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Question - Fraud is a crime that is seldom observed. It is not usually obvious that a crime has been committed. Only fraud symptoms, red flags or indicators are observed. Zaharul Hashim owns a small Internet service provider business. Recently, customers have been complaining that they are overcharged and are not receiving timely customer service. Billing rates seem to increase without notice. Five years ago, Zaharul used funding from several different investors in order to start his Internet service. Currently, he has 17 outstanding bills to be paid, all with late charges. Five of the bills include notices stating that lawsuits are pending. Also, he has not paid dividends to investors in two years. Every day, Zaharul drives either his Mercedes-Benz or his new Lexus to work. Before starting the business, Zaharul drove only one car, a Proton Pesona. Zaharul now lives in a palatial home and owns very expensive furniture. Employees constantly ask Zaharul for new equipment, but the "boss" refuses to update the old equipment. Two weeks ago, Zaharul was irate and fired one of his accounting clerks for not depositing some checks on time. Zaharul is known for losing his temper.
i. List and discuss any fraud symptoms that are present in this case.
ii. Explain briefly why would complaints from customers be a fraud symptom.
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