Job sat fraud

The notorious cases of Enron, Maddox Investment Securities, Tycoon and there, prompt me to ask why they would do such a thing. In the cases of Ken Lay and Bernard Maddox, they built their companies from nothing to multimillion dollar corporations; yet brought their companies to ruin from the inside. The purpose of this study is to examine the relationship between Coos with high job satisfaction and their propensity to commit fraud. Why do employees with high job satisfaction commit fraud? This study will focus on company Coos and founders who have committed fraud against their own companies. Pop to show that even though these people robbery loved both their job and their company, this did not stop them from stealing. Understanding the characteristics of fraudsters may help us identify what kind of people would run their companies into bankruptcy by stealing millions upon millions of dollars from the companies they work for. Job Satisfaction and Fraud The Problem: Why do employees with high job satisfaction commit fraud? The purpose of this study is to try and find out why someone who has high job satisfaction would commit fraud against the company the work for.

According to The Association of Certified Fraud Examiners (CAFE) (2014), “Nineteen percent of all fraud is committed by founders or company executives”. The fraud triangle would suggest that it is just a matter of opportunity, motivation, and/ or rationalization. I do not think that this represents the whole picture. By examining several of these cases I hope to see that there are other reasons why this happens. For this study I will be focusing solely on company founders and Coos in the last fifteen years.

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If the passage of the Serbians-Solely Act in 2002 had any effect on these people; either to deter hem or just make them try harder to cover up what they were doing. I will not be looking into how they committed fraud or what happened to them when they caught I believe that if corporations understand not only how people commit fraud but why they do as well; they can go forward to combat the problem, better prepared for the fight against fraud. Believe that there is a much bigger picture as to way these people would commit fraud.

There are other areas of a person’s life that should be looked at for red flags that may indicate fraud is happening. Some of these aspects may include: having a single-minded focus on goals, the way people are viewed (having a lot of material objects) can influence their actions, or just plain greed for more and more money. Are people so focused on their careers that they will do anything necessary to achieve their goals? Do people focus too much on how others perceive them? Are they just so greedy for money that they are willing to risk their own company’s future and their freedom in order to get it?

These are the sub- questions I will be answering in order to reach a conclusion on the initial question. Definition of Terms: Fraud: deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage. Fraud Triangle: a model for explaining the factors that cause someone to commit occupational fraud. It consists of three components which, together, lead to fraudulent behavior. Red Flag: warning signs of fraud Embezzlement: to appropriate fraudulently to one’s own use, as money or property entrusted to one’s care. Asset misappropriation: Stealing assets from the company.

Methodology: The purpose of this qualitative study is to identify why people who enjoy heir jobs commit fraud. In conducting qualitative research, I used several databases to find information pertaining to why people who are happy with their jobs sometimes overstating assets Or understating debt also known as (misstate financial), have asset misappropriation, or in some cases commit or submit to bribery. I used the data I found to answer the following questions: 1 . Are people so focused on their careers that they will do anything necessary to achieve their goals? 2. Do people focus too much on how others perceive them? 3.

Are they just so greedy for money that they are willing to risk their own Mayans future and their freedom in order to get it? In answering these questions I hoped to answer the big question of why people with high job satisfaction commit fraud. All qualitative data were collected by the researcher using online databases including Protest and Google Scholar. All data were stored on the researcher’s personal computer using Microsoft Word. I analyzed several articles that had been published in professional journals. As I reviewed the available literature, I made a thematic analysis looking for why executives commit fraud.

Once found enough research to come too conclusion, was able to organize my findings into this research paper Results: Many white collar crimes aren’t committed by hardened criminals. They are committed by most often by hard working, normal people with no criminal background. According to a study done by J. Weber in 2009, “Nearly 6 percent of the annual gross revenues of U. S. Companies are lost to fraud, and that the average business loses more than $9 per day per employee. ” Why is this happening? Surly not all of the fraudsters are so unhappy with their employers that they want to see harm come to them.

If fact, many of the executives that commit fraud not only love their job but founded the companies they stole from. If these people have such high job satisfaction, why take the risk of losing that job or even going to jail? I have found many reasons why executives commit fraud, but for this study I will be focusing on the top three reasons. Watson & Watson observed in 201 3, “Human behavior is a complex issue, particularly when trying to assess perceived trustworthiness”. There are occasions in history where fraud and corruption have disrupted or outright destroyed business institutions.

In the case of Ken Lay and Jeff Shilling of Enron, they brought one of the county largest companies to ruin. Mule Captain asked some of these questions in his paper Why Do Good People Sometimes Do Bad Things? : 52 Reflections on Ethics at Work. One of the reasons he states as to why Lay and Shilling did this was “Setting and achieving goals is important, but single-minded focus on them can blind people to ethical concerns”. They wanted to keep the price of their stock sky high so that they could make millions on their stock options. That is the first reason people commit fraud.

The next reason is most executives think they’re smarter than those around them. This was the problem with Bernard Maddox. Maddox founded the Wall Street firm, Bernard L. Maddox Investment Securities LLC in 1 960, and Was its chairman until his arrest on December 1 1, 2008. In a case study done by Michael Borrowers, “Madam’s sons told authorities that their father had confessed to them that the asset management unit of his firm was a massive Opinion scheme, and quoted him as describing it as “one big lie”. The following day, FBI agents arrested Maddox and charged him with one count of securities read”.

Since he had been perpetrating this fraud for so long, he thought he was too smart for the authorities to ever catch him. The third reason for executives to commit fraud is just plain greed. They use rationalization to themselves to say that they either deserve or have to have the latest and the greatest “thing’ to keep their status in society. According to Lambed (201 3), “Most fraudsters, as with the perpetrators of any other crime, rationalize their deed”. In the cases of Enron and Bernie Maddox, no amount of money was enough for them.