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Fraud (3) - Essay Example
Author : aisha19
Finance & Accounting
Pages 3 (753 words)
Fraud: Peregrine Financial Group Name Institution Fraud: Peregrine Financial Group The definition of fraud varies from country to country. However, fraudulent actions are described using deception, concealment, omission, or distortion of truth to attain unlawful and inequitable advantage…
A corporate fraud exceeds the scope of workers stated positions. In most cases, these types of corporate frauds involve a series of individuals in all levels of management of an organization. Fraud can be detrimental to a community, company, or individuals who are normally on the receiving end of fraudulent activities. In addition, the latent negative consequences of fraud in any organization can be strategic, monetary, legal, or operational. The Peregrine Financial Group (PFG) was a brokerage firm that experienced high level of fraud for about 20 years while in business. Based in U.S, the firm also accepted foreign traders in their business that entailed offering access to exchanges in the country. The company utilized the Best Direct Pro as the only interface to conduct business. In July 2012, the firm was closed down amid bankruptcy claims due to fraud. This led to the arrest of the former C.E.O, Russell Wasendorf Sr. who confessed of embezzling large amounts of money from the firm (Associated Press, 2012). The fraud entailed the embezzlement of millions of dollars using forgery. According to the former C.E.O, forged bank statements were used to obtain money from the customer’s accounts. The activities run for twenty years without being detected. Furthermore, the C.E.O organized his exclusive access to the U.S bank accounts held by the company (Associated Press, 2012). ...