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A: Because all the documents are outside the organization being defrauded.

When it comes to corruption and bribery, it only takes a little planning for a fraudster to keep all the papers that contain any trace of a fraud outside the organization.  A minimal amount of planning will mean there is no paper inside an organization that contains a hint of a problem.

I’ve discussed this issue using the example of an alleged fraud in the city next to where I live. The alleged part of the story is slowly turning to fact with one participant, the mayor, entering a plea agreement.

Now think about auditing the city.  All the pieces of paper that show any hint of the fraud are outside the city hall.  How would the city’s auditor find that?

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Written by Jim Ulvog

May 3, 2012, 6:30 am at 6:30 am

Posted in Audits, Fraud

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Guilty plea in corruption trial mentioned a year ago

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In March 2011 I discussed a corruption case in the city next door to where I live.

The local newspaper reports that the mayor has pled guilty to accepting a $5,000 bribe from a local business.  From the Daily Bulletin: Ex-Upland mayor pleads guilty, the very short version of the story:

{The mayor} was accused of conspiracy, extortion and bribery offenses that led the business owners to pay $45,000 in bribes.

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Written by Jim Ulvog

April 30, 2012, 8:11 am at 8:11 am

Posted in Audits, Fraud

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So an auditor couldn’t pick up any red flags to a corruption case. Why is that a problem?

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Getting back to the original question of whether a CPA could identify in the alleged incident that there was some kind of a fraudulent transaction during an audit (assuming it actually happened) – – I am thinking the answer is it would not be possible to find the fraud, even if you were looking for it.

So, what’s the problem?

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Written by Jim Ulvog

March 17, 2011, 9:37 am at 9:37 am

Posted in Audits, Fraud

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