2013-05-07 Nonprofit Fraud: Part II

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Part II of our Three-Part Nonprofit Fraud Seminar offered by Senior Partner, Larry Hoffman from the Raffa Audit Group. In this seesion, you will learn about: …

Part II of our Three-Part Nonprofit Fraud Seminar offered by Senior Partner, Larry Hoffman from the Raffa Audit Group. In this seesion, you will learn about:

- How to detect fraud perpetrators - is it possible?
- What are the red flags of fraud?
- Fraud detection techniques and how to employ them in your organization.
- What to do when you uncover a fraud, and;
- Important takeaways.

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  • 1. Thrive. Grow. Achieve.Nonprofit Fraud: WhatYou Need to KnowPart II: The DetectionLawrence J. Hoffman, CPA/CFF, CVA, CFESenior Partner, & Director of Forensic Consulting ServicesMay 7, 2013
  • 2. OBJECTIVESNONPROFIT FRAUD: THREE-PART SERIESPART I: THE FRAUD• Why it is important that you are educated in fraud• The magnitude of fraud in nonprofits• The types of frauds in nonprofits• Why does fraud occur in nonprofits• Some important fraud prevention measuresPART II: THE DETECTION• Why do people commit fraud?• How is fraud detected?• Who are the fraud perpetrators?• Fraud detection techniques• What should you do when you uncover fraud?PART III: THE PREVENTION• Fraud risk assessments• Setting the tone at the top and your board of directors• What are the best preventative measures and controls?• The five critical takeaways!Part II: The Detection * Page 2
  • 3. AGENDA• Why do people commit fraud?• How is fraud detected?• Who are the perpetrators?• Fraud detection techniques• What should you do when you uncover a fraud?Part II: The Detection * Page 3
  • 4. WHY DO PEOPLE COMMIT FRAUD?THREE REASONS WHY PEOPLE COMMIT CRIMES• Economics  $$$$$• Passion  love, lust, a cause (religious beliefs)• Mental instability  nutsPart II: The Detection * Page 4
  • 5. WHY DO PEOPLE COMMIT FRAUD?THE FRAUD TRIANGLEPart II: The Detection * Page 5Rationalization(frame of mind orethical character)Opportunity(lack of controls)Pressure / Incentive (The“Unshareable” Need)
  • 6. WHY DO PEOPLE COMMIT FRAUD?THE FRAUD TRIANGLETHE FRAUD TRIANGLE ORIGINATED FROMDR. DONALD CRESSEYS HYPOTHESIS:“Trusted persons become trust violators when they conceive ofthemselves as having a financial problem which is non-shareable, are aware this problem can be secretly resolved byviolation of the position of financial trust, and are able to apply totheir own conduct in that situation verbalizations which enablethem to adjust their conceptions of themselves as trustedpersons with their conceptions of themselves as users of theentrusted funds or property.1 ”1DONALD R. CRESSEY, OTHER PEOPLES MONEY(MONTCLAIR: PATTERSON SMITH, 1973) P. 30.Part II: The Detection * Page 6
  • 7. WHY DO PEOPLE COMMIT FRAUD?PRESSURE / INCENTIVE(THE NEED, PERCEIVED OR ACTUAL)• Financial pressure and debts• Greed – need for high lifestyle-living beyond their means• Feed a habit – gambling, drugs, other addictive behaviors• Retribution / vendetta – feels abused or exploited-holds agrudge• Make earnings target or financial metric (bonuses)• Need for praise and gratification• Competitive pressures – keep your job• Medical issues of family or selfPart II: The Detection * Page 7
  • 8. WHY DO PEOPLE COMMIT FRAUD?OPPORTUNITY (PERCEIVED)• Weak or non-existent internal controls – lack of segregation ofduties• Has sufficient access to assets and information that enablesthe crime• Has assessed that that the fraud can be committed and alsosuccessfully concealed• Too much trust placed in person or position. (Remember: trustis not an internal control!)• Poor communication within organization• Lack of oversight and supervision• Lack of disciplinary action for previous fraudsPart II: The Detection * Page 8
  • 9. WHY DO PEOPLE COMMIT FRAUD?RATIONALIZATION (A WAY TO RATIONALIZE THEBEHAVIOR AS ACCEPTABLE)• “I am just borrowing the money and will repay it”• “I’ll stop once I pay off my debts”• “The company won’t even realize this amount is gone; it’s notthat much”• They feel they deserve it: “I am getting underpaid and amunderappreciated”• “Management is ‘living high,’ while I am oppressed”• “Everyone’s doing it, I am no different”• “It is for a good purpose”• They need the moneyPart II: The Detection * Page 9
  • 10. HOW IS FRAUD DETECTED?• The detection of fraud involves the ability to recognize in atimely manner whether fraud has occurred or is occurring• However, a properly designed and executed audit may stillNOT detect material fraud, especially one involving:– Forgery– Deliberate failure to record transactions– Intentional misrepresentations– Collusion• Ability to detect fraud depends on:– Skillfulness of perpetrator– Frequency and extent of manipulation– Degree of collusion– Relative size of individual amounts manipulated– Seniority of individuals involvedPart II: The Detection * Page 10
  • 11. HOW IS FRAUD DETECTED?Part II: The Detection * Page 112012 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE
  • 12. HOW IS FRAUD DETECTED?Part II: The Detection * Page 122012 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE
  • 13. Part II: The Detection * Page 13HOW IS FRAUD DETECTED?2012 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE
  • 14. HOW IS FRAUD DETECTED?KEY TAKEAWAY: ESTABLISH POLICIES,PROCEDURES AND MECHANISMS FOR TIPS!• Employees• Vendors• Customers• Other stakeholdersPart II: The Detection * Page 14
  • 15. WHO ARE THE PERPETRATORS?THE FACES OF FRAUDPart II: The Detection * Page 15
  • 16. WHO ARE THE PERPETRATORS?TYPICAL PROFILE• Usually living above their means or has an addictive need• Does not have a prior criminal conviction or charged with a fraud• Has a position of trust and responsibility• Most likely a male between the age of 31 to 45• Is well educated• Understands and skillfully uses technology• Usually comes across as a nice person, charming• Usually well respected• They usually spend everything they steal!• 80% will buy a new car!Part II: The Detection * Page 16
  • 17. WHO ARE THE PERPETRATORS?Part II: The Detection * Page 172012 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSEFRAUD PERPETRATORS ARE NOT CAREER CRIMINALS
  • 18. WHO ARE THE PERPETRATORS?Part II: The Detection * Page 182012 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSEFRAUD PERPETRATORS DO NOT HAVE A PRIOR HISTORY OFBEING PUNISHED OR TERMINATED BY AN EMPLOYER FOR AFRAUD-RELATED OFFENSE
  • 19. WHO ARE THE PERPETRATORS?Part II: The Detection * Page 192012 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSEFRAUD PERPETRATOR IS TYPICALLY AN EMPLOYEE ORMANAGER
  • 20. WHO ARE THE PERPETRATORS?Part II: The Detection * Page 202012 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSELARGER LOSSES WITH THE OWNER/EXECUTIVE
  • 21. WHO ARE THE PERPETRATORS?Part II: The Detection * Page 212012 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSEMALES TEND TO ACCOUNT FOR ABOUT TWO-THIRDS OFALL FRAUD CASES
  • 22. WHO ARE THE PERPETRATORS?Part II: The Detection * Page 222012 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSETYPICALLY BETWEEN AGES 31 AND 45
  • 23. WHO ARE THE PERPETRATORS?Part II: The Detection * Page 232012 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSEAMOUNT OF LOSS ROSE WITH AGE!
  • 24. WHO ARE THE PERPETRATORS?Part II: The Detection * Page 242012 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSELOSS WAS GREATER WITH TENURE OF PERPETRATOR
  • 25. WHO ARE THE PERPETRATORS?Part II: The Detection * Page 252012 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSEMORE THAN HALF HAD A COLLEGE DEGREE OR HIGHER!
  • 26. WHO ARE THE PERPETRATORS?Part II: The Detection * Page 262012 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSEACCOUNTING DEPARTMENT TOPS THE LIST!
  • 27. WHO ARE THE PERPETRATORS?WHO DID THE FBI PROFILE WITHTHESE SYMPTOMS AND SIGNS?• Anger and arrogance• Capable of acting witty and charming• Good at flattery and manipulating other people’s emotions• Disregards the safety of self and others• Does not show any guilt• Lies, steals, and fights often• Breaks the law repeatedly• Substance abuse and/or legal problemsPart II: The Detection * Page 27
  • 28. WHO ARE THE PERPETRATORS?Part II: The Detection * Page 28
  • 29. WHO ARE THE PERPETRATORS?BERNIE’S JAIL CELLPart II: The Detection * Page 29
  • 30. WHO ARE THE PERPETRATORS?Madoff says “he is happier in prison than he was on the outsidebecause he no longer lives in fear of being arrested and knowshe will die in prison.”Part II: The Detection * Page 30
  • 31. WHO ARE THE PERPETRATORS?ANTISOCIAL PERSONALITY DISORDER (ASPD OR APD)• A psychiatric condition in which a person manipulates, exploits,or violates the rights of others• Usually begins in childhood or early adolescence andcontinues into adulthood• “Boomerang Personality”-everything you throw at them, theythrow back at you. It is always the other person’s fault. Will notaccept responsibility• Person with no conscience• Is usually criminal• Also referred to as “sociopaths” and “psychopaths”Part II: The Detection * Page 31
  • 32. WHO ARE THE PERPETRATORS?SOCIOPATHS• Are unable to experience emotional responses for other peopleoutside of their own personal interests• Psychological inability to show emotion or caring for others• While a sociopath can feel emotion, it is (even if it results incare for another), because they find it viable for themselves asopposed to what would be termed as selflessnessPart II: The Detection * Page 32
  • 33. WHO ARE THE PERPETRATORS?THE DILEMMA• Everyone has to a degree a propensity to commit a crime!• 93-95% of the population may commit a crime• 5-7% are hard-core white collar criminals• We are interested in the severity of the propensity of the 93-95% and definitely don’t want the 5-7% working for us!Part II: The Detection * Page 33
  • 34. WHO ARE THE PERPETRATORS?THE SYNTONIC SYNDROMEFive key characteristics of the hard-core white collarcriminal (5-7%)• Ego-syntonic: “not my fault-ism”, where they re-arrangeevents to be continually interpreted in their favor, often at theexpense of another person (vs. “ego-dystonic”)• Personality disorders: the person probably has apsychological problem called a personality disorder• High IQ: the person has a high IQ• Differential treatment: the person treats different peopledifferently within organization, usually based on who can givethem what they want. Bottom line: people are carefullymanipulated• Controls decisions: the person seeks to control – or create –the (decision-making) process, especially in areas where theycan personally benefitPart II: The Detection * Page 34
  • 35. FRAUD DETECTION TECHNIQUESRED FLAGSBEHAVIOR FLAGS• Financial difficulties• Living beyond means relative to known income level• Family problems• Serious addiction to drugs, alcohol, or gambling• An unwillingness to share duties or allow others to help• Defensive behavior-overly nervous when questioned• A refusal to take vacations or very short vacations• Over-devotion to the job-working a lot of overtime andweekends-never calls in sick or misses work!• A close personal relationship with vendors or customers• Change in behavior• Rule breakersPart II: The Detection * Page 35
  • 36. FRAUD DETECTION TECHNIQUESPart II: The Detection * Page 362012 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSELIVING BEYOND MEANS #1!
  • 37. FRAUD DETECTION TECHNIQUESPart II: The Detection * Page 372012 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSELIVING BEYOND MEANS FUELED BY ASSET MISAPPROPRIATION!
  • 38. FRAUD DETECTION TECHNIQUESFINANCIAL AND BUSINESS FLAGS• Business is inexplicably unprofitable• Company is having cash flow problems• Under capitalized• Financial statements are always late• Financial statement trends/ratios are inconsistent and do notmake sense• Financial records and books are in disarray and always out ofbalance• Management’s operating and financial decisions aredominated by a single person or a few persons acting inconcert• Background checks are not conducted on key employees• High turnover of management and/or key accounting personnel• Management displays a propensity to take undue risksPart II: The Detection * Page 38
  • 39. FRAUD DETECTION TECHNIQUESFINANCIAL AND BUSINESS FLAGS (continued)• Accounting personnel exhibit inexperience or laxity inperforming their duties• Numerous banks and accounts• Frequent change in independent auditors/accounting firm• Management places undue pressures on the auditors, throughfees and unreasonable deadlines• Frequent legal matters• Frequent change in legal counsel and multiple law firms• Operates on a “crisis” basis• Fire people quickly if they don’t do what they want• Significant transactions with related parties• Problems with governmental and regulatory agenciesPart II: The Detection * Page 39
  • 40. FRAUD DETECTION TECHNIQUESINTERNAL CONTROL FLAGS• A single employee controls the company finances andaccounting-lack of segregation of duties!• Bank accounts are not timely reconciled and not reviewed bysomeone independent of preparer• Invoices are paid without verifying receipt or purchaseauthorizations• Reimbursements are not supported by receipts or othersupporting documentation• Excessive sales voids and credit memos• Missing deposit slips and/or cancelled checks• Unexplained inventory shortages or adjustments• Subsidiary account balances not reconciled• Unexplained and numerous end-of-period adjusting entriesPart II: The Detection * Page 40
  • 41. FRAUD DETECTION TECHNIQUESINTERNAL CONTROL FLAGS (continued)• A single employee controls the company finances andaccounting• Bank accounts are not timely reconciled and not reviewed bysomeone independent of preparer• Missing documents• Altered documents• Photocopy of documents when originals should be availablePart II: The Detection * Page 41
  • 42. FRAUD DETECTION TECHNIQUESPREVENTIVE VS. DETECTIVECONTROLSPart II: The Detection * Page 42
  • 43. FRAUD DETECTION TECHNIQUESPREVENTIVE CONTROLSPreventive controls attempt to deter or prevent undesirableevents from occurring. They are proactive controls that helpprevent a loss.DETECTIVE CONTROLSDetective controls, on the other hand, attempt to detectundesirable acts. The provide evidence that a loss has occurredbut do not prevent a loss from occurring.Detective techniques should be used to uncover fraud eventswhen preventive measures fail or unmitigated risks are realized.Part II: The Detection * Page 43
  • 44. FRAUD DETECTION TECHNIQUESPREVENTIVE CONTROLS• Segregations of duties with well defined job descriptions andpolicies and procedures• Job rotation• Mandatory vacations• Obtaining pre-approval on transactions before processing• Require dual signatures on checks above a certain amount• Using document control numbers to account for alltransactions-checks, purchase orders, invoices etc…• Matching and comparing documents• Testing clerical accuracy• Physical controls over cash, checks, signatures, inventory andother assets• Computer passwords and access controls to preventunauthorized electronic accessPart II: The Detection * Page 44
  • 45. FRAUD DETECTION TECHNIQUESPREVENTIVE CONTROLS (CONTINUED)• Back up financial files daily• Pre-employment background investigations• Employee training programs-fraud prevention• Prosecute the guiltyPart II: The Detection * Page 45
  • 46. FRAUD DETECTION TECHNIQUESDETECTIVE CONTROLS• Whistleblower Policies and Hotlines (TIPS!!!)• Management and supervisory reviews and approvals• Reconciliations• Independent review of bank reconciliations and supportingdocuments-cancelled checks• Independent review of vendor control file for suspiciousvendors• Independent review of payroll files for suspicious employees.• Investigate customer and vendor complaints promptly• Physical inspections/counts• Financial analysis, budget vs. actual• Data analysis, data mining and continuous auditing techniques• Other technology tools• Audits-external, internal, surprisePart II: The Detection * Page 46
  • 47. WHAT SHOULD YOU DO WHEN YOUUNCOVER FRAUD?• BE AWARE OF WARNING SIGNS• REPORT IRREGULARITIES, SPECIFICALLY:– If someone you work with asks you to do something that isillegal or unethical– If you suspect that someone— regardless of rank orposition—is committing fraud or abusePart II: The Detection * Page 47
  • 48. WHAT SHOULD YOU DO WHEN YOUUNCOVER FRAUD?• Follow your organizations fraud policy• Report through hotline or other anonymous reportingmechanism• Anonymous letter to company official• Share your concern with your immediate supervisor ororganization’s audit committee• Do not confront the suspected perpetrator• Do not investigate the matter on your ownPart II: The Detection * Page 48
  • 49. WHAT SHOULD YOU DO WHEN YOUUNCOVER FRAUD?• Organization management should retain counsel-attorney/client privilege• Employers have a duty to investigate promptly and thoroughly• Counsel should retain a forensic expert to assist in theinvestigation• Employee (suspect) may be suspended with or without pay-but do it swiftly if enough predication is present• Employee (suspect) access to offices, computer systems,banking, communications and other access rights andprivileges should be suspended or terminated• Preserve evidence• Understand legal implications• Inform your insurance carriersPart II: The Detection * Page 49
  • 50. WHAT SHOULD YOU DO WHEN YOUUNCOVER FRAUD?• Objectives of the investigation should be conducted withintegrity, fairness, impartiality and respect and include:– Gathering the facts– Determining the merits of the complaint– Complying with legal obligations– Maintaining confidentiality– Preserving the reputations of individuals and theorganization– Taking proper remedial action– Avoiding liability– Preventing future claims and incidencesPart II: The Detection * Page 50
  • 51. WHAT SHOULD YOU DO WHEN YOUUNCOVER FRAUD?• Everyone in an organization is responsible for fighting fraud.• Be alert to potential fraud.• Report any suspicions to your organizationPart II: The Detection * Page 51
  • 52. WHAT YOU NEED TO KNOW ABOUT FRAUDTHE FIVE MOST IMPORTANT TAKEAWAYS – AGAIN!1. Trust is not an internal control!– Establish, to the extent possible, controls and procedures that eliminate theelement of trust– Always segregate the custody of the asset with the recordkeeping for the asset2. Set the tone from the top!– “If you are stealing, your employees are stealing!”– E.g., office supplies, expense reports, etc.3. Know your employees!– Background investigations and public records checks before hiring– Meet and establish a baseline relationship4. Institute a fraud policy– No tolerance– Will prosecute5. Establish a hotline for tips– Number one method for detecting fraud!– Can outsourcePart II: The Detection * Page 52
  • 53. HOW CAN RAFFA ASSIST YOU INPREVENTING AND DETECTING FRAUD?FORENSIC CONSULTING SERVICES• Pre-hire investigations and background checks• Fraud risk assessment• Internal control / program review• Fraud awareness training• Fraud prevention programs and policies implementation• Due diligence investigations• Fraud investigationsPart II: The Detection * Page 53
  • 54. SOME AREAS WE WILL BE GOING OVER INOUR OTHER PRESENTATIONPART III: THE PREVENTION –JUNE 5, 2013, 12:00-2:00 P.M.• Fraud risk assessments• Setting the tone at the top and your board of directors• What are the best preventative measures and controls?• The five critical takeaways!Part II: The Detection * Page 54
  • 55. RESOURCES AND SUGGESTED READING• 2012 Report to the Nations on Occupational Fraud and Abuse,Association of Certified Fraud Examiners,http://www.acfe.com/rttn.aspx• “The American Fraud Report,” www.jpsimsconsulting.com• The CPA’s Handbook of Fraud and Commercial Crime Prevention,AICPA• Managing the Business Risk of Fraud: A Practical Guide; AICPA,ITA, and ACFE; https://na.theiia.org/standards-guidance/Public%20Documents/fraud%20paper.pdfPart II: The Detection * Page 55
  • 56. QUESTIONS AND ANSWERSPart II: The Detection * Page 56
  • 57. BIOGRAPHYPart II: The Detection * Page 57• 35 years of consulting, audit, accounting and tax experience in the public and privatesectors.• Started career with a Big-Four international accounting firm in Washington, DC.• Founded a regional certified public accounting and consulting firm in 1982 and grew it toon of the Washington, DC’s largest firms in seven years. Merged his practice with RaffaP.C. in 2008.• Managed and conducted audit and accounting engagements ranging from small privatelyheld to large publicly held businesses in various industries, including multi-nationalbusinesses, nonprofit organizations, and governmental entities and agencies.• Performed economic and financial analysis, including projections and forecasts, in supportof litigation and claims for lost earnings and profits, business interruption, shareholderdisputes, patent and trademark infringements, bankruptcy and restructuring, and structuralsettlements; assistance with interrogatories, document requests and depositions; andserving as an expert and consulting witness.• Performed and supervised business valuations for both public and closely held companiesin a variety of industries, individuals and estates, family limited partnerships and limitedliability companies, including valuations for business combinations (SFAS 141R), mergers,acquisitions, and divestitures, estate and gift taxes, marital dissolution proceedings, buy-sell agreements, intangible assets and intellectual property, purchase price allocations,goodwill (SFAS 142) and long-lived asset (SFAS 144) impairment, fair value accounting(SFAS 157), cheap stock (IRC 409A), stock-based compensation (SFAS 123R), phantomstock and employee stock ownership plans.• Conducted and led teams of forensic accountants on fraud audits and investigations,including fraudulent financial statements, misappropriations of assets and embezzlements;money laundering, kickbacks, bribery and conflicts of interest; insurance claims;bankruptcy; financial institutions and loan fraud. Also has conducted fraud riskassessments, anti-fraud programs, and fraud training and education.LAWRENCE J. HOFFMAN,CPA/CFF, CVA, CFESENIOR PARTNERRAFFA, P.C.1899 L STREET, NWWASHINGTON, DC 20036TEL. 202-822-5408FAX 202-822-0669LHOFFMAN@RAFFA.COM
  • 58. BIOGRAPHYPart II: The Detection * Page 58• Assisted companies and nonprofits with restructuring and turnaround situations, includingrecapitalizations, reorganizations and liquidations. Advised entities on Chapters 11 and 7,bankruptcy filings and proceedings and non-judicial workouts. Developed andadministered crisis management plans, cash flows, liquidation and turnaround analysis,debt restructuring and creditor negotiations, and turnaround plans.• Formulated strategic short- and long-term business and financial planning for variousbusiness organizations and served as interim “C” level positions, including for a majorNorth American sports league, European and U.S. aircraft manufacturer, aviation charterairline and travel company, and a multi-chain quick service food chain.• Formulated syndication strategies and prepared business plans and private placementofferings, including financial forecasts, market research and analysis, due diligence,securities pricing and structuring for various public and private securities offerings,including SEC filing.• Founded and developed a regional NASD licensed broker dealer investment banking firm.Placed over $150 million in debt and equity and represented over $200 million in mergerand acquisition transactions.• Founded and developed two private equity funds in excess of $10 million, includinginvestments in early stage and mature emerging companies in the form of debt and equity.Portfolio investments included aviation, food and hospitality, software and technology,telecommunications, sports and entertainment, banking and financial institutions,healthcare, and wholesale and retail.• Co-founded and managed various real estate acquisition, ownership, and operatingentities, including commercial office buildings, shopping centers, flex warehouses,residential housing and developed land.• Performed tax and financial consulting services for individuals and closely heldbusinesses.• Instructor in audit, accounting, finance, and forensic accounting.LAWRENCE J. HOFFMAN,CPA/CFF, CVA, CFESENIOR PARTNER
  • 59. BIOGRAPHYPart II: The Detection * Page 59LAWRENCE J. HOFFMAN,CPA/CFF, CVA, CFESENIOR PARTNEREDUCATION & CERTIFICATIONS• Bachelor of Science, Accounting – Mount St. Mary’s University• Certified Public Accountant (CPA)• Certified Fraud Examiner (CFE)• Certified in Financial Forensics (CFF)• Certified Valuation Analyst (CVA)• Private Investigator (PI), Virginia• Series 7 General Securities Representative (not active)• Series 24 General Securities Principal (not active)• Series 63 Uniform Securities Agent (not active)PROFESSIONAL ASSOCIATIONS & AFFILIATIONS• American Institute of Certified Public Accountants, Member• Virginia Society of Certified Public Accountants• Association of Certified Fraud Examiners• National Association of Certified Valuation Analysts• Institute of Business AppraisersPERSONAL INTERESTS• Private pilot with instrument, multi-engine, high performance complex and aircraft ratings• Golf and fishing• Reading and politics