(with Ehsan Nikbakht, Sayan Sarkar and Andrew Spieler)
Journal of Financial Crime, 0187, 09, 2020
Financial fraud is not bounded or constrained by industry, geography, or culture. Despite well-intentioned regulatory initiatives and laws such as Sarbanes-Oxley in the United States, fraudulent activities continue and have even evolved in complexity. This paper reviews both domestic and international fraud cases to serve as a catalyst for change via blockchain technology. Accordingly, this paper develops and presents conceptual designs for blockchain implementations aimed at reducing the three distinct types of corporate fraud: asset misappropriation, financial statement manipulation and corruption. The proposed conceptual framework consists of five different levels of implementation with specific examples for each level. This research is part of a limited but growing attempt to propose blockchain designs to prevent or reduce moral hazard within a corporate setting.