Transcript Welcome to Unit 4 Concealment and Conversion

Welcome to Unit 4
Concealment and Conversion
Unit 3 Review
•Proactive and Reactive Investigations
•Chapters 6-7
•Discussion Board – 2 topic
•Quiz
•Seminar
•We learned how analysis of financial instruments
can detect fraud. We looked at surveillance and
covert operations as they relate to fraud
investigations. Finally, we saw how physical
evidence can be used in a fraud investigation
Unit 4
•Concealment and Conversion
•Chapters 8-9
•Discussion Board – 2 topic
•NO QUIZ OR EXAM
•Seminar
•We’ll see how to identify concealment
investigation methods and how they relate to
fraud, the importance of obtaining documentary
evidence, the importance of learning how
perpetrators convert and spend their stolen
funds, and how the Internet can assist a fraud
investigation.
UNIT 4 SEMINAR
Chapter 9
Short Cases 3-7
All found on pages 264-266 of Chapter 9.
4
Case number 3
You receive an anonymous tip that your controller
is embezzling assets from your company. You
begin your investigation by interviewing several
employees in the accounting department, who
report no unusual behavior or sudden changes in
the suspect’s standard of living. One interviewee
does report that the controller has gone on a
number of extravagant vacations. You perform a
net worth analysis, based on a search of public
records, and find the following information:
Case number 3
1. Based on the evidence gathered in your search, what
conclusions can you make about the controller?
2. Would you feel comfortable using the evidence above in
an interview to obtain a confession? Why or why not?
3. What additional investigating could you pursue to obtain
more evidence?
Case number 4
Bill James is being investigated for embezzling over
$700,000 from ABC Capital Management, for whom Bill
has worked for nearly 10 years. When coworkers
noticed the new “toys” Bill was buying, they jokingly
asked him to tell them his stock picks as they wanted in
too! Bill told them that they better adopt some rich
relatives. “My Uncle Eddie didn’t have any kids, so he
left a chunk of his money to each of his nephews.”
Explain how you might go about checking the validity of
Bill’s claim to a recent inheritance. Include in your
discussion the relevant information you need about
Uncle Eddie and where you could find that information.
Case number 5
You manage a car dealership in a large city. Many of your
sales employees are very successful and have purchased
their own vehicles from your dealership. Your dealership
finances the sale of some of these vehicles. One employee
recently paid off the balances on a couple of new vehicles
purchased from your dealership. You discover this
information after investigating complaints from customers
about this particular employee’s actions. His sales are
down, and customer complaints about his attitude
abound. He previously worked for two other car dealers,
both of which were satisfied with his performance. This
employee is in charge of having used cars reconditioned
by various automobile repair shops.
Case number 5
1. What signs of unusual behavior and lifestyle
symptoms are present in this case? What are some
possible causes for them?
2. How might this employee be defrauding the
company?
Case number 6
Janet Moody is one of XZY Company’s most trusted
employees. She never complains about her work and rarely
misses work due to illness or vacation. The company has been
successful over the years, but is now having cash flow
problems. Because of the recent downturn in the company,
you take a closer look at all the company’s financial records.
When you ask Janet about the recent cash flow problems, she
responds, “I don’t know what is going on. I only do the
reporting. Ask those who manage the company.” This
behavior differs from Janet’s normal pleasant deportment. As
you continue your investigation, you discover that the
reported financial results do not match what the company is
doing, but you can’t determine why. You decide to investigate
Janet further.
Case number 6
1. What are some behavior and lifestyle changes that
you should look for?
2. What resources can you use to conduct your
research?
Case number 7
Using the net worth method, analyze the following financial
data for potential signs of fraud or embezzlement.
Case number 7
1. Do your results indicate that this person could be committing some
type of fraud? If so, why do you think so?
2. What other factors might you consider to determine whether fraud
has been committed, other than the final total income from other
sources (if any)?
3. Is this scenario realistic?
Midterm Project and Essay Exam
TIPS
• Grammar - PROOFREAD
• Spelling – PROOFREAD
• Organization
• Numbers and Bullet points – Notice how the
assignments are laid out. Use the bullet points
as a checklist—this is how I’ll be grading;
• After you are done with your paper RE-READ
the assignment to go over checklist.
• Questions about the assignment specifics?
Midterm Project and Essay Exam
TIPS
• Timeliness – Due at the end of Unit 5. After
that, LATE PENALTIES WILL BE ASSESSED
• APA Format:
Appropriate Cover page
Appropriate Citation WITHIN THE TEXT
Appropriate Citation WITHIN REFERENCES
PAGE
• Page Requirements – Cover page and
references page do not count
Thanks and Good Luck on Midterms!