Wisconsin Law Journal

The Fraud Files

The fraud blame game: Accusing the auditors

by Tracy L. Coenen on September 22, 2008 10:12 CDT

When a company discovers an internal fraud, it’s not uncommon for owners and management to look for a party to blame. After all, someone should have known that a fraud was in-progress, right? Often, the blame is cast in the direction of the auditors.
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Executive prison sentences and fraud deterrence

by Tracy L. Coenen on August 18, 2008 09:07 CDT

One of the key parts of Sarbanes-Oxley, the legislation created to address the problem of massive financial statement fraud at public companies like Enron and WorldCom, was the increased prison sentences for executives participating in fraud. Supporters of the legislation cheered harsher potential punishment for executives as one of the keys that would help prevent fraud.
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Fed’s new mortgage rules won’t stop fraud

by Tracy Coenen on July 21, 2008 09:14 CDT

As the panic continues about the “subprime mortgage crisis,” pressure has been put on regulators to do something to stop mortgage fraud. The “crisis” has been blamed largely on corrupt mortgage brokers, and so last week the Federal Reserve adopted new mortgage regulations.
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Expert witness looks at a jury from the inside

by Tracy L. Coenen on June 23, 2008 11:02 CDT

A few years ago, I got called for jury duty. Unlike almost everyone else who complains when called for jury duty, I was thrilled. I wanted to be on a jury.
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Let the faithful pray there’s no fraud

by Tracy L. Coenen on May 16, 2008 08:17 CDT

It’s become far too common to hear news reports of financial fraud at churches.
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Fraud and infidelity: A match made in heaven?

by Tracy L. Coenen on April 18, 2008 08:00 CDT

What on earth do fraud and infidelity have in common? Quite a lot actually.
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Methods of searching for unreported income

by Tracy L. Coenen on March 20, 2008 11:22 CDT

For the employee who is receiving cash in lieu of a real paycheck or who is otherwise concealing wages and earnings, it can be very difficult to prove the case. Cash doesn’t leave much of a trail, and a company that is willingly participating in a fraud like this isn’t likely to offer up proof of the fraud either.
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Searching for unreported income is tough task

by Tracy L. Coenen on March 17, 2008 09:33 CDT

The million dollar question in many litigation disputes, be it family law, a shareholder divorce, or other corporate wrangling, often centers around unreported income. Are there sales that aren’t being recorded on the books? Is the individual receiving cash for work done? Is revenue hidden to shield it from being considered by the court?
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Lawsuit against bank raises third-party issues

by Tracy L. Coenen on February 15, 2008 08:40 CST

A lawsuit against Wachovia Bank by a group of defrauded consumers raises some interesting issues related to third-party fraud liability. The question for consumers, investors, and executives is: What is the threshold for liability in fraud cases? What knowledge or actions had to be present in order for a person or company to be held liable for fraud?
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Protecting the work product of an expert witness

by Tracy L. Coenen on January 17, 2008 11:14 CST

One often overlooked key to successfully working with an expert witness is the protection of privilege and work product. Until the expert is actually disclosed to the other side, it’s in the best interest of the client to make sure that the expert’s work is protected. While no airtight accountant-client privilege exists, it is still possible to protect communications when an accountant (or other expert) is working with an attorney on a litigation matter.
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Crime and punishment: Sentencing in financial fraud cases

by Tracy L. Coenen on December 17, 2007 08:15 CST

While investigating fraud for more than a decade, I have consistently been amazed by the disparity among criminal sentences in financial fraud cases. Of course, there are many facts that go into a sentencing decision, and so it is difficult to make an apples-to-apples comparison of sentences between cases.
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Corporate identity theft — it isn’t just for people anymore

by Tracy L. Coenen on November 26, 2007 08:39 CST

You thought only people experience identity theft. Only individuals become victims of dumpster diving or poor computer security. Someone gets a credit card in your name, and you’ve become a victim. You didn’t even consider that a company could have an “identity” that could be stolen.
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Signs that a company has been ripped off

by Tracy L. Coenen on October 17, 2007 11:51 CDT

How would you know if your company was being looted by a dishonest employee? Most companies miss all of the warning signs that could help stop a fraud early.
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Tracy L. Coenen Bio

on October 31, 2007 06:13 CST

Tracy L. Coenen is a CPA, a certified fraud examiner, and president of Sequence Inc., a forensic accounting firm with offices in Milwaukee and Chicago. She has gained recognition locally and nationally as an expert in fraud and financial investigations.

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