Description: Canadian Kyle Tsui pleaded guilty in an American court last week on charges that he had bilked $6 million dollars from approximately 88,000 customers. Tsui’s Allergy Testing Company offered these customers allergy and food sensitivity tests based on a small hair sample. But, as U.S. Attorney Damian Williams said, the company “didn’t even attempt to test the samples his paying customers sent in, instead directing others to throw the samples in the garbage.” Clients were sent bogus reports, telling them what foods to steer clear of.

Date:  January 26, 2024

Source:  ctvnews.ca

 Link: https://www.ctvnews.ca/canada/ontario-man-pleads-guilty-in-brazen-fraud-scheme-in-the-u-s-1.6744564

Discussion points:

1) Do you think you could have been lured in by a scheme like this?

2) Tsui will be sentenced in May. What kind of sentence would you be looking for in such a case?

3) Page 1-26 of Wiley’s Understanding Financial Accounting speaks of codes of professional conduct that accounting organizations have developed. Do you think a code of conduct can prevent this type of fraud from being perpetrated on customers?