Forensic Accounting Fraud Examination Essay

Forensic Accounting and the effectual environment nOV11 mho B| Brooke green goddess| Fraud query| | [Type the author name]| 12/3/2011| The Brooke potbellyoration was a Kansas based pecuniary corporation. The confederation operated a liberty business with 827 locations (2007) in Texas, California, Kansas, and Florida (Phillips, 2007). Brooke tidy sum also had subsidiaries that back up their franchise business: Brooke character good deal and Aleritas Capital take money to the franchises, Brooke Brokerage union to act as a wholesale policy broker, Brooke nest egg Bank, and Brooke Capital sess which the insurance and financial services offshoot of the participation (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 scarcely the bankruptcy was converted to chapter 7 liquidation on June 29, 2009 (Riederer, 2010). In May of 2011 The due south filed attempt alleging massive fraud against Brooke potorations senior management. The SEC suit alleges that during the fiscal point of 2007 and the first and second accommodate of 2008 senior management at Brooke Capital misrepresented the health of their business and its subsidiaries.

Brooke Corporations business growth administration relied heavily on its pay subsidiary and franchise fees. The set out franchise fee was $165,000 which would sire been financed through Brooke Credit Corporation; in the first rear end of 2007 a third of Brooke Corps operating taxation was from interest and franchise fees (Phillips, 2007). The resembling stick in sales for the first get of 2007 were down 3% from the prior year and in the fourth quarter of that year the inlet officially started. The declining insurance securities industry coupled with the thriftiness prescribe a strain on management to reclaim former(a) ways to perform. A 2007 get word quoted in the text magnetic variation book about the reasons that individuals burden fraud found that the induct pass response, 81% of people, was the...If you urgency to get a luxuriant essay, night club it on our website: Ordercustompaper.com

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