Fraud Quiz! How Good Are You? How Bad Can You Become?

What is Wrong with Me?

What is wrong with the displayed Invoice? There are at least ten(!) clues to its falsity — and none of them have to do with Accounting or addition. ( For a LARGER version  of the invoice click:  ZZZ BIGGER or   ZZZ  BILL ) This invoice was part of a court case that put  Mark Morze*  of  ZZZ Best Carpet Cleaning in the pen for 5 years. -but his fake empire only came crashing down because a reporter — not the accountants, lawyers or bankers **– started pokin’ around.

Click on the title of the post to reply -- even getting One would beat the accountants!! ( Hints and Answers will be posted)

*”Morze created over 20,000 fraudulent documents.  These in turn created the belief that Z Best was doing over $400-million in insurance restoration construction work –  work that  existed ONLY ON PAPER.”

** Example of how NOT to audit:  “We were asked, “What would be good days for surprise inventorying of the 4 warehouses full of carpet?”

Mark circles the country speaking to professionals, public officials and others about how and why they miss the boat.

Here is a close-up of the top, where there are a couple of red flags: 

Another hint.  Looking at these items close-up what type of charge is oddly missing?

Again, to see the entire invoice detail close-up: click:  ZZZ BIGGER or   ZZZ  BILL


13 comments

  1. Bijan says:

    1-Amounts are very high
    2-Too many items in the invoice.
    And more

    Red flags all over it.

    I am hoping send me the answered.

    Bijan

    • You are on the right track and I would actually say those are solid clues. There are more and specific ones if you follow that trail. Some are generic — should raise a red flag no matter the details of this particular invoice. Others are in some of the details themselves.

  2. Good one……tough to read though.

    Make checks payable to ZZZZ Best or Barry Minkow

    BEST or ZZZZ Best

    A Number of items listed are beyond the scope of Carpet and Furniture Cleaning

    Price per and amount may not be the same

    Sales tax may not be charged on labor items

    Really could not read the smaller print details

  3. Payable to an individual…no rate per hour

    • The first one YES. The second one — for a 7 million dollar job maybe not?
      But there are at least TWO tip-offs based on the format and style of the invoice that you might find unusual for this size job.
      Look closely at the top of the invoice and the full invoice on the “home page” of the post or on the link.
      Getting close….

  4. Neil says:

    They are saying that eleven stories of the building were completely underwater. That’s quite a deluge!

  5. Skye Sturgeon says:

    Set off my alarms right away! The sheer amount of the invoice, too many line items for a single invoice, typed in rather than computer generated, no price per, no labor charges, pay to zzzzbest or to the guy personally?, this is from a cleaning company–seems outside the scope, the line items are typed in next to printed categories. How am I doing?

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