Teresa Reifs Insurance Fraud Case Research Paper

Teresa Reifs Insurance Fraud Case - Research Paper Example Report also shows that occupational fraud is the most common. Nevertheless, white-collar fraud is also reported being on the rise. This call for organizations to put strong control measures to prevent and detect any fraudulent act in an organization. Pest, janitorial company fraud case of 2011 is one of the most publicized fraud cases of recent times in which the owner of the company was charged with insurance fraud. This paper will provide an analysis of this insurance fraud case in light of the environmental factors in which the fraud occurred, how the fraud was an accomplished, as well as how it was discovered. Finally, the paper will provide recommendations on how best a fraud of this type may be prevented in the future. In this case, Durand (2011) reports that the proprietor of San Mateo pest and janitorial services was accused of under-reporting over $10 million of payroll in a bid to avoid paying over $2 million in the employee’s compensation insurance. After the accusation, Terasa Reif aged 31 years voluntarily presented herself to the police at Redwood City on a $1 million warrant but was set free soon afterwards after having pleaded not guilty to 44 counts of insurance fraud according to Durand (2013). However, she was required to present herself back in court on 26 May for a review conference and a subsequent preliminary hearing on July 13. Durand (2011) reveals that Reif used to purchase employees compensation insurance between 2004 and 2009 from the State Compensation Insurance Fund and Redwood Fire & Casualty Insurance Company for her business known as Genesis Building Services.