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The Zinn-Palmieri Group, Inc.

Decent Essays

On November 6, 1987, the Zinn-Palmieri Group gained control of the company. Thirteen days later, after conducting stock take of all the physical inventory in all the Crazy Eddie warehouses’ the new management announced that Crazy Eddie had overstated its inventory by some $45 million. (Furman, 2009)

This was reported to the Commission and this warranted a full investigation.

Analysis of the Financial Statements

The fraud team performed analysis on the company’s audited financial statements that were available internally as attachments to their filed 10-K annual returns forms.

Statement of Operations
With the focus on sales, we note that there was a steady growth of 20% in the years prior to the company’s Initial Public Offering. After

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