Preview

Financial Fraud in Canada

Powerful Essays
Open Document
Open Document
7202 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Financial Fraud in Canada
FINA 402 – Short-term Financial Management Term Project Financial Fraud in Canada

[pic]

Analysis presented to
Ms. Julie Slater by Anouck Cinq-Mars (9197710)
Anthony Liscio (9097856)
Angelo Vaccaro (9356290)
Joe Vincelli (9234403)
Kyle Zarmair (9055177)

John Molson School of Business
April 4th 2011

Table of Contents

Evolution of financial fraud in Canada…………………………………………...……4

Current types of fraud Canadian financial institutions
A) Internal fraud…………………………………………………………………………..5 Identity theft……………….……………………………………………………….6 Illegal insider trading………………………….…………………………………...7 Wire fraud…………………………….……………………………………………7 Bank fraud…………………………….…………………………………………....8

B) External types of fraud…………………………………………………………………8 Debit and credit card fraud……………………………………………………..…9 E-mail fraud/phishing……………………………………………………………10 Identity theft and Title fraud……...……………………………………………...10

C) Investment Fraud: Ponzi Scheme……………………………………………………..11 History of the Ponzi Scheme……………………………………………………..11 Recent financial scandals…………………………………………………….......13 Ponzi Schemes and Market Regulation………………………………………….14

Organized crime and financial crimes
A) Organized Crime in Canada……..…………………..………………………………..15
B) Money laundering………………………..…………………………………………...16
C) Mortgage fraud………………………………………………………………………..17
D) Market Securities fraud……………………………………..………………………...18

Effects of fraud in Canadian financial institutions
A) Economic implications……………………………………………………………….19
B) Public implications……………………………………………………………………21

Future Challenges………………………………………………………………………22

Bibliography……………………………………………………………………….……24

Exhibit 1…………………………………………………………………………………27

Exhibit 2…………………………………………………………………………………27

Exhibit 3…………………………………………………………………………………27

Exhibit 4…………………………………………………………………………………28

Exhibit 5………………………………………………………………………………...28


Bibliography: Asian Development Bank. "What is money laundering?." Asian Development Bank. N.p., n.d. Web. 31 Mar. 2011. . "Autoritédes marchés financiers." Autorité des marchés financiers. N.p., n.d. Web. 3 Apr. 2011. . Bloomberg Businessweek. "The Greatest Financial Scandals: Charles Ponzi - BusinessWeek." BusinessWeek Slide Shows and Multimedia . N.p., n.d. Web. 3 Apr. 2011. . Canada Intelligence Service Canada. "2010 Report on Organized Crime." Criminal Intelligence Service Canada. N.p., n.d. Web. 31 Mar. 2011. . Canadian Bankers Association. "E-mail Fraud/Phishing." Canadian Bankers Association ? Association Des Banquiers Canadiens. N.p., 1 Apr. 2009. Web. 3 Apr. 2011. . Canadian Bankers Association. "Credit Card Fraud." Canadian Bankers Association ? Association Des Banquiers Canadiens. N.p., 28 May 2009. Web. 3 Apr. 2011. . Canadian Bankers Association. "Real Estate Fraud." Canadian Bankers Association ? Association Des Banquiers Canadiens. N.p., 24 Nov. 2009. Web. 3 Apr. 2011. . Canadian Bankers Association. "Debit Card Fraud." Canadian Bankers Association ? Association Des Banquiers Canadiens. N.p., 10 Mar. 2010. Web. 3 Apr. 2011. . Canadian Mortgage Trends. "Canadas Biggest Mortgage Fraud." Mortgage Rates & Mortgage Broker News in Canada. N.p., 9 May 2010. Web. 3 Apr. 2011. . Canadian Press. "Earl Jones gets 11 years for $50M fraud." CBC News Canada. N.p., 15 Feb. 2010. Web. 31 Mar. 2011. < http://www.cbc.ca/news/canada/montreal/story/2010/02/15/earl-jones-sentenced-ponzi.html >. "Charles Ponzi - Wikipedia, the free encyclopedia." Wikipedia, the free encyclopedia. N.p., n.d. Web. 3 Apr. 2011. . Criminal Intelligence Service Canada. "Criminal Intelligence Service Canada." Welcome Page | Page d 'accueil. N.p., n.d. Web. 3 Apr. 2011. . Criminal Intelligence Service Canada. "Mortgage Fraud & Organized Crime in Canada." Welcome Page | Page d 'accueil. N.p., n.d. Web. 3 Apr. 2011. . Department of Justice Canada. "A Typology of Profit-Driven Crimes ." Welcome Page | Page d 'accueil. N.p., n.d. Web. 3 Apr. 2011. . Fletcher, Richard. "SEC failed to inspect Bernard Madoff fund." The Telegraph. N.p., n.d. Web. 31 Mar. 2011. . Henault, Richard. "Scandal Norbourg: l 'AMF contrainte de payer." Cyberpress.ca. N.p., 9 Nov. 2010. Web. 31 Mar. 2011. . "Total Interac Direct Payment Transactions." Interac. N.p., n.d. Web. 3 Apr. 2011. . "Interac." Interac. N.p., n.d. Web. 3 Apr. 2011. . "Interac 2009 Statistics." Interac. N.p., n.d. Web. 2 Apr. 2011. . "Internal Fraud Law & Legal Definition." Legal Definitions Legal Terms Dictionary. N.p., n.d. Web. 3 Apr. 2011. . Investopedia. "CFA Level 1 - Ethics and Standards." Investopedia.com - Your Source For Investing Education . N.p., n.d. Web. 3 Apr. 2011. . King, Mike. "Vincent Lacroix pleads guilty." Global News. N.p., 21 Sept. 2009. Web. 31 Mar. 2011. . "MasterCard Introduces Chip." MasterCard. N.p., n.d. Web. 1 Apr. 2011. . McFarland, Janet. "More protection urged for mutual fund investors - The Globe and Mail." Home - The Globe and Mail. N.p., 10 Mar. 2011. Web. 3 Apr. 2011. . "Methods and Stages in Money Laundering." The University of Exeter - People Homepage. N.p., n.d. Web. 3 Apr. 2011. . Moffatt, Mike. "What is a Ponzi Scheme - How Do Ponzi Schemes Work." Economics at About.Com -- Your Portal to the World of Economics. N.p., n.d. Web. 3 Apr. 2011. . "Norbourg scandal." Wikipedia. N.p., n.d. Web. 31 Mar. 2011. . Royal Canadian Mounted Police. "Identity Theft and Identity Fraud." Royal Canadian Mounted Police - Welcome | Gendarmerie royale du Canada - Bienvenue. N.p., n.d. Web. 3 Apr. 2011. . Royal Canadian Mounted Police. "Counterfeiting and Credit Card Fraud." Royal Canadian Mounted Police - Welcome | Gendarmerie royale du Canada - Bienvenue. N.p., n.d. Web. 3 Apr. 2011. . Royal Canadian Mounted Police. "E-mail Fraud / Phishing ." Royal Canadian Mounted Police - Welcome | Gendarmerie royale du Canada - Bienvenue. N.p., n.d. Web. 3 Apr. 2011. . "Seven signs of internal fraud." PwC US: Building relationships, creating value. N.p., n.d. Web. 3 Apr. 2011. . TD Bank Financial Group. "TD Bank Financial Group - Privacy and Security - Phishing." TD Bank Financial Group. N.p., n.d. Web. 3 Apr. 2011. . The Economist. "The Madoff affair: Con of the century | The Economist." The Economist - World News, Politics, Economics, Business & Finance. N.p., n.d. Web. 3 Apr. 2011. . The Economist. "Ponzificating: is the financial system a confidence trick?." The Economist. N.p., 15 Mar. 2007. Web. 31 Mar. 2011. . The Federal Bureau of Investigation. "FBI — Common Fraud Schemes." FBI — Homepage. N.p., n.d. Web. 3 Apr. 2011. . The Federal Bureau of Investigation. "FBI — Common Fraud Schemes." FBI — Homepage. N.p., n.d. Web. 3 Apr. 2011. . U.S. Securities and Exchange Commission. ""Ponzi" Schemes." U.S. Securities and Exchange Commission (Home Page). N.p., n.d. Web. 3 Apr. 2011. . "Visa Chip Cards." VISA. N.p., n.d. Web. 2 Apr. 2011. . "bank identity theft." bank identity theft. N.p., n.d. Web. 3 Apr. 2011. .
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Misconduct Commission Case Study
    • 12708 Words
    • 51 Pages

    Misconduct Commission Case Study

    Crime and Misconduct Commission Level 2, North Tower Green Square 515 St Pauls Terrace, Fortitude Valley, Qld 4006 GPO Box 3123 Brisbane Qld 4001 Tel: (07) 3360 6060 Fax: (07) 3360 6333 Email: mailbox@cmc.qld.gov.au Note: This publication is accessible through the CMC website, www.cmc.qld.gov.au.…

    • 12708 Words
    • 51 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Scotiabank Analysis
    • 7764 Words
    • 32 Pages

    Scotiabank Analysis

    Scotiabank is Canada’s most international bank as well as a major player in the international banking industry. Their mission is to provide exceptional products and services to their clients around the world in addition to the general business goal of earning a profit. The company targets the major markets with their Canadian Banking, International Banking, and Scotia Capital segments. Scotiabank incorporates sophisticated technology in their operations systems in order to provide exceptional customer service as well as reliable accurate services. This technology is used effectively in bridging the gap between customers and branches spread out around the globe.…

    • 7764 Words
    • 32 Pages
    Powerful Essays
    Read More
  • Good Essays

    The Collapse Of Bernard Madoff's Ponzi Scheme
    • 854 Words
    • 4 Pages

    The Collapse Of Bernard Madoff's Ponzi Scheme

    Bernard Madoff is most prominently known by the public as the man responsible for the largest known Ponzi scheme in the United State’s history. Madoff ran his Ponzi scheme through the company he founded, Bernard L. Madoff Investment Securities (BLMIS). Bernard was taking investor’s money spending it for personal gain while simultaneously coaxing new investors and using their investments to pay off the old investors. When Bernard’s scheme was uncovered in 2008 it had reached a total of 50 billion dollars. Ultimately Madoff’s Ponzi scheme was shut down on December 11, 2008 with his arrest and closing of his company; however, the aftermath would be felt for many years to come. As a result of such an enormous fraud case many people’s lives would…

    • 854 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Hist 113: Article Summary: Why Did the Bank of Canada Emerge in 1935?
    • 629 Words
    • 3 Pages

    Hist 113: Article Summary: Why Did the Bank of Canada Emerge in 1935?

    The article looks at three major reasons for the creation of the Bank of Canada. It emerged because it was just another process in the evolution of the banking system; it was a substitute for the Gold Standard, and that political pressures/influences that surrounded it. The authors attempt to disprove the first two reasons, contrary to what many economists have claimed as reasons for the creation of a central bank in Canada, and offer evidence to support the claim that the Bank of Canada emerged due to political pressures.…

    • 629 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Td Analysis Based on the Three Organizational Lenses
    • 8142 Words
    • 33 Pages

    Td Analysis Based on the Three Organizational Lenses

    Working at one of North America’s leading banks – the Toronto Dominion Bank – would surely open a lot of doors for anyone looking to begin a career in the financial services industry. Serving more than 22 million clients at 2450 branches in Canada and the United States, the bank has been awarded the prestigious J.D. Power and Associates award 7 years in a row. This demonstrates the high calibre of its employees and management, both of which receive the utmost quality of training.…

    • 8142 Words
    • 33 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Ponzi Schemes
    • 749 Words
    • 3 Pages

    Ponzi Schemes

    Times Topics. (2010, November 21). Ponzi Schemes. The New York Times. Retrieved November 21, 2010, from http://topics.nytimes.com/topics/reference/timestopics/subjects/f/frauds_and_swindling/ponzi_schemes/index.htm…

    • 749 Words
    • 3 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Madoff Scandal
    • 6118 Words
    • 25 Pages

    Madoff Scandal

    Operating from central Manhattan, Bernie Madoff developed the first and biggest global Ponzi scheme, an event of greed and dishonesty that lasted for more than 20 years, in which $65 billion dollars vanished from the pockets of some of the world’s richest people, charities and ordinary investors alike. This scheme lasted longer than any other white collar crime in history and along the way ruined countless individuals and organizations. “The Madoff Ponzi scheme has changed the rules of trust that governed the money game.” Unlike other similar schemes, Madoff’s Ponzi scheme also scammed wealthy and investment savvy individuals that Madoff associated with.…

    • 6118 Words
    • 25 Pages
    Powerful Essays
    Read More
  • Good Essays

    The Scope and Limitations of the Fraud Examination
    • 371 Words
    • 2 Pages

    The Scope and Limitations of the Fraud Examination

    Subject: Understanding the scope and limitations of the fraud examination and the responsibilities of the CFE…

    • 371 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Canada's Big Bank
    • 1974 Words
    • 8 Pages

    Canada's Big Bank

    Migration is one of Canada’s most distinguishing characteristics. The onset of winter sees the migration of “snowbirds” – Canadians escaping the cold – to the milder climes of United States and Mexico among other destinations. Then there is Canada’s demography, largely composed of immigrants, who regularly travel to and from their native countries. The high mobility of the Canadian people has certain implications for businesses, which must find ways to stay connected with their customers as they travel back and forth. The banking industry is no exception. Following the Snowbirds and Beyond Canada’s big banks, which have already established a sizeable presence in the…

    • 1974 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    Ubl..... United Bank
    • 1059 Words
    • 5 Pages

    Ubl..... United Bank

    The repercussions from the collapse of Bernard L. Madoff Investment Securities LLC, whose founder and owner was arrested last Thursday after admitting that his $17 billion investment advisory business was "a giant Ponzi scheme," continue to widen. According to a criminal complaint filed by the FBI and a civil action brought by the Securities and Exchange Commission (SEC), the elderly Madoff estimated that the losses from his fraud exceeded $50 billion. The tally of losses already reported by banks, hedge funds and wealthy investors climbed over the weekend to nearly $20 billion.…

    • 1059 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Royal Bank of Canada: Case Study
    • 2352 Words
    • 10 Pages

    Royal Bank of Canada: Case Study

    The Royal Bank of Canada was founded in 1864, and in just over a century had grown its total assets to over $413 Billion, had 60,000 employees and served 12 million customers. The Royal Bank of Canada set the benchmark in its industry and as you would expect was the first bank in Canada to install computer technology. On Monday, May 31, 2004 Royal Bank of Canada information technology staff made a programming upgrade which was designed to significantly improve the banking software. Unfortunately during the installation process, according to Martin Lippert, Royal Bank of Canada’s vice chairman, the glitch in the banks computer systems “was most likely caused by a single…

    • 2352 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Best Essays

    Organized Crime Essay - Ciminology
    • 2346 Words
    • 10 Pages

    Organized Crime Essay - Ciminology

    Nardo, M. (2008). Organized crime and networking economy: Models, features, dynamics and related approaches. Journal of Money Laundering Control, 11(2), 172-178.…

    • 2346 Words
    • 10 Pages
    Best Essays
    Read More
  • Better Essays

    Earnings Management
    • 3487 Words
    • 14 Pages

    Earnings Management

    7. "Financial Crimes Report to the Public Fiscal Year 2006." Federal Bureau of Investigation. 10 April 2007. .…

    • 3487 Words
    • 14 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    FLAWLESS HEIST IN DOWNTOWN TORONTO
    • 431 Words
    • 2 Pages

    FLAWLESS HEIST IN DOWNTOWN TORONTO

    The police have started the investigation. Looking for clues from the wire-taped phone line, to the van used for this heist. “This is one of the most thought-out and cleanest robberies in the Canadian crime history. The amount of preparation and organization on this job is mesmerising. But nothing is perfect, and we are deeply looking for those possible flaws.” Officer McKurty, Chief Sergeant of the E.T.F unit in the scene said. The plan was perfectly mastered enough by the robbers that not a single fingerprint, footprint, or DNA sample was found in the scene. The…

    • 431 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    accounting fraud
    • 642 Words
    • 3 Pages

    accounting fraud

    The brokerage firm, led by former Goldman Sachs Chairman and former New Jersey Senator then Governor Jon Corzine, had $41 billion in assets before failing in October 2011. That put MF Global at #8 on the list of ten largest bankruptcies. A year later, $1.6 billion in customer assets were still missing and no SEC or DOJ…

    • 642 Words
    • 3 Pages
    Satisfactory Essays
    Read More

Related Topics