The Enforcement Division Found Evidence How?????

03/23/2017Hot TopicAICPA, AM Law, auditors, Desarrolladora Homex, enforcement, FASB/IASB, Financial Accounting Standards Advisory Committee, Fraud, INTERNAL AUDITING, PLI FREE FRIDAYS, sattelite imagery, SEC, sec enforcement, SEC PROFESSIONALS, SEC REPORTING, SECI, The Division of Enforcementadmin

By: George M. Wilson & Carol A. Stacey

Earlier in March the Enforcement Division announced a settled case against homebuilder Desarrolladora Homex S.A.B. de C.V. This company fraudulently inflated revenues by reporting the sale of over 100,000 homes that had never been built or sold! This was a huge fraud, over $3 billion!

All of that is interesting, but what is really fascinating is how the SEC found that the homes had never been built. They used satellite imagery! You can see one of the pictures here.

We are tempted to say “watch the skies”, but that sounds too much like a 50’s sci-fi movie trailer…..

As always, your thoughts and comments are welcome!

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