Financial Fraud
Essays

Scope The agency found the fraud understatements of earnings and illegal gratuities that led to accounting violations and inability to meet Wall Street goals. The investigation of Lee Frakas, executive of a major mortgage company which had dealings with Fannie Mae with hundreds of fake mortgages. The Securities Exchange Commission cited that Fannie Mae had to repay earnings and correct their books for the period 2001 through 2004. This major undertaking will cost the company over $11 billion by SEC estimates. In addition the Department of Justice has conducted a criminal investigation on the board members.

Financial fraud refers to the act of deceitfully and illegally taking money or property for personal gain. It is an ever-evolving problem with serious implications for individuals, businesses, and the economy at large.