Angela Morelock, CPA, CFE, CFF, ABV brings issues of fraud and embezzlement to the forefront. With over twenty years’ experience, she brings a wealth of knowledge and insight to identify and mitigate risk as well as remediation after an incident has occurred. The Association of Certified Fraud Examiners recently put out the 2018 Report to the Nations. In it they identified over 2,600 real cases of occupational fraud across industries, amounting to a median loss of $130,000 per case. In over 20% of those cases, there was a loss of $1 million or more.
An extraordinary case in this presentation totaled fraud of $34 million from Koss Corporation. In this example, the Vice President of Finance and Principal Accounting Officer, Sue Sachdeva, stole nearly half the company’s pre-tax earnings; using that money to instead pay the balance on a personal credit card. American Express is responsible for uncovering the fraud when they noticed the balances were being paid from a company bank account via wire transfer. Aside from paying restitution, Sachdeva is currently serving an eleven year sentence in federal prison.
In the case study above, Ms. Sachdeva had assistance in the form of a co-worker she supervised. While the co-worker never benefitted financially from the scheme, she allowed the cover up to continue. Having mechanisms in place within an organization to allow fraud reporting, including hotlines, can help with early detection of organizational fraud.
Asset misappropriation, as well as corruption and financial statement fraud all contribute to the cases of fraud seen annually around the world. This presentation ties together the information found in the Report to the Nations, as well as real-world case studies and experiences to provide valuable training, information, and insight into the world of fraud and embezzlement. In addition, the various types of fraud will be covered as well as solutions that mitigate fraud risk from within your organization. As with any incident that can disrupt business, early detection is key. This allows for lesser business loss, rapid response for business continuity and remediation.