October 12th in Uncategorized by jason2009 .

Sex – the key to accountancy fraud

Financial frauds have been unravelling all over the shop since the economic crisis gripped the world. When the tide got sucked out, a whole load of Ponzi-like scammers were caught, shorts round ankles so to speak.

During the 1980s, Sam Antar a former CPA and former Chief Financial Officer of Crazy Eddie, Inc., helped mastermind one of the largest securities frauds of its time. When he was cooking the books for his company, he used a number of tricks to …

Charles Tyrwhitt UK
 

Financial frauds have been unravelling all over the shop since the economic crisis gripped the world. When the tide got sucked out, a whole load of Ponzi-like scammers were caught, shorts round ankles so to speak.

During the 1980s, Sam Antar a former CPA and former Chief Financial Officer of Crazy Eddie, Inc., helped mastermind one of the largest securities frauds of its time. When he was cooking the books for his company, he used a number of tricks to dupe auditors, not all of them involved numeric calculations. Here is one he revealed to CNN:

“These auditors from the Big Four accounting firms are usually single kids just a few years out of school. What do kids in their 20s think about all the time? Sex,” said Antar, who was at the center of a multi-million dollar fraud 20 years ago.

So Antar would pair “cute hot female” employees with male auditors as part of his distraction strategy. “In effect, I was a fraudster, matchmaker and pimp,” said Antar, who avoided jail time by working with the U.S. government, and now advises government agencies and businesses on avoiding accounting fraud.

Something to bear in mind next time you are sweating it out with a cute audit buddy.

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