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Fraud and Deception

Why is it that low life scummy people are not the ones that get convicted of stealing thousands of dollars? No handcuffs one trusts them with money, so they do not have access to large amounts of money.

Why is it that people (or companies) that we trust, respect, and admire steal money...even if they really don't need it? They were liked. They were trusted. They had access to the money. AND they rationalized their behavior somehow.

Does that mean that everyone that trusted the "thief" was a bad person or a poor manager? No. In most cases, it does mean that there was not an adequate system "internal controls" to have alerted someone to the problem sooner.

As a CPA, that formerly investigated fraud, I opted to write this post for two reasons:

1. If you are managing an office, don't forget that NO ONE is immune to theft and/or misappropriation of assets. Good people sometimes make poor decisions. I remind you to make certain that no one person has access to cash AND the ability to cover up discrepancies.

2. For those of us living and working in College Station, please realize that P. David Romei - the former Director of the Arts Council of Brazos Valley was highly respected and trusted prior to his indictment. Romei's actions and behavior, whether true or perceived, have disappointed many people and hurt the Arts Council's reputation. Obviously, from an accounting standpoint, there were opportunities to increase the oversight of the Arts Council's spending. However, it does not seem unreasonable to have expected the Director to have been the primary guardian of the funds.

It is not fair to allege that any of the current or prior College Station City Council members are untrustworthy individuals themselves simply because they trusted Mr. Romei. Although I support Ron Gay's stance on property rights, I am extremely disappointed that he would send out large re-election campaign postcards that state, "It is not safe to put Dennis Maloney in charge of our tax dollars." The post card has a big picture of David Romei's mug shot when he was booked into jail. Dennis Maloney, his opponent, was a former City Council member who supports the arts and apparently motioned that the Arts Center building be named after Mr. Romei.

It is unfortunate that Ron Gay has stooped this low in his campaign. It is even more unfortunate that Mr. Romei made some poor decisions that have not only tarnished the Art Council's reputation and but are now being used to discredit people who respected his efforts towards the arts.

Posted by Sondra Meyer on 05/07/2008 05:29 PM

Comments (9)

college station, arts council of brazos valley, fraud, internal controls, property rights

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9 Comments on Fraud and Deception

Sondra, it really is more prevalent when the economy is at it's worse. I am always amazed at what people try to beat the system too. Thanks for the post.

05/07/2008 05:43 PM

by Becky Respess, ABR, CRB, CRS (Broker/Associate North Texas GMAC)

Sondra, It's awful that even respectable people do wrong things when they get desperate. Fortunately, the ones that do wrong are in the minority.

05/07/2008 05:51 PM

by Kay Perry (Classic Realty/GMAC)

Many people forget that the word "Con" expression Con Man is short for Confidence because the perpertator has to win the confidence of the victim(s). It is the people who seem most worthy of trust that make the best con men (or con women) because people believe them to be very trustworthy!

05/07/2008 05:52 PM

by Steve Shatsky - Dallas Real Estate & Short Sale Specialist (Keller Williams-Dallas City Center)

Good reminder post, as we work our way thought the mortgage mess, the REO's and the greed of some who put confidence ahead of honesty.

05/07/2008 07:53 PM

by Mary Strang, WI Real Estate (RE/MAX Hill Country)

It is amazing the amount of fraud etc. One can never be too careful.

05/07/2008 08:25 PM

by Joan Whitebook, ABR, e-Pro, CEBA (Buyer's Option Realty Services)

To all, thank you for your comments.

Becky, I wish that I could say that fraud is more prevalent when the economy is bad. That would mean that people are rationalizing it as a matter of survival. Unfortunately, the cases of large fraud that I have seen dealt more with greed or an attitude of being above the law.

Kay, I agree with you that fortunately, the ones that do wrong are in the minority. I sincerely hope that my post will remind those who are in charge of business' or organizations will implement controls that will help keep good people honest.

Steve, I had never thought about the con being short for confidence. When I was an auditor, the cons didn't have a chance to win me over, like they did their coworkers, peers and bosses. Outside of auditing, I've run into one con man, that I'm aware of. Even though I'm normally good at detecting when something isn't right, that con man had me duped for a long time.

Mary, I agree with you totally. I believe we are seeing how greed and dishonesty can hurt an entire industry presently. I really hope the current problems are largely the result of greed rather than dishonesty. But, then again...look at what has happened with Enron and Arthur Anderson. Arthur Anderson was one of the most respected CPA firms in the US and they no longer exist because of dishonesty at the highest levels.

Joan, thank you for your comment. You've summarized one of my points perfectly. One can never be too careful.

05/07/2008 10:29 PM

by Sondra Meyer (United Country Brazos Valley Realty)

Trey, I was too busy with my kiddos when Maloney was a councilman. But, from what I've heard lately, he must have an awful temper since people keep bringing it up over and over -- even you. I hope you know that I respect your opinion. I'm planning to work the phone bank on Sat. begging people to get out and vote. Thanks for the great comment.

05/08/2008 08:13 AM

by Sondra Meyer (United Country Brazos Valley Realty)

Trey Thurmond slanders Maloney's character on no other grounds than his alleged personal experience and you thank him for his "great comment"? Do you know Maloney personally? Did you think to check other sources who support Maloney and speak well of him? Is it possible Trey is biased against him for personal or professional reasons? Good grief. Use your brain. Obviously the voters of CS drew on more than hearsay when they collectively booted Ron Gay -- who provided objective evidence of HIS lack of character for all to see -- off the council by a wide margin. (Thanks for encouraging folks to vote, BTW; no doubt you were instrumental in Gay's defeat.)

05/12/2008 03:57 AM

by Johnny Laguna

Johnny,

Thank you for taking the time to post a comment. I was able to meet Mr. Maloney a few weeks back and talk to him, Dr. Crompton, and Mr. Stewart for a couple of hours. I liked Mr. Maloney. I think, irregardless of the temper that he purportedly has, he will be a great asset to the City Council. At the same time, I know Trey better than Mr. Maloney. Trey's opinions are based on professional experiences with him. That is alright. As a CPA, I would have strongly preferred that Mr. Scotti remain on council. That is because my former auditor/business tendencies color my perception. Everyone is entitled to their own opinions.

My goal in writing these posts is that maybe, in some small way, that I can encourage people to take the time to be aware of what is going on. Or at least give those of us who do care, a place to share of thoughts and observations.

At the same time, I am learning myself. On some things, I do not really have an opinion one way or the other. On Mr. Gay's campaign ad....I felt that was WAY off base. I'm glad you agreed.

05/12/2008 11:10 AM

by Sondra Meyer (United Country Brazos Valley Realty)

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