KPMG highlights fraud at senior management level

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Robert Lovell
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Finance directors, chief executives and other senior staff in finance are far more likely to be involved in committing white collar crime, according to KPMG’s latest research.

The global analysis suggests that the typical fraudster is male, aged 36 to 45, holds a senior position in finance and has worked for his company for more than a decade.

The survey also found that board members at divisional, subsidiary and corporate level, commit nearly one fifth of fraud – an increase from 11% in 2007 to 18% in 2011.

Long-serving and more senior employees will be better able to override controls and have accumulated a good deal of personal trust, so will be less suspected and most prone to committing embezzlement or procurement fraud.

One of the most dramatic findings is the increase in the number of cases involving the exploitation of weak internal controls – up from 49% in 2007 to 74% in 2011.

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20th Jun 2011 17:11

As opposed to potential endemic corruption ...

'.. Moreover, under an ‘EU loyalty clause’, anyone who has worked for the institution who speaks out against Europe can be stripped of their pension.

They must abide by certain obligations ‘both during and after their term of office’ including maintaining ‘loyalty to the (EU) communities’ ..'

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This happens when one director keeps all company profits for himself and not allowing the other director to have his name on the bank account. The director, who doesn't have his name on the bank account, does 90 % of all the company's work and pays out all the office expenses and only gets partly reimbursed by the company and gets no salary or dividend, because the other director living the high life. The director who subjects the working director to a low standard of living commits no crime at all, that the authorities would seek to charge him of, but the working director has to alter cheques to enable himself to pay of his debts, including the purchase of the company's original clients, is subjected to criminal proceedings and faces a large fine, repayments of sums under POCA and a possible 8 year prison sentence(which at his age and in a bad state of health is effectively a life sentence. Do you call this justice, if so it is best not to work or go into business and join the rest of the spongers in society until there is no one left working to pay the shirkers!!!!!!

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