The  Fraud   Farm

D. Larry Crumbley

The Fraud Farm is dedicated as a depository for fraud documents and memorabilia. Our goal is to collect, organize, maintain, preserve, and assist users with information about white collar crime and abuse. The collected data and materials should aid in the deterrence and detection of fraud and abuse. We are especially interested in forensic techniques and similar materials.

This fraud research depository is collecting evidence, entries, books, ledgers, stories, articles, schemes, aids for detection, photos and any other information about fraud and abuse. Essentially, we are seeking to preserve materials for historical purposes in order to deter and detect fraud and abuse which is estimated to be between $900 billion to $1 trillion in the U.S. each year. New fraud schemes and forensic techniques to stop white collar crime are welcomed. We especially encourage professors to video interviews with both the good and bad guys.

Email Dr. Crumbley with possible donations mailto:dcrumbl@lsu.edu

The Fraud Farm offers a speakers’ bureau called Crooks & Books. Both Dr. Crumbley and Aaron Beam are available to speak to groups and organizations about fraud and forensic accounting.

Dr. Crumbley, CPA, CFF, CFFA, Cr.FA, FCPA, is editor of The Journal of Forensic and Investigative Accounting. Go to Crumbley’s resume.

Aaron Beam was one of the original founders of HealthSouth, retiring in 1997. The former HealthSouth CFO testified in the Richard Scrushy trial that Scrushy told him to fix the company’s financial results so that they matched the estimates of Wall Street analysts.

Contact Crumbley for more information. 225-578-6231 or 225-763-6409.

            Department of Accounting

            3106 A Patrick Taylor Hall

            Louisiana State University

            Baton Rouge, LA 70803

Periodically the Fraud Farm will announce certain fraud awards. We welcome suggests from companies and individuals.

The Piranha Award - Given to the person or group that has had a strong influence on detecting fraud, abuse, and corruption.

The Weasel Award - A negative award given to the person or group that has had an unfavorable influence on stopping fraud, abuse, and corruption.

The Anaconda Award - The company or group that takes significant proactive steps towards eliminating fraud, abuse, and corruption.

2009 awards:

The Piranha Award goes to the AICPA who finally developed a forensic accounting certificate: The Certified in Financial Forensics. Two individuals. The obvious recipient is Bernard Madoff, who cheated investors out of at least $50 billion is an elaborate ponzi scheme under the eyes of the SEC. He is serving a 150 year prison sentence.

The less obvious recipient is Congressman Charles Rangel, Chairman of the House Ways & Means Committee (which writes the tax laws). He is accused of not paying his own taxes, but he has given campaign contributions to 3 of the Democrats on the ethics committee charged with investigating him.

The Weasel Award goes to former chief executive of Brocade Communications Systems, Gregory Reyes, who received a 21 months prison sentence and $15 million fine for stock option backdating. The judge said that Reyes falsified documents, repeatedly, over a three year period.

The Anaconda Award goes to the American Accounting Association which finally allowed a new section: the Forensic and Investigative Accounting Section.

Crumbley & Beam

LSU Fraud Conference

July 17, 2006

Photo by Don Kadair

Last updated: August 1, 2006