NEW – How to Spot Financial Fraud In a Non-Profit? Plus Some Great News!

We are re-posting a blog post written by Steve Marlotti. He is discussing the characteristic of non-profits that commit fraud. It is as if he is writing about HiCaliber.

On another note, we have some great news for the hundreds of followers that tune in to see HiCaliber pay for their crimes. We have some new allies in our fight who presented us with a very incriminating document. We know that Michelle, Romney and Ingrid have everyone sign a strict nondisclosure form, but thankfully, not everyone is obeying the terms. Plus, when you are exposing a crime, the nondisclosure is meaningless.

In the document, Michelle threw another one of her board members under the bus. And from where we are sitting, the bus ran over this board member. More to follow.

Back to spotting a fraudulent non-profit by Steve Marlotti

 

For starters, nonprofits are only required by federal law to report discrepancies of more than $250,000, or over 5 percent of an organization’s annual gross receipts or total assets.

 

 

A shocking Washington Post investigative piece published October 26, 2013 discovered that from 2008 to 2012 over 1,000 nonprofit organizations had indicated on their federal disclosures that they had discovered a “significant diversion” of assets. These were losses attributed to theft, investment fraud, embezzlement and other unauthorized uses of funds.

Perhaps the most well known example of this came at the hands of Bernie Madoff. When nonprofit organizations like Yeshiva University and Hadassah, both of whom lost significant funds, invested with the Ponzi scheme, but fraud also commonly includes simple mismanagement, and even stealing.

 

 

Just ten of the largest disclosures identified by the Post reporters cited combined losses totaling over a half-billion dollars. And these are the nonprofits that had admitted they had discovered financial fraud.

If you are involved with a charitable institution as an employee, donor, supporter, or board member, here are the two prime warning signs that the non-profit you care about may be experiencing financial irregularities.

Sign #1: You can’t get financial data. This is the hallmark of HiCaliber behavior. Ignore, Deny, Attack and Ban. The HiCaliber way.

Nonprofits should be financially transparent. As a stakeholder, you should receive these five financial numbers every month—without having to ask for them:

1) Cash balances in all bank accounts.

2) An accounts payable aging report. This shows all bills owed to vendors, listed by date. You want to see this because one way nonprofit management teams get away with financial fraud is by avoiding paying vendors, particularly small powerless vendors.

3) List of all credit lines, including letters of credit, and amounts borrowed.

4) List of all confirmed receivables, such as obligations for payments, donations, and loans.

5) Fixed costs per month, broken into “USAIR”: Utilities, Salaries, (And) Insurance, Rent.

 

Now most charities proudly display seals that ensure some (but not all) financial accountability and transparency (source)

In addition, you should be able to see the salaries and benefits of the top executives anytime you ask for this information. You should also receive three financial reports every month:

1. Income Statement
2. Balance Sheet
3. Cash Flow Statement

Read these reports carefully and don’t hesitate to ask questions about anything you see that doesn’t make sense.

Enron’s multi-billion-dollar fraud was exposed by a team of Cornell graduate students who asked first-year business school questions about the company’s financial reports.

How did these B-school kids uncover problems at Enron that professional regulators and asset managers had missed? They did the math.

Sign #2: Bullying Behavior by Management. Michelle, Romney and Ingrid are the ultimate bullies. If you ask questions they call you vile names. If you persist, they ban you. Then they have some of their shills continue to tell their villagers what an evil person you are. At this point you better watch out. If you continue to pose a threat to their flow of funds they attack your job, your business, your spouse and even your children.

It has been widely documented that corrupt management teams tend to engage in bullying. A marked characteristic of financial fraud is efforts on the part of a dishonest management team to try to get rid of anyone who is asking questions. Typically, the worst people will rise to the top of a nonprofit that has been poisoned like this—accelerating the fraud. In the case of HiCaliber, the worst people founded the organization.

Bullying behavior includes yelling, intimidation, rudeness and refusing to answer legitimate questions.

We hope that the people who follow HC and support their animal killing ways don’t get hung up on the good things they do. For them to still be around, they HAVE to do some good things. Bernie Madoff stole 50 billion dollars. He kept his ponzi scheme going for so long because he paid profits to a few people and used them to deflect from the crimes he was committing. HC does some good things, but the price being paid by the horses is a bullet, being disappeared (hundreds of horses) and being used to drum up the need for ya’ll to give them your money.

Please just open your eyes. Ask for the financial records that they should provide as discussed above. Ask where all the horses are. What do you have to lose?

Horses are losing their lives because you don’t do the responsible thing and simply ask the questions. Oh yes, make them show proof, because they are chronic liars.

 

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