Look Before You Leap: Forensic Investigations

1. Look Before You Leap: Forensic Investigations Financial Fraud MGT 506-1

2. Discussion Points • Whether To Conduct • Planning Phase • Covert/Discreet Phase • Transitional Phase • Open Phase • Remedial Phase

3. Whether To Investigate? • Pros • Knowledge of facts needed for options • Incentives for voluntary disclosure • Cons • Cost – Hard & Soft • Tip of Iceberg • Reputation and legal liability for failing to disclose

4. Planning Phase • Assembling The Investigative Team • Independence • Competence • Investigative Resource • Scope • Inflating value • Legal Implications • Investigative techniques • Third party liabilities • Business Implications • Discipline • Morale • Disclosure to law enforcement

5. Covert/Discreet Phase • Why So Important • Undercover/Sting Operations • Database Research • Commercial Databases • Internet • Workplace Searches • Surveillance • Computer Forensics • Field Interviews

6. Transitional Phase • War Story: Bklyn Wanna Mafia Be’s • Issues • Who • Where • When • How • Contingency Planning

7. Open Phase • Investigative Mentality • Corporate Miranda Warnings • Document Gathering • Interviews • Investigative Report

8. Remediation • Quantifying damages • Negotiating subject's resignation of employment or disciplinary action • Negotiating financial recovery from the subject and other parties • Negotiating financial recovery with third party victims • Advising on business implications of investigative results • Lobbying prosecutors and other law enforcement authorities to file criminal charges against the subject • Conducting fraud audits of other business units for vulnerability to similar misconduct • Developing controls to deter recurrence • Monitoring of future business activities

9. Dimon Case Study Fraud Against Employees/Joint Venture Partners • Fraud Against Suppliers • Fraud Against Customers • Government • Commercial parties • Consumers • Sample Schemes • Antitrust • Defective pricing • Shipment of damaged goods