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Fraud: Peregrine Financial Group Essay Example

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Fraud: Peregrine Financial Group

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Fraud: Peregrine Financial Group. He also forged other official letters and posts from banks and transaction authentication statements (Associated Press, 2012).The money embezzlement carried out by Russell caused detrimental effects to both the company and him as an individual. From the fraudulent activities, he executed in his company the former C.O was arrested and sentenced. He also suffered from guilt consciousness that led to attempted suicide. To the organization, all the funds were frozen leading to its collapse. Its entire monetary and operational activities came to a stop by the month July 2012 (Associated Press, 2012). There was a shortfall of the firm’s funds belonging to customers. Consequently, a bankruptcy petition made against the company succeeded.

This minimized any chances for the Peregrine Financial Group recovery.The management of Peregrine Financial Group held the responsibility to secure the firm from any fraudulent activity. Therefore, all the involved departments should be part of any decisions made regarding the company’s activities and other monetary operations. In addition, the management should have ensured that any transactions and bank statements received reach the accounts department first then forwarded to the C. This would have guaranteed transparency in the transactions and financial status of the company (Goldmann, 2010). Consequently, the management would have succeeded in preventing the fraud and protecting the stakeholders’ interests to the company. The management should also have placed a principled voice at the top and regularly engage external auditors in order to scrutinize the documents (Arleen & Kim, 2003).The corporate environment and culture that may have contributed to the fraud in the Peregrine Financial Group Company is the lack of honesty and ethics. Lack of these values hindered effective communication among the management team in the firm. As a result, there was a breakdown in the link between the C.O and other departments responsible for conducting business operations (Rezaee & Riley, 2010). In addition, most of the senior managers in the organization did not hold any professional authority to scrutinize their C. Therefore, the management was unable to share the value system across the organization’s hierarchy. There also was the lack of adherence to a code of conduct that would have guaranteed. Fraud: Peregrine Financial Group.

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