Guess the company
What company faked $310 million in sales
Luckin coffee
What is pressure in the fraud triangle?
External expectations or personal gain threats that motivate fraud
Who received the anonymous Luckin whistle-blower report?
Muddy Waters
What’s one internal control that could’ve exposed Luckin’s fake sales?
Reconcile sales to receipts and bank deposits
Who was the CEO of Bausch during its fraud era?
Michael Pearson
Which company secretly owned another company to boost revenues
Bausch Health
What pressure led Bridging Finance to commit fraud?
Financial and reputational pressure; desire for wealth
What kind of evidence exposed Luckin's fraud?
Surveillance, fake receipts, financial inconsistencies
What audit method could’ve caught Philidor’s fake revenue?
Industry benchmarking and transaction-level verification
Who received $19.5M in kickbacks at Bridging?
David Sharpe
Which company loaned money to an executive using fake collateral?
Bridging Finance
What opportunity did Bausch execs exploit?
Weak internal controls and hidden Philidor relationship
What conflict existed in Bridging’s Ninepoint deal?
David Sharpe would profit personally without disclosure
How could independent audits have stopped Bridging’s fraud?
Greater oversight of loan deals and disclosures
Who justified fraud as temporary to survive in a competitive market?
Luckin Coffee executives
Which company had its stock drop from $320 to under $10 after fraud exposure?
Bausch Health
What rationalization did Luckin execs use?
Fraud was “temporary” and justified to survive competition
What technique did Bausch use to inflate revenue early?
Channel stuffing and premature revenue recognition
What action could auditors have taken when red flags appeared at Bausch?
Apply skepticism and test undisclosed relationships
Who paid $1M to David & Natasha Sharpe in a quid pro quo deal?
Gary Ng
Which company faced SEC fines of $58M for misleading disclosures?
Bausch Health
What personal motive fueled David Sharpe’s misconduct?
Desire for luxury and personal enrichment
What complex structure helped Bridging hide misappropriated funds?
Loans through related entities and fake collateral
How could forensic auditing have helped early in Bausch or Bridging cases?
Detect patterns of misreporting or undisclosed control
Who was involved in the fake collateral financing deal with Bridging?
Gary Ng and David Sharpe