Oh My Fraud

They can’t all be criminal masterminds. Caleb and Greg discuss four stories of fraud gone absurdly wrong.

Sponsors
Forwardly - https://ohmyfraud.promo/forwardly
Tabs - https://ohmyfraud.promo/tabs
Artiffex - https://ohmyfraud.promo/artiffex

• (00:00) - Infinite Stupidity Quotes

In less than 10 minutes, you can earn 1 hour of NASBA-approved accounting CPE after listening to this episode. Download our mobile app, sign up, and look for the Oh My Fraud channel. Register for the course, complete a short quiz, and get your CPE certificate.

Download the app:

Apple: https://apps.apple.com/us/app/earmark-cpe/id1562599728
Android: https://play.google.com/store/apps/details?id=com.earmarkcpe.app

Questions? Need help? Email [email protected].

CONNECT WITH THE HOSTS

Greg Kyte, CPA
Twitter: https://twitter.com/gregkyte
LinkedIn: https://www.linkedin.com/in/gregkyte/

Caleb Newquist
Twitter: https://twitter.com/cnewquist
LinkedIn: https://www.linkedin.com/in/calebnewquist/

Email us at [email protected]

Sources:
Crime pays for theft victim — BBC

The World’s Dumbest Fraudsters — Journal of Accountancy

Police nab suspect in bank deposit box scam — Tampa Bay Times

Inside the mind of criminals: How to brazenly steal $100 billion from Medicare and Medicaid [CNBC]

NHE Fact Sheet [CMS]

Durable medical equipment (DME) coverage [Medicare.gov]

Alleged Health Care Fraudster Ordered Detained Pending Trial After Being Arrested on a Jet Ski Headed Toward Cuba [DOJ]

Officials: Fraud suspect caught heading to Cuba on Jet Ski [AP]

Bugatti Veyron [Wikipedia]

$1.6 Million Bugatti Veyron Crashes Into Texas Lake [Jalopnik]

Bugatti Veyron Lake Crash-- Original Video- 1st hand account [YouTube]

EXCLUSIVE: Bugatti Lake Crash Owner Buys Replacement $1.5 Million Veyron [Jalopnik]

Trial Of Man Sued For 'Purposefully' Crashing Bugatti Veyron Into Lagoon Mysteriously Postponed [Jalopnik]

Angelina County Man Guilty In Wire Fraud Scheme [DOJ]

Lufkin man gets 1 year prison for false insurance claim in Bugatti case [KTRE]

Man who crashed Bugatti into a lake is headed to federal prison [Houston Chronicle]

In this special episode, Caleb interviews Greg about a tricky situation he encountered early in his career as an accountant.

Sponsors
Tabs - https://ohmyfraud.promo/tabs
Forwardly - https://ohmyfraud.promo/forwardly
Artiffex - https://ohmyfraud.promo/artiffex

• (00:00) - Welcome to Oh My Fraud

In less than 10 minutes, you can earn 1 hour of NASBA-approved accounting CPE after listening to this episode. Download our mobile app, sign up, and look for the Oh My Fraud channel. Register for the course, complete a short quiz, and get your CPE certificate.

Download the app:

Apple: https://apps.apple.com/us/app/earmark-cpe/id1562599728
Android: https://play.google.com/store/apps/details?id=com.earmarkcpe.app

Questions? Need help? Email [email protected].

CONNECT WITH THE HOSTS

Greg Kyte, CPA
Twitter: https://twitter.com/gregkyte
LinkedIn: https://www.linkedin.com/in/gregkyte/

Caleb Newquist
Twitter: https://twitter.com/cnewquist
LinkedIn: https://www.linkedin.com/in/calebnewquist/

Email us at [email protected]

In the era of climate change, it isn’t just about saving the planet using sustainable methods of energy, it’s about making a fortune from sustainable methods of energy. In this episode, Caleb and Greg discuss the story of DC Solar, a manufacturer of mobile solar generators.

Sponsors
Forwardly - https://ohmyfraud.promo/forwardly
Tabs - https://ohmyfraud.promo/tabs
Practice Protect - https://ohmyfraud.promo/protect

• (00:00) - Introduction to the Unlikely Innovator

In less than 10 minutes, you can earn 1 hour of NASBA-approved accounting CPE after listening to this episode. Download our mobile app, sign up, and look for the Oh My Fraud channel. Register for the course, complete a short quiz, and get your CPE certificate.

Download the app:

Apple: https://apps.apple.com/us/app/earmark-cpe/id1562599728
Android: https://play.google.com/store/apps/details?id=com.earmarkcpe.app

Questions? Need help? Email [email protected].

CONNECT WITH THE HOSTS

Greg Kyte, CPA
Twitter: https://twitter.com/gregkyte
LinkedIn: https://www.linkedin.com/in/gregkyte/

Caleb Newquist
Twitter: https://twitter.com/cnewquist
LinkedIn: https://www.linkedin.com/in/calebnewquist/

Email us at [email protected]

Sources:

• The Billion-Dollar Ponzi Scheme That Hooked Warren Buffett and the U.S. Treasury [The Atlantic]
• Massive $1 billion solar power ponzi scheme results in the largest single-owner car collection ever auctioned by the U.S. Marshals Service — including Burt Reynolds’ Trans Am [AP]
• Obama Administration Announces Columbus, OH Winner of the $40 Million Smart City Challenge to Pioneer the Future of Transportation [WH]
• Federal agents raid home, business of Martinez resident [Martinez News-Gazette]
• DC Solar companies file Chapter 11 bankruptcy, Carpoffs leave leadership roles [Martinez News-Gazette]
• DC Solar files Chapter 11 bankruptcy, court papers show multi-million dollar debt [Martinez News-Gazette]
• Two plead guilty to participation in a Ponzi scheme involving $2.5 billion in transactions and $1 billion in loss [DOJ]
• Third Conspirator Pleads Guilty to Participation in a Ponzi Scheme Involving $2.5B in Transactions and $1B in Loss [DOJ]
• Fourth Conspirator Pleads Guilty to Participation in a Ponzi Scheme Involving $2.5B in Transactions and $1B in Loss [DOJ]
• Top Executives Plead Guilty to Participating in a Billion Dollar Ponzi Scheme—the Biggest Criminal Fraud Scheme in the History of the Eastern District of California [DOJ]
• Seventh Conspirator Pleads Guilty to Participation in the DC Solar Ponzi Scheme Involving $2.5B in Transactions and Nearly $1B in Loss [DOJ]
• DC Solar Owner Sentenced to 30 Years in Prison for Billion Dollar Ponzi Scheme [DOJ]
• DC Solar Owner Sentenced to Over 11 Years in Prison for Billion Dollar Ponzi Scheme [DOJ]
• Pleasant Hill man sentenced to 6.5 years in prison for billion dollar DC Solar Ponzi scheme [IRS]
• Vacaville Man Sentenced to 8 Years in Prison for Billion Dollar DC Solar Ponzi Scheme [DOJ]
• ​​Nixon Peabody Gets OK For Deal With DC Solar Investors [Law360]
• Berkshire Takes Tax Hit as Victim of ‘Ponzi-Type’ Solar Scheme [Bloomberg]
• Martinez Clippers [Wikipedia] 
• City ends Clippers license agreement [Martinez News-Gazette]
• Carpoff’s seized auto collection headed to auction [Martinez News-Gazette]
• Nearly 150 Collector Cars Seized in an FBI Raid Head to Auction [Motortrend]

If you’re one of those cynical people who assumes that multinational corporations are deeply corrupt and only concerned with achieving global domination no matter the cost, then this episode is for you. Caleb and Greg discuss a case of international bribery, the likes of which the world had never seen.

Sponsors
Tabs - https://ohmyfraud.promo/tabs
Forwardly - https://ohmyfraud.promo/forwardly
Practice Protect - https://ohmyfraud.promo/protect

• (00:00) - Welcome to Oh My Fraud

In less than 10 minutes, you can earn 1 hour of NASBA-approved accounting CPE after listening to this episode. Download our mobile app, sign up, and look for the Oh My Fraud channel. Register for the course, complete a short quiz, and get your CPE certificate.

Download the app:

Apple: https://apps.apple.com/us/app/earmark-cpe/id1562599728
Android: https://play.google.com/store/apps/details?id=com.earmarkcpe.app

Questions? Need help? Email [email protected].

CONNECT WITH THE HOSTS

Greg Kyte, CPA
Twitter: https://twitter.com/gregkyte
LinkedIn: https://www.linkedin.com/in/gregkyte/

Caleb Newquist
Twitter: https://twitter.com/cnewquist
LinkedIn: https://www.linkedin.com/in/calebnewquist/

Email us at [email protected]

Sources:

• How the Foreign Corrupt Practices Act Came to Be — Corporate Compliance Insights 
• Early days (1967) — Airbus 
• History of Airbus S.A.S. — Britannica 
• Airbus to pay record £3bn in fines for 'endemic' corruption — The Guardian
• Airbus to Pay $4 Billion to Settle Corruption Inquiry — NYT 
• Airbus to pay SFO €1bn in corruption settlement — BBC
• Airbus enters into a coordinated resolution of foreign bribery investigation with US UK and French authorities for a total of 36 billion - Mondaq 
• Airbus Agrees to Pay over $3.9 Billion in Global Penalties to Resolve Foreign Bribery and ITAR Case — DOJ 
• Four Years and Almost $4 Billion: Airbus Corruption Investigations End with Sky-High Fine — Ropes & Gray LLC 

Caleb and Greg welcome Kelly Paxton, a former fraud investigator who has worked at both the federal and local level to talk about her career and one of her favorite red collar crime stories.

Sponsors
SafeSend - https://ohmyfraud.promo/safesend
MakersHub - https://ohmyfraud.promo/makershub
interVal - https://ohmyfraud.promo/interval

• (00:00) - Welcome to Oh My Fraud Podcast

Buy Kelly's Book!
https://www.amazon.com/Embezzlement-Detect-Prevent-Investigate-Pink-Collar/dp/B08QBYKJR1

CONNECT WITH KELLY
https://kellypaxton.com
LinkedIn: https://www.linkedin.com/in/kellypaxton
X: https://x.com/pdxcfe

CONNECT WITH THE HOSTS

Greg Kyte, CPA
X: https://twitter.com/gregkyte
LinkedIn: https://www.linkedin.com/in/gregkyte/

Caleb Newquist
X: https://twitter.com/cnewquist
LinkedIn: https://www.linkedin.com/in/calebnewquist/

Sign up to earn FREE CPE

https://www.earmark.app

In less than 10 minutes, you can earn 1 hour of NASBA-approved accounting CPE after listening to this episode.
Download the app:

Apple: https://apps.apple.com/us/app/earmark-cpe/id1562599728
Android: https://play.google.com/store/apps/details?id=com.earmarkcpe.app

Email us at [email protected]

Caleb and Greg discuss the case of a small California city tainted by big corruption.

Sponsors
SafeSend - https://ohmyfraud.promo/safesend
The Small Business Research Institute - https://ohmyfraud.promo/ceanow
interVal - https://ohmyfraud.promo/interval

• (00:00) - Introduction to Bell, California

In less than 10 minutes, you can earn 1 hour of NASBA-approved accounting CPE after listening to this episode. Download our mobile app, sign up, and look for the Oh My Fraud channel. Register for the course, complete a short quiz, and get your CPE certificate.

Download the app:

Apple: https://apps.apple.com/us/app/earmark-cpe/id1562599728
Android: https://play.google.com/store/apps/details?id=com.earmarkcpe.app

Questions? Need help? Email [email protected].

CONNECT WITH THE HOSTS

Greg Kyte, CPA
Twitter: https://twitter.com/gregkyte
LinkedIn: https://www.linkedin.com/in/gregkyte/

Caleb Newquist
Twitter: https://twitter.com/cnewquist
LinkedIn: https://www.linkedin.com/in/calebnewquist/

Email us at [email protected]

Sources:

• Bell, California [Wikipedia]
• City of Bell scandal [Wikipedia]
• Bell (city), California [US Census Bureau]
• BELL : City OKs Rizzo as Administrative Head [LAT]
• In Maywood, a quiet changing of the guard [LAT]
• Is a city manager worth $800,000? [LAT]
• 10 YEARS AFTER THE BELL SCANDAL ARE WE MORE ETHICAL? [League of California Cities]
• D.A. investigating why Bell council members get nearly $100,000 a year for a part-time job [LAT]
• Bell council used little-noticed ballot measure to skirt state salary limits [LAT]
• Californians Protest City Manager’s $800,000 Salary [Bloomberg]
• Bell leaders hauled off in cuffs [LAT]
• California’s Bell Used as ‘Cash Drawer,’ Chiang Says [Bloomberg]
• How Bell hit bottom [LAT]
• California city manager's pension could top $30 million [Reuters]
• Bell officials won't receive massive pensions [ABC7]
• ​​Differing views of CA official: Crook or victim? [AP]
• Bell corruption trial: Mixed verdicts, 1 ex-councilman acquitted [LAT]
• Bell corruption verdicts, charges [LAT]
• Photos: Arrests in Bell [LAT]
• Five Former Bell Officials Accept Plea Deal In Corruption Case [CBSLA]
• Robert Rizzo blames assistant for Bell corruption, gets prison [LAT]
• In Spaccia defense, a simple premise: Her high pay wasn’t a crime [LAT]
• Former Chief Administrative Officer For City Of Bell Agrees To Plead Guilty To Conspiracy And Tax Charges In Plot To Avoid Income Taxes [DOJ]
• Bell corruption case ends, last defendant gets a year in jail [LAT]
• Former Chief Administrative Officer For City Of Bell Sentenced To Federal Prison For Cheating IRS To Avoid Taxes On Corrupt Activities [DOJ]
• Bell must give up $2.9 million in illegal property taxes [LAT]
• California Board of Accountancy Update Fall 2012 [CBA]

If you’re jonesing for some nostalgia, then this is the Oh My Fraud episode for you. Caleb and Greg discuss two stars—an athlete whose fame peaked in the 80s and a singer-songwriter who put out one of the biggest selling albums of the 90s—who helped define their respective decades. Unfortunately, their wild success also made them targets of people they trusted to help manage that success. 

Sponsors
SafeSend - https://ohmyfraud.promo/safesend
The Small Business Research Institute - https://ohmyfraud.promo/ceanow
Genwise - https://ohmyfraud.promo/genwise

• (00:00) - Kareem Abdul Jabbar's Rumored Investment Fiasco

In less than 10 minutes, you can earn 1 hour of NASBA-approved accounting CPE after listening to this episode. Download our mobile app, sign up, and look for the Oh My Fraud channel. Register for the course, complete a short quiz, and get your CPE certificate.

Download the app:

Apple: https://apps.apple.com/us/app/earmark-cpe/id1562599728
Android: https://play.google.com/store/apps/details?id=com.earmarkcpe.app

Questions? Need help? Email [email protected].

CONNECT WITH THE HOSTS

Greg Kyte, CPA
Twitter: https://twitter.com/gregkyte
LinkedIn: https://www.linkedin.com/in/gregkyte/

Caleb Newquist
Twitter: https://twitter.com/cnewquist
LinkedIn: https://www.linkedin.com/in/calebnewquist/

Email us at [email protected]

Sources:

Alanis Morissette

• Alanis Morissette [Wikipedia]
• Alanis Morissette Sues Ex-Business Manager for $15 Million [CBS]
• Alanis Morissette vs. GSO Business Management, Jonathan Schwartz [LAT]
• GSO Business Management vs. Jonathan Todd Schwartz [LAT]
• Alanis Morissette, business management firm settle lawsuit over alleged embezzlement [LAT]
• Business Manager Agrees to Plead Guilty after Admitting $7.2 Million Embezzlement from Alanis Morissette and Other Celebrities [DOJ]
• CPA Sentenced to 6 years in Federal Prison for Embezzling $7.2 Million from Alanis Morissette and Other Celebrities [DOJ]
• Alanis Morissette’s Ex-Business Manager Sentenced to 6 Years in Prison [THR]
• Hollywood Business Manager: I Stole From Alanis Morissette and Other Clients and I’m Sorry [THR]
• Alanis Morissette Responds to Ex-Business Manager’s Apology [THR]
• Isn't it moronic: Alanis Morissette's manager sad over 'stupid' theft [CBC]

Kareem Abdul-Jabbar

• Kareem Abdul-Jabbar — Wikipedia 
• $55-Million Action Alleges Financial Mismanagment : Abdul-Jabbar Sues Former Manager — Los Angeles Times 
• A LOT OF HURT — Sports Illustrated
• Did Kareem-Abdul Jabbar Really Lose Millions Building Special Hotels for Tall People?  — Sports Legends Revealed

What do the Catholic Church and Oh My Fraud have in common? They both regularly feature absent internal controls, important figures abusing their positions of trust, and are run by people who drink wine on the job. In this episode, Caleb and Greg chronicle the story of a high-ranking cardinal who wound up in a convoluted real estate deal.

Sponsors
The Small Business Research Institute - https://ohmyfraud.promo/ceanow
Genwise - https://ohmyfraud.promo/genwise

• (00:00) - The Catholic Church Loves Real Estate

In less than 10 minutes, you can earn 1 hour of NASBA-approved accounting CPE after listening to this episode. Download our mobile app, sign up, and look for the Oh My Fraud channel. Register for the course, complete a short quiz, and get your CPE certificate.

Download the app:

Apple: https://apps.apple.com/us/app/earmark-cpe/id1562599728
Android: https://play.google.com/store/apps/details?id=com.earmarkcpe.app

Questions? Need help? Email [email protected].

CONNECT WITH THE HOSTS

Greg Kyte, CPA
Twitter: https://twitter.com/gregkyte
LinkedIn: https://www.linkedin.com/in/gregkyte/

Caleb Newquist
Twitter: https://twitter.com/cnewquist
LinkedIn: https://www.linkedin.com/in/calebnewquist/

Email us at [email protected]

Sources: 

Giovanni Angelo Becciu — Wikipedia

Cardinal Becciu Convicted: Six Things to Know About the Prelate and His Trial — National Catholic Register

A cardinal is convicted of embezzlement and sentenced to 5 1/2 years in Vatican trial — NPR

Cardinal Becciu Speaks of ‘Drawing Up a Balance Sheet’ of One’s Life Before God in Homily — National Catholic Register

The Vatican, a Chelsea property deal and Brexit — Financial Times

How the Vatican plans to make and spend its money in 2022—and be more transparent about it — America Magazine

Cardinal convicted of fraud in Vatican court case protests his innocence - Financial Times

A brief history of the Vatican’s London financial scandal — The Pillar

Why priests steal — researchers look to ‘fraud triangle’ in parish life — The Pillar

Parolin pressured Vatican bank over London building deal — The Pilar

Cardinal convicted of embezzlement in landmark Vatican court case — Financial Times

Join Caleb and Greg on a twisting saga of an insurance company that began in the late 1950s, rose to spectacular heights in the 1960s, and came crashing down in the 1970s.

Sponsors
The Small Business Research Institute - https://ohmyfraud.promo/ceanow
Bean - https://ohmyfraud.promo/bean

• (00:00) - With Friends Like These Who Needs Enemies

In less than 10 minutes, you can earn 1 hour of NASBA-approved accounting CPE after listening to this episode. Download our mobile app, sign up, and look for the Oh My Fraud channel. Register for the course, complete a short quiz, and get your CPE certificate.

Download the app:

Apple: https://apps.apple.com/us/app/earmark-cpe/id1562599728
Android: https://play.google.com/store/apps/details?id=com.earmarkcpe.app

Questions? Need help? Email [email protected].

CONNECT WITH THE HOSTS

Greg Kyte, CPA
Twitter: https://twitter.com/gregkyte
LinkedIn: https://www.linkedin.com/in/gregkyte/

Caleb Newquist
Twitter: https://twitter.com/cnewquist
LinkedIn: https://www.linkedin.com/in/calebnewquist/

Email us at [email protected]

Sources:

• INSURANCE FRAUD CHARGED BY S.E.C. TO EQUITY FUNDING [NYT]
• Associates Find Goldblum Is Not Too Easy to Know [NYT]
• 22 INDICTED BY U.S. IN EQUITY SCANDAL [NYT]
• GOLDBLUM ENTERS EQUITY GUILT PLEA [NYT]
• Dirks, Who Uncovered Fraud At Equity, Is ‘Gratified’ by Plea [NYT]
• Goldblum Among 6 Sentenced To Jail in Equity Funding Case [NYT]
• 12 More Ex‐Officials of Equity Funding Sentenced [NYT]
• $57 Million Tentative Settlement Drafted in Equity Funding Fraud [NYT]
• Flory, Steven M. and Cooper, Kerry (1976) "Equity Funding: The Profession Reacts," Woman C.P.A.: Vol. 38: Iss. 3, Article 4.
• Contemporary Auditing Issues and Cases, by Michael C. Knapp. Case 5.6 Equity Funding Corporation of America
• Soble, Ronald L. and Dallos, Robert E. (1975) “The Impossible Dream.”
• Flory, Steven M. and Cooper, Kerry (1976) "Equity Funding: The Profession Reacts," Woman C.P.A.: Vol. 38: Iss. 3, Article 4.
• Seidler, Lee J., Andrews, Frederick, Epstein, Marc J. (1977) “The Equity Funding Papers: The Anatomy of a Fraud.” 
• Dirks v. SEC, 463 U.S. 646 (1983) [Justia]

Raymond Dirks, Whose Tipster Case Redefined Insider Trading, Dies at 89 [NYT]

You’ve probably heard of pyramid schemes, but are you confident that you know what it is? And if you are, do you know the difference between them and multi-level marketing companies? Or Ponzi schemes? In this episode, Caleb and Greg discuss all that and more about one of the simplest and most common frauds around.

Sponsors
MakersHub- https://ohmyfraud.promo/makershub
RightRev - https://ohmyfraud.promo/rightrev
Bean - https://ohmyfraud.promo/bean

• (00:00) - Introduction to Pyramid Schemes

In less than 10 minutes, you can earn 1 hour of NASBA-approved accounting CPE after listening to this episode. Download our mobile app, sign up, and look for the Oh My Fraud channel. Register for the course, complete a short quiz, and get your CPE certificate.

Download the app:

Apple: https://apps.apple.com/us/app/earmark-cpe/id1562599728
Android: https://play.google.com/store/apps/details?id=com.earmarkcpe.app

Questions? Need help? Email [email protected].

CONNECT WITH THE HOSTS

Greg Kyte, CPA
Twitter: https://twitter.com/gregkyte
LinkedIn: https://www.linkedin.com/in/gregkyte/

Caleb Newquist
Twitter: https://twitter.com/cnewquist
LinkedIn: https://www.linkedin.com/in/calebnewquist/

Email us at [email protected]

Sources:
The history of pyramid schemes and their evolution over time — Medium

Pyramid scheme — Wikipedia

MLMs vs. Pyramid Schemes: One Is Legal, But the Other Could Land You in Prison — Coolidge Law Firm

The Case (for and) against Multi-level Marketing — FTC

Get-Rich-Quick Profiteers Love Mitt Romney, and He Loves Them Back — Mother Jones

Couple Charged for Operating Multimillion-Dollar Pyramid Scheme — DOJ

Bernie Madoff and how to identify a Ponzi scheme. — Metis Ireland

Tupperware once changed women's lives. Now it struggles to survive — NPR

What Is Multi-Level Marketing? — Forbes

Don’t Fall Victim to the False Promises of MLMs. - The Daily Utah Chronicle

Prosper DJ, wife ordered to pay $10.7 million for pyramid scheme targeting black investors — Dallas Morning News