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Larry C. Adams, CPA
Phoenix, Arizona USA
Certified Public Accountant
Certified Fraud Examiner
E-mail
fraudwritr@aol.com
Telephone (602) 995-8008
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November 1997 Topics
Advocacy Stats, Jeito,
Pay Through the Nose, Pay to Play,
Rolling Over the Quota, Surname Shortage, Windbag, and 809 Scam
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Mistaken identity problems
occur when people have the same name. In China, 87 million people share
the family name of Li.
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Fraud In Other Words: Professional Jargon and Uncensored Street Slang
By Larry C. Adams, CFE, CPA, CIA, CISA
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Advocacy Stats
Statistics assembled or promoted by advocates of a cause with little
regard for their accuracy. Inflated dates or impulse numbers might be used
to solicit contributions, grants, and project funding.
“Cyberslang,”
The Arizona Republic, July 1997.
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Jeito
When Charles Kuralt, writer and broadcaster, worked in Brazil, he
learned that things could not be speeded up or straightened out in Brazil,
and red tape could not be cut. Everything, however, could be, with
patience, sidestepped. Brazilians have a word “jeito” which is
untranslatable into English, which has no such word or concept. Jeito
combines the meanings of a favor, or a boon, a detour around difficulty, a
solution for the insoluble. A jeito may involve a bribe, but it is more
likely to consist of a kindness. Whenever he needed products of services
from
anyone, such as a telephone installer, a lawyer, or a customs broker, each
of them came to Kuralt’s office and explained that they were seeking, and
surely would find, a jeito before anything could proceed.
Charles Kuralt, A Life on the Road, Putnam, New York,
1990. p. 80.
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Pay Through the Nose
To be charged an extremely high price or penalty. In ancient
Ireland,
delinquent taxpayers were punished by having their noses slit with a knife
or sword. The scar was a permanent reminder to all other citizens to pay
their taxes in full and on time.
Christine Ammer, Have a Nice Day - No Problem!, Plume
Books, New York, 1992, p. 275.
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Pay to Play
Donations made by brokerages and attorneys to political candidates,
with the intent to influence the municipal bond underwriting business
awarded by cities, towns, and other jurisdictions. Millions of dollars
flow to candidates who control the $1.5 trillion municipal finance
business. If bond services are not bid competitively, the municipalities
receive less, and the investors pay more. Fifty brokerage firms agreed to
a voluntary ban on “pay to play” in 1993. The Securities and Exchange
Commission initiates enforcement cases involving municipal bonds under
federal fraud laws.
“SEC Urges
End to ‘Pay to Play’,” The Arizona Republic, June 27, 1997, p. E8.
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Rolling Over the Quota
Cheating on oil production. An extra 2 million barrels a day come into
the crude oil market from countries that exceed production quotas. The
excess oil decreases world market trading prices. An official production
ceiling, 25 million barrels a day, is set by OPEC, the Organization of
Petroleum Exporting
Countries.
Several countries have violated the production limit agreements, including
Venezuela and Nigeria.
Dirk
Beveridge, “Cheating to Stop, OPEC Says,” The Arizona Republic, July 1997.
OPEC map: http://home.no.net/skolisse/opec.htm
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Surname Shortage
A surname is a person’s family name or last name. In China for
example, the population tops 1.2 billion and shares only 3,100 surnames.
The
top five surnames cover 350 million citizens (equivalent to the population
of the USA and Mexico combined). By comparison, there are 87 million Lis
in China, but only 2.4 million Smiths in the United States. The surname
shortage causes mistaken identity problems. Medical lab tests get mixed
up. Suspects get arrested for crimes they did not commit. Mail and banking
mix-ups occur because of duplicate names. The similarity of names makes
fraud more difficult to trace. By contrast, Japan has 70,000 surnames for
125 million citizens.
Henry Chu, “Unusual Names are Unlike Li in China,” The
Arizona Republic, July 11, 1997.
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Windbag
A mystery packet. The contents are worth little more than those of an
empty bag.
Partridge’s
Concise Dictionary of Slang and Unconventional English, MacMillan, New
York, 1989, p. 503.
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809 Scam
The tip-off for a costly Internet scheme is 809. It is an
international area code for the British Virgin Islands, Barbados, Bermuda,
Bahamas, and Cayman Islands. A fraudster sends a vague e-mail message to a
recipient urgently requesting him to call an 809 number. The brief message
indicates that a family member is ill, a legal matter is pending, or
unclaimed money is waiting. The geographic location of the sender is not
identified. The message does not disclose that the call will be long
distance and may cost up to $25 per minute, like a call to a phone number
with a 900 area code. During the phone call, there is no disclaimer
allowing the caller to hang up and avoid the fee. The e-mail is routed
through several networks to disguise the sender’s server location. You
cannot contact the sender by e-mail because the sender’s server does not
accept replies. To avoid becoming a victim, do not make the phone call;
just use the “delete” key on your computer. Better yet, forward the e-mail
to your Internet service provider and request them to block future e-mail
from that sender.
Clinton
Wilder, “Call - Collect,” Information Week, October 21, 1996.
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Larry C.
Adams, CFE, CPA, CIA, CISA,
is a consultant, author and e-mentor in Phoenix, Arizona. He founded the
ACFE’s Arizona Chapter and earned the Distinguished Achievement Award.
His e-mail address is:
fraudwritr@aol.com.
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ã
Copyright 1997 Larry C. Adams.
All rights reserved.
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This article is in the
November 1997 issue of The White Paper: Topical Issues on White-Collar
Crime, the Journal of the Association of
Certified Fraud Examiners.
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