The Description of a Case Fraud - Assignment Example

The former chief accountant of Stanford financial group of companies Mr. Gilbert Lopez and Mark Kurt, the global controller of Stanford were involved in fraud. The two officials were sentenced to twenty years in prison. Gilbert Lopez was also to pay cash bail of twenty-five thousand dollars. In addition, they were to be supervised even after a period of three years upon their release.  The two were convicted of wire fraud and conspiracy on 19 November 2012. They had had actively participated underground in misusing the financial assets of Stanford International Bank.

Moreover, they defraud the bank by inflating that they had purchased a real estate property on behalf of the bank at a value of three-point two billion instead of sixty-three point five million dollars (International Financial Reporting. (2013). Stanford Company failed to carry out the background check to investigate the history of the two officials prior to hiring them. Secondly, the company did not set up an anti-fraud policy that indicates how to detect report and curb fraud. Thirdly, the company did not have anti-fraud training to educate employees on the risk of fraud.

Additionally, Stanford Company was unable to conduct job rotation which could have helped to prevent the occurrence of fraud (Iyer & Samociuk, 2006).