the gentleman’s agreement is obsolete jason thomas frost, pllc 501.975.0238 jthomas@frostpllc.com...
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THE GENTLEMAN’S AGREEMENT IS OBSOLETE
JASON THOMASFROST, PLLC501.975.0238JTHOMAS@FROSTPLLC.COM
2011 BEEF FINANCIAL MANAGEMENT CONFERENCE
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INTRODUCTION
Introduction
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THE PAST
The Past
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Bernie Ebbers, CEO, WorldCom
The Past
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Ken Lay, CEO, Enron
The Past
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Dennis Kozlowski, CEO, Tyco
The Past: US Govt’s Answer
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EASTERN LIVESTOCK CO., LLC
Eastern Livestock: Inflation of A/R
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$32.5MM LOC
AFFILIATED COS
FICTIOUS CATTLE SALES
Eastern Livestock: Check Kiting
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DRAWS ON $32.5MM LOC BASED ON DAILY BALANCES
NON-FIFTH THIRD BANK ACCOUNT
$20.0MM IN DAILY TRANSFERS
NON-FIFTH THIRD BANK
ACCOUNT
NON-FIFTH THIRD BANK
ACCOUNT
NON-FIFTH THIRD BANK
ACCOUNT
CHECK KITING
JASON THOMAS – JTHOMAS@FROSTPLLC.COM
Eastern Livestock: 5th 3rd Freeze
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5th3rd FREEZES ELC ACCOUNTS AND
RETURNS CHECKS DRAWN
NON-FIFTH THIRD BANK
ACCOUNT
NON-FIFTH THIRD BANK
ACCOUNT
NON-FIFTH THIRD BANK
ACCOUNT
CATTLE PRODUCERS
CHECKS RETURNED FOR INSUFFICIENT
FUNDS
JASON THOMAS – JTHOMAS@FROSTPLLC.COM
Eastern Livestock: Scope
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Madoff
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Bernie Madoff, Madoff Investment Securities
Eastern Livestock: v Madoff
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PREVENTION
JASON THOMAS – JTHOMAS@FROSTPLLC.COM
Situational Elements of Fraud
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MOTIVE/PRESSURE
RATIONALIZATIONOPPORTUNITY
JASON THOMAS – JTHOMAS@FROSTPLLC.COM
An Integrated Approach
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Managing risk requires an integrated approach to balance conflicting
objectives.
PERSONAL GOALS
RELATIONSHIPSTRUSTHISTORY
BUSINESS GOALS
PROFITSECURITY
LONGEVITY
JASON THOMAS – JTHOMAS@FROSTPLLC.COM
An Integrated Approach
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CATTLE PRODUCER
STATE GOVT
• OKLAHOMA• KENTUCKY
FEDERAL GOVT
• USDA/GIPSA
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JASON THOMASFROST, PLLC
501.975.0238JTHOMAS@FROSTPLLC.COM
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