An accounting firm in Alabama is adapting to the times by pursuing a niche made increasingly important by high profile financial fraud cases in this country and elsewhere. According to a recent Birmingham News report, longtime forensic accountant Ralph Summerford is opening a new office in Los Angeles that will focus on fighting the potentially fraudulent use of federal money meant to be used for economic stimulus activities. "Without controls, government continues the practice of pay and chase, and public corruption will flourish. These government funds will be like an ATM for thieves," Summerford told the newspaper, which noted that at least one other area accounting firm is thinking about offering similar services. Summerford also cited Hurricane Katrina and Iraq as examples of widespread fraud appearing in response to large government cash outlays. Taxpayers have already been incensed by media reports detailing how some of the previous federal bailout funds have been spent by large financial firms. Plus, a recent report by Time magazine observes that a number of financial Ponzi schemes have been broken up in recent weeks but have been largely overshadowed by Bernard Madoff's $50 billion scam. A 2007 report by the Nashville Business Journal noted that fraud costs American companies over $660 billion each year. It added that the average organization loses up to six percent of its revenue to employee fraud.  |