1. ZENFRAUD HOW TO BECOME A MASTER THIEF

2. RITA CRUNDWELL DIXON, ILLINOIS COMPTROLLER 3. BERNIE MADOFF NASDAQ CHAIRMAN OWNER OF INVESTMENT COMPANY 4. BECOMING A MASTER THIEF 1. Be Believable 2. Have a Cause 3. Develop Your Plan 4. Calm Your Conscience 5. Execute Your Plan 6. If Caught, Settle Out of Court 5. BE BELIEVABLE 6. WANT TO BE A PILOT? Uniform Pilot's Identification FAA Identification 7. ABAGNALE'S ACCOMPLISHMENTS Flew over 250 flights -- free Flew over 1,000,000 miles -- free Cashed several hundred thousand in fake checks Piloted a plane with 140 people on board though "he could not fly a kite" ...all before he was 19 years of age 8. TRUST IS THE CURRENCY OF FRAUD 9. YOU ARE IN LUCK... YOU ARE ALREADY BELIEVABLE 10. WHAT DOES A TYPICAL FRAUDSTER LOOK LIKE? 11. Groucho Marks There is one way to tell if a man is honest--ask him. If he says yes, he's a liar. 12. HAVE A CAUSE 13. CAUSES Gambling Habit Drug Habit Medical Bills Keeping up with the Joneses 14. COMPELLING UNSHAREABLE NEEDS 15. DEVELOP YOUR PLAN 16. HOW? Dependent Upon Your Position Look for Opportunities Places Lacking Segregation of Duties See Auditor SAS 115 Letter Epiphanies 17. 36% of Frauds Corruption-Related 18. KICKBACKS Difficult to Detect No Conversion Problem (Cash) Fraudster Thinks It Harms No One 19. CALM YOUR CONSCIENCE 20. I AM BORROWING 21. I EARNED IT 22. ASK OTHERS TO JOIN IN (OR NOTICE THEY ALREADY HAVE) 23. Dan Ariely, The (Honest) Truth About Dishonesty When we do something questionable, the act of asking our friends to join in can help us justify our own questionable actions. 24. ABOVE ALL, YOU MUST OVERCOME THE OBJECTIONS OF YOUR CONSCIENCE 25. IF YOU DON'T HAVE A CONSCIENCE, SKIP THIS STEP 26. Dan Ariely, The (Honest) Truth About Dishonesty Each of us has a limit to how much we can cheat before it becomes absolutely sinful." 27. EXECUTE YOUR PLAN 28. DO SO IN INCREMENTS 29. THEN...LISTEN FOR SIRENS 30. THE COAST IS CLEAR 31. CAREFUL... GREED IS YOUR ENEMY 32. IF CAUGHT, SETTLE OUT OF COURT 33. REASONS TO SETTLE You don't want a criminal record, your next employer may perform a background check Remind the government that this would reflect poorly on the elected officials Remind the government it's cheaper and easier to keep things quiet 34. FRAUD PREVENTION:TAKE AWAYS Trust Your Mother, But Cut the Deck Know Your System Weaknesses Develop a Fraud Prevention Program Pay Attention to Signs 35. CHARLES HALL McNair, McLemore, Middlebrooks & Co., LLC Email- chall@mmmcpa.com Phone - 478-330-5248 Blog - CPA-SCRIBO.com Book - The Little Book of Local Government Fraud Prevention - Amazon