We may all think this scam is far fetched, but something similar actually did happen to an elderly client of mine. She wanted to know, if she received a million dollars, would the money be taxable? My immediate thought was that she inherited some money, but I eventually came to find out that she was actually being scammed by someone in Africa.
Many Americans have received an e-mail or letter from Nigeria, claiming that the recipient can receive huge funds from an "over-invoiced" government contract or a wealthy individual who died without a will. In actuality, these are advance fee swindles where the victim must pay phony charges for the nonexistent money.
Thomas Katona, the longtime treasurer of Alcona County, Mich., was charged in January with nine counts of embezzlement by a public official after allegedly wiring more than $1.2 million in county funds to Nigerian con artist in August and September. It represented more tan a quarter of the county's entire annual budget.
-Joseph T. Wells, CPA, CFE, the Association of Certified Fraud Examiners
