Articles & Publications

There have been some recent cases of fraud near where I live.  They caught my attention because they involve local governments at the town and village level.  I discovered other cases across the state and it made me realize that … Continue reading →

Last month Carnival Cruise Lines had a public relations disaster when its ship, Triumph, had an engine room fire that left the ship without power.  While that was going on, I had a lot of questions.  Why did it take … Continue reading →

I heard a story about a piano player who worked on a cruise ship. He married the cruise ship’s singer in order for her to become an American citizen. That story reminded me of the movie “The Proposal,” starring Sandra … Continue reading →

Reprinted with permission from the Fraud Matters Newsletter of CPAmerica  It’s been said “cash is king.” This is especially true for perpetrators of fraud. But businesses beware: You can become a victim of fraud when no cash is involved. The Association of … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. Collusion accounts for as much as 40 percent of fraud, with median loss of approximately $485,000 – nearly five times that of crimes perpetrated by an individual alone. That is the finding … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. A qualified CPA with litigation experience can be a great asset to your fraud case.  In searching for help, there are some important factors an attorney should consider. Finding a Qualified Candidate … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. Collusion – a secret agreement between two or more individuals for a deceitful or fraudulent purpose – is one of the most difficult types of fraud to expose. Auditors routinely excuse themselves … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. More and More employers are learning that background checks are a necessity in their hiring practices. Simply confirming dates of prior employment isn’t going to work for most companies today. Estimates are … Continue reading →

Reprinted with permission from Audit America of CPA America. Every day, during the normal course of our lives, we encounter numerous controls or safeguards. Whether your place of work requires an identification badge or a key fob, a password to log onto … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. Your best options for getting your stolen money back If you find yourself a victim of fraud by one of your own employees, you are not alone. The typical organization loses 6 … Continue reading →

Current estimates from the wireless communications industry boast that, of 234 million active cell phones in the U.S., approximately 20 percent are “smart phones”. Their growing popularity has created another opportunity for thieves to gain access to your confidential data. Making sure … Continue reading →

Now is a great time in American history to be a fraud professional. Fraud is rampant. Actually, it’s been rampant for a long time, but a lot of cases are just coming to light because the economic downturn makes some … Continue reading →

Adoption is like a maze. To navigate the maze, you have to make a series of decisions which may or may not lead anywhere. You have to backtrack, and you may have to start over without gaining anything but some … Continue reading →

In the fraud arena, whistleblowers are heroes. Time magazine selected three whistleblowers as its “People of the Year” in 2002. Harry Markopolos recently became famous for trying, and trying, to blow the whistle on Madoff’s Ponzi scheme. Whistleblowers are crucial … Continue reading →

I work with a group of school districts on their internal audit work. Lately, I’ve been helping districts reduce risk in the area of their Medicaid billing. Medicaid is a federal program administered by the states. School districts receive financial help with Medicaid … Continue reading →

Consider this scene.  It’s tax season.  A beleaguered tax preparer sits at a desk in a neighborhood storefront.  A new client comes in.  It’s a young man, and he has his girlfriend with him.  His return is simple.  He has … Continue reading →

About a year ago I watched a documentary titled Waiting for Superman, which was about the need for education reform here in the United States.  The movie depicted desperation among parents in low-performing districts who wanted to send their children to … Continue reading →

I was listening to the radio on my way to work recently.  A listener asked the radio hosts for advice on an ethical dilemma.  The listener said that she had a best friend who got married two years ago, but … Continue reading →

One of my favorite authors is Dick Francis.  He died on Valentine’s Day in 2010, but he was a prolific writer.  He wrote more than 40 international best sellers, all set in the world of horse racing. Last summer I … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. Most organizations in this country operate their day-to-day operations without a passing thought to the “underground economy.” To most, it sounds like a television drama involving organized crime or narcotic … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America There is an old adage that states the value of your business walks out the door every night. Human capital is a critical part of your business. However, your intellectual property may be just … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. As the economy continues to falter, Ponzi schemes nationwide have become exposed and revealed billions of dollars of losses for investors. Individuals, not-for-profit organizations and company pension funds have lost massive amounts … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. In any kind of business that issues payroll checks to employees, the possibility of payroll fraud exists. There are various ways payroll fraud can be perpetrated. The Association of Certified Fraud Examiners 2006 … Continue reading →

My grandmother lived to be a very old lady.  She lived by herself until the very end.  She loved talk radio.  Grandma didn’t believe in prescription drugs and treated all her ailments with herbs. She had a little money in the bank.  She wasn’t wealthy, … Continue reading →

Owners of small businesses usually consider fraud as something that could happen — to someone else. Recently, I interviewed a small business owner who is a victim of fraud. Q Did you ever think your company would be victimized by fraud? … Continue reading →

Reprinted with permission from More than Money: Financial News & Notes for Nonprofit Organizations newsletter You may think your nonprofit organization is protected from fraud. Maybe you should review the status of your internal control systems to be sure. Internal controls are … Continue reading →

The Federal Trade Commission has reported that identity theft affects more than 9 million Americans annually. In response to this epidemic, the government has acted to curtail this fraudulent activity. Implementation of the widely publicized “Red Flags Rule” becomes effective … Continue reading →

My father is 72 years old.  When he was 16 he was in a car accident and damaged his knee.  He’s had pain in that knee every day since then.  For the last 10 years his doctor has suggested he … Continue reading →

Cybercrooks, like advertisers, want to have a broad appeal. At this time of year they adjust their scams to fit the Valentine’s Day holiday. Phishing can be a Valentine’s Day activity if you’re a fraudster. It involves sending emails to everyone you … Continue reading →

Most people experience a little stress this time of year while getting their tax returns done. You have to find all of the right documents, remember things that happened a whole year ago, use last year’s return as a reference … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. What industries are most victimized by fraud? The typical organization loses 5 percent of its annual revenues to occupational fraud, according to the Association of Certified Fraud Examiners 2006 Report to the Nation … Continue reading →

If your employer provides you with a vehicle, it’s possible they know where you are whenever you use it. A construction superintendent told me he received a call from his home office one day, wanting to know where he was. … Continue reading →

As someone who frequents South Florida, I’m constantly in awe of the mansions, yachts, luxury automobiles and well-dressed individuals. As we continue to read newspaper headlines about fraud schemes, one has to wonder – how much of what we see is … Continue reading →

Reprinted with permission from the Fraud Matters Newsletter of CPA America. When a fraud is suspected, organizations must proceed quickly, yet with caution. In most situations, simply calling the local police won’t help. Making false allegations or a wrongful termination may backfire … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. The income tax system of the United States is essentially based on the notion of voluntary compliance. You are expected to report and remit the income you’ve earned and the corresponding taxes that are … Continue reading →

One of the key elements to understanding fraud is to realize that where opportunities exist, perpetrators can act. An organization’s ability to heighten the perception that fraud will be detected will substantially lessen the likelihood of its occurrence. Perpetrators are … Continue reading →

If you or someone you know becomes the victim of identity theft, you’re not alone. According to available statistics, approximately 11 million Americans will fall victim to identity theft this year. Nearly half of these victims discover the intrusion within three … Continue reading →

Over the years, I’ve heard many, many sermons on tithing.  It’s a difficult topic for pastors, priests and rabbis.  I’ve heard great sermons on the topic, and I’ve heard some that were not great. Churches are businesses, in a way.  … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. Credit cards are a fact of life in the business world today. They can streamline purchases and minimize the need for cash or cash advances. They are widely accepted and recognized in … Continue reading →

Spring is home buying season.  A year ago, a young friend of mine bought her first home.  Alana did her research.  She was careful in choosing a real estate agent.  She looked at many homes.  She focused on location and … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. As the debate over national healthcare reform wages on, another topic has started to receive notoriety. Healthcare fraud is running rampant. The National Health Care Anti-Fraud Association estimate 3% – … Continue reading →

Last December I went back to my home town to visit. I was window shopping on Main Street when an old friend from high school came up to me. He wondered if he could talk to me about my grandmother. My high school … Continue reading →

A client called me and was excited because he had received an email from the IRS that he had an additional refund just waiting for him to claim. He went on to tell me that all he had to do was … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. You may think your company is protected against fraud, but statistics say that as much as 10 percent of all fraud in the nation takes place in manufacturing companies. Approximately one-third of … Continue reading →

It seems that with every economic downturn (or recession, if you will), Americans are introduced to a different type of fraudulent activity.  It has been estimated that nearly 20% of the failed Savings and Loans during that late 80’s and … Continue reading →

Time is of the essence when trying to recover assets after the death of a suspect of a bankruptcy. Assets need to be secured and the facts need to be determined quickly. Here’s how to do it. The Securities and … Continue reading →

Last year I watched a movie called “The Social Network.”  It was a great movie about the founder of Facebook, Mark Zuckerman.  He created the first version of Facebook from a dorm room in 2003.  At the time of the … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. One of the easiest ways to steal from a company is through expense reimbursements. The Association of Certified Fraud Examiners determined in its 2004 Report to the Nation on Occupational Fraud and … Continue reading →

When you get to be my age it seems like all your friends are getting divorced. One of my recently divorced friends told me that she made a deal with her ex-husband to accept some of her child support in bill … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. Forensic accountants stress that the best way to prevent fraud is to establish an efficient control system How much should you spend on such a system? What mechanisms have worked best for … Continue reading →

Rochester news this week included a story about an embezzlement at a small local bank. I have assumed that embezzlement is very difficult at a bank. After all, when I go to the bank I see security cameras everywhere I look! Banks probably … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. As the economy continues to falter, your organization, like many others, may find itself more susceptible to fraud. It is estimated that U.S. organizations lose approximately 7 percent of their revenues to … Continue reading →

There have always been work-at-home scams, and they’ve always targeted certain groups. Stay-at-home mothers, the elderly, disabled and undereducated job seekers face difficulties navigating the traditional job market. Working from home saves on costs for clothing, gasoline, lunches and childcare. … Continue reading →

As this country emerges from one of the worst recessions since the Great Depression, high-profile frauds seem to have waned.  Three years ago, it was tough to pick up a newspaper without reading about a newly discovered fraud or its … Continue reading →

Originally Printed in the Franchising World Magazine, January ‘03. The success of any franchised business depends largely on the ability of the franchise system and the franchisees to each meet the important responsibilities placed on them.  For the system, those responsibilities include … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. It can happen anywhere. Where pressures and opportunities exist, individuals may very well commit fraud against their employer. And, according to the Association of Certified Fraud Examiners, after their acts are perpetrated, they … Continue reading →

Last week I shopped at Wegmans. My bill was over $300 and I paid with my debit card. My debit card was rejected. So I wrote a check on the same account since I knew there was money in it. … Continue reading →

Do you remember that movie “Catch Me If You Can”? I loved that movie, probably because I’m a fraud geek. It was based on the true story of Frank W. Abagnale who was a very successful con artist before the age of … Continue reading →

America has been transfixed by the Casey Anthony trial.  We’ve been so interested because of her extensive lies, her apparent coldness and her allegedly disfunctional family. When the verdict came in, she was acquitted of the murder charge, the manslaughter … Continue reading →

When I was a child, my father smoked. He smoked in the house and he smoked in the car. I don’t remember if he cracked the window open when he smoked, but I doubt it. People used the ash trays in their cars. Everyone … Continue reading →

Fraudulent investment schemes have been in the news both nationally (Bernard Madoff) and locally (Richard Piccoli in Buffalo). Schemers resembling beloved grandfathers have stolen billions of dollars from individuals, not-for-profit organizations and company pension funds. Tough times increase the frequency … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. Conducting a third-party or corroborative interview is a key step in most fraud investigations and should be conducted by experienced professionals. There may be only one chance to interview an individual in an … Continue reading →

Reprinted with permission from Fraud Matters Newsletter of CPA America. A properly planned interview can yield much more than simply learning about a subject’s background information. Techniques such as behavior analysis can be used to determine whether someone is being truthful or deceitful. … Continue reading →