Archive for: August, 2011

Asset Freeze Filed Against Manager, Hedge Fund After Fraudulent Business

Asset Freeze Filed Against Manager, Hedge Fund After Fraudulent Business

The Securities and Exchange Commission has frozen the asset of a Chicago-area money manager and his hedge fund advisory firm that were charged with lying to prospective investors in their startup quantitative hedge fund. A federal court today entered a preliminary injunction order in the case, which was sealed on August 10, 2011. On that [...]

Verizon Wireless and Friends Taking on Google?

Verizon Wireless and Friends Taking on Google?

Verizon Wireless, Telecom giants AT&T, and T-Mobile have committed to invest over $100 million in a joint venture that will allow consumers to make purchases using their mobile phones. Experts said the move by Verizon Wireless and others shows how desperate the three are in countering other services offered by giant rivals such as Google [...]

Fraud Hits Record Highs in Australian Courts

Fraud Hits Record Highs in Australian Courts

Insurance fraud cases and fraud against investors have reached new highs in Australian courts during the first six months of 2011, and this time with a shift in target. This was according to the latest KPMG Forensic Fraud Barometer, showing that financial institutions continue to battle serious investment and insurance fraud committed by the top [...]

92pc of Insurance Complaints Paid by Firms During 1st Half of 2011

92pc of Insurance Complaints Paid by Firms During 1st Half of 2011

A total of 16 firms, or 92 percent of PPI complaints received in the first half of 2011, have paid a total of £215 million in redress between January and June 2011 inclusive, while the remaining eight per cent consists of approximately 400 other firms. The Financial Services Authority (FSA) has published details of the [...]

Ponzi Scheme Charges Filed Against 2 Florida Men

Ponzi Scheme Charges Filed Against 2 Florida Men

The Securities and Exchange Commission has charged two Florida men for defrauding teachers and retirees in a Ponzi scheme purported as a private equity fund that siphoned about $22 million from more than 100 investors. According to the SEC’s complaint filed in U.S. District Court for the Middle District of Florida, James Davis Risher of [...]

‘Paradise Lost’ Now Found by SEC Following Accounting Fraud

‘Paradise Lost’ Now Found by SEC Following Accounting Fraud

The Securities and Exchange Commission has wound up a settlement with the former chief financial officer of Beazer Homes USA to retrieve his bonus compensation and stock sale profits generated when the Atlanta-based homebuilder was defrauding its reports. Section 304 of the Sarbanes-Oxley Act requires James O’Leary to reimburse Beazer more than $1.4 million that [...]

Nerve-racking Market Did Not Affect UK Building Societies’ Profitability

Nerve-racking Market Did Not Affect UK Building Societies’ Profitability

UK’s building societies have remained profitable 25 years after the Building Societies Act 1986 came into force, giving societies the powers to expand their business and to convert to PLCs, according to KPMG’s 21st annual Building Societies Database. The Database analyses the performance of the 48 building societies. Despite challenging market conditions, it highlights that [...]

Alleged ‘Malpractice’ Puts PricewaterhouseCoopers in Bad Light

Alleged ‘Malpractice’ Puts PricewaterhouseCoopers in Bad Light

Bank holding company Colonial Bancgroup has filed a lawsuit against accounting firm PricewaterhouseCoopers for malpractice, breach of contract and negligence, before the Montgomery County Court. The Alabama-based company claimed in the suit that negligence and accounting malpractice by PricewaterhouseCoopers and Crowe Horwath has allowed Taylor Bean & Whitaker to sucker Colonial Bancgroup for $1.8 billion [...]

Hackers Breach Nokia Developer Forum

Hackers Breach Nokia Developer Forum

Finnish telecoms giant Nokia has warned that the personal information its phone apps developers may have been compromised in a security breach on its official developer forum. Nokia‘s investigation of the incident led to the discovery of a database table that contains developer forum members’ email addresses being accessed by exploiting a vulnerability in the [...]

Exemption for Investment Firms from Accounting Requirements Pushed

Exemption for Investment Firms from Accounting Requirements Pushed

The International Accounting Standards Board (IASB) has proposed defining the investment firms as a separate type of entity that would be exempt from the accounting requirements in IFRS 10 Consolidated Financial Statements. Investment entities are commonly understood to be entities that pool investments from a wide range of investors for investment purposes only. Currently, IFRS [...]

Eid Al-Fitr Sees Risk Management Assurance Certification Offering by IIA

Eid Al-Fitr Sees Risk Management Assurance Certification Offering by IIA

The Institute of Internal Auditors (IIA) will offer a new certification that will allow audit practitioners to demonstrate their ability to give advice and assurance to audit committees and executive management on whether key risk management and governance processes in their organizations are in place and effective. The Certification in Risk Management Assurance (CRMA) exam [...]

Japan, US Accounting Standards Boards in Talks Over IFRS-GAAP Convergence

Japan, US Accounting Standards Boards in Talks Over IFRS-GAAP Convergence

The Accounting Standards Board of Japan (ASBJ) and the Financial Accounting Standards Board (FASB) have updated one another with the recent developments of their efforts to converge the generally accepted accounting principles (GAAP) and the IFRS. Representatives of the Accounting Standards Board of Japan (ASBJ) and the Financial Accounting Standards Board (FASB) held a discussion [...]

Investors, Insurance Fraud Still Rising – KPMG

Investors, Insurance Fraud Still Rising – KPMG

Financial institutions continue to battle serious investment and insurance fraud committed by the top management and low level employees alike, according to KPMG Forensic’s fifth Fraud Barometer. The Barometer shows there has been a rise in investor and insurance fraud, in contrast to Ernst & Young’s survey in Ireland which showed that instances of corporate [...]

Online Theft That Sucked $13m from Financial Firm in Florida Unmasked

Online Theft That Sucked $13m from Financial Firm in Florida Unmasked

The details of an online bank heist that siphoned $13 million from a Florida-based financial institution earlier this year have been discovered by a security researcher. The online theft involved the coordinated use of ATMs by cyber thieves around the globe to cash out stolen prepaid debit cards from Jacksonville-based Fidelity National Information Services Inc. [...]

PCAOB Mulls Changing Auditor’s Reporting Model

PCAOB Mulls Changing Auditor’s Reporting Model

The Public Company Accounting Oversight Board (PCAOB) will discuss the concept release on the possible changes to the auditor’s reporting model, in a public roundtable on Thursday, September 15, 2011. “The Board’s consideration of the audit reporting model is intended to identify meaningful opportunities to enhance the relevance of auditors’ communications with investors,” said PCAOB [...]

Burdens in Financial Reporting to Lessen

Burdens in Financial Reporting to Lessen

The UK government and the Financial Reporting Council have proposed to simplify the financial reporting requirements for the smallest businesses in its Discussion Paper published today by the Department for Business, Innovation and Skills (BIS) and the Financial Reporting Council (FRC). “Simpler Reporting for Smaller Businesses’ sets out ideas to reduce the amount of reporting [...]

Balance Suit Vs PwC to Move Forward

Balance Suit Vs PwC to Move Forward

A judge of the U.S. District Court in New York has denied a motion filed by PricewaterhouseCoopers’ seeking to dismiss a ruling in a lawsuit filed by former employees of the accounting firm. Judge George Daniels upheld an earlier decision by Judge Michael Mukasey who had ruled in September 2006 that PwC must conduct a [...]

PwC Recognized in Business Consulting, Compliance, Talent Related Activities

PwC Recognized in Business Consulting, Compliance, Talent Related Activities

PwC US has been named a Leader in the IDC vendor assessment of business consulting related to talent related activities, and in business consulting related to compliance related activities, according to the analyst firm’s recently published reports. IDC MarketScape vendor analysis model aims to provide an overview of the competitive fitness of suppliers in a [...]

IIA Wants Audit Execs to Meet Professional Practices Requirements

IIA Wants Audit Execs to Meet Professional Practices Requirements

The Institute of Internal Auditors (IIA) has released a new practice guide entitled “Interaction with the Board” that covers several activities, primarily accomplished through the chief audit executive (CAE). The said activities are said to be the key to an effective relationship between the board and the internal audit activity. The practice guide aims to [...]

Cyber Criminals Unleash First Offspring of Leaked ZeuS Trojan

Cyber Criminals Unleash First Offspring of Leaked ZeuS Trojan

Following the leakage of “the most pervasive” banking Trojan’s source code, ZeuS, cyber criminals have now developed the first new generation of web applications using the free resource. Ice IX Botnet is the first new generation of web applications developed to manage centralized botnets through the HTTP protocol based on leaked ZeuS source code. Last [...]