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Justice for Fraud Victims Project
Dr. Sara Melendy
[email protected]
Justice for Fraud Victims Project
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Overview of JFVP
Overcoming Challenges
Case Selection
Fraud Examples
Future of the project
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #2
Overview of the JFVP
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idea (AUSA K.Jill Bolton)
people
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Law enforcement
Department of Justice
Spokane Chapter of ACFE
Gonzaga University
timetable
challenges
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #3
Justice for Fraud Victims Project
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Overview of JFVP
Overcoming Challenges
Case Selection
Fraud Examples
Future of the project
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #4
Overcoming Challenges
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Resources
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Faculty time and expertise
CFE mentors
Time limit of students (one semester)
Location to secure evidence
Materials (binders, copies, laptops, etc.)
Case Selection
Expert witness testimony
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #5
Overcoming Challenges
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Confidentiality
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Location to secure evidence, meeting space
Students, CFE mentors
Media questions
Victim presentations
Written forensic examination reports
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For audit trail
For law enforcement or prosecutors
For victims
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #6
Overcoming Challenges
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Outcomes assessment
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Academic – what will students learn?
Victims – are they helped?
Continuity of project
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Funding
Staffing (internal, external)
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #7
Justice for Fraud Victims Project
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Overview of JFVP
Overcoming Challenges
Case Selection
Fraud Examples
Future of the project
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #8
Case Selection
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Wording on Police intake reports
Willing Victim
Multiple layers of fraud
Evidence
Benefit to local community
Statute of limitations
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #9
Police Intake Reports
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Vary by jurisdiction
May include other crimes
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Embezzlement
Theft and Larceny
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Includes traditional “burglary”
Forgery
Identity Theft and/or Mail Fraud
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Longer statute of limitations (in Washington)
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #10
Case Selection
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Wording on Police intake reports
Willing Victim
Multiple layers of fraud
Evidence
Benefit to local community
Statute of limitations
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #11
Willing Victim
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Willing to come forward
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Risk embarrassment from publicity of a trial
Provide documents and information
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Bank and credit card statements
Accounting records
Vendor invoices
Bank reconciliations
Datebooks, calendars
Copies of checks
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Take time to identify forgeries
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #12
Case Selection
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Wording on Police intake reports
Willing Victim
Multiple layers of fraud
Evidence
Benefit to local community
Statute of limitations
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #13
Multiple layers of fraud
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Check forgery
Credit card fraud
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Use company cards for personal expenses
Pay personal credit cards with company funds
Skimming
Misuse of company assets (theft)
Petty cash theft
Pay personal expenses with company funds
(larceny)
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #14
Case Selection
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Wording on Police intake reports
Willing Victim
Multiple layers of fraud
Evidence
Benefit to local community
Statute of limitations
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #15
Evidence
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Must have documentation
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Impossible to trace cash
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No cash register  no audit trail
Can be difficult to obtain information on suspect’s
bank accounts or credit cards
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May need subpoenas or search warrants
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #16
Case Selection
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Wording on Police intake reports
Willing Victim
Multiple layers of fraud
Evidence
Benefit to local community
Statute of limitations
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #17
Case Selection
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Benefit to local community
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Non-profit organizations
Small business owners
Victim cannot otherwise afford examination
Potential improvements in internal control
Possible deterrent effect in community
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #18
Case Selection
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Wording on Police intake reports
Willing Victim
Multiple layers of fraud
Evidence
Benefit to local community
Statute of limitations
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #19
Justice for Fraud Victims Project
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Overview of JFVP
Overcoming Challenges
Case Selection
Fraud Examples
Future of the project
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #20
Justice for Fraud Victims Project
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Overview of JFVP
Overcoming Challenges
Case Selection
Fraud Examples
Future of the project
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #21
Future of the JFVP
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Gonzaga University
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Potential Expansion
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Center for Forensic Accounting
Funding (grants, restitution, donations?)
Other jurisdictions
Other cities
Other schools
“Best Practices” for success
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #22
“Best Practices” for success
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Assemble a project team
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Law enforcement
University
ACFE chapter
Additional resources (FBI, IRS, DOJ, etc.)
Recognize the time commitment
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Volunteers
Faculty and students
Law enforcement
victims
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #23
“Best Practices” for success
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Have reasonable expectations
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Caseload
Volume of documents
Potential for restitution
Dollar level of fraud
Benefit to community
Expect the unexpected
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #24
Video clip
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http://www.krem.com/home/Collegecrimefighters-90301467.html
Dr. Sara Melendy
AAA meeting - San Francisco - July 31, 2010
Slide #25