AutoRecovery save of White Collar Crime a Form of Occupational Fraud.doc

A quote of gordon gekko 1987 can help define greed

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A quote of Gordon Gekko (1987) can help define greed from the prospective a fraudster who stated “ greed, for lack of a better word, is good. Greed is right. Greed works. Greed clarifies, cuts through and captures the essence of the evolutionary spirit. Greed, in all of its forms, greed for life, for money, for love, and knowledge, has marked the upward surge of mankind, and greed, will save this malfunctioning corporation called U.S.A”. 1 White Collar Crime a Form of Occupational Fraud 1 Gordon Gekko is a fictional character portrayed by actor Michael Douglas, in the 1987 film “Wall Street” directed by Oliver Stone.
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WHITE COLLAR CRIME 4 Fraud has become one of the greatest threats to the world economy that not only impact major corporations and key financial institutions, but also affect the public trust on goods and services and undermine financial stability. According to the Association of Certified Fraud Examiners (ACFE) fraud can encompass any crime that uses deception for financial gain and defines occupational fraud as: “the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets”. Again, Wells (2013) defines fraud according to the Black’s Law Dictionary as “ act to his or her detriment”. Hence within the body of anti-fraud professionals, the general consensus is that white-collar crime occurs in organizations and the crime is executed by upper management either for personal gain, or by individuals on behalf of organizations (Friedrichs, 2009). However, the key is that any white-collar crime is an intentional and deliberate act of fraud to deprive another person or company of property or money by illegal means. There is no clinical evidence to suggest a single personality type of the average fraud perpetrator. For one thing, acts of fraud and white-collar crimes in general vary widely, from embezzlement to market manipulation to junk science to price-fixing. A few studies have suggested two broad labels often apply to fraudsters: “egocentric” and “reckless.” Some examples of white collar crimes includes embezzlement, tax evasion, penny stocks, money laundering and security frauds and the case of Enron Corporation and Stratton Oakmont Brokerage firm will be discussed to illustrate the modus operandi of these fraudsters. Theories of fraud
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WHITE COLLAR CRIME 5 Donald R. Cressey The causes of fraud are summarized in an axiom known as the Fraud Triangle, developed from the work of Dr. Donald Cressey. According to Cressey the three elements of the Fraud Triangle are: Pressure, or motive, opportunity, and rationalization. In a general sense, people commit fraud because they need, or think they need, the money; they believe they will not be caught; and they have justified the act to themselves. Though this model, virtually everyone is a potential fraud offender.
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