Case Study for Fraud

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A Case Study of Interstate Business College
Three Men and A lady 1. Based on the information you have gathered during your first task, what discrepancies/irregularities exist in Shawn Davidson’s file? * Signatures on Enrollment Agreement do not seem to be the same (pg. 507) * 1st Enrollment Agreement Total should equal $9995.00 (508)
Total Tuition 8750.00
Textbooks (approx.) 970.00
Application Fee 0.00
Lab Fee 200.00
General Fee 75.00
TOTAL DUE 9,995.00 (not the listed 10,020.00)

The amount listed is the enrollment agreement was 10,020.00 which gives a difference of : 10,020.00 - 9995.00 =25

* 2nd Enrollment Agreement Total should equal $12075.00 (508)

Total Tuition …show more content…

Refund check of $159.50 – no canceled check found. Two student stipend checks ($1362.00 and $1568.00) and difference check of $1362.44 that were also photocopied, but never cleared. Photocopy of check made payable to “EDPMTS” stated as Pell Refund – Stephanie Baker for total of 195.00. Two refund checks of $916.00 and 767.00 were listed as “School Termination of Student Borrower” – no canceled check found. In all six checks that were missing, the total was $6329.94. * As in the Lisa Morrison’s file, the canceled checks were not found or that the checks cleared IBC’s bank account. Concerned that IBC is creating a check, photocopying the front (not the back with endorsements), and the check never clears the bank. Since two files reviewed have the same circumstance, is IBC creating the checks to clear the books but keeping the money by destroying the checks? An interview with both students and a look at their bank statements could also determine if the students received the checks. * IBC refunded Stephanie’s Pell Grant before refunding student loan money. According the footnote, “A Federal Pell Grant and a Federal Supplemental Educational Opportunity Grant, unlike a loan, do not have to be repaid by the student. With a subsidized loan, the student is not charged any interest before repayment begins…With an unsubsidized loan, the student is charged interest from the time the loan is disbursed until it is

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