Question

Stanley Block works in the IT department at Towery INC. After finding out that the company is planning to purchase four more computers for the accounting department, Stanley bough four computers from a friend for $1200. Then, using his brother's name and address as vendor information, he resold the computers to Towery for $2300. This type of scheme is known as a (n)

Answer 1

The scheme Stanley Block engaged in is known as vendor fraud, specifically purchasing goods or services from a friend at a lower price and reselling them to their employer at a higher price. Stanley purchased computers for $1200 and resold them for $2300, making a profit of $1100.

Step-by-step explanation:

The scheme Stanley Block engaged in is known as fraud. Specifically, it can be categorized as vendor fraud. Vendor fraud occurs when an employee manipulates the purchasing process for personal gain, such as purchasing goods or services from a friend at a lower price and reselling them to their employer at a higher price.

In this case, Stanley purchased four computers from a friend for $1200 and resold them to Towery Inc. for $2300, making a profit of $1100. By using his brother's name and address as vendor information, Stanley deceitfully obtained a personal benefit at the expense of his employer.