QUESTION 3

Mark is a young business student at the XYZ University, who works part time as a financial adviser at a local credit union. Mark has been married a little over two years. Marks wife is currently taking care of their newborn son, while Mark finishes up school. Mark is well liked by all those who know him. In fact, those who know Mark would describe him as outgoing, funny, and very intelligent.

At the credit union, Marks primary responsibilities are to set up new accounts, make initial loan interviews, and work as a teller. While at work, Mark always appears to be working hard and rarely misses work (even for vacations). Often times, Mark is the first one to volunteer to stay late and look over accounts or help clean up. Over the last four months, Marks credit union supervisor has noticed that Mark has been making some interesting purchases. Four months ago, Mark purchased a big-screen television and has frequently invited other co-workers to watch movies at his home. One month ago, Mark bought three new wool suits, which he frequently wears to work. Two months ago, Mark traded in his old Geo Prism for a new Jeep Grand Cherokee (with many expensive features). When asked where he was getting the money for these purchases, Mark humorously responded, I guess people are rightwhen you die, you cant take it all with you. However, it sure was nice they left it with me. This was an allusion to the fact that a wealthy grandmother had recently passed away and left Mark (her favorite grandson) a significant inheritance.

Also, the supervisor has recently heard some of the new customers complaining that their balances are off by $20, $30, and even $50.

Required:

1. How money fraud symptoms are present in this scenario?

2. Is it possible to know from the information above that Mark is committing fraud at the credit union?

3. What is one reasonable action the supervisor could do if he or she suspected Mark was committing fraud?

4. Assuming that the credit union decides to investigate further, calculate Marks net worth and income from other sources.

\\begin{tabular}{l|r|r|r} \\hline \\multicolumn{1}{c|}{ MONTH I MONTH 2 } & MONTH 3 \\\\ \\hline Assets: & & & \\\\ 1996 Geo Prism & \\( \\$ 1,000 \\) & & \\\\ 2008 Jeep Grand & & \\( \\$ 45,000 \\) & \\( \\$ 45,000 \\) \\\\ \\( \\quad \\) Cherokee & & & \\\\ Savings account & 3,000 & 6,000 & 7,000 \\\\ Checking account & 600 & 800 & 500 \\\\ CD & 2,000 & 2,000 & 2,000 \\\\ Laptop & 2,500 & 2,500 & 2,500 \\\\ Television & & & 1,000 \\\\ Liabilities: & & & \\\\ Auto loan & & 45,000 & 45,000 \\\\ Income: & 1,000 & 1,000 & 1,000 \\\\ Salary & 300 & 300 & 300 \\\\ Other & & & \\\\ Expenses: & 700 & 700 & 700 \\\\ Rent payments & 130 & 130 & 130 \\\\ Small expenditures & & 600 & 600 \\\\ Auto loan payments & & 700 & 800 \\\\ Other living expenses & 400 & & \\\\ \\hline \\end{tabular}