Dhrendra Prasad, formerly employed as a buyer for Apple’s global service supply chain, has been sentenced to three years in prison as of November 2022. While employed between the years of 2008 to 2018, Mr. Prasad admitted in his plea agreement that he defrauded his employer since 2011 by diverting funds to himself totaling $17 million. Two owners of the involved vendor companies were also charged in separate cases as part of the theft.
During COVID-19, the hospitality industry took a significant hit. Many restaurants and hotels closed temporarily or shut down permanently. Now, as the market revives, employers again need to be vigilant. Fraud is ever-present and fraudsters are always on the lookout for opportunities. Employee theft is a major problem in many industries, and the hotel industry is no exception.
According to the Report to the Nations on Occupational Fraud
and Abuse, a 2020 global study performed by the Association of Certified Fraud Examiners, the typical organization in the hospitality industry loses 5% to 6%
of annual revenue from fraud perpetrated by employees and guests. For example,
a hotel operator earning annual room revenue of approximately $10 million may
experience losses ranging between $500,000 and $600,000. Losses from fraud
would be amplified for organizations owning a chain of hotels.
Accounting firms understand the importance of maintaining
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Establishing meaningful connections with the community requires dedication and
effort from both the firm and its members. In this article, we will explore
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Fraud is a serious crime that can have severe consequences for individuals and organizations. It is the intentional deception or misrepresentation that an individual or an organization makes, with the aim of obtaining something of value or causing damage to another individual or organization. Fraud can be committed in various forms, such as financial fraud, insurance fraud, healthcare fraud, identity theft, and more.
Fraud examination is a critical process that helps detect, prevent, and deter fraud. It is an investigation into fraudulent activities, with the aim of gathering evidence that can be used to prove or disprove the allegations of fraud.
In this article, we will delve deeper into fraud
examination, as explained by the experts at Studler Doyle.
