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Major Fraud Act Of 1988

What is 'Major Fraud Act Of 1988'

A piece of legislation passed during the Reagan administration that modified and strengthened previous fraud legislation. Among the many changes, the Major Fraud Act of 1988 increased the maximum penalties for fraud, added protection for employees who assist the prosecution of fraud cases and introduced mandatory annual reports on fraud investigations by the attorney general.

Explaining 'Major Fraud Act Of 1988'

The timing of the Major Fraud Act makes it seem like a reaction to the securities fraud cases of the late '80s and early '90s. However, much of the legislation targeted government contractors' persistent cost overruns and suspect bidding practices. The increase of penalties to $1 million for a single count and $10 million for multiple counts may not have significantly deterred this type of fraud, but it did increase the amount the government was able to claw back through the courts.


Further Reading


The role of financial economics in securities fraud cases: Applications at the Securities and Exchange Commission
www.jstor.org [PDF]
… As one outcome of the 2000 Australian Crime Commissioners' Conference, the Major Fraud Group of the Victoria Police has … system, as well as fraud against public sector agencies perpetrated through the use of fraudulent tax file … KPMG 1999, 1999 Fraud Survey, KPMG, Sydney …

The model curriculum in fraud and forensic accounting and economic crime programs at Utica CollegeThe model curriculum in fraud and forensic accounting and economic crime programs at Utica College
search.proquest.com [PDF]
… As one outcome of the 2000 Australian Crime Commissioners' Conference, the Major Fraud Group of the Victoria Police has … system, as well as fraud against public sector agencies perpetrated through the use of fraudulent tax file … KPMG 1999, 1999 Fraud Survey, KPMG, Sydney …

Financial fraud, director reputation, and shareholder wealthFinancial fraud, director reputation, and shareholder wealth
www.sciencedirect.com [PDF]
… As one outcome of the 2000 Australian Crime Commissioners' Conference, the Major Fraud Group of the Victoria Police has … system, as well as fraud against public sector agencies perpetrated through the use of fraudulent tax file … KPMG 1999, 1999 Fraud Survey, KPMG, Sydney …

Good finance, bad economics: an analysis of the fraud-on-the-market theoryGood finance, bad economics: an analysis of the fraud-on-the-market theory
www.jstor.org [PDF]
… As one outcome of the 2000 Australian Crime Commissioners' Conference, the Major Fraud Group of the Victoria Police has … system, as well as fraud against public sector agencies perpetrated through the use of fraudulent tax file … KPMG 1999, 1999 Fraud Survey, KPMG, Sydney …

Economic consequences of financial reporting and disclosure regulation: A review and suggestions for future researchEconomic consequences of financial reporting and disclosure regulation: A review and suggestions for future research
papers.ssrn.com [PDF]
… As one outcome of the 2000 Australian Crime Commissioners' Conference, the Major Fraud Group of the Victoria Police has … system, as well as fraud against public sector agencies perpetrated through the use of fraudulent tax file … KPMG 1999, 1999 Fraud Survey, KPMG, Sydney …

Real Examples of Why Financial Statement Audits Cannot Detect All Fraud: Insights From an Expert Witness in Major Fraud CasesReal Examples of Why Financial Statement Audits Cannot Detect All Fraud: Insights From an Expert Witness in Major Fraud Cases
papers.ssrn.com [PDF]
… As one outcome of the 2000 Australian Crime Commissioners' Conference, the Major Fraud Group of the Victoria Police has … system, as well as fraud against public sector agencies perpetrated through the use of fraudulent tax file … KPMG 1999, 1999 Fraud Survey, KPMG, Sydney …

Director interlocks and spillover effects of reputational penalties from financial reporting fraudDirector interlocks and spillover effects of reputational penalties from financial reporting fraud
journals.aom.org [PDF]
… As one outcome of the 2000 Australian Crime Commissioners' Conference, the Major Fraud Group of the Victoria Police has … system, as well as fraud against public sector agencies perpetrated through the use of fraudulent tax file … KPMG 1999, 1999 Fraud Survey, KPMG, Sydney …

The stock market reaction to fraudulent financial reportingThe stock market reaction to fraudulent financial reporting
www.emerald.com [PDF]
… As one outcome of the 2000 Australian Crime Commissioners' Conference, the Major Fraud Group of the Victoria Police has … system, as well as fraud against public sector agencies perpetrated through the use of fraudulent tax file … KPMG 1999, 1999 Fraud Survey, KPMG, Sydney …



Q&A About Major Fraud Act Of 1988


What does "maximum penalties" refer to in this context?

Maximum penalties refers to increased maximum penalties for fraud under this law.

What are some examples of these changes?

Some examples include increasing maximum penalties for fraud, adding protection for employees who assist the prosecution of fraud cases, and introducing mandatory annual reports on fraud investigations by the attorney general.

How did they increase maximum penalties under this law?

They increased maximum penalties from $10,000 per count up to $1 million per count and from $20,000 per count up to $1 million for multiple counts under this law.

What is the Major Fraud Act of 1988?

The Major Fraud Act of 1988 was a piece of legislation passed during the Reagan administration that modified and strengthened previous fraud legislation.

Why did President Reagan introduce this act?

To modify and strengthen previous fraud legislation.

How many changes were made to existing laws with this act?

Many changes were made to existing laws with this act.

Who introduced the Major Fraud Act of 1988?

President Ronald Reagan introduced the act.

When was it passed by Congress?

It was passed in 1988.

Why do you think they increased them so much under this law if they already had such high limits before it became a law?

They may have wanted to increase them because there were so many new additions added into it as well as wanting people who committed these types of crimes punished more severely than before which would deter others from committing similar crimes in the future or at least make sure those who commit these crimes face harsher punishments than before if caught doing so again after being caught once already doing so previously while also making sure those who help prosecute these types of criminals get rewarded appropriately for

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