Fraud Stories: January 2026 examines the rise and collapse of Tricolor, a fast-growing subprime auto lender, to uncover how fraud can develop and persist within complex financial systems. Through a detailed case study, participants will explore how aggressive growth, weak internal controls, and reliance on opaque lending structures enabled practices such as double pledging and data manipulation. The course highlights key warning signs, audit challenges, and systemic risks in private lending and securitization markets, providing practical insights into how fraud can be detected, prevented, and understood within real-world financial environments. Recorded January, 2026.
Learning Objectives
• Identify key fraud risk factors in subprime lending environments, including rapid growth, weak internal controls, and complex financing structures.
• Explain how schemes such as double pledging and data manipulation are used to inflate collateral and mislead lenders and auditors.
• Evaluate audit and oversight failures in detecting fraud and apply practical strategies to improve risk assessment and fraud detection.
Major Topics
• Fraud
• Internal controls
• Auditing
• Ethical issues
• Advanced accounting issues
• Risk management
