Faces of Fraud : Cases and Lessons from a Life Fighting Fraudsters

by Biegelman, Martin T.

• ISBN13: 9781118002742
• ISBN10: 1118002741
• Format: Hardcover
• Copyright: 2013-01-29
• Publisher: Wiley

Summary

The ultimate tool for understanding, investigating and preventing fraud Fraud is an evil with a life of its own that leaves a financial, reputational and emotional toll on its victims. While monumental scandals, such as Enron, WorldCom, and Madoffs Ponzi scheme make the front pages, fraud is a daily occurrence impacting companies and individuals alike. Although fraud will never be completely eradicated, there is much that can be done to reduce the number and size of frauds that take place in any organization. Faces of Fraud reveals must-know characteristics of fraudsters and the skills needed to outwit them. Recognized Fraud Fighting Expert Martin Biegelman draws from his over 35 years of experience fighting fraud to profile not only the key traits fraudsters share, but also the qualities fraud examiners must possess to be successful. Each chapter contains stories from actual cases that the author investigated Profiles the must-know characteristics of fraudsters and the skills youll need to outwit them Reveals the traits of accomplished fraud examiners Explores the best practices in fraud detection, investigation and prevention to cultivate in order to maximize success Boiling down the key lessons the author has culled from his long career, Faces of Fraud entertains and informs with stories from real cases the author investigated, and imparts useful tips you can start using right away in the fraud examination field.

Author Biography

Martin T. Biegelman, CFE, CCEP, has been fighting fraud and corruption for 40 years in various roles in law enforcement, consulting, and the corporate sector. He is currently a Managing Director in the Global Investigations and Compliance Practice at Navigant Consulting. He previously served as Director of Financial Integrity at Microsoft Corporation. This highly acclaimed fraud prevention and anticorruption program that he founded and led continues to be a model for other global companies. Mr. Biegelman is a sought-after speaker, prolific author, and the recipient of the prestigious Cressey Award bestowed by the Association of Certified Fraud Examiners for lifetime achievements in the detection and deterrence of fraud.

Table of Contents

Foreword

Preface

Acknowledgments

Chapter 1 The Fraudster Mindset

A Silver Tongued Devil

Sell the Sizzle, Not the Steak

Dr. Donald Cressey and the Fraud Triangle

Fraud Diamond

Fraud Theories

Fraudster Mindset

Notes

Chapter 2 A Short History of Fraud in America

Growth of Mail Fraud

Green Goods Swindles

Grifters

Baker Heirs’ Swindle

Golden Age of Fraud

Rise of Boiler Rooms and Bucket Shops

Other Frauds over the Years

Enactment of the Mail Fraud Statute

The Continuous Onslaught of Fraud

Chapter 3 Use Your Imagination

The Mob Stings Fraudsters

Making the Typewriter Talk

Where the Law of Gravity Doesn’t Apply

Welfare for the Deceased

The Value of Imagination

Note

Chapter 4 Make Yourself Lucky

Fraudster Stupidity Is Your Friend

One Man’s Trash Is an Investigator’s Gold

Let Them Talk

Arson for Profit Case: Impeaching the Defense Expert

One Federal Agent’s Attention to Detail

Look and You Shall Find

Don’t Take No for an Answer

If You Don’t Ask, You Will Never Know

Notes

Chapter 5 Patience Is a Virtue

Stopping a Fraud Scheme

New York State of Fraud

Notes

Chapter 6 Fraud Can Be Murder

Good Humor Ice Cream Scandal

Bad Ham and Bribes

Golden Needles Acupuncture

Blast from the Past

Security Guard Indignity

Next Time Dead

Notes

Chapter 7 Arrogance and Recidivism

If You Are Here, You Are Not As Smart As You Think You Are

Arrogance Is Common

Arrogance and Recidivism Often Go Hand-in-Hand

Arrogance and Rebate Fraud

Making It a True Federal Case

Fraudsters Say and Do the Darndest Things

Notes

Chapter 8 Informants and Whistleblowers: The Good, the Bad, and the Ugly

Managing Confidential Informants

Informants Gone Bad

Falling in Love with an Informant

Nightmare Informants

A Rogue FBI Agent Strikes a Deal with Two Devils

Avoid a Failed Investigation

Notes

Chapter 9 A Tale of Deceitful Pitches and Vendor Kickbacks

History of American Chemical Industries

Description of the Fraud Scheme

Detection and Investigation of the Fraud Scheme

The Continuing Investigation

Prosecution

Special Circumstances

Fraud Prevention

Note

Chapter 10 Cruise to Nowhere

Description of the Fraud Scheme

Detection

Investigation

Factoring of Credit Card Charges

Investigative Reporting

Execution of Search Warrant

Circularization

Undercover Trip

Prosecution

Special Circumstances

Fraud Prevention

Investigative Best Practices

Notes

Chapter 11 Who’s Who of Fraud: A Story of Vanity and Deception

The Making of a Fraudster

Fraud Scheme

The Investigation

The Prosecution

Special Circumstances and Additional Fraud

Postscript

Note

Chapter 12 Kids and Coins: Scoundrels without a Conscience

Genesis of the Fraud

Description of the Fraud Scheme

Investigation

Prosecution

Special Circumstances

Fraud Prevention

Note

Chapter 13 More Tips, Best Practices, and Lessons

Become a Subject Matter Expert

Documents, Documents, and More Documents

Remember the Boy Scout Motto

Why I Love Liars

Fraudsters Love Expense Report Fraud

San Francisco Metergate

Yellow Pages Invoice Scam

Best Laid Plans of Mice and Men Often Go Awry

Notes

Chapter 14 Power of Prosecution and Prevention

Fraud Prevention for Individuals

Fraud Prevention for Business Organizations

Fraudsters Are the Same Everywhere

Fraud Is the Golden Goose for Criminals

It’s Déjà vu All Over Again

Sadly, Fraud Is Here to Stay

Notes

About the Author

Index