In the case of Livent, Inc. v. Deloitte & Touche the Ontario Court of Appeal upheld a 2014 decision ordering Deloitte & Touche (Deloitte) pay $118 million in damages to a theater company (Livent, Inc.) for which Deloitte performed auditing services. Why was Deloitte held accountable for such a large sum?Read More
More than 3,000 fraud fighters from more than 60 countries across the globe — the largest gathering of anti-fraud professionals in the world — will come together at the 28th Annual ACFE Global Fraud Conference in Nashville, June 18-23.
The conference offers more than 70 unique educational sessions in 13 tracks, allowing you to customize your agenda to meet your experience level, job function and current challenges. Dedicated networking opportunities, the Anti-Fraud Exhibit Hall and professional development resources offer additional ways to help you reach new heights in your career as an anti-fraud professional.
See why heroes unite to fight the good fight against fraud:
You can still save $100 on Full or Main Conference. Use discount code 28Early100 before April 21.
Mandy Moody, CFE
ACFE Content Manager
Last week, more than 250 fraud fighters from the European region gathered in London to discuss the latest in fraud examination techniques, ethics and more. In addition to a presentation by convicted UBS trader, Kweku Adoboli (read the New York Times article, "A Rogue Trader Blames the System, but Not All Are Persuaded"), attendees walked away with actionable items to include in their own daily activities for preventing and detecting fraud. A few of the highlights include:
When and how to approach law enforcement and prosecution
A panel of investigators discussed tips for companies and individuals to follow when reporting fraud to law enforcement:
- Include a well-written report that defines intent. As Pennings said, “It is easier to conduct an investigation once there is a clear sign of intent. It has to hold water that it was intentional and not an accident.”
- Make sure there is a clear collection of evidence. According to Pennings, you can’t recreate a path of evidence after the fact. It may be best to train your employees on how to forensically collect evidence at a crime scene.
- Complete and submit a report that tells a cohesive story. Felton explained that his reports are only about half a page, so companies have to tell that story succinctly and efficiently. “If it is not clear in your head, then you have got a problem,” Felton said. “When you can’t even read through it and can’t understand it, you have got a problem. Sometimes I can’t find an offense.”
A strong ethical framework is good for business
Laura Davies, Director of Fraud at Huntswood, explained that understanding the current global landscape and putting an emphasis on culture is a step in the right direction for anti-fraud experts and organizations. Davies shared examples of recent scandals where consumer trust has been deeply shaken. Most recently, Volkswagen (VW) has been dealing with the fallout from their diesel emissions scandal. Read the full recap.
Using a risk-based pre-employment screening
Previous criminal activity can be hard to find and can put organizations at considerable risk. There are checklist recommendations that usually provide a list of information sources that should be accessed during a screening — they tell you where you can find information on an applicant. But, according to Bernhard Maier, CII, director of BM-Investigations E.U., many of these lists come from the U.S. and aren't multi-jurisdictional. Read the full recap.
Attendees also enjoyed keynote presentations by Clare Rewcastle Brown, the Editor-in-Chief of the Sarawak Report and the investigative journalist who reported on the Malaysian 1MDB corruption scandal, and Mark Livschitz, a recognized AML attorney. You can find more in-depth coverage of the conference at FraudConferenceNews.com.
ACFE Public Information Officer
“I think this whole offshore financial structure that’s been allowed to grow like a canker … the whole thing’s got out of control,” said investigative journalist Clare Rewcastle Brown in an interview with the Association of Certified Fraud Examiners (ACFE).
Rewcastle Brown founded The Sarawak Report and Radio Free Sarawak in 2010 to disseminate news that concerned the Sarawak region of Malaysia and eventually, news surrounding the emerging 1MDB (1Malaysia Development Bhd) scandal. In August 2015, a warrant for her arrest was issued by a Malaysian court for "activities detrimental to parliamentary democracy" and the "dissemination of false reports."
“I think we’re seeing a swing of the pendulum and I think 1MDB’s just kind of cropped up perhaps at the right place at the right time … governments across the world have started to realize that they’ve lost control and populations have lost patience,” she said.
Rewcastle Brown will address anti-fraud professionals from across Europe at the 2017 ACFE Fraud Conference Europe in London, March 19-21. Despite having an arrest warrant issued for her by a Malaysian court, Brown remains optimistic that corruption on a global scale can be defeated. She said, “I do think we’re seeing a lashback and 1MDB is going to be just one example of enforcement agencies hitting back.”
Despite not being able to attend the 2016 ACFE Fraud Conference Asia-Pacific last November in Singapore due to safety concerns, she is committed to speaking in-person at the conference in London. She plans to lay out the intricate timeline of the 1MDB scandal that allegedly began in 2009 and runs through present day.
1MDB is currently being investigated by Swiss, Singh and U.S. authorities. In a question-and-answer session after her prepared remarks in Singapore, Rewcastle Brown addressed what controls she thought could help prevent this type of large-scale money laundering. “I think this case is really an opportunity to hold banks and players in these actions seriously to account. And to make the actors who have broken the rules pay the penalty, seriously. [They should be] absolutely exposed, shamed and embarrassed because we need to put off future, potential situations like this arising again,” she said. “I think that’s the best we can hope to come out of this. By showing at last, that the financial regulators have teeth and that they’re catching up to the global criminal element who have been using our offshore system and far-too compliant financial organizations. If we can get ahead of them, maybe that’s the best way to deal with this particular problem.”
Find out more about the upcoming 2017 ACFE Fraud Conference Europe, and register by February 17 for early registration discounts, at FraudConference.com/Europe.