Odd Lots Behind the Scenes of Financial Fraud
May 20, 2019
Sam Antar, the former CFO of Crazy Eddie's, shares his firsthand experience with accounting fraud at the notorious electronics retailer. He dives into the clever tactics used to mislead auditors and the strategic deception employed to maintain a façade of success. Antar also discusses how ethical training often falls short in combating financial misconduct. With a mix of humor and insight, he reveals how these practices ultimately led to Crazy Eddie's dramatic downfall and the lasting implications for corporate accountability.
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Crazy Eddie's Origins
- Crazy Eddie began as a small electronics store in 1969, engaging in skimming and tax fraud.
- They subsidized discounts by stealing sales tax, gaining a competitive edge.
Crime as a Business Plan
- The business model wasn't a lapse in judgment; crime was the plan from the start.
- Cash sales allowed for easy skimming and sales tax theft, boosting profits beyond normal margins.
Training a Fraudster
- Sam Antar, the CFO, was strategically educated in accounting from a young age to facilitate the fraud.
- He excelled in his studies, achieving high marks and passing the CPA exam on his first attempt.