Question
Read the following scenario. List the elements of the fraud triangle, and use this scenario to provide examples of each element. Mike Peel, 55, supported
Read the following scenario. List the elements of the fraud triangle, and use this scenario to provide examples of each element.
Mike Peel, 55, supported himself by conning innocent people with various get-rich-quick schemes. But now, his luck has run out. He went to the neighborhood church known for its generosity to those in need. He told Father Joseph Mehan, the pastor, that his life was in danger because he owed $30,000 to loan sharks. Mike assured Father Mehan that he was turning his life around and was looking for a fresh start. Father Mehan paid off Mike's debt. Mike told Father Mehan that he could not pay him back right away but that he would get the church a great investment through a friend. Father Mehan kept sending money to Mike for investment purposes, totaling tens of thousands of dollars, until last December, when the priest tried to withdraw $25,000 in cash from a parish account. Mike had taken one of the checks that the priest had given to him and had altered the amount from $5,000 to $50,000, leaving no money in the parish account. Mike got caught, and he admitted to taking thousands of dollars in church money by falsely promising he would invest it - but then lost it all gambling.
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