Question

Fraudulent activity hasn't been limited to the private sector. Former New York State Comptroller Alan Hevesi was sentenced to prison for admitting that "he had approved a $250 million pension investment in exchange for nearly $1 million in (personal) benefits from a California businessman, Elliott Broidy." Of the three major forms of occupational fraud, this one is best classified as ______________ .

Answer 1

Alan Hevesi's actions are best classified as bribery, a form of corruption where an individual offers something of value to influence an official's actions. Historical examples like the Teapot Dome scandal also involved bribery, which is a significant type of occupational fraud.

Step-by-step explanation:

Former New York State Comptroller Alan Hevesi's activities can be best classified as corruption and more specifically, this form of occupational fraud can be termed bribery.

Bribery involves offering, giving, receiving, or soliciting something of value for the purpose of influencing the actions of an official in the discharge of their public or legal duties. The case of Alan Hevesi approving a $250 million pension investment in exchange for personal benefits is a clear example of this.

Looking back through history, examples of similar fraudulent activities include the Teapot Dome scandal, where Secretary of the Interior Albert B. Fall was involved in bribery by leasing navy petroleum reserves to private oil companies in exchange for personal gain.

Moreover, the Bernie Madoff Ponzi scheme scandal also represents a kind of fraud that impacts a vast number of victims financially.