Posted: April 26th, 2017

In one of the case studies in the textbook (page 189), Cy Chesterly was the vice president in charge of sales for one of the largest machine parts manufacturers in the Midwest. He was an excellent salesman and helped build the company into one of the most successful companies in the industry. While Chesterly was known to go overboard on the entertainment expenses, he really went wild when it came to buying personal items, vacations, furniture, and jewelry to name a few. What other frauds turned up in the investigation?

In one of the case studies in the textbook (page 189), Cy Chesterly
was the vice president in charge of sales for one of the largest machine parts
manufacturers in the Midwest. He was an excellent salesman and helped build
the company into one of the most successful companies in the industry. While
Chesterly was known to go overboard on the entertainment expenses, he really
went wild when it came to buying personal items, vacations, furniture, and
jewelry to name a few. What other frauds turned up in the investigation?

He skimmed some of the cash sales.
He falsified some sales figures to get unearned bonuses.
He cut special deals to his customers and received kickbacks in return.