Guilty Until Proven Innocent

AUTHOR'S POST

By Mandy Moody

ACFE Social Media Specialist

Did he do it? Did the investigators get the facts right? Those are just two of the many questions that Linda Saunders, CFE, CPA, CFF, CGFM, owner of Forensic Accounting Consulting, was able to answer and convey to a jury as an expert accounting witness for her first criminal defense case in Idaho. In Monday’s breakout session, “The Fraud Trial: A Case Study of the Innocent,” Saunders detailed the issues anti-fraud professionals could face when being called to provide expert testimony.

At first glance, Saunders thought she was being asked to defend a crook. The State of Idaho Attorney General, along with help from the Idaho Department of Insurance, was prosecuting an insurance agent on eight counts of insurance fraud, forgery, grand theft and racketeering. Within those counts were 134 Predicate Acts of insurance fraud, grand theft and forgery. The numbers alone would scare any possible defense witness. But, after giving due diligence, Saunders quickly realized that some mistakes had definitely been made.

“The more the case unfolded, the more I was convinced I could help unravel the journal entries and offer some sort of opinion,” Saunders said. “The prosecutor’s expert witness relied on the insurance agent’s bookkeeper’s analysis. I needed to go in and check the debits and credits myself.”

Read the full article here.

The Best — and Biggest — on Earth

PRESIDENT'S BLOG

James D. Ratley, CFE

ACFE President and CEO

If the International Space Station passes over San Diego next week those on board just might be able to make out the largest group of fraud fighters ever assembled. Well, maybe I’m exaggerating a little. But 2,300 fraud fighters will indeed set an all-time attendance record when they gather in “America’s Finest City” for the 22nd Annual ACFE Fraud Conference, June 12-17.

We’ll welcome you with insights on the latest forensic, legal, regulatory and political developments, combined with enough networking and other fun to make your conference a personal and professional success.

We are also proud to announce the publication of ACFE Founder and Chairman Dr. Joseph T. Wells’ 19th book, Fraud Fighter: My Fables and Foibles. Dr. Wells’ autobiography will be on sale at the Conference, and he will attend a book signing Monday afternoon.

Our internationally renowned keynote speakers also have much to share with you. “America’s Most Wanted” host John Walsh will tell how he became an anti-crime activist, and Joan Pastor, PhD, will explain the fraudster psychology insights she developed during her career in government and law enforcement. Likewise, forensic accounting specialist Dr. Howard M. Schilit will spotlight the early signs of financial statement fraud.  And Assistant Attorney General Lanny Breuer will offer an inside perspective on his leadership of the Criminal Division of the U.S. Department of Justice (DOJ).

As you know, insider tips are a prime source of investigative leads for the DOJ and all fraud fighters. That’s one reason for the wide interest in the SEC’s new Whistleblower Program rules, which take effect Aug. 12. As the number of SEC whistleblower cases rises, so will the potential for sometimes controversial parallel proceedings by the DOJ and SEC. More than ever, because of this and other legal complexities, CFEs need to understand factors governing the admissibility of whistleblower-provided evidence that may lead to federal charges against their employers or clients.

Along with the DOJ perspective Breuer will provide, the conference session, “Whistleblowing After Dodd-Frank: A New World,” will help attendees understand the SEC's approach to this important topic. One discussion item you won’t want to miss is the new rules’ position on whether whistleblowers should have to report fraud internally before they do to the SEC.

You’ll find me chatting with members at this and other conference events. I hope to see you soon.