Fraud presentation april 4 id 27644


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  • KMART: 2003Store in the front –check out TV as screwdriver or not check out merely pretend.Store in back –off load inventory to waiting cars.Above are stories from students and personal observation.Jobs lost 100 full and part time jobs in a county with at that time 12.7% unemployment and per capita income of $5,000Exmore lost $35,000 annual tax revenue from storeNorthampton County lost $60,000 to $70,000 I tax revenue from storeLocal landlord --$480,000 in annual rentsAnecdotally, when the Wal-Mart opened if you had worked at Kmart, you would not be employed at the new Wal-Mart opening in 2009.Food Lion: 2013Next door to the old non-existent Kmart. Clerk not scanning items and “waving” friends through the checkout line. Two of the four Food Lion Store Managers on the Shore are former students.
  • Accomack County Department of Social Services solicited and collected cash donations for toys for children at Christmas. Seven thousand embezzled from donations in 2011. Onley Population 516 (2010 census); Approx. $96,000 from county each year plus other fund raising efforts; $400-500,000 missing over 5+ years. Currently asking for donations for all firefighters on the Shore due to arsons. Now county paying bills directly and requiring more oversight for all VFDs. Chincoteague was audited annually -the exception. Current 2013Onancock, a town clerk embezzled tax and water/sewage payment checks. Town resent selected tax bills in 2012 from 2009 and required a photocopy of the check or a town receipt to show no payment was due. 2011ESO –Still exists but post Executive Director embezzling, the organization diminished in programs for children, courses for adults and as an arts venue. (2010)VA TECH --Community Leader (embezzlement) sent to prison for two years and $100,000 fine. 2011Union --Former teacher embezzles $443,000 over three years –gambling losses. 2013Years are newspaper cite dates.
  • Physician was father
  • Fraud presentation april 4 id 27644

    1. 1. What You Don’t Know About Fraud Can Hurt You (ID 27644) Nauri Ahmed Northern Virginia CC Gwen Young Thomas Nelson CC Paul Weitzel Eastern Shore CC April 4, 2013 (3:15-4:15pm)-Buck Mountain Roanoke, Virginia 1
    2. 2. Overview of PresentationConsumer Fraud SchemesOccupational Fraud & Abuse SchemesFraud StoriesFraud Awareness at Your CollegeAnti-Fraud Resources 2
    3. 3. Consumer Fraud Schemes Nauri Ahmed OverviewCommon fraud scams Telemarketing fraud Nigerian letters Identity theft Advance fee schemes Health care/insurance fraud Redemption fraudInvestment-related scamsInternet scamsSenior Citizen Target Fraud 3
    4. 4. Consumer Fraud Schemes Nauri AhmedTelemarketing FraudNigerian LettersIdentity TheftAdvance Fee SchemesHealth Care/Insurance FraudRedemption Fraud 4
    5. 5. Consumer Fraud Schemes Nauri AhmedInvestment-related scamsInternet ScamsSenior Citizen Target Fraud 5
    6. 6. Consumer Fraud Schemes Nauri AhmedSome Tips to Avoid Identity Theft Never disclose your financial or personal information in response to an unsolicited e-mail regardless of who sent it Never click on a link embedded in an unsolicited e-mail, regardless of who sent it Update anti-virus software weekly Check your credit report once a year Install a locked mailbox at your residence to reduce mail theft or use a post office box. Keep a list or photocopy of all of your credit cards, account numbers, expiration dates, and the telephone numbers of the customer service 6
    7. 7. Occupational Fraud & Abuse Schemes Gwen Young OverviewACFE definition of occupational fraud &abuse – “The use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets.” 7
    8. 8. Occupational Fraud & Abuse Schemes Gwen Young ACFE recognizes 3 basic categories of occupational fraud & abuse: Asset misappropriations Corruption Fraudulent statements 8
    9. 9. Occupational Fraud & Abuse Schemes Gwen YoungTips to Protect an Organization fromOccupational Fraud Schemes Prevention Detection and investigation Prosecution 9
    10. 10. Occupational Fraud & Abuse Schemes Gwen YoungWhy teach about occupational fraud &abuse? Serious problem for organizations A knowledgeable employee is a more valuable employee A knowledgeable individual is a protected individual 10
    11. 11. Occupational Fraud & Abuse Schemes Gwen YoungACC 240-Fraud ExaminationMajor Topics to be Included: Overview and introduction to fraud examination Asset misappropriation schemes – the most common type • Thefts of cash • Thefts of inventory and other assets Corruption schemes – often involve vendors Fraudulent statements – management fraudCourse useful for: business, accounting, administrationof justice, psychology, and other students 11
    12. 12. Occupational Fraud Schemes Gwen YoungACC 240-Fraud Examination (3 credits) Business and accounting faculty can offer this course at your campus in a face-to- face, blended, or online format This course will also be offered online through the Shared Services Distance Learning (SSDL) program with Northern Virginia Community College beginning summer 2013 12
    13. 13. Occupational Fraud & Abuse SchemesACC 240-Fraud ExaminationCourse Description: principles and methodology of fraud detection and deterrence. How fraud and occupational abuses occur methods to identify the fraud risk Prevention, detection, and investigation approaches 13
    14. 14. Fraud Stories Paul WeitzelK-Mart Closure -Exmore Closest Big Box competitor• 44 miles North in Pocomoke City, Maryland or• 55 miles and a $17 round trip toll South to Norfolk Exmore K-Mart Closed as under performing store Why? The Story of Two Stores Cost to the community• Jobs• Tax Revenue to Town of Exmore• Tax Revenue/Revenue to Northampton CountySliding through in Food Lion 14
    15. 15. Fraud Stories Paul WeitzelCounty, Town and Gown County Department of Social Services• –Christmas Toy Fund Cash Donations Onley Volunteer Fire Department --$400,000 missing Onancock Town Clerk –Unknown amount Eastern Shore’s Own Arts Center Eastern Shore VA Tech Family and Consumer Science Eastern Shore MD Teachers Union --$443,000 missing 15
    16. 16. Fraud Stories Paul WeitzelExample in a Professional Practice Physician’s Office• Partnership – two physicians and a single office – one physician did not rely on income from partnership –family wealth• Receptionist/Bookkeeper• Followed best practices at the time – Receptionist/Bookkeeper paid well for the position – employee of long standing and family friend of one of the partners – took maximum allowable vacations and in large time units – practice income benchmarked to averages in area• Family of one of the physicians – Commented that receptionist wand husband were taking annual and multiple vacations to exotic locals that physician couldn’t afford – Receptionist and husband had new cars every year – Physician was working excessively long hours with full load• Detailed audit, embezzlement found and the Practice closed 16
    17. 17. Fraud Awareness at Your College Paul WeitzelOffer periodic lectures to the college communityEstablish a student chapter of the Association ofCertified Fraud Examiners Business and accounting faculty can provide guidance and become certified fraud examiners (CFEs) Students and faculty can conduct anti-fraud education programs in the community Resources can be provided by the ACFE• Worlds largest anti-fraud organization and premier provider of anti-fraud training and education.• 17
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    19. 19. Anti-Fraud ResourcesAssociation of Certified Fraud Examiners( Virginia Attorney General ( Forensic Accounting Organization Email Nauri Ahmed to joinNational White Collar Crime Center( ( ( 19
    20. 20. HOW TO REACH USNauri D. Ahmed, CPA, CFE Assistant Professor of Accounting/Business Northern Virginia Community College-Woodbridge Campus 703.878.5650Paul Weitzel Associate Professor of Accounting Eastern Shore Community College 757.789.1765Gwen Young, CPE, CFE Associate Professor of Accounting/Business Thomas Nelson Community College 757.258.6599 20