By admin | Published:
July 24, 2010
Charlie, Charlie, Charlie! Looks like you got lots of explaining to do!
Unlike sports stars who claim that they are not role models, they are just gifted athletes that kids admire; politicians and elected officials are in a completely different situation. Elected officials seek the spotlight of elected office. Along with the perks comes the greater scrutiny and diminished private life. Its the deal!
Since elected officials are role models as public figures, it is even more important they are treated in accordance with our laws. After all, everyone is watching!
By admin | Published:
July 9, 2010
A 64 year old priest in Waterbury, CT was arrested after missing church money was investigated. The priest is accused of stealing $1.3 million over seven years.
A couple of interesting things here:
1. He is accused, not convicted. Maybe somebody else did it, or the money will be found somewhere. (Unlikely, but you never know)
2. Understand people, not internal controls, steal.
3. $1.3 million over 7 years averages approximately $186,000 per year.
4. You do not know what you are missing until you look for it!
I bet that this was a control failure. There were either no controls, or nobody bothered to check to see if they were being used. What is really sad is that this took 7 years to come to light.
Any comments?
By admin | Published:
June 28, 2010
I remember hearing a story about how a computer programmer at a bank wrote a program to deposit fractional interest in his account. I often thought about how ingenious this was, as the differences were so small, nobody would notice. These small amount schemes can be very costly over the long haul because they are hard to detect and can continue for many years. These schemes also highlight the danger of the materiality concept.
How many times have you heard the phrase “its not material” or “that’s below the threshold”? Well, thieves know this as well. The story below is but the most recent example I have found of stealing a little from many.Click here:
Posted in Fraud | Tagged Fraud Schemes |
By admin | Published:
June 25, 2010
Much is currently being written about the Supreme Court’s decision on the Honest Services Law in fraud prosecution. I want to focus on the title of this law and what we can learn from it. If you want honest service, find an honest person! This ties directly into the human element of risk concept and the internal controls and seat belt concept. People commit fraud, and no control by itself will prevent a dishonest person from stealing, if that is what they intend to do.
Use the tools and contacts at your disposal to ensure those you transact with, vote for, and employ are trustworthy. Character does matter.
By admin | Published:
June 16, 2010
Internal controls are like seat belts, they only work if you use them! Almost every car in the U.S. has seat belts, yet many traffic injuries and fatalities result from these restraints not being used. States spend millions per year advertising the “Click it or Ticket” campaigns.
The same is true for internal controls. The majority of problems result because the controls are not used or are circumvented. Are your controls used? If not, why not? Onerous, complicated and unused controls are equivalent to no controls. Spend some time and money making your controls both usable and effective, then continually monitor their use. This will save you money in the long run.
By admin | Published:
June 11, 2010
If you go anywhere from the grocery store to church, it seems like everyone is checking e-mail on a mobile device. In the interest of full disclosure, I do not have such a device. I do my e-mails on a full size key board, in a chair, in front of a screen. For me, this is the right choice. I want to be fully engaged when I respond to e-mail, but I do not want to be bothered while in church or on the little league field. People need to make the decision that is right for them.
As a business issue, I see the mobile device debate differently. These devices are expensive to purchase and operate. Every month, companies pay the cellular companies significant sums so their employees can have round the clock access to e-mail. Is this really that necessary? How many e-mails do you receive that are not business related… jokes, cartoons, etc.?
Now think in terms of electronic discovery for an internal investigation or a law suit. At this very instant, there are rooms full of lawyers working on behalf of their clients sorting through terabytes of electronic trash charging hundreds of dollars per hour. Fewer company sponsored mobile devices, less electronic trash. Less electronic trash, lower monthly cell charges and lower investigation and litigation related expenses. Seems pretty simple doesn’t it?
By admin | Published:
May 20, 2010
The hard drives on copiers store many images of the documents copied, scanned, and printed. This can be both a security risk and a source of discoverable information in an investigation. This link shows the type of information recovered from a purchase of used copiers.
http://www.wimp.com/copymachines/
By admin | Published:
May 14, 2010
Posted in Fraud, Must Read |
By admin | Published:
May 13, 2010
Computer files are often very valuable to a fraud investigation. This simple procedure will allow an investigator to see hidden folders and files:
- Click Start
- Click Control Panel
- Click Folder Options
- Click View
- Under Advanced Settings look for Files and Folders
- Click Show Hidden Files and Folders, then Apply
- Toggle off Hide Protected Operating System Files.
- Pass it on!
By admin | Published:
May 11, 2010
When thinking about investigating fraud, how many times have you heard the phrase “Follow the money”? Although many fraudsters steal money, all fraudsters steal value! If you begin an investigation thinking about cash, you are too myopic in your approach.
Many businesses have significant value in their raw materials and finished goods inventories, but there is so much more. What about customer lists, credit card information, intellectual property (IP), and even scrap or fully depreciated assets? Oh, there is so much for the taking.
Also remember that different countries and cultures can attach greater value to things we take for granted. This can especially come into play in FCPA situations. In many third world countries the necessities of life such as toilet paper, tooth paste, and sunscreen could be an effective bribe.
Come on people, lets get creative out there! The fraudsters certainly are.