Based on the symptoms and signs described, it seems the FBI profile is referring to a psychopath. Psychopaths are known for their arrogance, charm, manipulation of others' emotions, disregard for safety of self and others, and inability to feel empathy, guilt or remorse.

1. Thrive. Grow. Achieve.
Fraud Risk Assessment : The Human Element
Lawrence J. Hoffman, MAcc, CPA, CGMA, CFF, CVA, CFE - Senior Partner
November 4, 2014

2. TABLE OF CONTENTS
•
Why do people commit white collar crimes?
•
Who are these people?
•
How do these people get in?
•
What can you do to identify these people?
•
How can you keep them out?
•
Concluding remarks
•
Questions
Fraud Risk Assessment : The Human Element / Page 2

3. WHY DO PEOPLE COMMIT WHITE COLLAR CRIMES?
Three basic reasons why people commit crimes
•Economics  $$$$$
•Passion  love, lust, a cause (religious beliefs)
•Mental instability  nuts
Fraud Risk Assessment : The Human Element / Page 3

4. WHY DO PEOPLE COMMIT WHITE COLLAR CRIMES?
White Collar Crime-Early Pioneers
•1907-E.A. Ross, Sin and Society: An Analysis of Latter Day Iniquity. Houghton, Mifflin & Company
•1949-Edwin H. Sutherland, White Collar Crime. New York, Holt, Rinehart & Winston
•1953-Dr. Donald R. Cressey, Other People’s Money: A Study in the Social Psychology of Embezzlement. Glencoe, Illinois, The Free Press
•1973-Marshall Clinard & Richard Quinney, Criminal Behavior Systems: a typology. New York, Holt, Rinehart & Winston
Fraud Risk Assessment : The Human Element / Page 4

5. WHY DO PEOPLE COMMIT WHITE COLLAR CRIMES?
THE FRAUD TRIANGLE
The Fraud Triangle originated from
Dr. Donald Cressey's hypothesis:
“Trusted persons become trust violators when they conceive of themselves as having a financial problem which is non-shareable, are aware this problem can be secretly resolved by violation of the position of financial trust, and are able to apply to their own conduct in that situation verbalizations which enable them to adjust their conceptions of themselves as trusted persons with their conceptions of themselves as users of the entrusted funds or property.”
Fraud Risk Assessment : The Human Element / Page 5

6. WHY DO PEOPLE COMMIT WHITE COLLAR CRIMES?
The fraud triangle
Fraud Risk Assessment : The Human Element / Page 6
Rationalization (frame of mind or ethical character)
Opportunity (lack of controls)
Pressure / Incentive (The “Unshareable” Need or “Greed”)

7. WHY DO PEOPLE COMMIT WHITE COLLAR CRIMES?
Pressure / Incentive
Fraud Risk Assessment : The Human Element / Page 7
Source
Financial
Non-Financial
Personal
•
Distressed finances (DEBT!)
•
Divorce or extramarital affair
•
College education
•
Investment losses
•
Vices (gambling, alcohol, sex, drugs, rock n’ roll)
•
High lifestyle
•
Greed
•
Lack of discipline
•
Health issues
Job
•
Compensation is “too low”
•
Need to justify high compensation
•
Stock options / incentives
•
Bonuses based on performance
•
Production goals
•
“Unfair” treatment
•
Fear of job loss
•
Resentment
•
Challenge to beat system
External
•
Threat of business failure
•
Market expectations
•
Board of Directors
•
Boss
•
Analysts
•
Reputation
•
Image
•
Social expectations
•
Peer pressure
•
Relatives and friends

8. WHY DO PEOPLE COMMIT WHITE COLLAR CRIMES?
Fraud Risk Assessment : The Human Element / Page 8
Opportunity (perceived)
A High Fraud Environment!
•Tone at the Top - lack of oversight and supervision, poor leadership, no anti-fraud policy, code of conduct, hotlines, awareness
•Communication - poor communications within organization, lack of expectations
•Internal controls - lack of controls, segregation of duties, no monitoring, surprise audits, too predictable
•Access - lack of safeguards, sufficient access to assets and information that enables the crime
•Trust - too much trust placed in person or position. (Remember: trust is not an internal control!)
•Discipline - lack of prosecution for previous frauds

9. WHY DO PEOPLE COMMIT WHITE COLLAR CRIMES?
Rationalization (a way to rationalize the behavior 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 not that much”
•
They feel they deserve it: “I am getting underpaid and am underappreciated”
•
“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 money
Fraud Risk Assessment : The Human Element / Page 9

10. WHY DO PEOPLE COMMIT WHITE COLLAR CRIMES?
The Fraud Diamond*
•Adds fourth element – Capability!
•Capability includes the fraudster’s personality traits (e.g. knowledge, creativity, and ego)
•Capability to carry out fraud may be limited, even when opportunity exists with position
•Fraudster must be smart enough to understand and exploit internal control weaknesses for personal advantage
•Must be able to handle the stress of fraud!
Fraud Risk Assessment : The Human Element / Page 10
Capability includes:
•
Position/function
•
Intelligence
•
Confidence/ego
•
Coercion skill
•
Effective lying
•
Stress immunity
Image courtesy of the Ohio Society of CPAs
*Wolfe & Hermanson (2004)

11. WHO ARE THESE PEOPLE?
The One Common Element in Every Fraud!
Fraud Risk Assessment : The Human Element / Page 11

12. WHO ARE THESE PEOPLE?
THE FACES OF FRAUD
Fraud Risk Assessment : The Human Element / Page 12

13. WHO ARE THESE PEOPLE?
Three Potential Fraud Perpetrators*
Fraud Risk Assessment : The Human Element / Page 13
1.
Those who are totally honest
2.
Those who are situationally honest
3.
Those who are totally dishonest
*Giles, S. (2012)

14. WHO ARE THESE PEOPLE?
Is Everyone a Potential Criminal?
Fraud Risk Assessment : The Human Element / Page 14

15. WHO ARE THESE PEOPLE?
The Dilemma
•
Everyone has to a degree a propensity to commit a crime!
•
90-99% of the population may commit a crime!
•
1-5% are hard-core white collar criminals – psychopaths!
•
We are interested in the severity of the propensity of the 90-99% and definitely don’t want the 1-5% working for us!
Fraud Risk Assessment : The Human Element / Page 15

16. WHO ARE THESE PEOPLE?
A Few Definitions*
•
Character – the distinct aspects of personality that reflect the presence and strength of a person’s virtues, personal ethics, social conscientiousness, and depth of commitment to respect-worthy and meritorious social conduct.
•
Personality – a stable set of traits, preferred thinking and behavior patterns that define our unique style of interaction over a wide variety of situations, and for most of our lifetime.
Fraud Risk Assessment : The Human Element / Page 16
*Simon, G. (2011)

17. WHO ARE THESE PEOPLE?
A Few Definitions
•
Conscience (superego) – the aspect of personality that represents the internalization of a society’s values, standards, and morals*
•
Psychopathy – a personality disorder; psychopaths are without conscience and incapable of empathy, guilt, or loyalty to anyone but themselves.**
Fraud Risk Assessment : The Human Element / Page 17
*The American Psychological Association’s Glossary of Terms
**Babiak & Hare (2006)

18. WHO ARE THESE PEOPLE?
Personality Disorders
Per the DSM-V (2013)
Percentages represent incidence in general population
Fraud Risk Assessment : The Human Element / Page 18
*DSM-V (2013)
Cluster A (Odd)
Cluster B (Dramatic)
Cluster C (Anxious)
Paranoid PD (.5-2.5%) – pervasive distrust and suspiciousness
Antisocial PD (5% men, 2.5-5% women, 40% prison) – disregard for rights of other people, deceitful and hostile
Avoidant PD (.1-.5%) – social inhibition, feeling of inadequacy
Schizoid PD (1%) – pattern of social detachment, restricted range of emotional expression
Borderline PD (3%) – intense and unstable emotions and moods
Dependent PD (.5%) – strong need to be taken care of
Schizotypal PD (3%) – pervasive pattern of social and interpersonal limitations
Histrionic PD (2-3%) – excessive emotionality and attention seeking
Obsessive-Compulsive PD (1%) – preoccupied with rules, regulations, and orderliness
Narcissistic PD (1-2%) – powerful sense of entitlement, excessive self-worth

19. WHO ARE THESE PEOPLE?
White Collar Crime Continuum
Fraud Risk Assessment : The Human Element / Page 19
80%
9%
9%
1%
1%
Neurotic
Psychopathic
Situational Honesty
Total Honesty
Total Dishonesty
Frauds: Smaller Larger
Impact: Not individually materially Very destructive, can
significant but can be completely destroy the
costly over time organization
If a person is making themselves miserable, they are probably neurotic.
If a person is making everyone else miserable, they are character-disordered.

20. WHO ARE THESE PEOPLE?
Fraud Risk Assessment : The Human Element / Page 20
*Simon (2010)
Neurotic
Psychopathic
Well-developed, overactive superego; “suffer from too much conscience”*
Significantly underdeveloped conscience, or no conscience at all
Excessive capacity for guilt and shame
Diminished capacity for share of guilt or remorse
Suffer unreasonable and excessive anxiety
Limited or no feeling of anxiety; impulsive; risk-taker
Submissive
Possessive; insensitive to the needs/wants of others; manipulative
Hypersensitive to adverse consequences and social rejection
Self-focused/self-centered; egomaniacal; narcissistic
Ego-dystonic
Ego-syntonic

21. WHO ARE THESE PEOPLE?
Domains and Traits of the Psychopath*
Fraud Risk Assessment : The Human Element / Page 21
*Psychopathy Checklist: Short Version (PCL:SV); Hare, Hart, & Cox
•1 - Superficial
•2 - Grandiose
•3 - Deceitful
Interpersonal
•4 - Lacks remorse
•5 - Lacks empathy
•6 - Doesn’t accept responsibility
Affective
•7 - Impulsive
•8 - Lacks goals
•9 - Irresponsible
Lifestyle
•10 - Poor behavior controls
•11 - Adolescent antisocial behavior
•12 - Adult antisocial behavior
Antisocial
Scoring: 2 points per trait; score of 18+ is generally diagnosed psychopathy

22. WHO ARE THESE PEOPLE?
Who did the FBI profile with these 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 problems
Fraud Risk Assessment : The Human Element / Page 22

23. WHO ARE THESE PEOPLE?
Fraud Risk Assessment : The Human Element / Page
23

24. WHO ARE THESE PEOPLE?
Fraud Risk Assessment : The Human Element / Page
24
Selected Quotes from Bernie Madoff
•“I’m not the kind of person I’m being portrayed as.”
•“I made a lot of money for my clients.”
•“My notoriety impresses [fellow inmates]. It shouldn’t, but it does.”
•“Does anybody want to hear that I had a successful business and did all these wonderful things for the industry? And got all these awards? And so did my family? I did all of this during the legitimate years. No. You don’t read any of that.
•“I realized from a very early stage that the [financial & investment] market is a whole rigged job. There’s no chance that investors have in this market.”
•“I was very proud of my sons, and they were very proud of me, what I accomplished. They liked being a Madoff. There was a lot of recognition in that, you know.
•“Everyone was greedy. I just went along. It's not an excuse. Look, there was complicity, in my view. It’s unbelievable. Goldman…no one has any criminal convictions – the whole new regulatory reform is a joke. The whole government is a Ponzi scheme.”
*Ghosh, P. (2011)

25. WHO ARE THESE PEOPLE?
Fraud Risk Assessment : The Human Element / Page 25
The Sociopath: Nature or Nurture
ANSWER: Both are involved!
•
Behavior genetics play at least as important a role in the development of the core features of psychopathy, as do environmental factors and forces… See Clekley (1941); Hare – Psychopathy Checklist (PCL) (1980); Blonigen, Carlso, Kruger & Patrick (2003); Viding, Blair, Moffitt & Plomin (2005); Larrson, Andershed & Lichstenstein (2006)
Amygdala

26. WHO ARE THESE PEOPLE?
Fraud Risk Assessment : The Human Element / Page
26
A Character Crisis
“After a detour through the hedonism of the 1960’s, the narcissism of the 1970’s, the materialism of the 1980’s and the apathy of the 1990’s, most everyone today seems to believe that character is important after all and that the United States is facing a character crisis on many fronts, from the playground, to the classroom, to the sports arena, to the Hollywood screen, to business corporations to politics.”
Peterson, C., Seligman, M. (2004), Character Strengths and Values: A Handbook and Classification.

27. HOW DO THESE PEOPLE GET IN?
Fraud Risk Assessment : The Human Element / Page
27
The Business Environment Evolution Problem*
•The old “bureaucratic” industrial business model has given way to a more free-form, faster-paced organizational style
•The more lean and efficient companies are who can compete and survive in the new environment
•Fewer organizational “layers” mean simple systems and controls, and more autonomous decision making
•Technology changes – speed and innovation is more important
*Adapted from Babiak & Hare (2006)

28. HOW DO THESE PEOPLE GET IN?
Fraud Risk Assessment : The Human Element / Page
28
The Business Environment Evolution Problem*
•What new management styles strive in this environment – people who get things done quickly, “shake the trees” and “rattle cages”
•Valued traits overlap with psychopaths, leading to their hiring in positions of power
•Psychopathic individuals – known for ignoring rules and regulations and having talent for confidence tricks and manipulation – find these new, flexible organizational structures very inviting…
*Adapted from Babiak & Hare (2006)

29. HOW DO THESE PEOPLE GET IN?
Fraud Risk Assessment : The Human Element / Page
29
How Psychopaths Infiltrate Companies
•Some companies “innocently” recruit individuals with psychopathic tendencies…

30. HOW DO THESE PEOPLE GET IN?
Fraud Risk Assessment : The Human Element / Page 30
Practical Application Problems*
•
Poor hiring and selection process – the first line of defense!
•
Screening resumes
•
Interviewing
•
Verifying resumes
•
Reference checks
•
Ineffective (or absent) background checks/investigations
•
Executive/management hiring and promotion procedures
•
Internal vs. external candidates
•
Reliance on executive recruiters
•
Poor succession planning
•
Poor evaluation process
•
Poor definitions of key competencies for job
*Adapted from Babiak & Hare (2006)

31. WHAT CAN YOU DO TO IDENTIFY THESE PEOPLE?
Fraud Risk Assessment : The Human Element / Page
31
Red Flags
•Inability for form a workable team
•Inability to share
•Disparate treatment of subordinates
•Inability to tell the truth
•Inability to be modest
•Inability to accept blame
•Inability to act predictably
•Inability to react calmly
•Inability to act without aggression

32. HOW CAN YOU KEEP THEM OUT?
THE BEST PREVENTIVE MEASURE!
HIRE ONLY HONEST, ETHICAL AND MORAL PEOPLE!
Fraud Risk Assessment : The Human Element / Page 32

33. HOW CAN YOU KEEP THEM OUT?
Fraud is a people problem!
•
Environment - Does your organization have a reputation for questionably ethical behavior?
•
Hiring – What traits do you seek in job applicants?
•
Incentives – Does your organization’s compensation system encourage risky or fraudulent behavior?
•
Promotions – Does your organization focus on promoting individuals with proven track records for ethical behavior?
•
Opportunity – Does your organization emphasize the importance of obeying internal controls?
•
Detection – Does your organization have reporting mechanisms for possible fraud and abuse?
•
Tolerance – Have you publicly displayed a zero tolerance policy for fraud?
Fraud Risk Assessment : The Human Element / Page 33

34. CONCLUDING REMARKS
Fraud Risk Assessment : The Human Element / Page
34
The total destruction caused by ONE psychopath

35. QUESTIONS AND ANSWERS
Fraud Risk Assessment : The Human Element / Page
35

36. BIBLIOGRAPHY
Fraud Risk Assessment : The Human Element / Page
36
•American Psychiatric Association (APA). (2013, 5th ed.). Diagnostic and Statistical Manual of Mental Disorders.
•Association of Certified Fraud Examiners (ACFE), (2012). Report to the Nations on Occupational Fraud and Abuse, 2012 Global Fraud Study.
•Albrecht, W. Steve., Albrecht, Chad. O., Albrecht, Conan C., & Zimbelman, Mark F., (2012). Fraud Examination (4th ed.). Mason, OH; South-Western.
•Babiak, Ph.D., Paul, Hare, Ph.D., Robert D. (2006). Snakes In Suits, When Psychopaths Go To Work. New York, New York. HaperCollins Publishers Inc.
•Cressey, D. (1973). Other People’s Money: A Study in the Social Psychology of Embezzlement. Glencoe, Illinois, The Free Press.
•Giles, S. (2012). Managing Fraud Risk: A Practical Guide for Directors and Managers. United Kingdom. John Wiley & Son Ltd.
•Ghosh,P. (2011). Select quotes from Bernard Madoff in magazine interview. International Business Times, February 28, 2011. Retrieved from: http://www.ibtimes.com/select- quotes-bernard-madoff-magazine-interview-271615

37. BIBLIOGRAPHY
•
Hopwood, William S., Leiner, Jay J., Young, George R. (2012). Forensic Accounting and Fraud Examination. (Second Edition.) New York, New York. McGraw-Hill.
•
Hussain, M. (2014). Corporate Fraud, The Human Factor. London. United Kingdom. Bloomsbury
•
Keys, D. (2012) Narcissists Exposed. Light’s House Publishing
•
KPMG. (2013). Global profiles of the fraudster. www.kpmg.com/fraudster
•
Peck, M. (1978). The Road Less Traveled. New York, New York. Touchstone, Simon & Schuster, Inc.
•
Simon, G. (2011). Character Disturbance, The Phenomenon of Our Age. Chicago, Illinois. Parkhurst Brokers, Inc.
•
Wolfe, D.T. and Hermanson, D. (2004). The Fraud Diamond: Considering the four elements of fraud, The CPA Journal, December, p.4.
Fraud Risk Assessment : The Human Element / Page 37

38. HOW CAN RAFFA ASSIST YOU IN PREVENTING AND DETECTING FRAUD?
A resource for the nonprofit community to help organizations effectively manage risk and better ensure the prevention and detection of fraud.
Visit US AT www.raffa.com/fraud
Fraud Risk Assessment : The Human Element / Page 38

39. HOW CAN RAFFA ASSIST YOU IN PREVENTING AND DETECTING FRAUD?
OUR WEEKLY NEWSLETTER
OU
Fraud Risk Assessment : The Human Element / Page 39

40. HOW CAN RAFFA ASSIST YOU IN PREVENTING AND DETECTING FRAUD?
Are you threatened by fraud, litigation or insolvency?
Are you selling your business, transferring assets or structuring a new venture?
Raffa forensic accounting experts will do more to assist you in these challenging circumstances.
Forensic Accounting Services Group
Our Team’s Services:
•
Fraud Investigations & Prevention
•
Litigation Support & Expert Testimony
•
Business Valuation & Due Diligence
•
Insolvency & Reorganization
Fraud Risk Assessment : The Human Element / Page 40

41. HOW CAN RAFFA ASSIST YOU IN PREVENTING AND DETECTING FRAUD?
How We Empower You
•
We identify and mitigate fraud risk by performing a fraud risk assessment
•
We provide fraud investigations if you are, or suspect you are, a victim of fraud
•
We provide litigation support, expert testimony and forensic accounting services in business disputes, financial investigations, bankruptcies, arbitrations and mediations
•
We analyze, investigate and interpret complex transactions to provide an understandable, well-researched and unbiased valuation of your business or organization
•
We have expertise in restructuring and turnaround management for underperforming organizations
Forensic Accounting Services Group
Fraud Risk Assessment : The Human Element / Page 41

42. HOW CAN RAFFA ASSIST YOU IN PREVENTING AND DETECTING FRAUD?
Fraud Investigations & Prevention
•
Fraud examinations and internal investigations
•
Fraud risk assessments
•
Review of internal controls and management practices
•
Financial statement misrepresentations
•
Background and workplace investigations
•
Computer forensic analysis, imaging, data mining and recovery
•
Reconstruction of accounting records
•
Continuous audit services
•
Anti-fraud consulting and training
Forensic Accounting Services Group
Fraud Risk Assessment : The Human Element / Page 42
Litigation Support & Expert Testimony
•
Lost earnings and profits
•
Lost value
•
Breach of contract
•
Breach of fiduciary duty
•
Business interruption
•
Contract costs and claims
•
Tortious interference
•
Patent infringement
•
Professional malpractice
•
Shareholder disputes
•
Theft of intellectual property
•
Wrongful termination
•
Wrongful death

43. HOW CAN RAFFA ASSIST YOU IN PREVENTING AND DETECTING FRAUD?
Business Valuation & Due Diligence
•
Mergers, acquisitions and divestitures
•
Marital dissolution
•
Partner/shareholder disputes
•
Estate and gift tax planning
•
Financial reporting
•
Compensation related
•
Employee stock ownership plans
•
Benchmark studies
•
Financial modeling
Forensic Accounting Services Group
Fraud Risk Assessment : The Human Element / Page 43
Insolvency & Reorganization
•
Viability analysis and survival assessment
•
Strategic restructuring
•
Cash flow analysis and forecasting
•
Liquidation analysis
•
Evaluating creditor and debtor positions
•
Restructuring debt
•
Interim management services, including Chief Restructuring Officer
•
Preparing plans of reorganization and disclosure statements
•
Pre-bankruptcy planning and post- filing compliance
•
Bankruptcy litigation consulting to trustees

44. BIOGRAPHY
Fraud Risk Assessment : The Human Element / Page 44
•
35 years of consulting, audit, accounting and tax experience in the public and private sectors.
•
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 to on of the Washington, DC’s largest firms in seven years. Merged his practice with Raffa P.C. in 2008.
•
Managed and conducted audit and accounting engagements ranging from small privately held to large publicly held businesses in various industries, including multi-national businesses, nonprofit organizations, and governmental entities and agencies.
•
Performed economic and financial analysis, including projections and forecasts, in support of litigation and claims for lost earnings and profits, business interruption, shareholder disputes, patent and trademark infringements, bankruptcy and restructuring, and structural settlements; assistance with interrogatories, document requests and depositions; and serving as an expert and consulting witness.
•
Performed and supervised business valuations for both public and closely held companies in a variety of industries, individuals and estates, family limited partnerships and limited liability 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), phantom stock 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 risk assessments, anti-fraud programs, and fraud training and education.
LAWRENCE J. HOFFMAN, CPA/CFF, CVA, CFE
SENIOR PARTNER
RAFFA, P.C.
1899 L STREET, NW
WASHINGTON, DC 20036
TEL. 202-822-5408
FAX 202-822-0669
LHOFFMAN@RAFFA.COM

45. BIOGRAPHY
Fraud Risk Assessment : The Human Element / Page 45
•
Assisted companies and nonprofits with restructuring and turnaround situations, including recapitalizations, reorganizations and liquidations. Advised entities on Chapters 11 and 7, bankruptcy filings and proceedings and non-judicial workouts. Developed and administered 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 various business organizations and served as interim “C” level positions, including for a major North American sports league, European and U.S. aircraft manufacturer, aviation charter airline and travel company, and a multi-chain quick service food chain.
•
Formulated syndication strategies and prepared business plans and private placement offerings, 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 merger and acquisition transactions.
•
Founded and developed two private equity funds in excess of $10 million, including investments 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 operating entities, including commercial office buildings, shopping centers, flex warehouses, residential housing and developed land.
•
Performed tax and financial consulting services for individuals and closely held businesses.
•
Instructor in audit, accounting, finance, and forensic accounting.
LAWRENCE J. HOFFMAN, CPA/CFF, CVA, CFE
SENIOR PARTNER
RAFFA, P.C.
1899 L STREET, NW
WASHINGTON, DC 20036
TEL. 202-822-5408
FAX 202-822-0669
LHOFFMAN@RAFFA.COM

46. BIOGRAPHY
Fraud Risk Assessment : The Human Element / Page 46
EDUCATION & 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 Appraisers
PERSONAL INTERESTS
•Private pilot with instrument, multi-engine, high performance complex and aircraft ratings
•Golf and fishing
•Reading and politics
LAWRENCE J. HOFFMAN, CPA/CFF, CVA, CFE
SENIOR PARTNER
RAFFA, P.C.
1899 L STREET, NW
WASHINGTON, DC 20036
TEL. 202-822-5408
FAX 202-822-0669
LHOFFMAN@RAFFA.COM