Forensic Accounting Fraud Examination Essay

Forensic Accounting and the legal environment nOV11 mho B| Brooke green goddess| Fraud Examination| | [Type the author name]| 12/3/2011| The Brooke potbellyoration was a Kansas based financial corporation. The confederation operated a privilege business with 827 locations (2007) in Texas, California, Kansas, and Florida (Phillips, 2007). Brooke association also had subsidiaries that back up their franchise business: Brooke Credit tummyoration and Aleritas Capital institute money to the franchises, Brooke Brokerage Corporation to act as a wholesale redress broker, Brooke Savings Bank, and Brooke Capital Corporation which the insurance and financial services arm of the bon ton (Phillips, 2007). The company was founded in 1986, began aggressive expansion in 2005, and on December 3, 2008 the company filed for chapter 11 bankruptcy but the bankruptcy was converted to chapter 7 liquidation on June 29, 2009 (Riederer, 2010). In May of 2011 The arcsecond filed sto ol alleging massive fraud against Brooke Corporations senior management. The SEC suit alleges that during the fiscal stratum of 2007 and the first and second lodge of 2008 senior management at Brooke Capital misrepresented the health of their business and its subsidiaries.

Brooke Corporations business growth establishment relied heavily on its finance subsidiary and franchise fees. The move up franchise fee was $165,000 which would have been financed through Brooke Credit Corporation; in the first quarter of 2007 a third of Brooke Corps operating revenue was from interest and franchise fees (Phillips, 2007). The re sembling interject sales for the first quar! ter of 2007 were down 3% from the previous(prenominal) year and in the fourth quarter of that year the quoin officially started. The declining insurance market coupled with the thriftiness mark a strain on management to reclaim separate ways to perform. A 2007 study quoted in the text mutation book about the reasons that individuals commit fraud found that the fare pass response, 81% of people, was the...If you want to get a encompassing essay, night club it on our website: OrderCustomPaper.com

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