Question

Find a court case where fraud occurred involving either a cash receipts or cash disbursement scheme (using the KU library/Westlaw), and discuss what fraud detection techniques could have or were used in the court case you found. Be sure to include ideas found in the Fraud Examiners Manual also in your discussion. Then discuss what fraud prevention techniques should have been performed to prevent this fraud from happening in the first place.

Answer 1

I remind a court case where the fund of people in RM charitable trust was deceived by the member of its trust.Basically,RM trust was established in order to provide local people financial aid ,when they find need of it.Local people invest in it for their future benefit.

As per the investment in the RM fund,when people invest in RM fund regularly,after a time investor in RM fund can get double amount of money which he had invested in the fund .as per the rule of fund interest will be charged only on the amount which was lent.

But,in some cases,it was found that member of trust deceived some investor who was not much aware of the scheme .They had to pay interest on the entire money.The fraud was done with many people of the trust but the case was filled when a member of the trust noticed different interest are paid by different investors.

After a time ,the news spread like a fire and people who were not aware of scheme properly rechecked their amount paid as interest.people who were deceived come together and filled a case against trust

Finally,in the court the truth revealed ,and through the bank documents of different investor and it was found that different people paid different interest.However,the trust denied such allegation but later by the statement of many frauded and non frauded consumer truth revealed.

RM trust was banned by the court and also court gave them legal notice to return extra taken interst of investor aswell as given notice to return back the money of all investors.member of RM trust has to pay fine of 100k for attempting fraud to consumer.

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