The president of Peanut Corp. of America had allegedly committed a deadly fraud. Apparently, president Stewart Parnell, according to an AP report posted on Yahoo.com, knew that the peanut butter being sold was tainted. Allegedly this peanut butter has lead to numerous people falling ill and several deaths.
Parnell took the 5th in front of a House investigations committee. I read elsewhere that there was speculation that sales were low and Parnell could not risk scrapping the product and losing sales.
So, he sold a deadly product instead? This was the answer to lower sales???
Most of the frauds I have reviewed have one common item. How did the perpetrator of the fraud think it was going to end? How were they going to get out of the mess they were in?
In people contemplating fraud could stop to think of an exit strategy, they would not find one. And then, they might not commit the fraud in the first place. But hope springs eternal. They believe that something will happen that will make it all right.
Remember, during times of financial crisis, the frauds are exposed and more frauds occur. Some are out of greed and some are out of fear.
Cheers, Mike
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