Fraud Examination 4th Edition by Steve Albrecht,Chad Albrecht,Conan Albrecht ,Mark Zimbelman

Exercise 78

Ed Neilson is the purchasing agent for Style, a nationwide high-fashion women's online store. He joined the company after graduating from college five years ago. Over the years, Ed developed a close relationship with one of the company's vendor's owners-Sarah Love. Sarah owns a small manufacturing line, designing exclusive French fashion clothes and accessories. After dating for seven months, Ed and Sarah became engaged four months ago. Sarah's fashions have historically sold very well in the Style chain, but with the recent decline in the retail industry, high-fashion, high-cost item sales have decreased substantially. Ed believed that this was just a short-term trend and thus decided to help his fiancée by guaranteeing $50,000 worth of monthly purchases from Sarah's line.
1. Is Ed involved in a fraud scheme Explain your answer.