Professor Elam

Another Week, Another Fraudster

Wed June 22 2022

Michael Angelo Padron was not even in the military.

Yet his Mapco firm obtained milllions of dollars of government contracts intended to help service disabled vets.  The money never got to those intended to be helped. His partners in crime have maanged plea deals to tesetify against him. The total runs to  $250 M.

Brian Alfaro gets reduced sentence

Wed June 8 2022

Convicted oil and gas fraudster Brian Alfaro got two years reduced on his 121 month sentence.

HE was found guilty of selling non existent oil and gas wells to San Antonio investors. Instead he bought a  $500,000 Lamboorghini and Spurs season tickets.

The judge summed up the case remarking, you are a crook.

Well put your Honor.

Chris Pettit surrenders Law License

Wed June 8 2022

San Antonio former lawyer Chris Pettit has surrendered his law license to the Texas Supreme Court. He is facing multiple lawsuits for looting client accounts and moving money to his own use.

One may need a SA EN account to access  the article on the surrender.

 

Chris Pettit Files Bankruptcy Case

Friday June 3 2022

San Antonio attorney Chris Pettit has filed a Chapter 11 BK petition claiming assets of $.27.8 M and debts of $15.2 million.

Chapter 11 os designed for a re organization such as the one GM took.

I don't see that happening here. He filed as a counter to an involuntary Chapter 7, really bankrupt, by his creditors.

His petition lists numerous homes and vehicles, all expensive.

Creditors allege he stole from them. It looks that way as the income listed from the law firm would certainly not support the purchase of so many assets.

Consider this  $3.6 M Alamo Heights home over looking Olmos Dam.  As always one  wonders how he thought he good get away with it.

 

Avenatti Sentence to Four Years

Friday June 3 2022

Michael was sentenced to four years in prison.

This is this third trial for wrong doing and he is currently serving time for attempting to  shake down Nike.

He stole $300,000 due his client Stormy Daniels for a book publishing deal.   Why risk prison for $300 K?>

SA Attorney Accised pf Stealing Millioins

friday May  20 2022

Chris Pettit stands accused of stealing millions from clients.

At least 10 lawsuits have been filed against attorney Christopher “Chris” Pettit in state District Court in San Antonio and elsewhere over the past nine months. The most recent was Wednesday.

Patrick Danner, Staff writer

May 19, 2022Updated: May 19, 2022 8:57 p.m.

 

Comments

The Lady Justice statue atop a fountain in front of the Bexar County Courthouse. Multiple lawsuits have been filed in state District Court against San Antonio attorney Christopher “Chris” Pettit. He’s accused of stealing clients’ money.

Billy Calzada, Staff

A San Antonio lawyer is facing mounting accusations that he has stolen millions of dollars from clients.

At least 10 lawsuits have been filed against attorney Christopher “Chris” Pettit in state District Court in San Antonio and elsewhere over the past nine months. The most recent was Wednesday.

John Muller, a San Antonio attorney representing a woman who says in a court filing that Pettit “absconded” with about $2.8 million that belongs to her, estimated the amount of client money involved tops $40 million. He based that on conversations he’s had with other lawyers.

Boris Becker Gets 2.5 Yr Prison Sentence

Weekend April 30 2022

Former Tennis Champ boris Becker is said to have won $25 M playing tennis.

Yet he declared bankruptcy. The Courts determined he hid assets from the bankruptcy trustee. As a result he will servce 2.5 years in Federal Prison.

Another Month, Another SA Ponzi Scheme

Wed April 247 2022

Meet Chimene Van Gundy, the Queen of Mobile Homes aka the Mobile Home Millionaire.

 

Or maybe not.

After multiple marriages and children she read Rich Man Poor Man and says it changed her life. Well here and her 'investors.' All Ponzi schemes exhibit a sketchy business model, this one even more so.

Here idea was to buy used (previouily owned) mobile homes, fix them up, and flip sell for a profit.

Like Ponzi himself, she was short on the details and financial information on how this was accomplished.

hA receive has been appointed to attempt to find something to return to investors whowere left holding, well, less than a trailer park.

Naughty IRS Employee

Wed April 13 2022

This hIRS employee submitted false returns using fabricated informatrion.

This cost the IRS $74,000. Now why would someone risk years of jail over  $74,000?

Using Cash Flow Statement to Spot Fraud

Tuesday April 5 2022

Using the Statement of Cash Flows to Spot Fraud   Fraud studies show that cash is the most frequently stolen business asset. For example, cash on hand or cash receipts may be taken directly by employees. Or cash may be misappropriated indirectly through fraudulent disbursements, such as payroll, billing, expense reimbursement and check tampering schemes. A company’s statement of cash flows shows how cash changed during the year, and it can be analyzed to help detect fraud and financial misstatement scams. Forensic accountants generally look for amounts that seem unreasonable. They also look for increases or decreases in accounts that seem to contradict trends in operating cash flows or other financial information.   Focus on Cash From Operations   The statement of cash flows is typically broken down into three categories: 1) cash from operations, 2) cash from investing activities, and 3) cash from financing activities. Forensic accountants often apply ratio analysis to detect unusual changes in cash from operations that might indicate fraud. Examples of amounts to compare to cash from operations include:  Changes in revenue and income from operations, Changes in working capital accounts, Asset purchases, Dividends paid, Current and long-term debt payments, and New loan proceeds.  If a company reports an increase in cash flow from operations, it’s unlikely to borrow money or seek additional capital from owners. Instead, it’s more likely to repay debt or pay dividends. Monitor Related Accounts  Certain accounts tend to have stable relationships over time. That is, an increase in one account generally brings a similar increase in a related account. For example, in many companies, there’s a predictable relationship between: Revenue, accounts receivable and inventory, Inventory and accounts payable, and Fixed assets and depreciation expense. To illustrate, if ABC Company reports a significant increase in revenue in 2021, you’d expect to see a proportionate increase in receivables. Likewise, the company may need to carry more inventory to meet increased customer demand. If the statement of cash flows reveals a decrease in either account, it could indicate that the company is reporting fictitious revenue. However, there also could be a reasonable explanation. In this hypothetical case, ABC Company hired a CFO in January who focused on improving collections and implementing a just-in-time inventory program that significantly reduced the company’s investment in working capital. Not every red flag indicates fraud — but red flags do require further investigation to determine what happened and why. In some cases, red flags may indicate inefficiencies, poor business practices or erroneous accounting practices. Early detection can help mitigate losses.   Game the Statement   When a company is struggling, its statement of cash flows may show a net decrease in cash from operations. To make ends meet, the company may generate cash through bank loans, infusions of investor capital and asset sales. To avoid showing the signs of financial distress, management may artificially boost cash from operations to make the company temporarily appear healthier. For example, the company might defer payments to vendors, finance payables or transfer receivables to a variable interest entity to inflate cash from operations. These techniques may qualify as financial misstatement, if the intention is to mislead investors, lenders and other stakeholders to protect or enhance the perpetrator’s financial interests.   Consider Outside Expertise The statement of cash flows may provide relevant insight during a fraud investigation. A forensic accounting professional can help analyze this statement for potential red flags and investigate suspicious behavior and financial reporting anomalies.    theKFORDgroup litigation team holds extensive knowledge and experience in expert witness engagements, forensic accounting, and business valuations. Our experts are trained and experienced in the litigation process. We can provide insight into financial reporting anomalies for you or your client. For more information, please call us at 210-340-8351.  Additional information included in this report was provided by PDI Global/Thomson Reuters  © 2021 We are proud to continue our support to the San Antonio Food Bank for the fourteenth year in a row.  January 17th  through April 18th we will be collecting canned and dry foods in our office to donate to the San Antonio Food Bank. If you would like to make a monetary donation through our Virtual Food Drive:  please click here. theKFORDgroup proudly participated in this year's Blue Santa Toy Drive  Click here to contact the Firm Copyright © 2022 theKFORDgroup, All rights reserved.   theKFORDgroup 8620 N. New Braunfels, Suite 300 San Antonio, TX  78217 (210) 340-8351 (210) 340-8359 fax http://www.theKFORDgroup.com Want to change how you receive these emails? You can update your preferences or unsubscribe from this list