Thursday, November 03, 2011

Fraud Involving CPA

I posted this on my accounting discussion boards this afternoon:

Today we ran a story about mobsters engaging in mortgage fraud and one of the people indicted was a CPA. From the story:

Nicodemo Scarfo, the son of the imprisoned boss Nicodemo “Little Nicky” Scarfo of the La Cosa Nostra mob in Philadelphia, and Salvatore Pelullo, an associate of the Lucchese and LCN families, were charged with racketeering conspiracy and conduct of securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice in the 25-count indictment filed in federal court in Camden, N.J.

Nine other defendants—including five lawyers and a certified public accountant—have also been indicted for this fraudulent scheme and Scarfo, Sr., and Vittorio Amuso, the imprisoned boss of the Lucchese family, were named as unindicted co-conspirators.

I think the U.S. Attorney summed it very well in a quote we ran at the bottom of the story:

“Particularly in these economic times, investors should be free to invest in public companies without fear that violent criminal organizations are their puppetmasters,” said Paul Fishman, U.S. attorney of the District of New Jersey. “And the public deserves to rely with confidence on corporate officials and professionals whose positions require them to act in the best interest of shareholders, not members of organized crime.”

I made the story free for everyone to read. You can access it here: Mobsters Indicted for Extorting Texas Mortgage Company

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