Analyzing Fraud through the Extortion Triangle in Crazy Eddie's

Crazy Eddie committed a variety of frauds. One of these involved manipulating various numbers to raise stock prices. From the initial $8 for a share, it is reported that stock prices rise tenfold. Modifying the company's accounts made this easier. Eddie Antar encouraged under- reporting of sales through Sam Antar, his cousin. Senior supervisors previously made drop-offs at Antar's home before a piece of it was counted on. Israel's Bank of Leumi received smuggled $7 million. Additionally, the organization skimmed the pay adds up to decrease the expense. The company would be able to report high profits because the skimming would lower its taxable income. Sight and Sound stopped fraudulent activities like altering inventory in order to keep making money. During audits, for instance, the company shared inventory with stores. The company would ship the stock to the next store after auditing one to verify the altered numbers. The company also uses misleading information about discounts and rebates. This included fictitious discounts in the event that they were inaccurate. The company's financial statements would continue to be fabricated as a result of these dishonest tactics. At Crazy Eddie's, fraud is indicated by a number of red flags. Inflated inventory is one such sign. The company's inventory was normal, but it was later used to portray financial performance. The initial inventory number of 13 was later changed to 1372 at one point. Analyzing the balance sheet to ascertain the quantity of inventory in stock and sold can reveal this activity. Documents that aren't there are another sign of fraud. A number of documents, including those indicating differences in manufacturer billing, were lost. Sight and Sound's management is of the opinion that a report will not be stolen. The documents' disappearance is a crucial sign that the organization is engaging in illegal activities. Another sign of fraud is making multiple payments. Albeit Insane Eddie didn't totally utilize this method, he participated in other misleading plans. This included returned items that were marked as defective but were