Integrity Fuels Fraud Fighter's Mission

MEMBER PROFILE

Elenore Cox, CFE, CPA
Senior Manager-Fraud and Investigations
NBN Co Limited

Elenore Cox, CFE, CPA, has always been focused on doing what is right for society as a whole. After working on an emotional case involving retirees who fell victim to fraud, she found a home for that passion to do right by heading up fraud detection in Australia’s largest communications infrastructure project, the National Broadband Network (NBN). “I wanted to be able to work on such a large project which is extremely beneficial to Australians and future generations,” she said.

How did you become passionate about fighting fraud?
I believe in integrity and doing the right thing all the time, even when no one is watching. I believe the people who make a conscious decision not to act with integrity and choose to commit fraud, or take part in corrupt activities when no one is watching, should be detected, investigated and (where proven and appropriate) prosecuted as a result. It is in the interests of individuals, organizations and the wider population. My passion stemmed from the underlying principle of doing the right thing, and I’m keen to ensure we prevent and minimize the risk of fraud and corruption.

What is a memorable case or project that you have worked on; one that made you feel especially proud?  
In a prior role, I worked on a case which was in the media that not only affected the client, but third parties to the organization — namely retirees. They had invested significant amounts of lifetime savings into investments, superannuation and insurance products/plans through a financial planner who was employed by a subsidiary of a large banking corporation.

The financial planner had more than 1,000 clients and defrauded approximately 60 percent, amounting to around $5.7 million over the course of 10 years.

While CFEs need to remain independent, calm and neutral, this case really pushed me to my limits as peoples’ livelihoods and their lifetime of hard work in savings was deceitfully taken from them with the promise of security, gains or, at a minimum, peace of mind (i.e. the insurance component). This was one of the cases that created the hashtag #trustisnotacontrol which I frequently quote.

What activities or hobbies do you like to do outside of work? 
Some of my colleagues say that I am so passionate about my job that it’s also my hobby! I think that it’s a pretty good situation to be in; to be doing something I love day to day is priceless. They say, “If you do what you love, you’ll never work a day in your life.”

In all seriousness, though, I love to travel and explore. I love spending time with my family and friends, am passionate about music, namely guitar and saxophone, and I like to play and watch sports and be out and about.

Read Elenore's full profile in the ACFE Career Center on ACFE.com.

Fraud Examiner: 'Interviewing is Not a Simple Yes or No Answer'

MEMBER PROFILE

Kenneth Springer, CFE, Founder and President
Corporate Resolutions Inc. 

Author Kenneth Springer, CFE, is the founder and president of Corporate Resolutions Inc., a specialized firm that gathers intelligence and offers a variety of investigative services that helps its clients make informed business decisions. When conducting an investigation, “use your investigative skills to follow the evidence,” Springer said. “Interviewing is not a simple yes or no conversation; there are skills required to make sure the person feels comfortable in order to elicit the most honest and complete information.”

How did you become passionate about fighting fraud? 
While in college, I spoke with a family friend who was in the FBI. I became very interested and pursued it.

What steps led you from the FBI to starting your own company?
Although I enjoyed the FBI and the people I worked with, I had an opportunity to leave and get involved in managing a small investigations firm that conducted background checks and investigations for private firms. Four years later, I was running the company and decided I wanted to start my own business. I put together a business plan, got a Small Business Administration (SBA) loan and started Corporate Resolutions Inc. in August 1991.

What is one of the biggest lessons you have learned since becoming a CFE?
When investigating a fraud, you cannot necessarily rely on all of the facts as initially presented by the client since they may have their own agenda. You need to be open-minded and not have a preconceived notion as to how the fraud may have happened and by whom. Use your investigative skills to follow the evidence.

I know this because a long time ago a client led me to believe that a certain employee had committed the fraud we were investigating. It turned out that the client was actually responsible. The client was eventually arrested by the FBI.

What is a memorable case or project that you have worked on — one that made you feel especially proud?
In one instance, investors backed a company that sold hardware (desktops) and during a surprise audit, found $5 million dollars missing. After two months of having forensic accountants try to figure out the fraud, we were brought in to conduct interviews and gathering facts. We quickly learned that while the auditors were there, the CFO abruptly resigned and left town (in our business we call that a clue).

We immediately began fact gathering on the previous CFO and learned he had formed a similar-sounding entity within the company, yet the CEO was unaware of it or why it was formed. He also changed company procedure so that he was the one who opened all of the company mail.

To perpetrate his scheme, he would buy 100 computers, pay for them and then return 50. When the computer company sent a refund check, he was able to take the check and deposit it into the account he had fraudulently formed — which was located at the same branch where the company did their banking. Thus, it did not raise any red flags within the company. The FBI is still looking for him.

While putting together the fidelity bond claim for the insurance company, we did a background check on the previous CFO. He was not a CPA as he had claimed and the three references he provided did not check out.

What activities or hobbies do you like to do outside of work?
Spending time with family and golfing.

Read Kenneth's full member profile in the Career Center on ACFE.com.