Fraud in AIS
WEEK7 ASSIGNMENT 3
FRAUD IN THE AIS
JERRY S. KOLEH
STRAYER UNIVERSITY
PROF. DANIEL ACHEAMPONG
ACCT564 (ACCOUNTING INFO SYSTEM)
MAY 26, 2013
Embezzlement of $19.2 Million at Citigroup and the failure of its AIS to prevent the fraud
As alluded to by the Security Director 's Report (2011), it seems internal auditor were not thoroughly reconciling or analyzing statements relative to payments made to contractors and money transfers. Or still, they probably did not even have information about Citigroup’s corporate accounts. If did so, Gary Foster would not have had such honeymoon. Did the internal auditors overlook him because he was midlevel accountant at Citigroup and so was not that big a fish? Gary Foster collected approximately $100,000 paycheck in 2010. Federal prosecutors claim Mr. Foster gave himself a bonus that is usually paid to high level investment banker. (Security Director’s Report 2011). The Citigroup accountant converted to his own use $19.2million from Citigroup before the bank’s auditors uncovered the fraud. Mr. Foster was by then a 35-year-old former assistant vice president in Citi’s internal treasury finance department. The former Citi VP got by Federal Bureau of Investigation agents at Kennedy Airport in 2010 after returning from a trip to Europe and Asia. He was charged bank fraud but pleaded not guilty in a Federal District Court in Brooklyn. On $800,000 bond he was released. Mr. Foster led a high class life; he owned apartment in Midtown Manhattan; two luxury apartments in Jersey City; a $1.35 million house in Tenafly, N.J. On account of law enforcement personnel, Mr. Foster’s worth included a $3 million home in Englewood Cliffs, N.J., that had a $500,000 entertainment system and bathroom mirrors that turned to video screens when touched. He also owned a BMW 550xi and a Maserati GranTurismo. An order was also placed by Mr. Foster for a Ferrari, according to the law enforcement personnel.
The New York Times (June
FRAUD IN THE AIS
JERRY S. KOLEH
STRAYER UNIVERSITY
PROF. DANIEL ACHEAMPONG
ACCT564 (ACCOUNTING INFO SYSTEM)
MAY 26, 2013
Embezzlement of $19.2 Million at Citigroup and the failure of its AIS to prevent the fraud
As alluded to by the Security Director 's Report (2011), it seems internal auditor were not thoroughly reconciling or analyzing statements relative to payments made to contractors and money transfers. Or still, they probably did not even have information about Citigroup’s corporate accounts. If did so, Gary Foster would not have had such honeymoon. Did the internal auditors overlook him because he was midlevel accountant at Citigroup and so was not that big a fish? Gary Foster collected approximately $100,000 paycheck in 2010. Federal prosecutors claim Mr. Foster gave himself a bonus that is usually paid to high level investment banker. (Security Director’s Report 2011). The Citigroup accountant converted to his own use $19.2million from Citigroup before the bank’s auditors uncovered the fraud. Mr. Foster was by then a 35-year-old former assistant vice president in Citi’s internal treasury finance department. The former Citi VP got by Federal Bureau of Investigation agents at Kennedy Airport in 2010 after returning from a trip to Europe and Asia. He was charged bank fraud but pleaded not guilty in a Federal District Court in Brooklyn. On $800,000 bond he was released. Mr. Foster led a high class life; he owned apartment in Midtown Manhattan; two luxury apartments in Jersey City; a $1.35 million house in Tenafly, N.J. On account of law enforcement personnel, Mr. Foster’s worth included a $3 million home in Englewood Cliffs, N.J., that had a $500,000 entertainment system and bathroom mirrors that turned to video screens when touched. He also owned a BMW 550xi and a Maserati GranTurismo. An order was also placed by Mr. Foster for a Ferrari, according to the law enforcement personnel.
The New York Times (June
References: Inside Employee Embezzlement--Just Another $19.2 Million Case. (2011). Security Director 's Report, 11(9), 1-11. SMITH, R. And ALISON TUDOR (2011): Citi, Confirming Breach, to Issue Tens of Thousands of New Card Meal, Douglas H. (2012)Data Security Breaches: The Crucial Mistakes That Companies Most often makes Bartz, F., Strock, B., Harris, J. (2000, October 01). Embezzlement, a real cause for concern. Public Management, (10), 6, Retrieved from http://elibrary.bigchalk.com AICPA - Summary of the Provisions of the Sarbanes-Oxley Act of 2002 (2006). Retrieved from www.aicpa.org/.../FraudPreventionDetectionResponse/.../Summary%20o.. Rapoport, M. (2012).Law 's Big Weapon Sits Idle, Sarbanes-Oxley 's Jail-Time Threat Hasn 't Been Applied in Crisis-Related Cases Alleyne, B. J., & Elson, R. J. (2013). The Impact Of Federal Regulations On Identifying, Preventing, And Eliminating Corporate Fraud. Journal Of Legal, Ethical & Regulatory Issues, 16(1), 91-106.