Fraud Friday: Hot water and the mode of secrecy


The owner of Beebe’s Roaring River Waterslide in Cassville, MO is in hot water: he’s facing prison time after meeting with an undercover federal agent to discuss the sale of his business. During the meeting, Beebe showed the agent records with the business’s true gross receipts, which were different from the amount reported on his federal tax returns. Beebe also admitted to routinely destroying business records, explaining to the agent that he was in “the mode of secrecy” and used cash whenever possible. But old records were found during a search of his residence, and he now owes restitution to the state and the feds.

CPAs, get four hours of fraud CPE with our 2020 Fundamentals of Fraud Prevention and Detection On-Demand WebinarClick here for more information.