Audits

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Number Six
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Audits

Postby Number Six » Tue Mar 30, 2010 4:50 pm

http://www.nytimes.com/2009/05/01/nyregion/01shays.html

In this significant case of embezzlement, congressman Chris Shays ordered a "forensic" audit:

"The campaign quickly hired staff to conduct a forensic audit. They found that there were 21 A.T.M. withdrawals apparently made by Mr. Sohn totaling about $70,000, and nearly $100,000 in unauthorized checks made out to Mr. Sohn himself. The audit also found that he had made about $22,000 in unauthorized charges on the campaign credit card, including almost $11,000 for cellular phone service, $615 for a hotel stay in New York City and $877 for a meal at a steakhouse in Washington, Mr. Fox said."


The net result, after thorough audits were done of Mr. Sohn's financial crimes is the guy is awaiting sentencing: http://www.justice.gov/usao/ct/Press201 ... 311-4.html

Another one of these cases of tax cheats that would never have been caught unless there had been an audit. In Sohn's case, the discrepancy was substantial:

"SOHN also pleaded guilty today to one count of tax evasion stemming from his filing of a fraudulent federal tax return for the 2008 tax year. On the tax return, SOHN stated that his taxable income for 2008 was $75,860, and that the amount of tax due was $15,617. However, SOHN’s taxable income for 2008 was approximately $163,949 on which he owed approximately $43,468 in federal income tax.

SOHN has admitted that he failed to report a total of approximately $527,136 in taxable income for the calendar years 2005 through 2008, which resulted in a loss of $95,955 to the Internal Revenue Service."
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