Phar-Mor Fraud

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What did they find that would cause such an upbringing, well they found two books; one being a sub-ledger that had in fact the actual assets, liabilities, along with accounts payable. And in the other book they found what Monus and Finn (Chief Financial Officer) had been passing off as being the actual numbers for year. When in fact they were altered to look like the company was making more than they actually were. What does this mean; well it is the start to a whole fraud scheme, which Shapira and others were soon to uncover.
As the deficits continued to grow, the knowledge of the fraud was about to extend into another powerful member of the company, Stan Cherelstein (former controller). Cherelstein was in charge of all cash disbursements, he had been working with Phar-Mor for almost two years before anyone told him …show more content…
“That's when John Anderson took me into his office and closed the door and told him that, "Well, you're the controller for Phar-Mor now and you should be aware of this situation." And he pulled out a sub-ledger schedule and told him, basically, that the financial statements at the end of June, 1991, were misstated by approximately $150 million.” (Media n.d.)
Where did $150 million dollars go? Well, it most certainly didn’t just disappear; and it didn’t, but to someone who didn’t know about the missing money they would have never thought otherwise. The money was everywhere; they had the money hidden in small increments all over place, through Fraudulent Disbursements of cash amounts, Check Tampering, Financial Statement Fraud, Bribery, and Embezzlement of Funds. Fraudulent Disbursement being the most common form of asset misappropriation, they are on the book fraud schemes which means

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