How To Avoid The Terrible Pancake Tragedy

The Tale of the Partners and How Disputes Start (White Collar Crime Fighter, Jun. 2016)

Here’s what forensic accountants see a lot in the field these days, and almost always there is an accusation of fraud — financial fraud as well as tax fraud.

THE PLAYERS

Often, two shareholders are involved. Shareholder A is often the “money” person. He or she has multiple businesses, access to credit, and invariably not all their enterprises are successful and these become a black hole for money.

Partner B is the “expert” — with unique ideas and skill sets such as promising new products or the know-how and equipment to make excellent products. We’ll call him here, a pancake aficianado.

But, he has no cash, and lacks relationships in the pancake business community. He is also a bit unsophisticated financially or accounting-wise.

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