More and more companies are getting caught with fraud. Even just a quick check of the news leads to information about the latest executive who did something wrong. Unfortunately, fraud is fairly commonplace in corporate America today. In order to effectively protect themselves, it’s essential that companies know the truth about fraud. Keep reading as we clarify some of the common myths about fraud in 2018.
- Our company doesn’t have an internal fraud problem – No CEO ever wants to think about fraud within his or her own company. But the reality is that 45 percent of companies will be impacted by fraud at some point. What’s even more alarming is that the average internal fraud case costs about $160,000. Taking it a step further, about 25 percent of fraud cases cost companies over $1 million. Now is the time to start implementing policies and procedures that prevent and detect fraud. Ultimately, it’s your decision whether you choose to bring in employees our consultants to better secure company information and assets.
- Few people would think to commit fraud – It’s just about impossible for companies to figure out which, if any, of their employees will commit fraud and when they will do it. Interestingly, nearly 90 percent of employees and executives who commit fraud against their employer have never been previously charged with such an offense. That stat just goes to show that you can’t predict this sort of crime.
- Our company will be okay if we follow government regulations – Sarbanes-Oxley forces management and the board of directors to accept responsibility for issuing accurate financial documentation. However, Sarbanes-Oxley doesn’t do much more than that. This ties back in with the suggestion of implementing a sound fraud prevention program. An anti-fraud professional should be of help here.
- There’s no need to worry about small frauds – The major frauds you read about once started as minor cover-ups. So yes, it’s important to take even the smallest of frauds seriously. There’s no problem with sending a message to employees that dishonesty is not tolerated. As you create your fraud prevention program, be sure that a zero-tolerance policy is included.
- Auditors will detect any fraud – Contrary to popular belief, audits aren’t usually designed to detect fraud. Rather, audits are designed to give reasonable assurance that the numbers match up accordingly. Plus, auditors see the same things year after year. Rarely do they catch something that seems completely off.
Experienced Securities Litigation
Are you a recent victim of securities fraud? If so, it’s your right to pursue a formal claim in court or arbitration to recover any losses. At the law office of Sadis & Goldberg, we regularly represent clients in securities arbitration, mediation, and litigation. See below for some of the more common forms of securities fraud:
- Misrepresentation of information about investors
- Ponzi schemes
- Fraudulent valuation of assets
- Distributing false or incomplete documents
For more than 25 years, our securities litigation attorneys have represented individual and institutional investors throughout the country. These aren’t small cases, either. Our New York City lawyers consistently demonstrate results in high-stakes cases as they recover losses from investment misconduct.
We are ready to help you during this stressful time. The law office of Sadis & Goldberg is proud to represent those in all aspects of securities litigation, including action initiated by the U.S. Securities and Exchange Commission. You can feel at ease knowing that our attorneys are in constant contact with the SEC, NASD, NYSE, and other state regulatory authorities. Why is this important? Well, such familiarity allows us to provide efficient and effective representation for clients in securities arbitration and litigation for individual and institutional investors.
When your reputation or the reputation of your company is on the line, it’s crucial to team with experienced legal counsel. With several decades of industry experience, you can feel confident in our ability to obtain the best possible results for your case. It doesn’t matter whether we settle your case during arbitration or if going to litigation is required.
Call us now to speak with an attorney.