The term “fraud examination” “refers to a process of resolving allegations of fraud from inception to disposition, and it is the primary function of the anti-fraud professional” - The Association of Certified Fraud Examiners (ACFE). A Certified Fraud Examiners general goal in conducting a fraud examination is to determine if fraud occurred, what was the loss from the fraud, who perpetrated it, and to establish and secure the evidence in order to be used in a criminal or civil action.
When to request a Fraud Examination
If your organization is suffering from a cash flow problem yet your business is making making and you can't understand why. If you are not provided with timely financial reports or back-up documentation on bank statements, customer payments or vendor invoices and you have asked repeatedly. Embezzlement cases are not always cut and dry and the smoking gun isn’t instantly visible. Fraudsters are very clever at covering up their schemes for years before anything is discovered. Unfortunately this usually results in a devastating financial loss for the organization. If you have a feeling that something is just not right, it may be the right time to discuss the possibilities of a fraud examination.
Conducting a Fraud Examination
Each fraud examination has different circumstances and are based upon the business and the suspect involved. If you feel your business is a victim of employee embezzlement, vendor fraud or bribery, it is important that you don’t jump the gun which could throw a case. It is important to contact an attorney with fraud experience before proceeding forward with a fraud examination. At the outcome of the examination, if fraud has been discovered, not all cases will go to trial which may only leave you with the option of civil action against the perpetrator. It is important to discuss this with your attorney.
- Prepare a detailed list of your suspicions
- Provide any evidence or documentation you may have
- Contact Legal Counsel on how to proceed
- Work with your Attorney to hire a CFE
- Or have your CFE refer an Attorney
- Get legal advice before terminating the suspect
- Suspects continued employment may be beneficial to evidence
- Keep the examination status private
- Take precautions from the suspect finding out
- Secure computers and company assets
- Prepare yourself for a potentially lengthy and emotional examination
Who commits white collar crime?
It is not a crime that is limited to your stereo-typical career criminal. The most unsuspected people end up being the perpetrator. These perpetrators include;
- Friends and Neighbors
- Successful and rich business owners
- Famous people
- Family (sisters / brothers / parents / cousins) which is very common
Pro Sport and High Profile Fraud Examinations
Unfortunately even famous athletes and high profile individuals can also be a victim of embezzlement and financial crimes. High profile cases hold a high standard for confidentiality as with all of our cases. In many instances the individual does not want to come forward in fear of the public finding out, embarrassment and disbelief. Often times the perpetrator ends up to be a close family friend or even family which makes it much more difficult.
As with any of our cases, if we are doing a fraud examination we work directly through your attorney or can refer one to you. If we are doing a confidential review to analyze your books and records for accuracy we can work directly with you. At any time if fraud is discovered, we will stop direct work and then go through your attorney for confidential attorney client work product doctrine. An initial consultation can be scheduled with complete confidentiality.
We investigate embezzlement and fraud cases in the following areas.
- Afinity Fraud and Ponzi Schemes
- Private Bookkeeper or Accountant Embezzlement Cases
- Business Investment Employee Embezzlement
- Safeguard and Review of your personal accounting and assets
Examination or Financial Review
If you believe that you have been a victim of fraud with your personal finances, a business that you hold ownership or an investment, please contact us for a confidential consultation. If you already have an attorney, we can set up a meeting through your attorney to discuss the case. If you do not have an attorney, we can meet on a consultation. If it is a consultation meeting please call us instead of e-mailing information.
We can complete a review of your personal or business books and records to provide an overall analysis of the accuracy of your assets and liabilities. We can also continue to provide monthly, quarterly, semi-annual or annual reviews to assure that your assets are safeguarded against misappropriation. Having a consistent financial review will not guarantee that fraud won’t occur, it will however reduce the risk of fraud and embezzlement and will lower the duration of the fraud as well as the loss. Having a financial review will also give insight to the client as to the availability of assets, amount of liabilities and their own spending habits.