Case study
CASE-3 ATLANTIC HOME LOAN:
I. Determine which category the case fits into:
This case is diagnostic in nature and Albert Fiorini failed in checking the management failures. Based on the case facts, supposed to identify the lapse in control measures and propose solutions to them.
II. Describe the case
This case is talking about the illegal takeover of company “Atlanta Home Loan” by Albert’s partner cum manager Wilbur Washington.
a. What are the facts of the case?
Albert Fiorini (Al) founded a company named “Atlanta Home Loan” (AHL) in April’02.
Recruited several staffs to take care of operations.
After six months, in Sept’02, AL left to complete his MBA. Before leaving, started looking for someone to run his business.
Impressed by Joe’s (one of AHL’s loan officers) performance, Al offered him a partnership. Joe accepted the same and reached a verbal partnership agreement.
Afterwards Al found that conduct of Joe is not good for the company, parted his ways from him. He hired one manager also who lasted only for three days. Joe took away several loan files which did not got closed since August. Joe was also reluctant into returning those files to AHL. This resulted into a great loss of revenues to the AHL.
In desperation, he entered into another written partnership agreement with Wilbur. In desperation, Al gave him all the management rights expect signing authority for checks.
Wilbur without consulting Al used signed checks for himself and Letitia (Office Manager). Because of lack of fund, checks got bounced. Al got infuriated by Wilbur behavior. When Al enquired, Wilbur lied to him that this fund was meant for the payment towards salary to employees. After further investigation, Al got to know that Wilbur lied again.
Al spoke to personnel’s of BofA and instructed them to stop payment of checks and transfer the money to payroll account from checking account.
As baking staff from BofA were not aware about Wilbur legal capacity, they released the
I. Determine which category the case fits into:
This case is diagnostic in nature and Albert Fiorini failed in checking the management failures. Based on the case facts, supposed to identify the lapse in control measures and propose solutions to them.
II. Describe the case
This case is talking about the illegal takeover of company “Atlanta Home Loan” by Albert’s partner cum manager Wilbur Washington.
a. What are the facts of the case?
Albert Fiorini (Al) founded a company named “Atlanta Home Loan” (AHL) in April’02.
Recruited several staffs to take care of operations.
After six months, in Sept’02, AL left to complete his MBA. Before leaving, started looking for someone to run his business.
Impressed by Joe’s (one of AHL’s loan officers) performance, Al offered him a partnership. Joe accepted the same and reached a verbal partnership agreement.
Afterwards Al found that conduct of Joe is not good for the company, parted his ways from him. He hired one manager also who lasted only for three days. Joe took away several loan files which did not got closed since August. Joe was also reluctant into returning those files to AHL. This resulted into a great loss of revenues to the AHL.
In desperation, he entered into another written partnership agreement with Wilbur. In desperation, Al gave him all the management rights expect signing authority for checks.
Wilbur without consulting Al used signed checks for himself and Letitia (Office Manager). Because of lack of fund, checks got bounced. Al got infuriated by Wilbur behavior. When Al enquired, Wilbur lied to him that this fund was meant for the payment towards salary to employees. After further investigation, Al got to know that Wilbur lied again.
Al spoke to personnel’s of BofA and instructed them to stop payment of checks and transfer the money to payroll account from checking account.
As baking staff from BofA were not aware about Wilbur legal capacity, they released the