The crazy eddie fraud the crazy eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as bernie madoff's ponzi scheme, frauds in the subprime mortgage market, the aig bailout, and goldman sachs' failure to disclose. In conclusion, crazy eddie was a planned fraud the family raised the stock price, and sold the stock at an inflated price to get a profit in cnn money, take one to know one, sam antar who was the former cfo of crazy eddie identified the accounting fraud that had been used in the case, including receipt skimming, money laundering and the. Crazy eddie financial fraud this is an old article -- from 2000 -- but the sidebar (at the end) describing how the electronics store crazy eddie committed massive financial fraud is fascinating there are numerous ways to classify financial statement frauds. Fraud triangle the crazy eddie, inc financial fraud case, if linked up with the fraud management planning and governance of a health care company and governance of a health care company managing a health care company entails important functions that.
Essay crazy eddie crazy eddie case questions 1 compute key ratios and other financial measures for crazy eddie during the period 1984-1987 identify and briefly explain the red flags in crazy eddie's financial statements that suggested the firm posed a higher-than-normal level of audit risk. A dirty place tradegiesthe play is about an italian family, the carbones and centres around eddie carbone in particular he lives in a small apartment with his wife beatrice and her niece catherine who they both treat as a daughter. Crazy eddie's cousin sam sees greater potential for fraud - accounting today, june 29, 2012 crazy eddie's insanely successful criminal enterprise - mental_floss, march 31, 2016 crazy like a fox, guess who's tipping off the sec on alleged accounting frauds.
Headquartered in edison, crazy eddie's had 43 stores in four states, fueled by its aggressive sales tactics, over-the-top advertising, and deep discounts on tvs, stereos and vcrs, but collapsed. The case of the mexican crazy quilt case 5 the case of the mexican crazy quilt the mission of the project which you will head is to get our new mexican subsidiary company ready for take-over by mexican managers. In the crazy eddie's case, the auditors inadvertently may have contributed to the fraud by the way the inventory observations were conducted rather than climb over boxes in the warehouse, the auditors asked employees to assist them. However, as in the case of crazy eddie, the story presented in the financial statements may not reveal a correct depiction of the company much like the way barry minkow conned investors and auditors in the 1980s (mulford, & comiskey, 2002), crazy eddie's story of financial statement fraud was one of clever deception.
Afterwards, eddie antar changed the name of the business to crazy eddie around 1972, manufacturers were no longer able to require retailers to sell merchandise at the same price, and fair trade was outlawed. Eddie antar, the ceo of crazy eddie, was charged with securities fraud and other crimes, but fled before his trial he spent three years in hiding before he was caught in israel and extradited. Crazy eddie, inc essay 2009 crazy eddie, inc crazy eddie inc was a retail consumer electronics store in new york city by 1987, crazy eddie inc had 43 retail outlets, sales exceeding $350million, and outstanding stock with a collective market value of $600 million.
Compute key ratios and other financial measures for crazy eddie during the period 1984-1987 identify and briefly explain the red flags in crazy eddie's financial statements that suggested the firm possess a higher-than-normal level of audit risk. The crazy eddie's financial statements had many fraudulent over and understatements done in many ways that the auditors should have caught they created fictitious revenues by a number of means they prepared phony invoices showing sales which overstated their revenues to show the company was growing faster than they actually were. A milestone case in fraudulent financial reporting occurred in the 1930s, soon after the great depression, at mckesson & robbins (mckesson), a pharmaceutical giant the case would drastically affect the auditing profession, which was completely blind to.
Afterthought while doing research for the case i became intrigued with how detailed and complex the fraud became at crazy eddie's in the article titled so that's why it's called a pyramid scheme, the author described 5 principle types of financial statement fraud and how crazy eddie's was involved in all 5. Crazy eddie, incfinancial fraud case crazy eddie was an american retail store chain run by the antar family, which was established case essay save. Crazy eddie was a consumer electronics chain in the northeastern united statesthe chain was started in 1971 in brooklyn, new york, by businessmen eddie and sam m antar, and was previously named ers electronics (ers stood for eddie, rose and sam rose and sam were eddie's parents. crazy eddie, inc financial fraud case crazy eddie was an american retail store chain run by the antar family, which was established as a private company in 1969 in brooklyn, new york by businessmen eddie and sam m antar.
In 1989 crazy eddie lost line of credit and filed for chapter 11 bankruptcy antar was arrested with 17 counts of financial fraud in 1993 and publicly admitted to defrauding investors by manipulating accounting records in may of 1996. The trial, which lasted four weeks, featured testimony by sam e antar, a cousin of eddie antar, who was the company's chief financial officer he pleaded guilty to fraud last year and agreed to.