[Flashback] Firms eyeing growth in anti-fraud market

business.asiaone.com/news/firms-eyeing-growth-anti-fraud-market

Posted by Eugene SAY Gui Hua , Year 4 undergrad at the School of Business, Singapore Management University

AS CORPORATE hacking becomes commonplace and regulators face no shortage of wayward companies to put under scrutiny, the cyber-security and anti-corruption business is growing fast.

The market for fraud investigation and dispute services in the Asia-Pacific region – including China but excluding Japan and India – is worth more than US$400 million (S$530 million) a year, estimates professional services firm Ernst & Young (EY). If compliance work were included, that number would rise dramatically. Continue reading

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Fake Bank in Nanjing Decorated As State-Owned Bank, Illegally Collected 200 Million Yuan [RMB] in Deposits

http://www.chinasmack.com/2015/stories/fake-chinese-bank-in-nanjing-scams-depositors-of-200-million.html

Posted by Low Hwan Hong, Year 4 undergrad at the School of Business, Singapore Management University

According to a Xinhua report, a “cooperative” that had absolutely no financial qualifications meticulously decorated their interior to resemble that of a state-owned bank and used high interest rates to entice city residents to come deposit their money, scamming nearly 200 people in just over a year, involving nearly 200 million yuan [RMB]. Continue reading

Indian Auditors Ask Cos to Keep Their Books in Order Before April ’16, from when issues like fraud in a firm they examine could land them in jail. Under the new Companies Act, the board of directors and the auditors will be held responsible for fraud or discrepancies in company operations

http://economictimes.indiatimes.com/industry/services/consultancy-/-audit/new-companies-act-auditors-ask-companies-to-keep-their-books-in-order-before-april-2016/articleshow/46139172.cms

Auditors Ask Cos to Keep Their Books in Order Before April ’16, from when issues like fraud in a firm they examine could land them in jail. Under the new Companies Act, the board of directors and the auditors will be held responsible for fraud or discrepancies in company operations.

Sachin.Dave@timesgroup.com

6 February 2015

The Economic Times – Delhi Edition

Auditors are prodding the companies they audit to set their house in order before April next year, from when issues like fraud in a firm they examine could land them in jail. Under the new Companies Act, the board of directors and the auditors will be held responsible for fraud or discrepancies in company operations. Starting this year, directors will have to comment on the existence and effectiveness of internal financial controls in their board report. External auditors have one more year to report on their assessment of the existence and effectiveness of these controls, say industry trackers. Once the regulations become applicable, the onus will lie on the auditors to ensure that the books of the companies they audit are clean. Starting 2016, the external auditor could face up to 10 years of jail term for failing to raise red flags about frauds. Continue reading

Former HealthSouth CFO who served jail time after accounting fraud writes ethics playbook

http://www.bizjournals.com/birmingham/morning_call/2015/02/former-healthsouth-cfo-who-served-jail-time-after.html

Former HealthSouth CFO who served jail time after accounting fraud writes ethics playbook

Ryan Phillips

5 February 2015

Birmingham Business Journal Online

Aaron Beam, a business ethics speaker and founding chief financial officer of HealthSouth Corp. (NYSE: HLS), has penned a new book on business ethics. Beam said his newest book, “Ethics Playbook: Winning Ethically in Business,” stands out against other works in the field of ethics by providing lessons to help avoid unethical business practices. Beam is able to relate these lessons to readers because of his involvement in an accounting fraud scheme at HealthSouth under then-CEO Richard Scrushy. Beam surrendered to federal authorities in 2003 and served time in prison before becoming a public speaker in 2009. “It’s not a text or highly academic,” Beam said in a written statement. “It’s got practical ideas and principles that people can use to avoid the pitfalls of unethical business practices—in whatever career stage they’re in. I learned my lesson the hard way, but that doesn’t mean they have to.” He will have a book signing event in Birmingham next month. The event will be held at Workplay and is scheduled for Thursday, March 5., from 5:30 p.m. to 7:30 p.m., according to a release from Beam.

Shenzhen-listed Luzhou Laojiao and the disappearing RMB200m term deposits; CBRC Warns Public Not to Fall for High-Interest Scams at Banks; Regulator provides details of fraud schemes involving banks in Changsha and Hangzhou, then says people shouldn’t be so greedy

http://english.caixin.com/2015-02-05/100781920.html

CBRC Warns Public Not to Fall for High-Interest Scams at Banks; Regulator provides details of fraud schemes involving banks in Changsha and Hangzhou, then says people shouldn’t be so greedy

By staff reporter Gao Xinli

(Beijing) – The banking regulator has warned the public to be wary of scams that attract depositors with the lure of high interest rates, citing two cases in which depositors at two banks lost large amounts. The China Banking Regulatory Commission (CBRC) made the warning on February 4 on its account on WeChat, a popular social media app. It also provided details of some of the tricks scammers were using on depositors. The CBRC first brought up the case of Luzhou Laojiao Co. Ltd., which Caixin has reported filed a lawsuit in October against a branch of Agricultural Bank of China in Changsha, in the central province of Hunan, over the loss of one term deposit. The Shenzhen-listed liquor manufacturer said it made term deposits of 50 million yuan and 150 million yuan with the bank in April 2013. When the second deposit reached its maturity date in September last year, the company checked on the money, but the bank told it the deposit was gone. The CBRC said in its WeChat post that Luzhou Laojiao was the victim of fraud and then provided details of the scam. Several people passing themselves off as bank clerks contacted Luzhou Laojiao about deposit opportunities that offered high interest yields. Continue reading