acfe toronto newsletter may 2014
DESCRIPTION
The ACFE is the world's largest anti-fraud organization and premier provider of anti-fraud training and education.TRANSCRIPT
July 1, 2011 Volume 11, Issue 7
May 2014
New Board Members Added
The Toronto Chapter board is delighted to announce the addition of two directors to our board.
Penny Hill has been with the Association of Certified Fraud Examiners (Toronto Chapter) as administrator since 2000. She is responsible for maintaining membership and all information pertaining to the functioning of the chapter. She communicates with chapter members, Board of Directors, ACFE Austin, and various organizations in which we cosponsor events. She is the event coordinator for our Annual Fraud Forum, chapter meetings and special events. She also works for The Conference Board of Canada as On-site conference and events coordinator and Manager of the Toronto office. She is a graduate of University of Western Ontario and a Fellow of the Institute of Canadian Bankers.
Toby J.F. Bishop is a globally known anti-fraud strategist currently seeking fraud problems that he can help organizations to solve. Most recently he served as Director of the Deloitte Forensic Center where he led the development of global thoughtware to help Deloitte's clients manage their fraud and corruption risks. Prior to that he was the President and CEO of the Association of Certified Fraud Examiners, the association of 70,000+ anti-fraud professionals globally. Toby is a contributing author and a member of the Board of Editors of Business Crimes Bulletin, a member of the Institute of Internal Auditors Research Foundation's Committee of Research and Education Advisors and a member of the Association of Certified Fraud Examiners' Advisory Council. He is a thought leader in the area of corporate fraud prevention and detection, with a special focus on financial statement fraud. Born in England, Toby is a graduate (MA) of the University of Oxford. He is a Certified Public Accountant (CPA) licensed in Illinois and Massachusetts, a Certified Fraud Examiner (CFE) and a fellow of the Institute of Chartered Accountants in England & Wales (FCA).
April 2014 Dinner Meeting
Negligent Fraud Investigations
The ACFE Toronto Chapter hosted a dinner meeting on
April 30, 2014 at The University Club.
The board would like to thank Reid Lester, Partner at
Laishley Reed LLP for his insightful presentation on
Negligent Fraud Investigation and Malicious
Prosecution.
We would like to congratulate Richard Petri , who was
the winner in our draw for a free admission to an ACFE
dinner meeting and an ACFE messenger bag.
All registrants names are entered for the draw at the
end of the meeting.
Please join us for our next dinner meeting, on May 27,
2014. Please see our website for details.
Contact: Penny Hill, Chapter Administrator: [email protected]
Erik Bettencourt, CPA,CMA, CFE, Newsletter Editor
Toronto Chapter Newsletter
Congratulations to our newest CFE!
Suzette Warner
What is a Due Diligence Investigation? By: Brian Willingham
“Due diligence investigation” is a phrase that varies in meaning among different business organizations and
industries.
From the perspective of a venture capitalist or a private equity investment manager, it’s about assessing the
business model, conducting market research and talking to the market.
For an accountant, it may be analyzing the books and records.
From an investigator’s perspective, a due diligence investigation is utilized to assess the character, integrity and
reputation of potential business partner(s) or key player(s) in a venture before the client enters into a substantial
financial relationship.
What is a due diligence investigation?
A due diligence investigation is conducted to assess the qualifications and track records of the people involved in the
deal, to identify potential inconsistencies, misrepresentations, omissions or controversies in their backgrounds.
When is a due diligence investigation performed?
These investigations are commonly performed prior to transactions such as a merger or acquisition, formation of a
business partnership or strategic partnership, or a significant investment or financing arrangement.
Who requests a due diligence investigation?
Due diligence investigations are typically conducted on behalf of small and medium-size businesses, large
corporations, investment banks, private equity firms or other investors. In many cases, the investigation is initiated by
a legal team involved with the deal in order to protect the integrity of the information.
What is included in a due diligence investigation?
Information that is typically covered in a due diligence investigation includes the following:
Personal and professional history, which includes work history, board memberships and nonprofit affiliations
Historical news media research on the individuals and businesses with which they have been affiliated
Details of civil litigation and criminal case history, including on-site court research and retrieval, where
applicable
Regulatory records, professional licenses and government compliance checks
Financial history, which includes personal assets, judgments, liens, bankruptcies and U.S. Tax Court cases
Corporate affiliations, sex offender registries, driving history records and political contribution records
Credit history (with consent)
In addition to the above, a due diligence investigation can include interviews with references, sources or relevant
parties.
…Continue on page 3
About the Author
Brian Willingham has been a private investigator since 2001. He founded Diligentia Group in July 2009 after nearly nine years working with a New York investigative firm.
Brian writes regularly on a blog and has contributed to a number of industry magazines and publications like Pursuit Magazine, PINow.com and ACFE Insights for the Association of Certified Fraud Examiners.
What is a Due Diligence Investigation? …Continued from page 2
What kind of information is found in a due diligence investigation?
Some of the more common issues that are revealed in a due diligence investigation includes the following:
Misrepresentations of employment history or falsified degree information
Financial troubles, including bankruptcies, tax liens and foreclosures
Accusations in lawsuits, such as harassment or fraud
Regulatory issues
Past criminal trouble, including drunk driving
History of litigiousness
Undisclosed corporate affiliations, government scrutiny or a trail of failed companies
Why conduct a due diligence investigation?
In today’s business world, information is power. In the end, the purpose of conducting a due diligence investigation is to
gather as much intelligence and information as possible to help you make a more informed decision.
14th Annual Toronto Fraud Forum
Presented by: ACFE Toronto Chapter & CASIU (Canadian Association of Special
Investigations Unit) Trillium Chapter
September 23, 2014 marks the date for the 14th Annual Toronto Fraud Forum. A one day joint fraud conference held at Le
Parc at the southwest corner of Hwy 7 and Leslie Street, Thornhill, Ontario.
The joint fraud conference hosts a variety of speakers in two tracks, one for general fraud and one for insurance fraud, with
a keynote lunch speaker.
Topics will include:
Fraud in the Intertubes – A Cyber Perspective
Speaker: Kevin Ripa
The Domestic and International Capture of Funds
Speakers: Douglas Best, LL.B., Partner, Miller Thomson LLP,
Eric S. Rein, Horwood Marcus & Berk, Chartered, Chicago,
Eugene Becker, Lawyer, New York
Fraud Risk Assessment and The Tone at the Top in Fighting Fraud
Speaker: Cam McCaw
About the Author
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Upcoming Events
May 22, 2014 – Institute of Internal Auditors – Toronto Chapter presents – Lunch Education Series:
“How Internal Audit Can Add Value to Outsourcing Arrangements”
Speakers: Duane Borkowski, CIA, Risk Advisory Services, Experis (formerly Jefferson Wells)
Venue: Albany Club, 91 King Street East, Toronto.
12:00 – 12:30 pm registration, networking and light lunch
12:30 – 2:00 pm presentation and Q&A
To register: http://www.gifttool.com/registrar/ShowEventDetails?ID=2071&EID=17232
May 27, 2014 – ACFE - Toronto Chapter presents – Dinner Meeting:
“Procurement Fraud – Strategies for Prevention, Early Detection and Response”
Speaker: Denise Bambrough, LL.B, Partner, Borden Ladner Gervais LLP.
Venue: The University Club, 380 University Avenue, Toronto.
5:30 – 6:15 pm registration, networking and dinner
6:15 – 7:15 pm presentation and Q&A
To register: http://acfetoronto.ca/events/
May 29, 2014 – Institute of Internal Auditors – Toronto Chapter presents – One Day Conference:
“Great Expectations – The Role of Internal Audit from a Stakeholder Perspective”
Speakers: The day will feature speakers from various disciplines and governance bodies and will give overall
context to meeting the Great Expectations put on today’s Internal Auditors.
Venue: PricewaterhousCoopers LLP, 18 York Street, 3rd Floor, Toronto, Ontario.
7:30 – 8:30 am registration, networking and light breakfast
8:30 am – 12:00 pm presentations, Q&A and networking breaks
12:00 – 1:00 pm networking lunch
1:00 pm – 5:00 pm presentations, Q&A and networking breaks
To register: http://www.gifttool.com/registrar/ShowEventDetails?ID=2071&EID=17474
June 17‒ 20, 2014 – Institute of Internal Auditors Canada and Institute of Internal Auditors – Toronto
Chapter presents – National Training Week
A high caliber, multi-track training opportunity presenting in-demand sessions by qualified IIA instructors
that promise to help you build the capacity and expertise of your internal audit function.
Venue: Hilton Toronto, 145 Richmond Street West, Toronto.
To register: https://ssl49.pair.com/echapter/Register/IIACdn/IIACdnRegV1.html
September 7‒ 10, 2014 – The Association of Certified Fraud Examiners presents – The 2014 ACFE
Canadian Fraud Conference.
Discover cutting-edge techniques and proven best practices for fighting fraud from Canada’s leading anti-
fraud experts at the 2014 ACFE Canadian Fraud Conference. With a stronger focus on elements of fraud,
regulations and laws specific to Canada, you’ll walk away with practical skills that are relevant and can be
immediately implemented into your anti-fraud strategy.
Venue: Toronto Marriott Downtown Eaton Centre, Toronto, Ontario.
Check out https://www.acfe.com/canadian-main.aspx for further details and to register
September 23, 2014 – ACFE – Toronto Chapter and the CASIU (Canadian Association of Special
Investigation Units) – Trillium Chapter presents –The 14th Annual Toronto Fraud Forum.
This one day joint fraud conference has two tracks, one for general fraud and one for insurance fraud.
Venue: Le Parc, Hwy 7 and Leslie Street, Thornhill, Ontario.
Stay tuned to www.acfetoronto.ca for further details
Ottawa Edmonton South Western Ontario Calgary Vancouver Toronto
Ex Officio Members
Alexander J. Wright, CD, BA, MB, A, CFP, RFP, Capt. (Retired)
Kathleen Watson, CFE
Bruce Armstrong, CA, CFE
Your Board of Directors President Astra Williamson, CGA, CFE
Vice-President Linda Lister, CGA, CMA, CFE, DIFA
Treasurer William Vasiliou, CGA, CFE, CCRA, CREA, DAC
Secretary Tom Eby, CPA, CA, MBA
Director and Erik Bettencourt, CPA, CMA, CFE
Newsletter Editor
Director Toby Bishop, MA, CPA, CFE, FCA
Director and Chapter Penny Hill
Administrator
Director Graham Ospreay, FACFE, CSP
Director and Immediate Steven E. Silverberg, CPA, CA, CFE
Past President
Director and Social Ryan Watt
Media Editor
Director Jeffrey Weigensberg, CA, CFE, CFF, CPA, CA.IFA, CI
About the ACFE: The ACFE is the world's largest anti-fraud organization and premier provider of anti-fraud training and education. Together with more than 70,000 members, the ACFE is reducing business fraud world-wide and inspiring public confidence in the integrity and objectivity within the profession. Visit www.acfe.com for more details.
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“Personally I'm always ready to
learn, although I do not always like
being taught.”
~ Winston Churchill