Tag Archives: Fraud

Intuit Doing Well Despite TurboTax Problems

The problems Intuit Inc. had with TurboTax seems not to have affected its online subscription purchases as the number of sign-ups has actually increased for both the tax filing software and for the popular QuickBooks.

Second quarter accounting software purchases went up by a full 50 percent in the company’s second fiscal quarter, an increase of 7 percent over the previous quarter. Purchases of TurboTax went up by 19 percent even though Intuit recorded a loss for that same period of time. This loss surprised market analysts who had thought the stock would be be down by 13 cents a share rather than the 6 cents a share loss that actually played out. Sales were higher the estimate of $786.9 million.

Gil Luria of Wedbush Securities Inc. said performance of Intuit, its products, and subsequently the stock, was “strong.” Intuit, he elaborated, did not have to cut prices or expend a lot of money on advertising to get this kind of growth.

Intuit stock went up in trading after its $9.11 closing price. In New York, the stock dropped 1.2 percent while going up 1.9 percent in Standard & Poor’s 500 Index. For the second quarter, the software company showed a net loss of $66 million, a much larger loss than last year’s $37 million.

Intuit has had significant problems to compensate for related to its super popular TurboTax and TurboTax Free Edition. The trouble centered around many fraudulent income tax returns filed using the Intuit software program. People were also disgruntled over a price increase for some parts of TurboTax.

All in all, Intuit had to scramble to get back in the public’s good graces, said CEO Brad Smith. Desktop buyers of TurboTax decreased 7 percent after the news of the problems came out. Smith said Intuit really hurt its own image by changing the price structure.

However, the consumer tax division of the company still had a big jump is sales over last year–a full 54 percent. This year’s tax season began a bit earlier this year, too.

In the third quarter, sales went from $2.075 billion to $2.15 billion. Analysts had thought that sales would be $2.22 billion and profits, $2.87 per share, not the $2.70 to $2.75 originally estimated by Bloomberg.

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FINRA Gift Policy Fights Fraudulent Business Practices

Market makers on Amsterdam Stock Exchange

Image via Wikipedia

FINRA is the acronym for the Financial Industry Regulatory Authority. Although the name sounds governmental, FINRA is actually a private corporation that oversees brokers and markets dealing with stock exchanges. The goal of FINRA is to ensure ethical and fair trading practices throughout the nation. One of the ways FINRA works to meet this goal is through establishing policies around corporate gifts. The main point of the FINRA gift policy is that business related gifts should be under $100 in value.

The reason it is important to monitor corporate gifts is because they can lead to fraudulent behavior. Almost all publicly held companies are required to maintain a corporate gift policy to avoid potential fraud. Fraud occurs when a large dollar gift sways a business partner, customer, or vendor in a business decision.

A possible example of fraud can be seen in a relationship between a large broker and wealthy investor. The investor may want to ensure a certain stock does well for his own financial purposes. The investor might offer the broker season tickets for his favorite professional sports team or an all-expense paid ski week in Colorado. In exchange, the investor might want the broker to encourage clients to buy or sell stock the broker would not otherwise endorse. This represents a type of financial fraud.

Everyone can agree fraud of this type should not be allowed. However, when it comes to monitoring gift compliance, many companies run into trouble. Most companies must prepare a financial disclosure statement of some kind on a quarterly or yearly basis. Depending on the company, corporate gifting may need to be a part of this statement. Publicly traded companies often have hundreds or thousands of employees, and gathering data about gifts can be an enormous task.

Employing the use of an expense and finance tracking software will help companies keep track of spending. This includes expenses related to corporate gifts provided by employees within the company. Corporations may also require each team member to utilize the software to report gifts they received from outside sources such as vendors.

Careful record keeping through the use of good financial compliance software will help companies maintain compliance with FINRA gift policy and procedures. It will also make preparation of financial disclosure statements less stressful, more accurate, and lower labor costs associated with reporting.

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How Much Truth Is Behind The XanGo Scam?

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New products are often misunderstood, or they fall victim to bad publicity initiated by envious competitors. That is exactly what happened to the products of XanGo. Although the juices boast concentrations of naturally occurring ingredients, a few stubborn reporters seem to have nothing better to do than spend ample time trashing the XanGo name and launching a despicable XanGo scam campaign.

XanGo is a legitimate business with thousands of employees and distributors around the world. They have received numerous awards for their products, and sold millions of bottles of amazing juice in at least 35 countries worldwide. Do you think that this would be possible if the company was misleading the public, as well as the beverage industry?

It is an outrage that disgruntled reporters are creating a XanGo scam. This company prides itself on innovation and integrity. They have no intention on cooking up some fraudulent schemes to deceive their customers. What purpose would that have, except destroying a company that only wants to serve their fans by producing healthy products? XanGo is thriving. The drink manufacturer will survive scandalous accusations simply because the company has deep rooted motives to succeed. They are completely honest about their business and work hard to please their customers.

There is no doubt about it that the XanGo scam will soon be forgotten. Consumers are not stupid; they can see the truth. XanGo is not operating a pyramid scheme, nor do they pressure consumers into buying their products. When people purchase the juice, it is because they like the taste and enjoy the benefits of mangosteen beverages. The price is not inflated either. Do you honestly think that people would buy the juice if they believed that the price was not right? We are experiencing tough economic times and nobody has money to squander… no matter what cunning stories the media concocts.

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