Roddy Boyd, Founder of the Foundation for Financial Journalism, shares that a healthy dose of scepticism doesn’t mean you are right, but it is a great tool for understanding whether or not to dig deeper. Roddy dives into the elusive proxy statement of public financial statements. Inside the proxy statement, Roddy says one of the tell-tale signs of fraud is when officers or members of the board of directors benefit from the operations of the public company through an outside entity. This is known as a “related party transaction” and often indicates that more nefarious things may be occurring at the corporation. Related party transactions may signify a lack of morality on the board level. Watch this expert level diagnosis of corporate malfeasance!