One of the most compelling embezzlement cases of all time was Robert Vesco. The SEC says that Vesco embezzled $224 million. However, Vesco never stood trial for these allegations. As soon as the charges were filed, Vesco fled the country to Havana Cuba. The CIA tracked down Vesco, but unfortunately, Cuba refused his extradition. Vesco spent the rest of his days in South American countries with no extradition laws living off of the money that he stole. This wasn't the only controversy surrounding Vesco. The Watergate scandal and more than $200,000 of illegal campaign contributions to Richard Nixon are also suspected. Robert Vesco died in 2007 although even his death is shrouded in speculation.

Questions: Based on fraud examination concepts, analyze internal controls to deter fraud or other financial transaction errors:

• What type of fraud scheme took place in this case?
• Analyze the internalcontrolsof this companyfor "red flags".
• Identity why you think the company did not suspect the fraudster and what policies would you put in place for this company to stop this fraud in the future?

References:

• https://en.wikipedia.org/wiki/Robert_Vesco
• https://www.britannica.com/biography/Robert-L-Vesco