Fraud Examination 5th Edition by Steve Albrecht,Chad Albrecht,Conan Albrecht, Mark Zimbelman

Exercise 47

FCS Fund Management is an investment marketing business with sales of over $10 million and with offices in Norwich, Connecticut, Dubai, and Hong Kong. It sells high-yield investment schemes, offering returns of up to 20 percent. FCS has clients in the United Kingdom, Europe, and the Middle East, many of whom are U.S. expatriates. FCS sells its investment products through salesmen operating in these locations. The CEO of FCS Fund Management, James Hammond, knows that many of the accounts are, or might be, misleading, false, or deceptive in that they purport to confirm the existence of genuine investments. Describe how the rationalization element of the fraud triangle is present in this case.