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We prepare most type of tax returns:


S Corporation.

C Corporation.




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Client Testimonials

My husband and I had to deal with canceled debt from a Deed in Lieu of Foreclosure on a second home with our 2012 taxes. We never had to deal with this type of tax experience and needless to say, we were fearful. Owing taxes on possible additional income was stressful. We searched for CPA’s as well as info about DILs and how Insolvency worked. When we came across Gary’s website, we were impressed. We found his website 8 months prior to tax season. We kept it as a “Favorite” as we knew we would need to contact him for assistance. When it was time to get a CPA, we called Gary. We felt relieved that we actually had someone that not only understood our concerns but was an expert in this area. He walked us through the process and all the time telling us not to worry. When our taxes were completed, you cannot imagine the relief we had when we actually were able to get a refund.

Gary is a dedicated professional and attentive to his clients. We love the virtual office as it is convenient during tax time and he’s fees were fair and affordable when you consider the depth of work accomplished on our taxes!

We’ve already started recommending Gary to others. We are so blessed and grateful for all that Gary did to assist with our taxes.


Patty and Tim, Fredericksburg, VA

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Even though Gary enjoys helping colleagues, we no longer provide free consults to other tax preparers. He's happy to consult on an hourly billing basis if our schedule allows.

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Fraud CPA discusses False Vendor Schemes

fraud CPA discusses false vendor schemes

Gary Bode, CPA: preventing fraud is more cost effective that detecting it and hoping for restituiton. (910) 399-2705.

Fraud CPAs know that employee theft is a sad fact of life. False vendor schemes show good ingenuity on the employee’s part. The nature of false vendor schemes skews data. Only the clumsy schemes get caught and even then some companies keep that info confidential. How pervasive are false vendor schemes? Hard to say, but when they’re revealed the losses are staggering and can even force the victim company to fold.

I think most fraud CPAs agree that false vendor schemes are opportunistic. An employee becomes disgruntled. S/he notices some flaw in the company’s internal controls. And then deliberately exploits it.

I think most fraud CPAs agree that everyone will steal under the right circumstances. In Grad school I was grilled on my ethics. No I wouldn’t take money if the bank leaves the vault open. Disliking my employer wouldn’t inspire me to steal for vengeance. But if my child was sick I’d do almost anything. And yes, I consider myself normal.

False Vendor Schemes

  • An employee sets up a shell company. This might be as a Corporation through the State or a DBA through the County.
  • Then the employee bills your company for goods and services.
  •  Your company pays the invoice.

Plenty of false vendor scheme variations exist.

Example 1, Inventory Fraud

  • Your inventory supervisor sets up a shell company (the false vendor).
  • The supervisor personally buys inventory that your company actually uses, for the false vendor (the shell company).
  • The supervisor then sells that same inventory to your company at a profit.
  • When you pay the invoice from the shell company, the supervisor then pays off the original purchase.
  • Notice that even a physical inventory count won’t detect this.

Examples of fraud prevention and detection:

  • Establish an authorization process for approving a new vendor with another manager not directly involved in the inventory process. This isn’t fool proof. The approving manager may just rubber stamp all new vendor requests. The possibility of collusion exists.
  • Setup an invoice approval process?
  • Train the accounts receivable department to detect fraudulent invoices. Are they unfolded? Is the address a PO Box? Does it look like a typical invoice? Are invoice numbers sequential? Is the address the same as an employee’s? Is it hand written?
  • Require another employee to sign off on inventory POs (purchase orders). But the inventory supervisor could forge that second signature.
  • The accounting department can run a vendor analysis and verification, perhaps to spot more purchases being made through a single vendor. But the longer this false vendor scheme operates, the harder it is to catch.

“Some fraud is so hard to detect, that external Auditors use a disclaimer stating they might miss it. Good internal controls reduce chances of fraud. Don’t leave barn door open.” 
– Gary Bode, fraud CPA

Example 2, an IT scam

  • Your IT department can’t handle everything in-house. Some circumstances require service from a specialist. Maybe these services are performed remotely, making the trail murky.
  • Secondary to the mysterious nature of IT maintenance, other employees don’t have a clue on what IT does.
  • The head IT creates a shell company to set up a false vendor.
  • S/he produces invoices for services s/he performs themselves. Or creates problems for the false vendor to fix.

Examples of fraud detection and prevention

  • Compare IT costs to the budget. Ask IT about variances.
  • Compare invoices from the consultant. Sequential numbering? Always the same problem being serviced?

Ask your CPA to help you prevent fraud through internal controls. If you don’t have a CPA that worries about fraud, consider calling us for a free meet and greet phone call. We’ve got a virtual office to serve your company wherever it’s located. (910) 399-2705.


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