Bank fraud - Wikipedia Bank fraud - Wikipedia

Backdating is seen as fraudulent and illegal, don't kill yourself

Other provisions cover these offenses.

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Often little more than name, parents' name, date and place of birth are sufficient to obtain a birth certificate; [7] each document obtained then is used as identification in order to obtain more identity documents. Before the bad cheque is discovered, the perpetrator goes on a spending spree or obtains cash advances until the newly-"raised" available limit on the card is reached.

If a company backdated its stock options, but failed to recognize a compensation expense, then the company's accounting may not be correct, and its quarterly and annual financial reports to investors may be misleading.

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Reyes backdating is seen as fraudulent and illegal seen as an important test of whether a jury considers it a crime deserving of jail time. The other major way that backdating can be misleading to investors relates to the method by which the company accounts for the options.

There is a five-year statute of limitations for securities fraud, and under the Sarbanes-Oxley Act ofoption grants to senior management must be reported within two days of the grant date.


Other variants included claiming to be a prospective business partner with "the opportunity of a lifetime" then asking for access to cash "to prove that you trust me" or even claiming to be a new immigrant who carries all their money in cash for fear that the banks will steal it what operating system am i using online dating them — if told by others that they keep their money in banks, they then ask the depositor to withdraw it to prove the bank hasn't stolen it.

Deferral of recognition into employee's gross income[ edit ] According to Section 83 of the Codeemployees who receive property from the employer must recognize taxable income in the year in which that property vests i.

The government has reportedly been looking at filing criminal charges against former executives at Apple Inc. Giving retroactive value to purchases from the earlier date.

Options backdating

For those instances where a document is intended to take effect retroactively, you should: This is reflected in the Linklaters article Execution of Documents: Unsurprisingly, the perpetrators of such fraud have been known to take out loans and disappear with the cash. As of 17 Novemberbackdating has been identified at more than companies, and led to the firing or resignation of more than 50 top executives and directors of those companies.

Government-issued standard identification numbers such as " social security numbers" are also valuable to the fraudster. The problem with this practice, according to the SEC, was that stock option backdating, while difficult to prove, could be considered a criminal act.

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Some fraudsters have attached fraudulent card stripe readers to publicly accessible ATMs, to gain unauthorised access to the contents of the magnetic stripe, as well as hidden cameras to illegally record users' authorisation codes.

The insurance company may or may not allow backdating depending on the state where the person lives. The backdating scheme involved moving an effective date for the exercise of stock options from when the options were ' out of the money ' to a date that made the options ' in the money ' in order to allow certain executives to exercise their options profitably.

A trial date for Jensen has not been set. China[ edit ] A lawsuit concluded in in the city of Wenling, Jejiang province made news because the local court ordered the bank to fully reimburse a man who was the victim of card duplication. Impersonation of officials has more recently become a way of stealing personal information for use in theft of identity frauds.

What is Backdating? - Definition from Insuranceopedia

It allegedly failed to inform investors, or account for the options expense s properly. Reyes was charged last summer with 12 felony counts of securities fraud and other offenses. Stolen payment cards[ edit ] Often, the first indication that a victim's wallet has been stolen is a phone call from a credit card issuer asking if the person has gone on a spending spree; the simplest form of this theft involves stealing the card itself and charging a number of high-ticket items to it in the first few minutes or hours before it is reported as stolen.

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The fictitious 'bank inspector'[ edit ] This is an old scam with a number of variants; the original scheme involved claiming to be a bank inspector, claiming that the bank suspects that one of its employees is stealing money and that to help catch the culprit the "bank inspector" needs the depositor to withdraw all of his or her money.

The insurance company normally will allow this backdating to up to six months, but the policyholder must pay the premium amount covering the prior period.

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In contrast, all major credit card companies have a zero liability policy, effectively eliminating consumer liability in the case of fraud. Backdating, in this case, may be useful as the parties, who have already begun acting on the agreement, finish the final details of the written contract.

Backdating financial definition of Backdating

The crime could also be perpetrated against another person's account in an "account takeover" or with a counterfeit ATM card, or an account opened in another person's name as part of an identity theft scam. Backdating is usually illegal; for example, one may use backdating to evade taxes.

June Main article: In the modern business world, the Sarbanes-Oxley Act has all but eliminated fraudulent options backdating by requiring companies to report all options issuances within 2 days of the date of issue. In the US, however, there seems to be have been much more consideration of the issue at least according to my Google search results.

What is 'Backdating'

Notable companies embroiled in the scandal include Broadcom Corp. District Court for the Northern District of California. Prosecutors said Reyes intentionally kept compensation expenses associated with Brocade's options awards off the company's books. CEO Gregory Reyes was convicted Tuesday of defrauding investors in the first stock options backdating case to go to trial.

The data recorded by the cameras and fraudulent card stripe readers are subsequently used to produce duplicate cards that could then be used to make ATM withdrawals from the victims' accounts. Similarly, a person who wants to buy health insurance and make it effective beginning at a date prior to the current date.

BREAKING DOWN 'Backdating'

Banking fraud by country[ edit ] United States[ edit ] Under federal law, bank fraud in the United States is defined, and made illegal, primarily by the Bank Fraud Statute in Title 18 of the U.

Phishing and Internet fraud[ edit ] Main article: Phishing Phishingalso known as Internet fraudoperates by sending forged e-mail, impersonating an online bank, auction or payment site; the e-mail directs the user to a forged web site which is designed to look like the login to the legitimate site but which claims that the user must update personal info.

For example, if one signs a contract on February 1, one may backdate it to January In the law of contracts, it is elementary that ordinarily a contract speaks from the day of its date, regardless of when it was executed and delivered.