CFO Pleads guilty to 18 million dollar bank fraud

Company where the accounting fraud took place

A CFO from a New Jersey Furniture company plead guilty to an 18 million dollar accounting fraud.

The defendant,Norman D'souza (sounds Indian), told U.S. District Judge Ronnie Abrams that the owner of Munire Furniture Inc. told him beginning in 2011 to inflate sales and revenue numbers so the company could borrow more money to survive a difficult period. The company distributed baby cribs, dressers and other furniture to stores such as Babies R Us and Burlington Coat Factory. You can never tell a book by it's cover. A company can have a fancy building and still be in financial trouble. See story here...http://www.ibj.com/articles/57929-ex-furniture-company-exec-pleads-guilty-in-18m-loan-fraud

With the plea, he is facing up to 5 years imprisonment. Without the plea, he was facing 50 years.  What was the fraud? Providing false financial statements to the banks and a municipal government. 

So what happened to the owner? The article does not say.

How did this fraud fall apart? The article does not say but you can assume since there was a default on the loan, the bank start investigating and when they discovered discrepancies in the financial documentation, they probably contacted the feds. See fed story here...https://www.justice.gov/usao-sdny/pr/chief-financial-officer-furniture-company-pleads-guilty-18-million-accounting-fraud. When you do a fraud, it usually falls apart. Why? Because in hebrew, the word for fraud is sheker, comprised of three letters that are next to each other in the alphabet but the way the word is spelled, the letters are mixed up and the way they are written, the letters are all pointed downward, telling us that a fraud will fail.

This story tells us that even a big company that supplies Babies R US and Burlington Coat factory commit frauds. Fraud is not limited to a mom and pop store. Everyone , each and every business is accountable.   

You look at the picture and you are impressed that the company is in a fancy building but looks are deceiving . The article above says the company sought bankruptcy protection back in 2014.   


To see what he can expect in prison go here.... http://www.amazon.com/PRISON-expect-Federal-Bureau-Prisons-ebook/dp/B011GTWLOG