Fraud in Religious Organizations VII

More actions that a church can take to avoid fraud:

1.  Church boards should be open and forthcoming about problems and consequences of these problems.

2.  Churches should always remember that some things are too good to be true (See: Gene's 3 Rules of Fraud).

3.  It may be a good idea for churches to do background checks, including criminal background checks and credit checks, of their potential employees.

With these safeguards, churches can help to reduce the risk and rate of fraud.

Credit is given to Robert Cornell, Carol Johnson and Janelle Rogers Hutchinson and the Jan/Feb 2012 issue of Fraud magazine for this thread.  NOTE that Ms. Hutchinson was inadvertently missed in the first six posts of this thread and deserves full credit for this thread as well. 

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Fraud in Religious Organizations VI

OK -we have discussed how churches are vulnerable to fraud.  What can they do about it?

Here are some suggestions which are not only applicable to most organizations, but especially to churches and other houses of worship:

1.  Churches can reach out their congregants who may have experience in fraud and risk management.  Many times these professionals will provide their services free of charge or for a reduced rate for their churches.

2.  Churches need to understand that checks and credit cards are especially vulnerable to fraud.

3.  Church board members need to understand that trust is not an effective means of internal controls.

Credit is given to Robert Corness and Carol Johnson and the Jan/Feb 2012 issue of Fraud Magazine for this article.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Fraud in Religious Organizations V

Let's continue our discussion as to why religious organizations may be hesitant to report that fraud occurred in their house of worhship.

     One of the most basic reasons is that religoius organizations have a completely different orientation than businesses.  Businesses of course are in the business of making money.  However, churches and other houses of worship are engaged in the attempt to change human behavior, to "save souls" if you will.  Often, churches are places where confidentiality applies, even in situations of white collar crime, because of the nature of confidentiality of the work of churches (confessions, etc.), that the work of a criminal will not be exposed.  Sometimes, this confidentiality works against the church.

Credit is given to Robert Cornell and Carol Johnson and the Jan/Feb 2012 issue of Fraud magazine for the information in this article. 

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Fraud in Religious Organizations IV

     Another reason that religious organizations and houses of worship are subject to fraud is that, quite frankly, many houses of worship lack proper accounting controls including separation of duties.  This is hardly unique to churches, of course, but it seems to be more prevalent in churches.  As we have discussed in previous posts and in other columns, this lack of separation of duties is very often responsible for fraud. 

Credit is given to Robert Cornell and Carol Johnson and Fraud Magazine for this subject matter.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Fraud in Religious Organizations III

Let's continue our discussion as to why churches and other houses of worship are susceptible to fraud.

    One of the more common factors is psychological: churches and church membership can be overconfident.  In other words, the members of a church believe that they cannot be the victims of fraud. 

     Many times church members believe that they cannot be the victim of fraud is because they do not suspect fraud in their organization and are overconfident that it cannot occur in their organization.  As a result, somtimes churches will lack not only the resources to prevent fraud, but also the will to do so in the first place.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

 

Fraud in Religious Organizations II

   There are several reasons why religious organizations can be prone to fraud and white-collar theft. 

1.  Religious organizations tend to be small organizations.  Yes, there are exceptions like the "mega churches" or the Catholic Church.  However, many religious organizations are much, much smaller.

2.  Religious organizations, by their very nature, engender trust among members.  This tends to lead to the false belief that trust is an adequate control.  Remember, fraudsters and white-collar criminals feed off the trust of other people to perpetuate their crimes.

3.  Unfortunately, in many instances, when fraud does occur in a religious organization, there is a cover up so members do not feel threatened. 

4.  Religious organizations are usually nonprofit organizations under US law and therefore are often not tightly regulated.

Credit for the above goes to Robert Cornell and Carol B. Johnson and the Jan/Feb 2012 issue of Fraud Magazine.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Fraud in Religious Organizations I

We discussed some time back the question of Benny Hinn, a well-known evangalist, and his questionable methods of "healing" and fund raising.  However, there are other issues when it comes to fraud and religion.

    Like any other organization, religious institutions need to raise money in order to survive and prosper.  Even the most basic religious organization needs money for basic services. So-called "mega churches" and enormous organizations like the Catholic Church have many funds at their disposal.

   However, once again like any other organization, religoius institutions and organizations are subject to fraud and white-collar theft.  We will spend the next few days analyzing some of the issues that are unique to fraud in religious organizations and how many times religious organizations can be the victim of fraud.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Investment Scheme Fraud in the Eastern District

Investment scheme fraud in the Eastern District of Texas

http://www.justice.gov/usao/txe/News/2012/EDTX_FFETF_BROWN-LOUDER%20092612.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Tax Fraud Indictment in the Eastern District

Tax Fraud indictment in the Eastern District of Texas

http://www.justice.gov/usao/txe/News/2012/edtx-tax-edward-101612.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Tax Fraud in Texas Southern District

Tax Fraud in the Southern District of Texas.

http://www.justice.gov/usao/txs/1News/Releases/2012%20October/121015%20Dixon.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Health Care Fraud in Texas Southern District

Health Care Fraud in the Southern District of Texas

http://www.justice.gov/usao/txs/1News/Releases/2012%20October/121019%20Nzeocha.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Ponzi Scheme in the Texas Southern District

Back from vacation - had a great time.  Now, back to the reality of fraud.

An attorney was convicted of running a Ponzi scheme in the Southern District of Texas.

http://www.justice.gov/usao/txs/1News/Releases/2012%20October/121015%20Davis.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Hiatus

To my loyal readers - please note that I will be on vacation until the 18th of October and there will be no posts until after this date.

I appreciate all those who read this blog and hope that all my readers find the information useful.

See you all later in October.

Gene

Casino Fraud IV

Another type of casino fraud is credit fraud.  This occurs when a customer opens a credit line, draws against the credit line and draw against the credit line and repay their creidt diligently.  The main purpose of this, however, is to increase the credit line.  Then, the person will take one last game at the casino and draw out all of their credit and walk out with the chips.  The chips will be given to a third person to cash them for the fraudster and never pay the final credit line. 

Credit to Fraud Magazine and Amy Logan

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Casino Fraud III

One of the basic forms of casino fraud is counterfeiting.  Customers try to pass counterfeit currency to employees who are working in low-light and high-pressure situations.  The employees may not have time to properly check the money.  Employees of casinos do receive training on how to handle and detect counterfeit currency, but during the harsh hours and working conditions of casinos, it is easier to front counterfeit currency.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Interludes - Fraud in Science Publications II

Another interlude but this is a troubling trend.  Back to discussions regarding casinos tommorrow.

http://www.csmonitor.com/Science/2012/1002/Fraud-in-scientific-research-It-happens-and-cases-are-on-the-rise

Speaking of interludes, for all my readers, please note that I will be on vacation from the 10th to the 18th of October and there will be no postings during this time. 

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

 

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Interludes - Fraud in Science Publications

This is an interlude from our current conversation, but an important one.

Fraud is fraud, no matter where it occurs.  Unfortunately, it is starting to appear in greater frequency in scientific publications.  This is harmful to us all.

http://news.yahoo.com/study-fraud-growing-scientific-research-papers-190641079.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

 

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk