Settled $622M revenue fraud; paid $50M penalty (2006)
McAfee, Inc. · cybersecurity software
The case in brief
Visible before detection
Checks that could have surfaced it, on hindsight
Bank credits vs books
Excessive distributor returns and repurchases through Net Tools would not match legitimate revenue
Can mislead when: AA only sees the accounts the company links, so an undisclosed account stays invisible. Cash-heavy businesses and timing differences create false flags.
Counterparty existence
The subsidiary Net Tools and its transactions could be traced to internal accounts not independent parties
Can mislead when: Real companies can be used as pass-throughs. Existence does not prove a real trade, so C6 and C7 still apply.
Where Kubr services would have helped
Valuation context
Offered in India- C4 The subsidiary Net Tools and its transactions could be traced to internal accounts not independent parties
Financial diligence
Offered in India- C1 Excessive distributor returns and repurchases through Net Tools would not match legitimate revenue
- C4 The subsidiary Net Tools and its transactions could be traced to internal accounts not independent parties
Proceeds tracer
Offered in India- C1 Excessive distributor returns and repurchases through Net Tools would not match legitimate revenue
- C4 The subsidiary Net Tools and its transactions could be traced to internal accounts not independent parties
Verified Snapshot
Offered in India- C4 The subsidiary Net Tools and its transactions could be traced to internal accounts not independent parties
Mapped from the checks each service runs. A hindsight reading of public records, not a promise that the failure would have been found.
Same pattern
A summary of public documents. It reports what the sources say. It is not Kubr's finding and not a statement of guilt.