Comments on: You Asked… I Answered http://anneonlife.com/2009/03/28/you-asked-i-answered/ because life happens Fri, 03 Sep 2010 07:54:12 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Sam E. Antar (former Crazy Eddie CFO and a convicted felon) http://anneonlife.com/2009/03/28/you-asked-i-answered/#comment-113 Sam E. Antar (former Crazy Eddie CFO and a convicted felon) Wed, 01 Apr 2009 22:40:21 +0000 http://wordsbyanne.wordpress.com/?p=788#comment-113 "It was the amount of money taken coupled with the desire to go public that caused the downfall here [IMO]." Correct. If we stayed with skimming and did not go public, we would still be in business as criminals. "Honestly, the auditors here are equally to blame." The auditors were incompetent. They should be held responsible and should be blamed. However, incompetence is not the same as criminality. "They did not require any actual substantial proof the numbers were correct." Correct. "The question in class was “Would this type of fraud be possible under SOX?” SOX is not strong enough. That said, most auditors are not adequately trained to effectively carry out their responsibilites. It is like sending people to war without proper body armour and inadequate weoponry. "If everyone is in compliance, then no because this company would never have gone public." If we feared auditors, we would not have committed our crimes. However, even with effective auditors, there is always a criminal out there that thinks he can beat the system. "Does that make me a cynic or a realist?" You are being a realist However, if we had more cynics, there would be less crime. “It was the amount of money taken coupled with the desire to go public that caused the downfall here [IMO].”

Correct. If we stayed with skimming and did not go public, we would still be in business as criminals.

“Honestly, the auditors here are equally to blame.”

The auditors were incompetent. They should be held responsible and should be blamed. However, incompetence is not the same as criminality.

“They did not require any actual substantial proof the numbers were correct.”

Correct.

“The question in class was “Would this type of fraud be possible under SOX?”

SOX is not strong enough. That said, most auditors are not adequately trained to effectively carry out their responsibilites. It is like sending people to war without proper body armour and inadequate weoponry.

“If everyone is in compliance, then no because this company would never have gone public.”

If we feared auditors, we would not have committed our crimes. However, even with effective auditors, there is always a criminal out there that thinks he can beat the system.

“Does that make me a cynic or a realist?”

You are being a realist However, if we had more cynics, there would be less crime.

]]> By: Anne http://anneonlife.com/2009/03/28/you-asked-i-answered/#comment-112 Anne Tue, 31 Mar 2009 13:49:23 +0000 http://wordsbyanne.wordpress.com/?p=788#comment-112 Many small (and some not so small), family-owned businesses do the same thing(s) Crazy Eddie's did and never get caught. It was the amount of money taken coupled with the desire to go public that caused the downfall here [IMO]. This does not mean I condone what was done, but that I accept this happens and, to some degree, believe the tax issues can be self-defeating when someone is considering starting their own business leading to this type of temptation. Honestly, the auditors here are equally to blame. They did not require any actual substantial proof the numbers were correct. The question in class was "Would this type of fraud be possible under SOX?" If everyone is in compliance, then no because this company would never have gone public. As a private company, I believe it could happen, and probably is happening. Does that make me a cynic or a realist? Thank you so much for commenting on my post. Many small (and some not so small), family-owned businesses do the same thing(s) Crazy Eddie’s did and never get caught. It was the amount of money taken coupled with the desire to go public that caused the downfall here [IMO]. This does not mean I condone what was done, but that I accept this happens and, to some degree, believe the tax issues can be self-defeating when someone is considering starting their own business leading to this type of temptation.

Honestly, the auditors here are equally to blame. They did not require any actual substantial proof the numbers were correct. The question in class was “Would this type of fraud be possible under SOX?” If everyone is in compliance, then no because this company would never have gone public. As a private company, I believe it could happen, and probably is happening. Does that make me a cynic or a realist?

Thank you so much for commenting on my post.

]]> By: Sam E. Antar (former Crazy Eddie CFO and a convicted felon) http://anneonlife.com/2009/03/28/you-asked-i-answered/#comment-111 Sam E. Antar (former Crazy Eddie CFO and a convicted felon) Tue, 31 Mar 2009 09:07:29 +0000 http://wordsbyanne.wordpress.com/?p=788#comment-111 "I am amazed at the dedication to fraud this family had." We committed our crimes for fun and profit. Sam E. Antar (former Crazy Eddie CFO and a convicted felon) “I am amazed at the dedication to fraud this family had.”

We committed our crimes for fun and profit.

Sam E. Antar (former Crazy Eddie CFO and a convicted felon)

]]> By: hdtrue http://anneonlife.com/2009/03/28/you-asked-i-answered/#comment-110 hdtrue Sat, 28 Mar 2009 23:15:22 +0000 http://wordsbyanne.wordpress.com/?p=788#comment-110 I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often. John http://www.hdtrue.com I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.

John

http://www.hdtrue.com

]]>