Transcript PowerPoint - The Fraud Chronicles

FRAUD PREVENTION FOR
SENIORS
VA N E S S A O LT M A N N , M B A , C PA , C G A , C F I
WHAT IS FRAUD?
Fraud is a
lie or misrepresentation
that is committed with the
of
purpose
depriving you of something of value
FRAUD AND SCAMS IN THE NEWS
• Vancouver Chinese seniors targeted in scam
• Stealing from mom and dad: Why power-of-attorney abuse
against seniors is soaring—and so easy to get away with (July,
2011. Maclean’s)
• Elderly BC fraudster sentenced to 8 years (April, 2010. CBC
News. Fraudster Judith Lynn Slobbe)
• VISA scam – Prince George (Video)
THE FRAUD TRIANGLE
Opportunity
Rationalization
Pressure
Offenders are motivated and able to commit fraud when
these three elements are present…
THE FRAUD TRIANGLE
OPPORTUNITY
•
Red Flags: Power of Attorney with no check on spending by the person holding POA,
house is mortgage free and does not have title insurance, valuables are accessible in
house, house needs repairs, senior has disposable income, senior gives to charity.
PERCEIVED NEED / PRESSURE (usually a financial need)
•
Red Flags: shortage of money, living beyond income, substance or gambling
addiction, extra-marital affairs, divorce … (can you think of others?)
RATIONALIZATION
A mental process in which the fraudster justifies his/her actions internally.
•
Red Flags: signs of resentment, evasiveness, failure to be accountable for actions.
Red flags are signs that something MAY be wrong. A red flag is not proof, but it is a
sign you should take reasonable measures to protect yourself from possible financial
abuse.
CASE – JUDITH SLOBBE
Richmond News, Mar 17, 2010
“Slobbe has a history of fraud going back nearly four decades and
spanning two continents. She has prior convictions in Australia,
where she once lived. She also has several convictions in Canada.”
CBC News, April 22, 2010 – Sentencing. Includes VIDEO
“Judge Ron Fratkin [called Slobbe} a conniving and pathological
liar who preyed on the elderly and the sick to support her own
lavish lifestyle.
Oct 19, 2012. CBC News Parole Board, Judith Slobbe Parole Hearing.
Predators have no need for rationalization – all they need is
opportunity
I TRUSTED HER … I TRUSTED HIM
This is one of the most common comments made by victims
of fraud.
Judith Slobbe’s victims trusted her.
Trust is not a control
Trust … but verify
An honest person should have no reason to refuse
to explain or verify that things have been done right
TELEPHONE FRAUD – CASE
• A True Story – Scam
• The Scam - Genisis
• Dreams Beyond Thirty presents "SCAM", a film
about telephone fraud.
LOTTERIES, SWEEPSTAKES AND CONTESTS
Source – The Little Black Book of Scams, Competition Bureau Canada
CASE –PONZI SCHEME
Rashida Samji, Notary Public (Arvindbhai Patel AKA Arvin Patel, Coast Capital)
• Man says he lost millions of dollars by trusting Rashida Samji – BC
Securities Commission Hearing (Nov 15, 2013 – CBC News Video)
• Coast Capital Named in Ponzi Suit – Civil Suit. (Nov 15, 2013 – CBC News
Video)
Background
• Vancouver Ponzi Scheme: Rashida Samji Arrested (Huffington Post, updated
Nov 13. Samji released on bail)
• Prominent Vancouver businesswoman charged for alleged $17M Ponzi
scheme (Nov 13, 2013, Financial Post. Fraud stretches back to 2003. Links
to two other Ponzi schemes)
• B.C. judge certifies class-action lawsuit over alleged Ponzi scheme (Sep 11,
2013. The Vancouver Sun. Defendants named include Samji, Patel, RBC, TD,
Coast Capital, Vancouver City Savings, Worldsource Financial Management
Inc.
PONZI SCHEMES – RED FLAGS
Common Elements of a Ponzi or Investment Scam
• High Rates of Return
• No Risk
• Act Now!
• Insider Information
• Tax Free
BBBVancouverIsland ScamWATCH Episode 10: Ponzi & Pyramid
Schemes (Video)
PONZI SCHEME – VANCOUVER ISLAND
Nanaimo man jailed 6 years for Ponzi scheme, victims across Island. (Nanaimo Daily
News, March 6, 2013. Michael David Chodorowski, $2.5M defrauded, sentenced
to 6 years)
PONZIS AND PYRAMID SCHEMES
Source – The Little Black Book of Scams, Competition Bureau Canada
MONEY TRANSFER SCHEMES
Nigerian Scam (419 fraud) AKA Advance Fee Fraud
1. “Help me transfer this money out of the country and I’ll give you a share.”
2. “Just send me your bank details and I’ll transfer the money to you …”
3. A few days later (you’re checking your account daily…) your contact
calls/emails you … “The bank says we have to pay a fee/tax to do the transfer.
If you can wire the fee to me, I’ll pay the fee and they’ll release the money to
your account.”
4. … and so it goes on.
Overpayment scams
1. Fraudster makes a purchase and prepays by check (often from out of Canada).
2. The check arrives, but it’s an overpayment.
3. Fraudster says, “Keep the check, just send me the overpayment.”
4. Some weeks later, the bank advises victim that the check has bounced.
MONEY TRANSFER SCHEMES
Source – The Little Black Book of Scams, Competition Bureau Canada
GRANDPARENT SCAM/ EMERGENCY SCAMS
•
Canadian Bankers Association –Grandparent Scam advice (Video)
•
Canadian Bankers Association – Fraud Resources
GRANDPARENT SCAM
OTHER KINDS OF FRAUD
• Internet Scams
• Health and Medical scams
• Dating and romance scams
• Charity scams
• Job and employment scams
• Service scams
RESOURCES
•
•
•
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BBBVancouverIsland ScamWATCH
Listings of BBB YouTube Videos, Alerts, and Resources
FINANCIAL ABUSE: Protecting British Columbia’s Seniors.
SeniorsBC. Linked Document Includes Listings of BC resources including
• Public Guardian and Trustee of BC
• BC Centre for Ender Advocacy & Support – Seniors Abuse &
Information Line (SAIL)
• VictimLinkBC
• BC Securities Commission
The Canadian Anti-Fraud Centre
Competition Bureau
• The Little Black Book of SCAMS (some excerpts from this book have
been reproduced under the terms of Industry Canada’s Permission
to Reproduce)
V. G. Oltmann, MBA, CPA, CGA, CFI
Email: [email protected]
Web: TheFraudChronicles.com
Twitter: @Fighting_Fraud