AIG Executives to Receive More Bonuses

John Merchant, CPA

The Washington Post reports that AIG, the insurance company that sought and received billions in bailout funds from the federal government due to financial failures, is planning the payout of bonuses to some of its top executives.  Just a few months ago, AIG created a firestorm of controversy upon paying millions of dollars in executive bonuses after receiving federal bailout money.  The Company now seeks to pay additional bonuses, based on promises made in 2008.  For this […]

July 13, 2009 Accounting, Wealth Management Read more...

Auditor Suspicions Lead to Investigation

John Merchant, CPA, CFE

Those who question the value of independent audits and investigations by certified public accountants and certified fraud examiners may wish to consider a court case recently initiated by the SEC.  On July 6, 2009, the SEC filed a complaint in United States District Court alleging that the former CFO of UCI Medical Affiliates, Inc., a public company based in South Carolina, had embezzled nearly $3 million from the Company.  The Complaint alleges that the embezzlement was […]

July 12, 2009 Accounting, Audit, Forensic Accounting Read more...

Mad About Madoff: How Much of the Family Business Did This Family Know About?

Posting by Joel C. Susco, CPA

You would have to be living in a cave to not know about the Bernie Madoff controversy and its results.  Or perhaps you are living in the cave because you lost all your money in his Ponzi scheme, and you had to go to the public library to read this blog posting on one of their computers.  Either way, there’s no point in this blog discussing how horrible this scam was, or how it […]

July 10, 2009 Family Owned Businesses, Forensic Accounting Read more...

Cultivating a “Hospitable” Environment for Marriott’s Non-Family Leadership

Posting by Geoffrey D. Brown, CPA

There was big news in the hospitality industry last week when Marriott International announced that someone other than a Marriott family member, Arne Sorenson, would be taking over as President and Chief Operating Officer, putting him clearly in line to succeed Bill Marriott as the CEO.  Bill and his father, J.W. Marriott, have been the only two CEOs the company has ever known.

Part of the reason given for this step toward non-family leadership is […]

July 8, 2009 Family Owned Businesses, Human Resources Read more...

Transforming a Century-Year-Old Business

Posting by Admin

Jack Moore, a former family board member of Benjamin Moore & Company Paints, leads a discussion with family business owners and members regarding the transformation of his own family business and its later $1 billion sale to Warren Buffett.

http://podcast.intersource.net/2008/04/04/leadership-breakfast-maryland-jack-moore/

– See more at: http://dcfamilybusiness.com/transforming-a-century-year-old-business/#sthash.TKPo2A66.dpuf

July 1, 2009 Family Owned Businesses, Uncategorized Read more...

Rental Fraud and the Internet

John Merchant, CPA, CFE

As the economic downturn forces more individuals to look for a place to rent, it is probably inevitable that unscrupulous individuals have devised ways to take advantage of the situation and use the internet to commit fraud.  The Denver Post reports specific instances where fraudsters used Craigslist.com in their schemes.  Apparently, these individuals found unoccupied homes for sale and then listed them on Craigslist as rental properties.  Unsuspecting renters paid rent and security deposits to the […]

June 24, 2009 Accounting, Forensic Accounting Read more...

He Ain’t Fired-He’s My Brother: When a Family Business Should Put Non-Family First

Posting by Joel C. Susco, CPA

Whether you are currently part of a family business or not, the vast majority of us have experience being in a family.  If we have siblings, we may have had some tests of equality given to us – such as, “I had to go to community college, but mom and dad sent little Suzie to Harvard!”  And most of us have also learned that being related does not mean we are completely, or remotely, […]

June 17, 2009 Family Owned Businesses Read more...

Compensation in Family Business

Posting by Jacqueline M. Thompson, CPA, Principal

Compensation, especially within a family-owned business, can be a touchy subject.  I once worked with a gentleman who had opened up his own HVAC business when his five children were young.  As the kids grew up, all four of his sons eventually ended up in what would become the family business.  The sons started working during summer vacations while they were still young, then each joined the business full-time after graduating from high […]

June 15, 2009 Accounting, Family Owned Businesses Read more...

The Changing Face of Newspapers and a Family Business: The Post-ess with the Mostest

Posting by Joel C. Susco, CPA, Principal

This week I had the opportunity to listen to a talk given by Katharine Weymouth, the Chief Executive Officer of Washington Post Media (a unit of The Washington Post Company).  Weymouth is the fifth member of the Graham newspaper dynasty to hold that title since her great-grandfather, Eugene Meyer, bought The Post at a bankruptcy sale in 1933.  She is the niece of Post Company Chairman Donald Graham, and granddaughter of the late […]

June 8, 2009 Family Owned Businesses Read more...