Glossary/Control Fraud

Control fraud is a term coined by [[Glossary/Black, William K.|Bill Black]. It refers to a person or process whereby a seemingly legitimate entity is used as a weapon to defraud. For example, the S&L Crisis of the 1980s The S&L was perpetuated by an epidemic of control fraud. CEOs defeated and suborned internal and external controls to fraudulently report record profits and increase their personal wealth.