NEWSLETTERS

Welcome to the March 2024 edition of our newsletter!  In this issue, we’ll examine early results of federal voluntary disclosure programs and indicators of what those results could mean for your business. Twice-Told Tales: Corporate Disclosure Can Lead To Prosecution Of Others As noted in previous letters, the U.S Justice Department is promoting a “self-disclosure” program to police corporate wrongdoing, providing incentives for companies to cooperate and self-disclose bad conduct, such as bribes paid to regulators.  Such cooperation can result in a declination – a formal notice of intent not to prosecute.  Yet the other parties who carried out the …

Welcome to the February 2024 edition of our newsletter!  In this issue, we’ll examine the recently implemented Beneficial Owner Information requirements and its effects, intended and otherwise. Increased Transparency, But At a Cost?  New Ownership Reporting Rules May Change Business and Investing Beginning on January 1, 2024, the U.S.Treasury Department’s Financial Crimes Enforcement Network, or FINCEN, began requiring “many companies” to disclose the beneficial owners who derive profit from, and exercise control over, previously opaque limited liability companies and other entities created to maximize secrecy referred to very generally by FINCEN as “entities created by the filing of a document …

Welcome to the January 2024 edition of our newsletter!  In this issue, we’ll examine the trend toward self-reporting initiatives being promoted by various level of law enforcement. Exercising Self-Discipline: the Trend Toward Voluntary Disclosure After the U.S. Justice Department unveiled a voluntary disclosure program last year concerning corporate wrongdoing, the U.S. Attorney for the Southern Distroct of New York announced a new policy concerning self-dsclosure for criminal conduct.   The policy would give credit to the company “if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and …

Welcome to the December 2023 edition of our newsletter!  In this issue, we’ll examine the trends that defined the year in fraud, and look ahead to what 2024 may bring. The More Things Change: Top Fraud Trends of 2023 While 2023 was notable for the increase in personal fraud – from romance scams to cryptocurrency fraud and “pig butchering” – a nasty combination of the two – corporate fraud was also a growing concern, as regulators pursued aggressive strategies to police “non-bank” financial institutions, alleging that they misled investors or sold unregistered securities.  The proliferation of alternative financial technologies was …

Welcome to the November 2023 edition of our newsletter!  In this issue, we’ll examine how evolving scrutiny of transactions by federal regulators is affecting the need for due diligence. Calm Before a Storm?  The Justice Department’s “Safe Harbor? Period and Due Diligence As mentioned in last month’s newsletter, the U.S. Justice Department is implementing a program of heightened compliance for mergers and acquisitions.  As part of this effort, a one year “safe harbor” period may be implemented, which would encourage a flurry of deals before it expires.  Longer term, the policy may strain the appetite for more complex dealmaking, especially …

Welcome to the October 2023 edition of our newsletter!  In this issue, we’ll examine increased regulatory efforts to root out fraud and corporate malfeasance during the merger and acquisition processes. What’s The Deal? Justice Department Pursues Measures to Scrutinize Transactions In recent years, regulators have increased efforts to oversee more business transactions in the name of preventing fraud which harms shareholders and consumers.  That trend has come to the mergers and acquisitions space, as the U.S. Justice Department announced a policy which incentivizes an acquiring company to report wrongdoing at an acquired company within six months of the deal closing.  …

Welcome to the September 2023 edition of our newsletter!  In this issue, we’ll examine heightened scrutiny of deal facilitators as authorities seek to crack down on fraud, especially concerning international clients. Wars of Attrition: How Foreign Policy Measures Influence Regulatory Scrutiny at Home More than 18 months into the Russian war against Ukraine, the hunt for assets of Russian “oligarchs” has had a ripple effect across multiple industries.  As part of its task force seeking to sanction billionaires who may be funding, or otherwise benefiting from, Russia’s war effort, the U.S. Justice Department has begun to scrutinize attorneys and others …

Welcome to the August 2023 edition of our newsletter!  In this issue, we’ll examine efforts to strengthen due diligence on clients in the face of increased regulatory pressure and a rise in financial crimes. Homework Begins at Home: the Need to Perform Due Diligence on Clients As new technologies create new opportunities for criminal activity, regulators and law enforcement have had to respond, leading due diligence professionals to increase scrutiny of their clients.  In an environment where cryptocurrency can create opaqueness concerning financial transfers – and where Congress is proposing legislation to hold lawyers, accountants and others liable if they …

Welcome to the July 2023 edition of our newsletter!  In this issue, we’ll examine conflicts of interest among regulators and other government officials as efforts to rein in insider trading continue. New Frontiers, Old Problems: Regulators Grapple With Conflicts While Monitoring New Technology The momentum in recent years has been for government agencies, especially at the federal level, to assert themselves into, and often against, markets as new technologies become available at breakneck speed.  Against this increasingly robust regulatory effort are the details of the humans who carry out such policies.  Much has been made in recent months about stock …

Welcome to the June 2023 edition of our newsletter!  In this issue, we’ll examine new federal efforts to crack down on corporate crime, and what you can do to defend your clients. Crime and Punishment: New Justice Department Efforts to Push Accountability In the 20-plus years since the Enron scandal, regulatory efforts to prevent corporate fraud and other financial crimes have been an evolving movement, including the creation of new federal agencies like the Consumer Financial Protection Bureau, as well as the broadening of civil and criminal penalties for various malfeasance.  Most recently, the U.S. Justice Department has announced the …

Welcome to the May 2023 edition of our newsletter!  In this issue, we’ll examine how to research banks in a time when instability and volatility have gripped the sector. Stressed Out: Looking for Indicators of Trouble at Banks In recent months, leverage concerns and other problems at banks once thought to be reliable stewards of customer assets have made much of the sector trade like meme stocks.  As investors or as clients seeking to conduct transactions, how can you protect yourself in times of increased risk? As part of the Federal Reserve’s stress testing mechanism put in place after the …

Welcome to the April 2023 edition of our newsletter!  In this issue, we’ll examine proposals to increase oversight of money-market and hedge funds, and what it could mean for investors and clients. To bank or not to bank?  That is the question for regulators Following the collapse earlier this month of multiple banks which had unbalanced interest rate exposure, or were tied into cryptocurrencies which failed, regulators have looked anew at the strength of the banking system.  As interest rates have skyrocketed, more consumers are seeking yield from high-yield savings accounts and money market funds, including some offering historically high …

Welcome to the February 2023 edition of our newsletter!  In this issue, we’ll examine how to research the employment, educational and licensing histories of subjects. Verify, then trust: Vetting job candidates and others From Congress members to executives, resume embellishment and outright fabrications are a topic of great interest today.  How can a potential employer, or litigant soon to be adverse to another party, find the truth? Many claims made on resumes, or on sites like LinkedIn, can be verified via public record searches such as news articles and third-party biographical sources.  These will often reference when an individual is …

Welcome to the January 2023 edition of our newsletter!  In this issue, we’ll examine the importance of properly vetting wealth advisors and estate planners. Prey Circling Nest Eggs: The Need to Trust Retirement and Wealth Advisors For most, retirement is a long-term goal which requires decades of planning – even for the wealthy, whose needs often scale with their fortunes.  From athletes and celebrities to lower profile individuals, stories abound about financial advisors or estate planning attorneys taking advantage of the trust placed in them to either siphon funds away from a client, or grant themselves excess power in the …

Welcome to the December 2022 edition of our newsletter!  In this issue, we’ll examine the year that was, and look ahead to risks on the horizon for the year ahead. Bubbles Bursting Before Bubbly Pours: Top Fraud Trends of 2022 2022 was a year of innovation and inflation, disruption and discontent.  Several newer asset classes – notably cryptocurrencies and special purpose acquisition companies, or SPACs – have faced a reckoning this year whose reverberations may have only begun.  While both have suffered as “free money” propelled by low interest rates has dried up, fraud has also played a role in …

Welcome to the November 2022 edition of our newsletter!  In this issue, we’ll examine the risks posed to companies by activist investors, and how best to understand both their motives and any weaknesses that may exist. A Different Kind of Activism: Pushing Agendas for Profit The activism of political and social justice movements born in the 1960s has, over the last decade, been interpolated into the activist investing movement, where agitating funds (or, sometimes, individual shareholders) seek to compel change at a portfolio company.  While the prior activism model used to be concerned with “unlocking value” – typically reducing employee …

Welcome to the October 2022 edition of our newsletter!  In this issue, we’ll examine the potential for conflicts of interest to arise among politicians and other public officials, and how to identify those conflicts. Brightening Up Dark Corners: Shining Light on Official Finances Officials at all levels of government wield significant power over the industries, and individuals, who they regulate.   Yet often, those parties have no insight into what agendas the regulators might bring to the table.  Whether an administrative law judge hearing an environmental regulatory dispute or a member of Congress sponsoring a bill about trade with China, human …

Welcome to the September 2022 edition of our newsletter!  In this issue, we’ll examine the importance of thorough pre-employment background research. Checking Things Out: Steps for Successful Background Inquiries With apologies to William Faulkner, the saying “the past is never dead, it’s not even past” seems to ring truer each day.  Whether it’s C-suite executives or Congressional candidates, several high-profile people have been caught embellishing their backgrounds, or outright lying about their past.  How can you protect yourself from a similar deception when making a hire? Ultimately, reference checks and interviews will be useful, but first a thorough dive into …

Welcome to the July 2022 edition of our newsletter!  In this issue, we’ll examine the patchwork of international laws surrounding decentralized finance and the risks posed in the evolving industry. Decentralized Finance and Concentrated Risk: Global Aspects of Crypto Trading As more financial institutions seek to make digital token trading part of their platforms, with some providers offering cryptocurrencies as part of 401(k) plans, the patchwork nature of international regulations regarding such trading is an issue.  For example, the Financial Action Task force recently surveyed 98 countries and found that only 29 had “travel rules” in place concerning the money-laundering …

Welcome to the June 2022 edition of our newsletter!  In this issue, we’ll examine frauds centering around cryptocurrencies, and how social media is used to proliferate such scams. Social Media and Unproven Fintech Create Perfect Fraud Storm Social networks, especially those focused on professional experience, are inherently built on trust.  Trust, of course, is what fraudsters feed on to exploit their marks.  As cryptocurrency investing has erupted in scope in the last few years, these two relatively new trends have converged to create a dangerous combination. Platforms such as LinkedIn provide a certain veneer of credibility to their users, or …

Welcome to the May 2022 edition of our newsletter!  In this issue, we’ll examine recently enacted law concerning financial disclosures by judicial officers, and steps you can take if researching a jurist. New Law Creates Searchable Disclosure Database, Enacts Stricter Requirements Previously, if a researcher wanted to determine if a jurist might have a financial conflict of interest, they often had to rely upon outdated financial disclosures — which often took years between when they were submitted and when they were released – in addition to public records research of a jurist, his spouse and other associates to identify potential …

Welcome to the April 2022 edition of our newsletter!  In this issue, we’ll examine the risks involved when investing in cryptocurrencies, and what may lie ahead. As Cryptocurrencies Gain Popularity, Schemes Targeting It Do Too People have an intrinsic eye toward the future, and that’s even more true for investors.  From decentralized finance to warehouse robots, humanity seeks to evolve not just itself, but differing aspects of the world around it. Over the last decade, one item that has evolved is cryptocurrency, the digital nature of which lends itself to being an instrument for various related frauds.  Many of these …

Welcome to the March 2022 edition of our newsletter!  In this issue, we’ll examine the risks posed by geopolitical instability when investing or conducting other business overseas. Spillover Effects: How Political Instability Abroad Can Alter Plans at Home An increasingly global corporate environment has created both opportunities and risks without borders.  When geopolitical events occur that can pose risks to an existing investment, or change the calculus for a potential one, how can you respond? One due diligence measure your company can take is to look at a company’s contracts or other interactions with state actors or other parties that …

Welcome to the February 2022 edition of our newsletter!  In this issue, we’ll examine risks to publicly-traded companies concerning the emerging field of environmental, sustainability and governance, or ESG, requirements. Calls for Action May Lead SEC to Create New Climate Rules Within the past decade, investors have joined climate activists in scrutinizing the effects of a company’s operations upon the climate.  Metrics like tons of greenhouse gases produced by companies, especially capital-intensive ones, have become a focus of large institutional investors, notably a handful of fund managers whose portfolios collectively contain trillions of dollars.  Those assets under management have given …

Welcome to the January 2022 edition of our newsletter!  In this issue, we’ll examine the growth of private companies seeking access to public capital markets, including “unicorn” firms, and discuss ways to identify and manage risk. Between Two Worlds: Private Companies Accessing Public Capital Even with the proliferation of publicly-traded companies, including smaller companies going public via special purpose acquisition vehicles, many early-stage companies remain privately held, yet seek outside investment from the general public.  Companies with promising technological advancements or other unique market niches which can drive their valuation to $1 billion or more, so-called “unicorn” companies, are in …

Welcome to the December 2021 edition of our newsletter!  In this issue, we’ll examine the potential for conflicts of interest among members of the judicial branch, and resources that exist to help identify them. Calling Balls and Strikes?  The Tension Between Impartial Justice and Human Nature A core principle of the American democratic system of justice is that judges impartially interpret the law, and in many instances this is what occurs.  But judges are also people, with vested interests, families and futures to plan.  This can create the opportunity for conflicts of interest to arise between a judge’s personal conduct …

Welcome to the November 2021 edition of our newsletter!  In this issue, we’ll examine the fairly recent implementation of investment firm customer relationship summaries, and how they can be used to better inform investment decisions. Mutually Beneficial Relationships or Conflicts of Interest In June 2019, the U.S. Securities and Exchange Commission enacted Form CRS, the customer relationship summary, as an addendum to Form ADV – the latter being the most detailed public disclosure of an investment firms’ fund structure, custodian, assets under management and other important information.  Form CRS was intended to provide, in the commission’s words, “conversation starters” for …

Welcome to the October 2021 edition of our newsletter!  In this issue, we’ll examine the need for due diligence before considering a transaction, especially mergers or acquisitions. Getting in on the Ground Floor: Essentials of Looking Into New Companies Supply chains frayed or broken.  Labor markets struggling under the effects of once-needed economic stimulus which is now among several reasons many aren’t returning to work. These twin crises, and others, present opportunities for companies, many of which have adapted nimbly in the last 18 months.  For those on strong financial footing, the chance also exists to grow and innovate by …

Welcome to the September 2021 edition of our newsletter!  In this issue, we’ll examine the rewards, and the risks, when looking to invest in new companies and innovative, but potentially unproven, technology. Reaching New Frontiers at Warp Speed: But What Lies Ahead? Innovation abounds in today’s economy, as everything from non-bank digital payment services to on-demand delivery reshapes the ways in which consumers live. Young companies, some entirely new since the start of the pandemic, see opportunities to profit from what appears to be a lasting, fundamental change.  With the advent of direct listing and confidential initial public offerings and …

Welcome to the August 2021 edition of our newsletter!  In this issue, we’ll examine efforts by regulators to try to manage “decentralized finance” platforms, and the risks to both customers and the fledgling institutions. Decentralized, but not unregulated?  Changing regulatory attitudes on DeFi entities As we noted last month, the rapid use of non-bank “decentralized finance,” or DeFi, platforms has begun to gain the attention of regulators.  More recently, the U.S. Securities and Exchange Commission chair, Gary Gensler, has opined that such “peer to peer lending networks exhibit some features that may make them subject to oversight, arguing that such …

Welcome to the July 2021 edition of our newsletter!  In this issue, we’ll examine how emerging technologies and services are spurring new layers of oversight for financial institutions. Banking Regulators Try to Catch Up to Innovations Spurred on in part by the pandemic, several disruptive industries have grown tremendously in the past few years, from “fintech” companies innovating to compete with traditional banking to an expansion of third-party vendors used for accounting and other functions that were once kept in-house.  The outsourcing of these functions can reduce costs and create efficiency, but financial regulators have begun to be concerned that …

Welcome to the June 2021 edition of our newsletter!  In this issue, we’ll examine how the ability to hold financial-sector compliance officers personally liable for their professional conduct has affected regulations around that conduct. Eyes on the Inside Guys: Scrutiny of Compliance Officers Grows in Manic Markets The SEC has often used civil litigation as a means of providing accountability for bad actors as a means of deterrent to prevent others from engaging in similar conduct.  The New York City Bar Association, whose firms include many of the largest financial services firms, recently issued a framework, developed with input from …

Welcome to the May 2021 edition of our newsletter!  In this issue, we’ll examine how fraudsters exploited coronavirus-related emergency loan programs, and what their schemes may say about vigilance in lending, even in more normal times. Banks, Bailouts and Bonanzas: What Emergency Loan Fraud Can Teach Us Slightly more than a year ago, as public health-driven lockdowns shuttered many businesses – some temporarily, others for good – many sought lifelines to survive, and government programs both old and new sought to fill the void created as the risk modeling of traditional lenders was paralyzed.  When the new normal of business …

Welcome to the April 2021 edition of our newsletter! In this issue, we’ll examine increased regulatory scrutiny of so-called “blank check” companies, and how your clients can prepare themselves to invest in a rapidly evolving landscape. Speed Kills: the Potential Downside of SPACs For young companies seeking access to public markets, special purpose acquisition companies, also known as SPACs or “blank check” companies, present an obvious opportunity. Under current rules, the process of taking a company public is much more streamlined than a traditional initial public offering, which typically involves numerous layers of due diligence and compliance work. As hundreds …

Welcome to the March 2021 edition of our newsletter!  In this issue, we’ll examine the increase in companies going public via special purpose acquisition companies, and identify some risks involved for would-be investors. When SPACs Attack: Differences Between SPAC Listings and Initial Public Offerings Special purpose acquisition companies, or SPACs, have existed since the 1990s, but are gaining notoriety of late as they’re embraced by activist investors and celebrities alike.  This increased profile has made the entities, which can also act as “blank check” companies that do not have to initially define an acquisition target or investment objective, something about …

Welcome to the February 2021 edition of our newsletter!  In this issue, we’ll examine the Securities and Exchange Commission’s proposed rules concerning disclosures by companies during market volatility. Time Flies and So Does Cash: Research Companies as New Ways to Market Emerge As the prices of many asset classes soar to new all-time highs, more companies are seeking to raise capital in public markets.  With automated high-frequency trading and an increase in bulletin-board fueled day trading, issuing shares or debt in the current environment can change quickly.  Many companies have issued “shelf registrations,” indicating that they plan to issue shares …

Welcome to the January 2021 edition of our newsletter!  In this issue, we’ll examine how social media posts by employees and vendors can affect a company’s reputation, and steps to help mitigate any possible damage. Free Speech or Brand Damage?  Researching Employee Comments For much of the 20th century, executives were loath to wade into social or political issues, most often simply making political donations to causes or candidates they supported, perhaps serving on an advisory commission or other non-governmental group.  The first two decades of the 21st century have seen an evolution of this philosophy, as more chief executives …

Welcome to the December 2020 edition of our newsletter!  In this issue, we’ll look back upon the year that was, and at how the events that transpired have affected fraud trends. A Crisis of Health Becomes a Crisis of Trust: Exploiting Coronavirus As the coronavirus pandemic upended the lives most of us knew, our foundational beliefs were also thrown off their axis, no more so than a fundamental sense of trust.  While fraudsters have always taken advantage of the human tendency to trust others, with the normal way of life suddenly in flux for so many, the opportunities for exploitation …

Welcome to the November 2020 edition of our newsletter!  In this issue, we’ll examine a recent proposal to allow “gig” workers to be compensated in stock by privately-held companies they work for. Gig Workers Stock and Trade: A Look at a Recent Proposal to Compensate Gig Workers with Stock In the years prior to the pandemic, the development of “gig work” – where independent contractors provide services from meal delivery to various “on call” services – changed several aspects of the economy, making it easier for more remote areas to have access to various goods and services.  During the spring …

Welcome to the October 2020 edition of our newsletter!  In this issue, we’ll examine how vetting of employees and key account customers can help banks and other businesses avoid regulatory headaches. Service Provider or Fraud Abettor?  Precautions to Prevent Becoming an Accessory to Fraud For more than 40 years, banks and other financial institutions have relied upon “know your customer” protocols to vet prospective and existing customers and better ensure that their motives are toward legitimate, legal ends.  As we have seen with recent high-profile settlements, these efforts are not always as exhaustive or effective as perhaps they should be. …

Welcome to the September 2020 edition of our newsletter!  In this issue, we’ll examine how activist investors can take advantage of the bankruptcy process, and identify warning signs of trouble ahead. Beware of Vultures Overhead: Distressed Investing and Bankruptcy Fraud The bankruptcies of once great companies, especially in the retail space, have become commonplace in the last six months, as traffic has been slowed or halted due to the pandemic.  While some companies seek to liquidate, many – especially those which are publicly traded – are looking to reorganize and restructure debts in order to survive and rebound at a …

Welcome to the July 2020 edition of our newsletter!  In this issue, we’ll examine the signs of bankruptcy fraud and how to protect yourself if a client enters bankruptcy.  Here today, gone tomorrow: Signs of Bankruptcy Fraud A wave of corporate and personal bankruptcies has begun to wash over the country in the wake of the onset of coronavirus, most notably by major retailers but also encompassing other companies and individuals.  The human toll of these filings is significant, even for those companies that are seeking to reorganize and ultimately return to operation in some form.  In this crisis, as …

Welcome to the May 2020 edition of our newsletter!  In this issue, we’ll examine the opportunities presented by efforts to develop a coronavirus vaccine, and the risks posed to potential investors. The Promise and Peril of Investing in Coronavirus Vaccine and Test Development After tectonic shifts started when various government-imposed lockdowns took effect, a weary and wary world looks to see how life will be reorganized, and for how long.  This has led to profitable times for video streaming companies and retailers with robust delivery and distribution networks, as many people, quite prudently, attempt to leave home as little as …

Welcome to the April 2020 edition of our newsletter!  In this issue, we’ll examine the risks associated with charitable giving during the time of great need created by efforts to contain the coronavirus. Greed in a Time of Need: How to Give Wisely and Avoid Scams As millions of newly unemployed people adjust to that new reality – however temporary it may prove to be – the impulse of others to help remains strong.  While reports of fraudulent charities arose on pace with the virus itself, much like with natural disasters and terrorist attacks of years before there are steps …

Welcome to the March 2020 edition of our newsletter!  In this issue, we’ll examine the importance of vetting new hires, or while promoting from within, during times of extreme uncertainty. The Importance of Vetting Before Making Promotions As a pandemic sweeps the globe, fundamentally disrupting livelihoods and business models alike, executives and board members are left with other grim considerations as well.  In addition to considering the welfare of their customers and the proper amount of capital expenditures going forward, officers and directors must now consider what to do if one of their own is incapacitated due to the pandemic. …

Welcome to the February 2020 edition of our newsletter!  In this issue, we’ll examine the risks present when investing in new, often under-regulated industries. New Technology, New Promise, New Risk? The first two decades of this century have proven to be a hotbed of innovation, as everything from smartphones or voice-controlled assistants has moved from the realm of science fiction to an everyday reality many take for granted.  The pace of innovation has not slowed, and in fact changes to rules concerning access to public market investor capital have spurred the growth of several nascent industries. But with this rapid …

Welcome to the January 2020 edition of our newsletter!  In this issue, we’ll examine one of the top fraud trends of 2019 and look ahead to what may be on the horizon for 2020. Social Engineering: It’s All About Who You Think You Know An increasingly interconnected and global society has created great opportunities for millions of businesses, from coffee growers in Costa Rica to flat panel television manufacturers in China and points in between.  Yet as barriers to entering new markets have receded, risks of falling victim to fraud have grown.  In 2019, the use of alternative payment systems …

Welcome to the December 2019 edition of our newsletter!  In this issue, we’ll examine the SEC’s continued push to grant certain groups other than accredited investors greater access to private companies and the risks that remain. Early Stage Investing Gets a Boost from New SEC Rule: What to Know In recent months, the SEC has been finalizing proposals that would increase the ability of investors to access private securities offerings and certain hedge funds beyond the existing definition of “accredited investors” – those with at least $1 million in assets and $200,000 in annual income.  A proposal recently approved by …

Welcome to the November 2019 edition of our newsletter!  In this issue, we’ll examine changes to enforcement of the Foreign Corrupt Practices Act, or FCPA, specifically the leniency provision. Just Most of the Facts: Recent Changes to FCPA Enforcement Create Flexibility for Companies Since 2016, the U.S. Justice Department has been adapting its enforcement of the FCPA to foster more cooperation from companies and bring about improvements to their internal compliance programs.  Among those provisions was an assumption that the department would decline to prosecute if the company cooperates and “self-discloses” information about the violations.  But while earlier revisions to …

Welcome to the October 2019 edition of our newsletter!  In this issue, we’ll examine the risks and rewards of investing in “unicorns”, and look at some ways to better understand the risks in advance. The Danger of Unicorns: When Entrepreneurial Spirit Can Haunt Investors A recent trend in private equity is the growth of so-called “unicorns” – technology companies seen to have a disruptive product or service, or some other distinctive niche, which could lead to market dominance for that sphere over time.  Typically, these startups have valuations over $1 billion, and recent examples include several ride- and office or …

Welcome to the September 2019 edition of our newsletter!  In this issue, we’ll examine the Committee for Foreign Investment in the United States and the quiet but important role it plays in global investment. Keeping Watch in an Open World: The Role and Growth of CFIUS Formed in 1975, as the United States remained engaged in a Cold War with Russia and related geopolitical concerns around the Vietnam War, the committee – known as CFIUS, and led by the Treasury Department with input from Defense, Justice, State and others – developed as an interagency safeguard against foreign companies acting as …

Welcome to the August 2019 edition of our newsletter!  In this issue, we’ll examine how to research an expert witness, whether for your client or their opponent, and identify vulnerabilities in their background. On the Record About Their Record: Finding Conflicts and Other Concerns An expert witness is presented to the court as precisely that: an expert whose opinion in their given field of study is meant, by definition, to carry profound relevance.    Whether an architect, insolvency expert or in another field, the educational and professional background is meant, by the side who hires them, to be sacrosanct. This notion, …

Welcome to the July 2019 edition of our newsletter!  In this issue, we’ll examine how government probes – whether federal antitrust officials or a state attorney general – can affect your firm, and how best to respond. What To Do If Big Brother Comes Knocking As “Big Tech” faces scrutiny from the U.S. Justice Department amid allegations of anti-competitive behavior, the situation serves as a reminder to companies of all sizes concerning how to respond when an agency comes calling.  Many industries face some measure of county, state or federal oversight, whether you’re an electrician operating a small business or …

Welcome to the June 2019 edition of our newsletter!  In this issue, we’ll examine the intricacies of how hedge funds operate and provide tips on how to research these opaque vehicles more effectively. A Peek Behind the Curtain: How Hedge Funds Operate and How to Research Them Hedge funds typically solicit investments from large, sophisticated money managers, such as pension funds or college endowments.  The reason for this on the funds’ side is simple: that’s where the most money is.  For the client, they look to the hedge fund to manage the risk and drive upside in ways that retail …

Welcome to the May 2019 edition of our newsletter!  In this issue, we’ll examine how to research older subjects in an era of courts purging older records. Researching Subjects in an Age of Purging Records Most courts tend to be high-traffic places, with hundreds or thousands of cases transacted, in whole or in part, each day.  Cataloging all of this information is understandably daunting, and some jurisdictions have responded by streamlining the amount of information made available to the public.  The federal court’s online system, for example, only consistently indexes records from approximately 1988 or so (although older cases can …

Welcome to the April 2019 edition of our newsletter!  In this issue, we’ll examine concerns about a decades-old law that bars people with various criminal records from working in the financial services industry. Does a Rap Sheet Equal a Bad Rap?  The Debate About Conduct-Based Finance Industry Bans Although this would be hard to believe given various fraud headlines in recent years, since the 1950’s the financial services industry ahs been barred, by law, from hiring anyone with a criminal conviction for a crime deemed to be a breach of trust or another form of dishonest behavior.  The only means …

Welcome to the March 2019 edition of our newsletter!  In this issue, we’ll examine how corporate governance and reliance on internal oversight mechanisms may not enough to protect investors from fraud. View from the Outside: The Value of Looking Into Closely Held Companies As Silicon Valley assesses the fallout from some of the high-profile frauds among technology startups in recent years, including many headline-grabbing incidents, important lessons are coming into focus for potential investors, suppliers or others looking to do business with the “next big thing.”  Although an experienced board of directors can help – and is meant to serve …

Welcome to the February 2019 edition of our newsletter!  In this issue, we’ll examine the potential impact of the SEC expanding its “test the waters” rules to smaller companies. If Small Companies Test IPO Waters, Will Investors Get Bitten? As part of the 2012 JOBS Act, companies with revenue under $1 billion were able to solicit feedback from investors – typically larger money managers – before considering an initial public offering, a process that came to be known as “testing the waters.”  A recent statement by the SEC has proposed lifting the revenue limit altogether, allowing “all issuers, including investment …

Welcome to the January 2019 edition of our newsletter!  In this issue, we’ll examine a recent proposal by securities regulators to allow greater investment in private companies. SEC Considers Effort to Bring Private Company Investments to the Investing Public In recent remarks to The Wall Street Journal, U.S. Securities and Exchange Commission Chairman Jay Clayton said he wanted to change existing rules so smaller investors – typically ignored by private companies in favor of large private equity firms – could participate in, and be more attractive to the offerors of, private investment offerings.  Existing rules only allow persons with household …

Welcome to the December 2018 edition of our newsletter!  In this issue, we’ll look back on the decade since Bernard Madoff’s Ponzi scheme was uncovered and what has – and has not – changed in the years since. Billions Lost, But Was Anything Gained?  Ten Years Since The Madoff Scandal Broke Although first described as a Ponzi scheme — where early investors get returns to bolster a fund’s credibility, only to have later investors get nothing and the fraudster take those investments – Madoff’s long-running operation also had other hallmarks, most notably of affinity fraud.  Madoff approached various non-profit groups, …

Welcome to the November 2018 edition of our newsletter!  In this issue, we’ll examine how changes to the records held by securities regulators could affect due diligence efforts. Quieted Alarms: Recordkeeping Changes Dampen Ability to Vet Financial Professionals For most of the last 30 years, researching financial services professionals involved checking with various state agencies and NASD (now FINRA), a self-regulatory group funded in large part by fees paid by the professionals themselves.  This patchwork regulatory system, complemented by litigation and media reviews, could typically help consumers, or their counsel, ascertain the risks involved in hiring someone – or the …

Welcome to the October 2018 edition of our newsletter!  In this issue, we’ll examine how a recent ruling about foreign bribery allegations could change the way in which they’re investigated. Cross-Border Changes: Recent Ruling Narrows Scope of Prosecution Under Foreign Corrupt Practices Act As noted in this space before, the U.S. Foreign Corrupt Practices Act (“FCPA”) prohibits executives of U.S. companies from bribing foreign officials.  The parties on the receiving end of the bribery scheme have also been subject to prosecution if the act occurred in the United States, but a recent U.S. Court of Appeals ruling found that a …

Welcome to the September 2018 edition of our newsletter!  In this issue, we’ll examine the importance of thorough vetting for senior-level positions. Know Your Candidate: The Need for Thorough Background Research Headlines are rife with examples of various types of fraud among job candidates, whether those who seek to be a chief financial officer, or member of Congress.  Some claim to have degrees they never received, others invented positions they never held, or embellished low- to mid-level positions into something of greater significance. Yet all pose a risk to the unwitting employer who doesn’t do their homework. A perhaps more …

Welcome to the August 2018 edition of our newsletter!  In this issue, we’ll examine some ways that fraudsters lie on applications for financing, and how researchers can spot the lies and learn the truth. Too Good to be True: Signs of Loan Application Fraud Recent headlines have placed a renewed focus on the prevalence of loan application fraud. Within the last decade, various studies have found that as many as 70 percent of loan applications contained some form of fraudulent information.  Whether your client is looking to make a loan to an individual or business, or to transact other business …

Welcome to the July 2018 edition of our newsletter!  In this issue, we’ll examine the importance of researching connections between a party to whom your client is adverse and others involved in an inquiry. All About Who You Know: The Importance of Connections Between Parties In every situation between parties, whether litigation or negotiation, there is often more involved than the persons sitting across the table from one another.  Each party brings their experience, which often includes a lifetime of accumulated contacts.  While these contacts may not be relevant at all times, if a deal goes sour or fraud is …

Welcome to the June 2018 edition of our newsletter! In this issue, we’ll examine the importance of vetting parties connected to your business in secondary ways, from award recipients to advisory board members. Trusted Advisors: Researching the People Who Will Help Guide Your Company’s Growth Companies of every size and type, especially growing privately-held companies, often rely on a cadre of industry experts, business mentors and investors to help shape the company’s vision of its future. Such resources are vital to thorough discussion of a company’s strengths, weaknesses, opportunities and threats. Yet while executives feel comfortable calling upon former professors, …

Welcome to the May 2018 edition of our newsletter!  In this issue, we’ll examine how rapidly evolving technologies present new investment opportunities – and chances for fraud. The Limitless Potential of Invention and Desire for Gains May Not Always Mix In many ways, we are currently experiencing an age of technological advancement that may, upon reflection, rival the industrial revolution of centuries ago.  New companies are tackling daunting problems, such as curing cancer, which creates an opportunity for life-saving drugs or therapies to come to market.  Other companies are perfecting environmentally safe, potentially driverless cars.  These types of advances, once …

Welcome to the April 2018 edition of our newsletter!  In this issue, we’ll examine the evolution of investment frauds which rely on increased complexity of financial instruments to prey upon investors. It’s Complicated: Intricate Financial Investment Choices Lead to Increase Risks Within the last decade, mathematics has become an increasingly important part of investing, both for large institutional holders and smaller investors.  While puts, calls and options have existed for decades prior, the use of these instruments in markets where newer technologies – high-frequency trading, cryptocurrencies and the like — also exist poses new types of risks. As a result, …

Welcome to the March 2018 edition of our newsletter!  In this issue, we’ll examine the growth of multinational transactions, the risks posed by them and how to protect yourself while seizing opportunities. A Balancing Act: Doing Business Overseas While Complying with U.S. Laws Tariffs.  Sanctions.  Regulations concerning solicitation of foreign officials.  As commerce becomes ever more global in scope, both new risks and old arise to potentially confound business opportunities.  For U.S.-based clients, while each country has its own set of customs, values and laws, adhering to U.S. anti-bribery and honest services laws when conducting business overseas is critical.  The …

Welcome to the February 2018 edition of our newsletter!  In this issue, we’ll examine how the meteoric rise of cryptocurrencies has created a market less understood than traditional currencies or other investments – and how fraudsters have begun to exploit this situation. The Digital Wild West: Investing in Cryptocurrencies Few investments have shown the volatility that Bitcoin, Ethereum and other cryptocurrencies have demonstrated within the last year, despite Bitcoin having been used for almost a decade.  Cryptocurrencies are used as an alternative to traditional currency and the value of each is maintained in a ledger within an ever-evolving accounting finance …

Welcome to the January 2018 edition of our newsletter!  In this issue, we’ll examine how arbitration — most often private arbitration — can create disclosure hurdles when researching an individual’s background, and offer some tips for filling in some of the gaps. Employment and Contract Arbitration and its Effect on Due Diligence Arbitration of disputes between parties are gaining greater levels of prominence, in part due to changes in rules for consumers seeking to dispute claims with banks and credit card companies, and in part because of the role arbitration can play in workplace issues, such as sexual harassment or …

Welcome to the December 2017 edition of our newsletter!  In this issue, we’ll examine issues that arise during bankruptcy, including fraudulent conveyances, and discuss methods for recovering funds lost to bankruptcy fraud. Here and Gone: Common Types of Bankruptcy Fraud Bankruptcy fraud is a difficult field simply because the forms it can take are nearly limitless – any transaction undertaken by a business or individual who later seeks bankruptcy protection or reorganization can be susceptible to fraud.  In one prior instance, we helped identify recoverable assets after a family-owned business, having grown for more than 50 years, agreed to be …

Welcome to the November 2017 edition of our newsletter!  In this issue, we’ll examine the recent enforcement trend of emphasizing cooperation versus prosecution, and how this trend could affect your preparation efforts. The Push Toward Cooperation: Working Together, With Caution As a more pro-business regulatory regime takes the reins in the nation’s capital, many industries and executives who felt burdened by the Obama administration’s regulatory pursuits have breathed a little easier.  While some public comments have indicated a new, more business-friendly approach by regulators, preparation and a thorough approach to understanding your own company’s potential misdeeds remains essential, and may …

Welcome to the October 2017 edition of our newsletter!  In this issue, we’ll examine concerns that can arise when an expert’s history isn’t all that it seems, and how to prevent such situations, especially when preparing for trial. Getting to Know the People with Knowledge Expertise is an essential part of most transactions – making sure the accountant auditing your company’s books knows what he’s doing, or that the architect designing your new factory has all of the certifications and education to do her job well.  Yet the time when most people think of someone’s credentials is when they don’t …

Welcome to the September edition of our newsletter!  In this issue we’ll examine registration of individuals as lobbyists on behalf of foreign governments, and look at how to research issues around such registrations further. The U.S. Foreign Agents Registration Act: Evolving From Anti-German Propaganda Tool to Global Disclosure Device First enacted in 1938, the Foreign Agents Registration Act, or FARA, is described by the agency which enforces it, the U.S Justice Department, as being intended to ensure that “the people of the United States are informed of the source of information (propaganda) and the identity of persons attempting to influence …

Welcome to the August edition of our newsletter!  In this issue, after another insider information case was decided by the nation’s highest court, we’ll examine the role of friendships in such schemes, and how to understand and identify those networks of connections. Friends in All the Right Places: How Parties Profit From Inside Information Numerous inside information cases have been prosecuted in the last decade or more, typically involving some variant of the same basic scheme: an investor or hedge fund analyst meets an expert involved in a clinical trial, a senior executive at a company, or someone else in …

Welcome to the July edition of our newsletter! In this issue we’ll examine steps companies can take to protect themselves when being investigated by authorities, and research initiatives that can assist in that effort. Best Foot Forward: Cooperating With Investigative Inquiries At its best, compliance is a necessary burden for most companies, ensuring that their clients receive the proper standards of service, or that the products produced are safe and meet quality control metrics. In heavily regulated industries, self-reported information and routine audits by state or federal regulators are meant to provide layers of accountability and transparency which help consumers …

Welcome to the June 2017 edition of our newsletter!  In this issue, we’ll examine the intricacies of multi-national asset searches, and look at some of the strange things fraudsters will buy with their ill-gotten gains. Catch Me If You Can: Tracing Assets Across The Globe As fraud schemes have grown more sophisticated, so too have the ways in which fraudsters will try to protect the proceeds from being detected.  40 years ago, the most common ideas were to buy real estate in an offshore tax haven, typically using a company, spouse or other relative to do so.  As time has …

Welcome to the May 2017 edition of our newsletter!  In this issue we’ll examine key differences between administrative courts, including self-regulatory administrative boards, and traditional courts. Public Only to a Point: Limits of Publicly Available Information from Administrative Courts The administrative court system serves an important purpose, whether adjudicating a military personnel proceeding or a self-regulatory group mediating a customer dispute with a financial adviser.  Yet whereas most federal or state court cases make their entire case file a public record (with notable exceptions), administrative courts vary in their requirements to allow public review of their actions. Limitations within the …

Welcome to the April 2017 edition of our newsletter! In this issue, we’ll look at the importance of thorough background checks. GETTING TO KNOW YOU: THE IMPORTANCE OF BACKGROUND CHECKS Background checks have become a routine and essential part of several types of transactions, whether hiring an employee or pursuing an acquisition. Recently, six incoming members of the new Presidential administration were either terminated or reassigned due to the results of their background checks. Parties who don’t have the resources of federal law enforcement can also be thorough in their efforts and make more informed decisions. There is a tendency …

Welcome to the March 2017 edition of our newsletter! In this issue, we’ll examine the limitations of databases in conducting thorough research, and offer suggestions for how to complete a thoroughly researched project. KNOW YOUR LIMITS: THE FLAWS OF DATABASE-DRIVEN RESEARCH As information technology has advanced, the ability to conduct probing and deep research has also grown tremendously. Yet several limitations remain, particularly with regard to older subjects, whose early histories may reside in archive books, not computer databases. The same limitations can apply to various regulatory organizations — FINRA, for instance, contains thorough records on an individual broker’s history …

Welcome to the February 2017 edition of our newsletter! In this issue, we’ll examine the importance of thorough pre-employment due diligence, using a recent case study. DOING HOMEWORK ON CANDIDATES: THE NEED FOR THOROUGH VETTING Hiring candidates at all levels can be a time-consuming endeavor, and the due diligence required is no exception. While many firms have made scans of a candidate’s social media a routine part of this process, with good reason, traditional research methods still apply. Take the recent example of businessman Wilbur Ross, recently confirmed as U.S. Commerce Secretary. Ross, an investor in distressed companies with decades …

Welcome to the January 2017 edition of our newsletter! In this issue, we’ll examine concerns about crowd-funded star-ups now that laws meant to encourage investment in them have taken effect. In past editions, we discussed potential opportunities and risks related to the U.S. Securities and Exchange Commission’s rules, then in development, concerning crowd-funding of smaller companies. Now that those rules, under the 2012 JOBS Act, are in effect, we have the virtue of seeing theoretical ideas put into practice. The opportunities for small companies to raise capital — and for investors to contribute to them — were described as the …

Welcome to the December 2016 edition of our newsletter! In this issue, we’ll look ahead to 2017’s emerging trends in fraud. 2016 WAS A TUMULTUOUS YEAR. WHAT WILL 2017 BRING? 2016 can be described as a year of upheaval and change, yet some old threats remained, either evolving or greatly increasing in scope. 2016 saw greater numbers of companies being hacked, whether e-mail providers or large retailers, and also saw increased awareness of scams such as phony tax or law enforcement extortion pitches. Also gaining increased attention, if not visibility, was the dark web of anonymized servers acting as a …

Welcome to the November 2016 edition of our newsletter! In this issue, we’ll examine how brokers with checkered histories can reappear as investment advisers, potentially leaving clients unaware of past conduct. SECOND LIFE: DISCIPLINED BROKERS RESURFACE AS INVESTMENT ADVISERS The U.S. financial regulatory system works as a patchwork of federal agencies (the U.S. Securities and Exchange Commission), state agencies (state departments of securities or banking), and self-regulatory groups (FINRA or the National Futures Association.) Sometimes these groups coordinate among one another, but often their interests are not aligned — self-regulatory groups, for example, can be as interested in protecting their …

Welcome to the October 2016 edition of our newsletter! In this issue we’ll examine how new tools are allowing fraudsters to combine affinity fraud with phishing and other identity theft schemes, and what you can do to help your clients avoid becoming victims. THE DEVIL YOU KNOW: HOW FRAUDSTERS USE SOCIAL MEDIA FOR AFFINITY FRAUD Affinity fraud conjures images of a bygone era: a charming, flashy stock hustler wooing a room full of wealthy socialites, for example; in more recent times, a similar scheme was part of Bernie Madoff’s massive Ponzi scheme, professing to use his financial wizardry to help …

Welcome to the September edition of our newsletter!  In this issue, we’ll examine the impact of the Justice Department’s “Yates memorandum”  after one year. In September 2015, the U.S. Justice Department issued new guidance, authored by Assistant Attorney General Sally Yates, for federal prosecutors concerning “corporate wrongdoing.”  Part of that memorandum was clear language indicating that in order to obtain a “cooperation credit”, subject companies must provide “all relevant facts about the individuals involved in corporate misconduct.”  The ambiguity of this language does not limit its scope to all internal employee records, or all information in possession of the company at …

August 2016   IN THIS ISSUE — States Follow Federal Lead in Rewarding Whistle-blowers for Securities Fraud Tips — Trust But Verify: Evaluating Sources and Their Motives GREETINGS! Welcome to the August edition of our newsletter! In this issue, we’ll examine steps various state governments are taking to increase the effectiveness of whistle-blowers in combating securities fraud on the state level. STATES FOLLOW FEDERAL LEAD IN REWARDING WHISTLE-BLOWERS FOR SECURITIES FRAUD TIPS Much has been written about the federal law enforcement system’s use of whistle-blowers for tips on everything from medicare billing fraud to penny stock scams. In recent years, …

July 2016   IN THIS ISSUE — No Good Deed Goes Unexploited: Types of Charity Fraud — Detecting Fraudulent Activity in Non-Profit Groups GREETINGS! Welcome to the July 2016 edition of our newsletter! In this issue, we’ll examine fraud involving charitable organizations and look for ways to detect and prevent it. NO GOOD DEED GOES UNEXPLOITED: TYPES OF CHARITY FRAUD In recent months, numerous headlines have appeared alleging that different types of parties — from executives to member of Congress — have used seemingly innocuous, federally tax-exempt charitable organizations to launder money, or to support extravagant lifestyles, without making grants …

June 2016   IN THIS ISSUE — High Court Limits Reach of Whistle-Blower Law — The Impact of the Ruling For Companies GREETINGS! Welcome to the June edition of our newsletter! In this issue, we’ll examine the potential impact of the U.S. Supreme Court’s recent ruling in whistle-blower suits. HIGH COURT LIMITS REACH OF WHISTLE-BLOWER LAW In a unanimous ruling earlier this month, the U.S. Supreme Court ordered a lower court to revisit its ruling concerning a civil suit brought by the parents of a patient who died at a nursing care facility in Massachusetts. The family of the patient …

May 2016   IN THIS ISSUE — Investigating Bankruptcy Fraud and Piercing its Defenses — High Court Ruling May Tip Scales Toward Creditors GREETINGS! Welcome to the May edition of our newsletter! In this issue we’ll examine bankruptcy fraud and how a recent U.S. Supreme Court ruling affects criminal prosecution and civil asset recovery efforts. INVESTIGATING BANKRUPTCY FRAUD AND PIERCING ITS DEFENSES The voluntary bankruptcy process is one that has been susceptible to manipulation by fraudsters since its implementation. Whether a “bust out” scheme — where a fraudster will buy massive amounts of inventory on credit, only to declare bankruptcy …

April 2016   IN THIS ISSUE — False Claims Act, in use for more than 150 years, could be reshaped by the Court — Definition of fraud could change scope of investigations GREETINGS! Welcome to the April edition of our newsletter! In this issue, we’ll examine a case before the U.S, Supreme Court that could redefine what constitutes fraud with respect to allegations reported by whistle-blowers. FALSE CLAIMS ACT, IN USE FOR MORE THAN 150 YEARS, COULD BE RESHAPED BY THE COURT As has been mentioned many times before, the largest percentage of fraud investigations are begun with some kind …

March 2016   IN THIS ISSUE — Offshore Companies, Abusive Trusts and More: Types of Tax Fraud — Detecting Tax Fraud GREETINGS! Welcome to the March edition of our newsletter! In this issue, we’ll examine different types of tax evasion and fraud schemes used by both individuals and corporations. OFFSHORE COMPANIES, ABUSIVE TRUSTS AND MORE: TYPES OF TAX FRAUD As millions of individuals prepare their tax returns, the types of schemes used to avoid paying taxes – and in some instances to gain illicit refunds — deserve scrutiny. While money laundering is not typically used solely for tax evasion purposes, …

February 2016   IN THIS ISSUE — Straw Ownership: Using Legitimate Intermediaries for Illegitimate Ends — Detecting Straw Buyer Fraud GREETINGS! Welcome to the February 2016 edition of our newsletter! In this issue, we’ll examine different types of straw ownership schemes, and offer ways to investigate them. STRAW OWNERSHIP: USING LEGITIMATE INTERMEDIARIES FOR ILLEGITIMATE ENDS Straw ownership is a fraud that can serve many purposes: in order for an unlicensed physician to open up a clinic; for a criminal individual to be able to buy property; or to further various other money laundering enterprises where a veneer of legitimacy is …

January 2016   IN THIS ISSUE — Faltering Business or Shady Business? Signs of Bankruptcy Fraud — Falling Victim to Bankruptcy Fraud: How to Respond GREETINGS! Welcome to the January edition of our newsletter! In this issue, we’ll examine the signs that a bankruptcy proceeding may have been initiated by, or tainted by, fraudulent acts as well as tips on how creditors can respond. FALTERING BUSINESS OR SHADY BUSINESS? SIGNS OF BANKRUPTCY FRAUD Since the financial crisis of 2008, courts have been awash in personal and corporate bankruptcy proceedings, with myriad companies seeking relief or protection from creditors. Some of …

December 2015   IN THIS ISSUE — Cop on the Beat With Hands Tied: Congress Hinders SEC Disclosure Rule — What the Lack of Disclosure May Mean in 2016 and Beyond GREETINGS! Welcome to the December edition of our newsletter! In this issue, we’ll examine the U.S. Securities and Exchange Commission’s efforts to require disclosure of political spending by public companies, and what the push against it could mean for 2016 and beyond. COP ON THE BEAT WITH HANDS TIED: CONGRESS HINDERS SEC DISCLOSURE RULE As influence peddling abuses go, bribery and corruption generate far greater attention than campaign finance …

November 2015   IN THIS ISSUE — Someone on the Inside: The Potential Roles of Whistle-blowers in Investigations — Cooperation and Scrutiny: Handling Whistle-Blowers GREETINGS! Welcome to the November edition of our newsletter! In this issue, we’ll examine how whistle-blowers can aid in corporate investigations, and the risks to both your company and the whistle-blowers themselves. SOMEONE ON THE INSIDE: THE POTENTIAL ROLES OF WHISTLE-BLOWERS IN INVESTIGATIONS While the traditional image of a whistle-blower is that of a “Deep Throat”-style source arranging clandestine meetings in a parking garage, in reality whistle-blowers have become a much more integral part of corporate …

October 2015   IN THIS ISSUE — Growth of Form PF Usage Increases Hedge Fund Manager Disclosure — Recent Requirements Stress Enforcement Over Disclosure GREETINGS! Welcome to the October edition of our newsletter! In this issue, we’ll examine recently enacted disclosure requirements put in place by the U.S. Securities and Exchange Commission, as well as the efficacy of some existing programs, and discuss what each could mean for you and your clients. GROWTH OF FORM PF USAGE INCREASES HEDGE FUND MANAGER DISCLOSURE Of the numerous regulatory reforms put in place after the 2007-2008 financial markets collapse, several have gained widespread …

September 2015   IN THIS ISSUE — New Rules of the Road: Justice Department Pushes Companies to Police Their Own — How to Respond to New Guidelines GREETINGS! Welcome to the September edition of our newsletter! In this issue, we’ll examine the U.S. Justice Department’s recent policy attempting to hold corporate executives accountable for fraud, and what you and your clients can do about it. NEW RULES OF THE ROAD: JUSTICE DEPARTMENT PUSHES COMPANIES TO POLICE THEIR OWN Since the financial crisis of 2007-2008, numerous banks and other investment entities have been fined and otherwise sanctioned, but one common complaint …

August 2015   IN THIS ISSUE — Business as Usual? FCPA Breing Used to Scrutinize Previously Routine Conduct — Something of Value: FCPA and the Letter of the Law GREETINGS! Welcome to the August edition of our newsletter! In this issue, we’ll look at challenges posed by a broadening interpretation of the U.S. Foreign Corrupt Practices Act, or FCPA. BUSINESS AS USUAL? FCPA BEING USED TO SCRUTINIZE PREVIOUSLY ROUTINE CONDUCT In recent years, fraud enforcement by authorities in the United States has increased in scope, owing to the (still evolving) Dodd-Frank regulations, the creation of a new federal consumer protection …

July 2015   IN THIS ISSUE — Resume Fraud: From Embellishments to Fabrications — Vetting Candidates and Uncovering Fraud GREETINGS! Welcome to the July edition of our newsletter! In this issue, we’ll examine the areas of expertise that prospective employees are most likely to lie about, and how to investigate such claims. RESUME FRAUD: FROM EMBELLISHMENTS TO FABRICATIONS Stories of job applicants lying on their resumes seem to occur on a regular basis, sometimes ensnaring high-profile subjects, like the former chief executive officer of Yahoo! Inc., Scott Thompson, who said he earned a degree in accounting many years before his …

June 2015   IN THIS ISSUE — Mini-IPOs: Another Tool For Small Investors — Buyer Beware: The Risks of Acquiring Shares in a Private Company GREETINGS! Welcome to the June edition of our newsletter! In this issue, we’ll examine how proposed “mini-IPOs” can be navigated, by both investors and the businesses seeking funds, to minimize risk. MINI-IPOS: ANOTHER TOOL FOR SMALL INVESTORS As we’ve previously discussed, in recent years various regulations and pieces of legislation have been enacted to create greater safeguards for small investors, while also attempting to create greater access to new opportunities. As alternative investment methods like …

May 2015   IN THIS ISSUE — Open Records Requests As a Research Tool — The Growth of Open Records Coverage GREETINGS! Welcome to the May edition of our newsletter! In this issue, we’ll examine how changes in disclosure requirements can assist investigative efforts. OPEN RECORDS REQUESTS AS A RESEARCH TOOL Open records requests, both on the state and federal level, can be a powerful tool when a researcher seeks to learn the inner workings of a regulatory agency, or about a company or individual’s dealings with that agency. With some exceptions, correspondence between individuals, and about various topics, can …

April 2015   IN THIS ISSUE — The Recent Rise In Accounting Fraud Cases And Why It Matters — What Accounting Fraud Means To Your Company GREETINGS! Welcome to the April edition of our newsletter! In this issue, we’ll examine a recent trend that suggests accounting fraud is increasing, and look at what your company can do about it. THE RECENT RISE IN ACCOUNTING FRAUD CASES AND WHY IT MATTERS Accounting fraud is certainly not a new phenomenon, especially since the accounting scandals of the early 2000s ushered in the Sarbanes-Oxley regulatory regime. Yet more than a decade after those …

March 2015   IN THIS ISSUE — Affinity Fraud: Exploiting a Sense of Safety and Common Purpose — Scrutinizing From Within: Tools to Fight Affinity Fraud GREETINGS! Welcome to the March edition of our newsletter! In this issue, we’ll examine the ways in which affinity fraud is perpetrated, and what you can do to help your clients avoid becoming victims. AFFINITY FRAUD: EXPLOITING A SENSE OF SAFETY AND COMMON PURPOSE Human beings naturally form groups, in part to help create order and security in a chaotic world. Whether a religious group, condominium association or alumni group, these groups can provide …

February 2015   IN THIS ISSUE — Shared Rewards, Uneven Risks? Conducting Business Under FCPA — Doing the Right Homework: Researching Companies for FCPA Due Diligence GREETINGS! Welcome to the February edition of our newsletter! In this issue, we’ll examine what recent fines and other actions concerning U.S. Foreign Corrupt Practices Act (“FCPA”) violations could mean for you and your clients. SHARED REWARDS, UNEVEN RISKS? CONDUCTING BUSINESS UNDER FCPA Since its inception in the late 1970s, the FCPA has been meant to promote ethical conduct by U.S. businesses who work with overseas parties. Part of this process often necessitates U.S. …

January 2015   IN THIS ISSUE — Disclosure and Civil Liberties: When Groups and Their Members Conflict — Going Against Leadership: When a Group Defies Its Backers GREETINGS! Welcome to the January 2015 edition of our newsletter! In this issue, we’ll examine issues that can arise when a self-regulatory organization tries to enact new regulations upon its membership. DISCLOSURE AND CIVIL LIBERTIES: WHEN GROUPS AND THEIR MEMBERS CONFLICT Self-regulatory groups, assembled and funded by certain industries to police themselves (such as in finance or accounting) were generally in vogue until the mid-2000s, when the collapse of Enron led to questioning …

December 2014   IN THIS ISSUE — New Year, New Problems: 2015’s Crystal Ball of Fraud — Using Technology To Track Cyber-Criminals GREETINGS! Welcome to the December edition of our newsletter! In this issue, we’ll look at emerging trends in fraud activity as 2014 comes to a close. NEW YEAR, NEW PROBLEMS: 2015’S CRYSTAL BALL OF FRAUD 2014 saw various computer-assisted fraud issues emerge, from the anonymity of networks like Tor (and the illicit transactions such a network can allow) to the rise, and perhaps the fall, of the quasi-currency Bitcoin. 2015 appears likely to continue a trend toward computing-dominated …

November 2014   IN THIS ISSUE — Seeking an Edge: Why Kickbacks Occur — How to Identify Kickbacks and Other Illegal Schemes GREETINGS! Welcome to the November edition of our newsletter! In this issue, we’ll examine the potential for kickbacks and other preferential treatment to arise in today’s competitive business landscape. SEEKING AN EDGE: WHY KICKBACKS OCCUR Given the competitive nature of many businesses, whether selling products or services, vendors are looking for any way to distinguish themselves from their peers. Ideally, this distinction begins and ends with the ability and willingness to deliver a superior product in a timely …

October 2014   IN THIS ISSUE — JOBS Act, Meant to Spur Investment, Also Created New Secrecy Layers — Piecing Together Typical IPO Information Shielded by the JOBS Act GREETINGS! Welcome to the October edition of our newsletter! In this issue, we’ll examine how reporting provisions for initial public offerings (IPOs) of a certain size, part of a 2012 bill meant to encourage funding of smaller companies, can create information gathering hurdles for potential investors. JOBS ACT, MEANT TO SPUR INVESTMENT, ALSO CREATED NEW SECRECY LAYERS In early 2012, Congress passed the Jumpstart Our Businesses and Startups (JOBS) Act, which …

September 2014   IN THIS ISSUE — Why Records Vanish — How to Bring Old Information Back to Life GREETINGS! Welcome to the September edition of our newsletter! In this issue, we’ll examine the pitfalls of reduced record retention windows and look at ways to work around the problem. WHY RECORDS VANISH Shrinking budgets and increased case loads have strained the ability of county courts across the country to preserve the records of their activities. These records, which are vital in researching anyone, are increasingly stored in digital media and cloud servers, but often are purged from a court’s files …

August 2014   IN THIS ISSUE — Lack of Accountability Regarding “Going Concern” Prompts Action — What Going Concern Issues Mean for Your Clients GREETINGS! Welcome to the August edition of our newsletter! In this issue, we’ll examine newly announced rules regarding accountability for “going concern” statements, and look at why they were put in place. LACK OF ACCOUNTABILITY REGARDING “GOING CONCERN” PROMPTS ACTION The rule that executives must attest that their company is able to function as a “going concern,” first proposed within the Financial Accounting Standards Board in 2008, have been subject to one of the more drawn-out …

July 2014   IN THIS ISSUE — “Retaliation” Against Whistleblowers Raises Concerns — How to Assist Whistleblowers In Assisting Your Investigation GREETINGS! Welcome to the July edition of our newsletter! in this issue, we’ll examine efforts to strengthen the whistleblower protections put in place in 2010, why advocates feel they need strengthening, and how to manage whistleblowers who can aid investigations. “RETALIATION” AGAINST WHISTLEBLOWERS RAISES CONCERNS When the Dodd-Frank financial industry reforms were signed into law in 2010, one provision was to create greater financial incentives for whistleblowers to come forward with information about fraud — and another provision was …

June 2014   IN THIS ISSUE — Risks Ahead: Assessing Companies Tainted by Corruption — Deep Dives: Identifying Red Flags of Ongoing Corruption Risk GREETINGS! Welcome to the June edition of our newsletter! In this issue, we’ll examine the aspects of due diligence when considering the acquisition of a company with corruption or regulatory red flags in its past. RISKS AHEAD: ASSESSING COMPANIES TAINTED BY CORRUPTION For many years, standard operating procedure for mergers & acquisitions has been for an acquirer to quickly turn the other way if corrupt behavior, such as the bribery of regulators, was identified at a …

May 2014   IN THIS ISSUE — Identifying Thieves in the Den: Increased Enforcement of AML Regulations — Warning Signs of Money Laundering GREETINGS! Welcome to the May 2014 edition of our newsletter! In this issue, we’ll examine the reasons for increased scrutiny of anti-money laundering practices, and explore how your company can be better protected. IDENTIFYING THIEVES IN THE DEN: INCREASED ENFORCEMENT OF AML REGULATIONS As the economy has become increasingly globalized in the last few decades, the opportunities for fraud have grown with the opportunities for commerce. While traditional banking institutions have long been aware of the need …

April 2014   IN THIS ISSUE — Proposed United Kingdom Company Registry Changes Could Increase Disclosure GREETINGS! Welcome to the April edition of our newsletter! In this issue, we’ll examine the potential ramifications of proposed changes to the United Kingdom’s corporate registry. PROPOSED UNITED KINGDOM COMPANY REGISTRY CHANGES COULD INCREASE DISCLOSURE In late April 2014 Vince Cable, the United Kingdom’s business secretary, announced legislation that would make public all beneficial owners of United Kingdom-registered companies; currently if an investor uses a company located elsewhere, such as in the Cayman Islands, to own a portion of a company, the true owners …

March 2014   IN THIS ISSUE — New Scenarios Test Limits of FCPA — Changing Rules For a Changing World GREETINGS! Welcome to the March edition of our newsletter! In this issue, we’ll examine a recent U.S. Justice Department determination concerning the Foreign Corrupt Practices Act, and what it could mean for transnational businesses of all kinds. NEW SCENARIOS TEST LIMITS OF FCPA While it is well-known that one of the main applications of the FCPA is to keep government officials from being corrupted by financial incentives from companies seeking their favor, that principle recently encountered an interesting test. In …

February 2014   IN THIS ISSUE — Is Ignorance Bliss? New Study Reveals Less Than Half of Companies Perform Due Diligence — Preventive Measures: The Benefits of Due Diligence GREETINGS! Welcome to the February edition of our newsletter! In this issue, we’ll examine a recent study about trends among end users of investigative due diligence — particularly why some potential users aren’t engaged in such research. IS IGNORANCE BLISS? NEW STUDY REVEALS LESS THAN HALF OF COMPANIES PERFORM DUE DILIGENCE The business news headlines paint a daunting picture: insider trading convictions, bribery scandals, accounting fraud on a nearly daily basis. …

January 2014   IN THIS ISSUE — Expanding Markets, Expanding Risks: Doing Business Worldwide — Protecting Your Company from FCPA Prosecutions Before They Happen GREETINGS! Welcome to the January edition of our newsletter! In this issue, we’ll examine how the Foreign Corrupt Practices Act (“FCPA”) can affect your business in an increasingly global marketplace. EXPANDING MARKETS, EXPANDING RISKS: DOING BUSINESS WORLDWIDE In the last 20 years, technological advances have changed the way commerce takes place: communication happens instantaneously in many parts of the world, and billions of people in Asia and Africa now have smartphones. As goods and services expand …

December 2013   IN THIS ISSUE — Emerging Trends in Fraud Detection – and Perpetration — New Regulatory Regimes May Cause Old Headaches in 2014 GREETINGS! Welcome to the December 2013 edition of our newsletter! In this issue, we’ll look ahead to what 2014 is likely to bring in terms of new regulations and fraud trends, and explain what it might mean for you and your clients. EMERGING TRENDS IN FRAUD DETECTION – AND PERPETRATION As several new rules concerning financial markets take shape in 2014 — such as the crowdfunding proposal we discussed in a previous newsletter — new …

November 2013   IN THIS ISSUE — Not-So-Sweet Charity: New Rules Could Affect Groups’ Activities and Fundraising — Making Informed Donor Decisions: Steps to Remain Vigilant GREETINGS! Welcome to the November edition of our newsletter! In this issue, we’ll look at several trends, and new regulations, affecting charitable giving, and discuss some ways your clients can remain vigilant as they remain generous. NOT-SO-SWEET CHARITY: NEW RULES COULD AFFECT GROUPS’ ACTIVITIES AND FUNDRAISING As the year draws to a close and time is spent thinking of those less fortunate, many people reflect on their prosperity for this year by reaching out …

October 2013   IN THIS ISSUE — Bad Things Come in Small Packages: The Perils of Crowdfunding — Is Three a Crowd? Crowdfunding, Investors and the SEC GREETINGS! Welcome to the October edition of our newsletter! In this issue, we’ll examine the processes (and lack thereof) regarding crowdfunding. BAD THINGS COME IN SMALL PACKAGES: THE PERILS OF CROWDFUNDING In recent years, as some traditional financing sources have struggled following the 2008 financial crisis, a more “open source” method known as crowdfunding — where companies can raise as much as $1 million via solicitations to multiple types of investors — has …

September 2013   IN THIS ISSUE — Scheme a Little Scheme: Types of Pension Fraud — Warning Signs: How to Detect Pension Fraud GREETINGS! Welcome to the September edition of our newsletter! In this issue, we’ll examine methods of committing pension fraud, and recommend some tactics your firm can undertake to detect and prevent it. SCHEME A LITTLE SCHEME: TYPES OF PENSION FRAUD A pension plan, which can include defined benefit plans and other forms, is a useful tool for both employers (for whom matching contributions are typically tax-deductible) and employees (who also get a tax deduction and build retirement …

August 2013   IN THIS ISSUE — Flying Blind: The Perils of Lending in a Crisis — Warning Signs: Red Flags Before and After a Loan is Made GREETINGS! Welcome to the August edition of our newsletter! In this issue, we’ll examine the role of due diligence in the lending process, whether that lender is a private entity, or the federal government. FLYING BLIND: THE PERILS OF LENDING IN A CRISIS Rahm Emmanuel, then the White House chief of staff, reportedly said in 2008 — as financial markets collapsed — that you should “never allow a crisis to go to …

July 2013   IN THIS ISSUE — Scarcity, Security and Scams Can Lead to Scandal: How Commodities Fraud Works — A Deal Too Good to be True: Spotting Commodities Fraud GREETINGS! Welcome to the July 2013 edition of our newsletter! In this issue, we’ll examine differing types of commodities fraud, and offer some examples of how to protect your clients. SCARCITY, SECURITY AND SCAMS CAN LEAD TO SCANDAL: HOW COMMODITIES FRAUD WORKS Commodities are in almost everything we consume today — smartphones, televisions, and, increasingly, headlines. As the U.S. Senate investigates whether large Wall Street firms were hoarding precious metals …

June 2013   IN THIS ISSUE — Deep Connections Require a Deep Dive: Researching High Profile Executives — Big Business, Big Issues: Red Flags to Consider in Vetting Executives GREETINGS! Welcome to the June 2013 edition of our newsletter! in this issue, we’ll examine the necessity of thorough investigation of high-profile executives and board members, and look at techniques to help accomplish this objective. DEEP CONNECTIONS REQUIRE A DEEP DIVE: RESEARCHING HIGH PROFILE EXECUTIVES While revolving doors between the political and business world are nothing new, a recent wave of retirements of high-profile politicians who have taken seats on corporate …

May 2013   IN THIS ISSUE — Government Backed, But Still Problematic: Fraud in the Bond Market — Checking All of the Details: Investigating Bond Sales GREETINGS! Welcome to the May edition of our newsletter! In this issue, we’ll examine instances of fraud in the municipal bond markets, often thought of as a safe place for investor funds, and detail methods that can help your clients avoid losses from such fraud. GOVERNMENT BACKED, BUT STILL PROBLEMATIC: FRAUD IN THE BOND MARKET Bond buying has been a staple of many investment portfolios for most of the last 70 years, and it’s …

April 2013   IN THIS ISSUE — Strategic Approach: Cooperation Versus Confrontation in FCPA Probes — Turning Over Stones: A Holistic Approach to FCPA Cooperation GREETINGS! Welcome to the April edition of our newsletter! In this issue, we’ll examine how working with prosecutors can help your company through Foreign Corrupt Practices Act (“FCPA”) inquiries, and discuss some of the best avenues for cooperation. STRATEGIC APPROACH: COOPERATION VERSUS CONFRONTATION IN FCPA PROBES Investigations and prosecutions of U.S. companies under FCPA have risen in the last decade, and an increasingly global marketplace suggests that the proliferation of these efforts will continue. While …

March 2013   IN THIS ISSUE — Like “Argo”, Minus the Hostage Rescue: Phony Film Crews and Other Scams — Avoiding Guilt by Association With Rebate Scams GREETINGS! Welcome to the March edition of our newsletter! In this issue, we’ll examine various government rebate scams and discuss ways you can protect your clients from being tainted by association. LIKE “ARGO”, MINUS THE HOSTAGE RESCUE: PHONY FILM CREWS AND OTHER SCAMS As cash-strapped city governments have looked to leverage their locations for more revenue, allowing film crews to use famous locations within city limits has become a popular way of boosting …

February 2013   IN THIS ISSUE — Navigating a Global Economy: The Importance of FCPA Compliance — Caution On All Sides: Risks for Participants — And Prosecutors GREETINGS! Welcome to the February 2013 edition of our newsletter! In this issue, we’ll examine best practices for Foreign Corrupt Practices Act investigations, and the potential downside if those practices aren’t properly executed. NAVIGATING A GLOBAL ECONOMY: THE IMPORTANCE OF FCPA COMPLIANCE Companies of all sizes conduct business internationally in today’s economy, certainly more so than even 30 years ago. While the globalization of trade has opened up markets to businesses, and offered …

January 2013   IN THIS ISSUE — A Stanford Effect? The Issues Raised in Review of Shareholder Suits — Stanford Ruling Could Change Securities Fraud Landscape GREETINGS! Welcome to the January edition of our newsletter! In this issue, we’ll examine the issues involved in the R. Allen Stanford fraud case, which the U.S, Supreme Court has agreed to hear, and how their potential ruling could affect fraud investigations and shareholder suits. A STANFORD EFFECT? THE ISSUES RAISED IN REVIEW OF SHAREHOLDER SUITS Billionaire financier R. Allen Stanford, convicted in July 2012 of running a Ponzi scheme and sentenced to 110 …

December 2012   IN THIS ISSUE — Making Money From News: How Short-Sellers Operate — Information Protects Against Information: How to Defend Against Short-Sellers GREETINGS! Welcome to the December 2012 edition of our newsletter! In this issue, we’ll examine how activist investors looking to change (or control) a public company’s leadership can use negative events or information to their advantage, and what your company can do about it. MAKING MONEY FROM NEWS: HOW SHORT-SELLERS OPERATE In addition to the traditional position of holding a public company’s stock for a long period of time in hopes for capital appreciation, investors can …

November 2012   IN THIS ISSUE — Who You Know: The Importance of Relationships in Fraud Investigations — Digging Through The Past: Finding Lower-Profile Relationships GREETINGS! Welcome to the November 2012 edition of our newsletter! In this issue, we’ll examine how various networks and interconnections between parties can be an important component of investigating fraud. WHO YOU KNOW: THE IMPORTANCE OF RELATIONSHIPS IN FRAUD INVESTIGATIONS Every fraud investigation – from a gas station’s employee embezzlement to a multi-billion dollar revenue recognition scheme — shares one key component: people are behind each and every case. To paraphrase Barbara Streisand, these are …

October 2012   IN THIS ISSUE — Outside Directors, Insider Trading: The Need for Independence — Admission Testing: Performing Due Diligence Before Opening the Boardroom Suite GREETINGS! Welcome to the October 2012 edition of our newsletter! In this issue, we’ll examine how conflicts of interest among a company’s audit committee members can cause enforcement concerns, look at what the U.S. Securities and exchange Commission is doing about it, and what your clients can do about it as well. OUTSIDE DIRECTORS, INSIDER TRADING: THE NEED FOR INDEPENDENCE The recent sentencing of former Goldman Sachs Managing Director Rajat Gupta to two years …

September 2012   IN THIS ISSUE — Turning Hot Tips to Cash: Law Enforcement’s Increased Use of Tipsters — A Fine Line: Corporate Challenges in Protecting Whistleblowers and Companies GREETINGS! Welcome to the September edition of our newsletter! In this issue, we’ll examine the effect of recently enacted whistleblower regulations, and look at the opportunity for rooting out fraud that is accompanied by the risks posed by tipsters who may have had an active role in frauds which they are now seeking to expose. TURNING HOT TIPS TO CASH: LAW ENFORCEMENT’S INCREASED USE OF TIPSTERS Tips from current or former …

August 2012   IN THIS ISSUE — Secretive No More: The Pros and Cons of Marketing Hedge Funds to a Broader Public — Risks to Hedge Funds of Broader Appeal Welcome to the August edition of our newsletter! In this issue, we’ll examine how the SEC’s recently proposed regulation concerning the marketing of hedge funds could affect that industry and its disclosure practices. SECRETIVE NO MORE: THE PROS AND CONS OF MARKETING HEDGE FUNDS TO A BROADER PUBLIC Hedge funds have often been portrayed as financial tools largely inaccessible to the broader public – a perception which has been bolstered …

July 2012   IN THIS ISSUE — Running in Place: The Impact of Delayed Dodd-Frank Implementation on Fighting Fraud — Prevention is the Best Medicine: Why it Doesn’t Pay to Wait For Regulators GREETINGS! Welcome to the July 2012 edition of our newsletter! In this issue, we’ll examine how companies seeking to prevent fraud can fill in the as-yet unimplemented pieces of the Dodd-Frank financial reform bill, which remains largely unenforced two years after its passage. RUNNING IN PLACE: THE IMPACT OF DELAYED DODD-FRANK IMPLEMENTATION ON FIGHTING FRAUD Since the passage of the Dodd-Frank financial reform bill in mid-2010, lobbyists …

June 2012   IN THIS ISSUE — Microcap, Macro Hype: The Allure of Penny Stocks and Shell Companies — Managing in an Ocean of Risk: Diligence and Vigilance in Penny Stocks GREETINGS! Welcome to the June edition of our newsletter! In this issue, we’ll examine the role shell companies play in promoting “penny stock” listings used in “pump and dump” schemes to bilk investors, and how you can protect your clients from such schemes. MICROCAP, MACRO HYPE: THE ALLURE OF PENNY STOCKS AND SHELL COMPANIES The “get rich quick scheme” has in all likelihood existed since well before the advent …

May 2012   IN THIS ISSUE — Lies, Damn Lies and Curriculum Vitaes: Why We Verify — Know Thyself: Investigating Potential Hires as if They Were Adversaries GREETINGS! Welcome to the May 2012 edition of our newsletter! In this issue, we’ll examine why vetting of employees should be a crucial part of any hiring process. LIES, DAMN LIES AND CURRICULUM VITAES: WHY WE VERIFY Trust is an essential part of any employer-employee relationship, and it has been an overabundance of trust that most often leads to trouble for a company. The recent case of Yahoo!’s Scott Thompson — who lied …

April 2012   IN THIS ISSUE — No Good Deed Goes Unpunished: Why Vetting Donors Matters — Setting Limits and Digging Deep: How to Investigate Donors GREETINGS! Welcome to the April edition of our newsletter! In this issue, we;ll examine the perils of failing to vet donors and supporters as you might an adversary party, and also look at methods to strengthen the due diligence effort so as to mitigate risk and unwelcome surprises. NO GOOD DEED GOES UNPUNISHED: WHY VETTING DONORS MATTERS Nearly every business in every industry, at some point, relies on the support of others — whether …

March 2012   IN THIS ISSUE — Investigating Experts: When a Wealth of Experience Becomes a Treasure Trove of Evidence — Digging Into the Details: Research Techniques for Investigating Experts GREETINGS! Welcome to the March 2012 edition of our newsletter! In this issue, we’ll examine how to investigate the backgrounds of expert witnesses in order to identify possible conflicts of interest or other deficiencies prior to their testimony. INVESTIGATING EXPERTS: WHEN A WEALTH OF EXPERIENCE BECOMES A TREASURE TROVE OF EVIDENCE Expert witnesses serve an essential role in American jurisprudence: they are not called upon by the respective sides to …

February 2012   IN THIS ISSUE — Tone at the Top Can Be Altered by a Strong Personality — Tone at the Top and Corporate Governance GREETINGS! Welcome to the February edition of our newsletter! in this issue, we’ll examine how a powerful persona at the top of any organization, large or small, can create blind spots toward fraudulent activity, and suggest ways to navigate around such concerns. TONE AT THE TOP CAN BE ALTERED BY A STRONG PERSONALITY Much is made among fraud examiners and business consultants alike about “tone at the top” — a respect for and adherence …

January 2012   IN THIS ISSUE — Knowing Where to Go Before You Get There: Researching Before an Interview — Getting Down to the Details: Conducting Informational and Admission-Seeking Interviews GREETINGS! Welcome to the January edition of our newsletter! In this issue, we’ll examine how a carefully prepared and conducted interview can bolster a fraud investigation, while less than careful treatment of an interview subject can become a major obstacle. KNOWING WHERE TO GO BEFORE YOU GET THERE: RESEARCHING BEFORE AN INTERVIEW Copious amounts have been written on the art of conducting an interview, especially an admission-seeking interview in person, …

December 2011   IN THIS ISSUE — Cleaning Out the System: Fraud in Federal Budgets — Blowing the Whistle on Whistle-Blowers: Vetting the Claims Made Under the False Claims Act GREETINGS! Welcome to the December edition of our newsletter! In this issue we’ll examine how fraud can affect government spending. CLEANING OUT THE SYSTEM: FRAUD IN FEDERAL BUDGETS With a clarion call for spending restraint issued in 2010 elections — and a Congress that subsequently can only agree to fund the government nine months at a time — deficit reduction and management of the federal budget have gained new focus. …

November 2011   IN THIS ISSUE — After the Fall: Finding Assets After Bankruptcy — Turning Over Every Rock: Finding Hidden Assets GREETINGS! AFTER THE FALL: FINDING ASSETS AFTER BANKRUPTCY The recent bankruptcy of investment firm MF Global — reportedly on pace to be the eighth largest bankruptcy on record, with as much as $1.2 billion of client funds unaccounted for — has cast a renewed spotlight on both the financial system and the corporate bankruptcy process. Having long been the arena of last resort for fraud victims to make their claims in hopes of recovering lost assets, bankruptcy courts …

October 2011   IN THIS ISSUE — Senior Medicare Patrols: Eyes on the Ground Against Fraud — Hotlines as a Tool in the Private Sector Versus Government Programs GREETINGS! Welcome to the October edition of our newsletter! In this issue, we’ll look at increased efforts to raise awareness among senior citizens about Medicare fraud, and gauge their efficacy in actually deterring fraudulent activity. SENIOR MEDICARE PATROLS: EYES ON THE GROUND AGAINST FRAUD “Fraud, waste and abuse” are often part of the discussion when talking of reducing the federal budget, where payments toward obligations concerning Social Security and Medicare are cited …

September 2011   IN THIS ISSUE — “Financial Experts” and Their Conflicts: the Role of the Audit Committee — Sarbanes-Oxley, Reform Attempts and the Need for Vigilance GREETINGS! Welcome to the September edition of our newsletter! In this issue, we’ll examine the importance of vetting a publicly traded company’s board of directors, particularly audit committee members, before making a significant investment, partnership, or other transaction. “FINANCIAL EXPERTS” AND THEIR CONFLICTS: THE ROLE OF THE AUDIT COMMITTEE Every publicly traded company is supposed to, and typically does, rely on its board of directors for overall strategic guidance, insight into market trends, …

August 2011   IN THIS ISSUE — Whistleblower Protection and Prosecutorial Limitations: Dodd-Frank’s Mixed Messages — Can a Work in Progress Work at All? Implementation of Dodd-Frank’s Provisions GREETINGS! Welcome to the August edition of our newsletter! In this issue, we’ll look back at the provisions of the “Dodd-Frank” financial regulatory bill and assess their anti-fraud effectiveness after the bill’s first year of enforcement. WHISTLEBLOWER PROTECTION AND PROSECUTORIAL LIMITATIONS: DODD-FRANK’S MIXED MESSAGES After one year in effect, the broader anti-fraud provisions of the new financial regulatory bill have garnered the most attention: plaintiffs attorneys have reported a surge in employee …

July 2011   IN THIS ISSUE — FCPA and the Shadowy World of Information Gathering — Is FCPA the Right Prosecutorial Tool for Phone Hacking? A Historical Analysis GREETINGS! Welcome to the July edition of our newsletter! In this issue, we’ll examine how the recently announced U.S. Justice Department probe of News Corp. may seek to apply Foreign Corrupt Practices Act (FCPA) criteria, and look at how some of the allegations may differ from other FCPA cases. FCPA AND THE SHADOWY WORLD OF INFORMATION GATHERING As the U.S. Justice Department announced that it would look into whether global media conglomerate …

June 2011   IN THIS ISSUE — Phony Expenses, Real Costs: Travel Fraud and Other Schemes — Keen Eyes on Your Own Guys: How to Detect Expense Fraud GREETINGS! Welcome to the June edition of our newsletter! In this issue, we’ll examine the differing types of expense fraud and how your company can defend against it. PHONY EXPENSES, REAL COSTS: TRAVEL FRAUD AND OTHER SCHEMES In sales and other industries, travel is such a necessary part of doing business that most employers don’t give it a second thought. As long as the employee attends the meeting and closes the sale, …

May 2011   IN THIS ISSUE — Beyond Politics: The Effects of Immigration Fraud on Businesses — Old Mouse, New Traps: Enforcement Efforts and Preventative Techniques GREETINGS! Welcome to the May edition of our newsletter! In this issue, we’ll examine new techniques and efforts used by authorities to root out immigration fraud, and how you and your clients can remain protected from possible exposure. BEYOND POLITICS: THE EFFECTS OF IMMIGRATION FRAUD ON BUSINESSES The employment of people who immigrate to the United States illegally has been a political hot potato for at least 20 years, with the topic gaining attention …

April 2011   IN THIS ISSUE — Tricks of Tax Fraud: Some Schemes Grow Complex, Others Simple — Catching Tax Fraud Before it Becomes a Federal Case GREETINGS! Welcome to the April edition of our newsletter! In this issue, we’ll examine some of the more interesting recent attempts at tax fraud, and look at how the lessons from each case can be applied to a diligent fraud prevention practice. TRICKS OF TAX FRAUD: SOME SCHEMES GROW COMPLEX, OTHERS SIMPLE It’s an old refrain that nothing is certain in life but death and taxes — and often debated as to which …

March 2011   IN THIS ISSUE — Preying on Compassion: How Fraudsters Exploit Tragedy for Financial Gain — How to Avoid Disaster-Related Charitable Fraud GREETINGS! Welcome to the March edition of our newsletter! In this issue, as the world comes together to help Japan following the earthquake, tsunami and subsequent nuclear reactor failure, we’ll examine key indicators of fraudulent disaster-related charitable solicitations, and how to verify a charity’s background. PREYING ON COMPASSION: HOW FRAUDSTERS EXPLOIT TRAGEDY FOR FINANCIAL GAIN The trifecta of tragedy in Japan, arriving in such rapid succession, is nothing short of stunning in its magnitude. But unfortunately, …

February 2011   IN THIS ISSUE — Probing Histories Leads to Probing Questions — How History can Affect the Present: The Importance of the Deep Dig GREETINGS! Welcome to the February edition of our newsletter! In this issue, we’ll examine how extensive pre-interview research can enhance the actual question-and-answers sessions, from employee interviews to witness depositions. PROBING HISTORIES LEADS TO PROBING QUESTIONS There is no question that much of the skill in conducting an interview lies in the interviewer’s unique skill set: an ability to read body language, pauses and other nonverbal cues, cross-reference that data instantly with the answers …

January 2011   IN THIS ISSUE — Robo-Signings, Financial Reform and Other Fraud Stories of 2010 — Looking Into the Crystal Ball of Fraud for 2011 GREETINGS! Welcome to the January edition of our newsletter! In this issue, as we begin a new year, we’ll look back on some of the more significant fraud-related stories of 2010 and look ahead to what may be on the horizon in 2011. ROBO-SIGNINGS, FINANCIAL REFORM AND OTHER FRAUD STORIES OF 2010 2010 saw a series of efforts by government agencies to “toughen up”, at least on the surface, and strengthen anti-fraud efforts after …

December 2010   IN THIS ISSUE — The Deficit Commission: Closing Loopholes, Reducing Fraud? — Giving it All Away: Tax Reform and Charitable Giving — Hard Truths and Harder Choices GREETINGS! Welcome to the December 2010 edition of our newsletter! in this issue, we’ll examine the recent proposals of the National Commission on Fiscal Responsibility and Reform to evaluate whether their ideas will reduce fraud as they reform processes. THE DEFICIT COMMISSION: CLOSING LOOPHOLES, REDUCING FRAUD? In early December 2010, President Barack Obama’s bipartisan deficit reduction, empaneled less than ten months earlier, delivered a report that proposed a multitude of …

November 2010   IN THIS ISSUE — A Tale of Carrots With Few Sticks: An Appraisal of TARP — No Strings Attached, But Look Out For That Subpoena GREETINGS! Welcome to the November 2010 edition of our newsletter! In this issue, we’ll examine the oversight efforts regarding the Troubled Asset Relief Program (TARP) as it formally concludes, and look at areas where monitoring could have been improved. A TALE OF CARROTS WITH FEW STICKS: AN APPRAISAL OF TARP When TARP was enacted in late 2008, it was seen as a response to a crisis of extreme proportions — and was …

October 2010   IN THIS ISSUE — Friends, Love and Loyalty: When Officers Have Conflicts — Identifying Motivators of Conflict of Interest Fraud — In the next issue GREETINGS! Welcome to the October 2010 edition of our newsletter! In this issue, we’ll look at investigating conflicts of interest. including some unusual ways in which an officer or director of a company might have a conflict. FRIENDS, LOVE AND LOYALTY: WHEN OFFICERS HAVE CONFLICTS Since at least the post-Watergate political environment of the 1970s, the term “conflict of interest” has entered the American lexicon, and its meaning has evolved into something …

September 2010   IN THIS ISSUE — The Fall of the House of Enron and the Quest for Accountability — “Honest Services” Prosecutions as Anti-Fraud Tool: Too Broad of a Brush? — A Skilling Chilling Effect? Debating the Aftermath of the Supreme Court’s Decision GREETINGS! Welcome to the September edition of our newsletter! In this issue, we’ll look at whether the U.S, Supreme Court’s recent ruling regarding former Enron Chief Executive Officer Jeffrey Skilling will affect other anti-fraud efforts. THE FALL OF THE HOUSE OF ENRON AND THE QUEST FOR ACCOUNTABILITY It has been nearly a decade since the swift …

August 2010   IN THIS ISSUE — Key Anti-Fraud Provisions of the Dodd-Frank Bill — Dodd-Frank: Better Anti-Fraud Tools Than SarbOx? — In the next issue GREETINGS! Welcome to the August 2010 edition of our newsletter! In this issue, we’ll examine the anti-fraud measures enacted as part of the so-called “Dodd-Frank” financial regulation bill, and see how they compare with the Sarbanes-Oxley provisions implemented in 2002. KEY ANTI-FRAUD PROVISIONS OF THE DODD-FRANK BILL The recently enacted “Dodd-Frank Wall Street Reform and Consumer Protection Act,” whose title hints at its length of 2,319 pages, contains many provisions meant to protect consumers …

July 2010   IN THIS ISSUE — It’s All Relative(s): Business Practices in Developing Nations — One World, Many Priorities: Doing Business in a Global Marketplace — In the next issue GREETINGS! Welcome to the July edition of our newsletter! In this issue, we’ll examine the issue of how differing cultural norms, values and definitions of “business ethics” affect the investigation and prosecution of corruption inquiries in various nations throughout the world. IT’S ALL RELATIVE(S): BUSINESS PRACTICES IN DEVELOPING NATIONS Corruption is one of the world’s oldest practices, and whether you’re discussing rights to oil fields offshore of Ghana or …

June 2010   IN THIS ISSUE — Watching the Watchdogs: Gauging Effectiveness of Federal Anti-Fraud Actions — Private Sector Fraudsters and the Stimulus Bill — Article 3 Headline GREETINGS! Welcome to the June 2010 edition of our newsletter! In this issue, we’ll look at how effective the various government agencies tasked with monitoring fraud have been, especially as stimulus monies have been distributed within the last year. WATCHING THE WATCHDOGS: GAUGING EFFECTIVENESS OF FEDERAL ANTI-FRAUD ACTIONS When the federal government decided to dole out $787 billion in stimulus monies following the implementation of the American Recovery and Reinvestment Act in …

May 2010   IN THIS ISSUE — Breaking it Down: Why and How Smurfing Works — Trouble in Smurf Village: How to Find Smurfs — In the next issue GREETINGS! Welcome to the May edition of our newsletter! In this issue, we’ll examine the money laundering technique known as “smurfing,” and look at how to track and deter it. BREAKING IT DOWN: WHY AND HOW SMURFING WORKS Named after the 1980s cartoon series about a group of small characters which all appear relatively similar, “smurfing” applies that approach to the laundering of illicit funds. This can be done by taking …

April 2010   IN THIS ISSUE — Seeking Whistleblowers: Behind SEC Call for Financial Fraud Tips — Managing Assets: How to Handle Whistleblowers — In the next issue GREETINGS! Welcome to the April edition of our newsletter! In this issue, we’ll look at the U.S. Securities and Exchange commission’s efforts to increase whistleblower tips concerning financial fraud, its effectiveness, and how to best handle whistleblowers. SEEKING WHISTLEBLOWERS: BEHIND SEC CALL FOR FINANCIAL FRAUD TIPS In the wake of the Bernie Madoff scandal, where the SEC was chastised for not heeding the warnings of Certified Fraud Examiner Harry Markopolos until it …

March 2010   IN THIS ISSUE — Responding to the Crisis: The Case for CFPA — O Canada? Effectiveness of the Financial Consumer Agency of Canada — In the next issue GREETINGS! Welcome to the March 2010 edition of our newsletter! In this issue, we’ll examine the stated reasons for creating the Consumer Fraud Protection Agency, and look at whether the system on which it’s modeled has proven effective enough to merit importation to the United States. RESPONDING TO THE CRISIS: THE CASE FOR CFPA The events are all too familiar for professionals and laymen alike: in the fall of …

January 2010   IN THIS ISSUE — A Problem for Every Solution: Difficulties Fighting Health Care Fraud — Every Door You Close Opens Another: Efforts to Fight Health Care Fraud — In the next issue GREETINGS! Welcome to the February 2010 edition of our newsletter! In this issue, we’ll look at the pervasive problem of fraud in the health care industry, and what proposed reform do – and don’t do – about it. A PROBLEM FOR EVERY SOLUTION: DIFFICULTIES FIGHTING HEALTH CARE FRAUD It’s no surprise to anyone that large infrastructure – whether a private corporation or government bureaucracy – …

January 2010   IN THIS ISSUE — How to Know the Devil You Think You Know: An FCPA Primer — Learning the rules of the Road: Resources for Investigating Foreign Businesses — In the next issue GREETINGS! Welcome to the January 2010 edition of our newsletter! in this issue, we’ll examine the perils of not conducting proper due diligence when working with foreign businesses, particularly when those groups are run by former government officials. HOW TO KNOW THE DEVIL YOU THINK YOU KNOW: AN FCPA PRIMER As we’ve mentioned in this space before, the globalized marketplace represents an ever-expanding buffet …

December 2009   IN THIS ISSUE — Fruitful Trees Grown From Bad Seeds: The Tom Petters Case — Blurring the Lines: The Effects of Fraudulent Funds Invested in Real Companies — In the next issue GREETINGS! Welcome to the December edition of our newsletter! In this issue, we’ll examine the case of Tom Petters, who is accused of using the proceeds from his Ponzi scheme to buy stakes in legitimate companies. FRUITFUL TREES GROWN FROM BAD SEEDS: THE TOM PETTERS CASE While Bernie Madoff was the face of modern-day Ponzi schemes — literally, with Halloween masks bearing his likeness being …

November 2009   IN THIS ISSUE — Someone Has Your Number: Social Security Numbers and Identity Theft — Chasing Shadows: Investigating Identity Theft — In the next issue GREETINGS! Welcome to the November edition of our newsletter! In this issue, we’ll examine the hazards posed by the ubiquitous nature of Social Security Numbers as a “national identifier,” and steps that can be taken to both prevent identity theft and investigate it after the fact. SOMEONE HAS YOUR NUMBER: SOCIAL SECURITY NUMBERS AND IDENTITY THEFT When it was first instituted in the 1930s, the Social Security system was not envisioned as …

October 2009   IN THIS ISSUE — A New Era of Responsibility? Gauging Efforts to Fight Mortgage Fraud — Progress or Success? Sizing Up Reform Efforts — In the next issue GREETINGS! Welcome to the October edition of our newsletter! In this issue, we’ll examine ongoing efforts to combat mortgage fraud one year after the financial markets collapsed, and analyze what lessons have been learned by regulators and financial institutions in its wake. A NEW ERA OF RESPONSIBILITY? GAUGING EFFORTS TO FIGHT MORTGAGE FRAUD On September 15, 2008, Lehman Brothers sought bankruptcy protection, a move that would later be credited …

September 2009   IN THIS ISSUE — Raise the Red Flag: Civil Debt Records as Fraud Motivators — An Unsettling Past: Every Record Tells a Story — In the next issue GREETINGS! Welcome to the September issue of our newsletter! In this issue, we’ll examine how civil records can be predictors of potential employee fraud or misconduct. RAISE THE RED FLAG: CIVIL DEBT RECORDS AS FRAUD MOTIVATORS Virtually every human resources department knows enough to run a criminal background check, often involving fingerprints and a nationwide history check by the Federal Bureau of Investigation, coupled with acquiring a consumer credit …

August 2009   IN THIS ISSUE — The High Price of Doing Business Abroad? Defining Bribery and Incentives — All Stick, No Carrot: Increased FCPA Enforcement Efforts — In the next issue GREETINGS! Welcome to the August 2009 edition of our newsletter! In this issue, we’ll examine the finer points of transacting business with foreign entities and complying with the U.S. Foreign Corrupt Practices Act. THE HIGH PRICE OF DOING BUSINESS ABROAD? DEFINING BRIBERY AND INCENTIVES Although it has only been 32 years since the United States passed the Foreign Corrupt Practices Act, which defined bribery in an international commercial …

July 2009   IN THIS ISSUE — Bring Check and Skepticism to Closing: Signs of Mortgage Fraud — The Effectiveness of Ongoing Reform Efforts — In the next issue GREETINGS! Welcome to the July 2009 edition of our newsletter! In this issue, we’ll examine ongoing efforts to crack down on mortgage fraud, their effectiveness and possible areas for improvement. BRING CHECK AND SKEPTICISM TO CLOSING: SIGNS OF MORTGAGE FRAUD As the housing boom that began in earnest in the mid-1990s crested, the amount of transactions involving real estate – whether transfers or refinancing – skyrocketed. As activity surged, predators intent …

June 2009   IN THIS ISSUE — Fudging the Numbers: Pension Fraud Allegations at GM Months Before Crisis — Keeping an Eye on the Gatekeepers in Auto Overhaul — In the next issue GREETINGS! Welcome to the June 2009 edition of our newsletter! In this issue, we’ll look at episodes of fraud concerning the pension plans at some of the large U.S. automakers who are currently fighting for their continued existence. Fudging the Numbers: Pension Fraud Allegations at GM Months Before Crisis General Motors has announced its bankruptcy at the urging of the federal government. While many commentators have at times …

May 2009   IN THIS ISSUE — Paper Trails in Unlikely Places: Following Hidden Assets — Piercing the Veil: Tracing Assets and Recent Reform Efforts — In the next issue GREETINGS! Welcome to the May 2009 edition of our newsletter! In this issue, we’ll look at how to locate “hidden” assets in disclosure-unfriendly (and often exotic) locales such as the Cayman Islands, Switzerland and elsewhere. PAPER TRAILS IN UNLIKELY PLACES: FOLLOWING HIDDEN ASSETS Entire countries, indeed entire industries, count on being able to make a client’s records unavailable – through perfectly legal means – for public inspection, whether by auditors, …

April 2009   IN THIS ISSUE — A Unique Trust: the Need for Background Screening of Administrative Candidates at Universities — An Ounce of Prevention vs. A Pound of Cure: Reasons to Run Background Checks — In the next issue Welcome to the April 2009 edition of our newsletter! In this issue, we’ll examine cases of fraud and unacceptable conduct by university personnel that should have been detected and prevented in advance. We’ll also look at the main reasons many universities do not screen senior administrators, faculty, and even graduate student applicants. A UNIQUE TRUST: THE NEED FOR BACKGROUND SCREENING …

March 2009   IN THIS ISSUE — Change We Can Believe In? Promised Steps to Police Bailout Funds May Fall Short — Words and Deeds: What Obama Has and Hasn’t Done Thus Far on Transparency — In the next issue GREETINGS! Welcome to the March 2009 edition of our newsletter! In this issue, we’ll look at how the Obama administration is attempting to change the bank bailout program’s level of transparency — and analyze whether it can get the results it has promised. CHANGE WE CAN BELIEVE IN? PROMISED STEPS TO POLICE BAILOUT FUNDS MAY FALL SHORT President Barack Obama …

February 2009   IN THIS ISSUE — Pay No Attention to the Man Behind the Curtain: How Ponzi Schemes Flourish — Looting the Store as the Night Watchman Napped: Missed Signs in the Madoff Case — In the next issue GREETINGS! Welcome to the February 2009 edition of our newsletter! In this issue, we’ll look at an age-old favorite fraud that finds new (though not always inventive) ways of re-creating itself: the Ponzi scheme. PAY NO ATTENTION TO THE MAN BEHIND THE CURTAIN: HOW PONZI SCHEMES FLOURISH There are times when events seem to interconnect with an almost cosmic sense …

January 2009   IN THIS ISSUE — Hard Times and Financial Crime: The Basics of Bankruptcy Fraud — Other People’s Money: How Creditors can Detect a Potential Bankruptcy Fraud — In the next issue GREETINGS! Welcome to the January 2009 edition of our newsletter! In this issue, we’ll discuss indicators that a company — whether a client, a vendor, or business partner — entering bankruptcy is not all that is appears to be. HARD TIMES AND FINANCIAL CRIME: THE BASICS OF BANKRUPTCY FRAUD There’s a reason the adage about a few bad apples spoiling the whole bunch continues to ring …

December 2008   IN THIS ISSUE — Taking on Frauds, Politicians and Other Undesirables: Enacting the Bailout’s Regulatory Changes — “How Costly Hidden Risk Can Be”: Efforts to Protect Investors — In the next issue GREETINGS! Welcome to the December 2008 edition of our newsletter! In this issue, as a tumultuous 2008 draws to a close, we’ll examine what the investigative and enforcement agencies charged with overseeing the new regulations of the bailout have done since it became law. TAKING ON FRAUDS, POLITICIANS AND OTHER UNDESIRABLES: ENACTING THE BAILOUT’S REGULATORY CHANGES It’s a simple axiom of American life: there is …

November 2008   IN THIS ISSUE — The Regulatory Gang That Couldn’t Shoot Straight: Why Promised Disclosure Faltered — Dear Fox, Please Care For My Henhouse: Congress Yields to Paulson — In the next issue GREETINGS! Welcome to the November edition of our newsletter! In this issue, we were going to discuss how the bailout provisions would affect disclosure regulations in various lending markets, but a funny thing happened on the way to that thesis. Which is to say, nothing happened. So we’ll look at what was supposed to happen, why it didn’t, and what else didn’t happen. THE REGULATORY …

October 2008   IN THIS ISSUE — Down in the Muck: The Role of Opposition Research — Peddling Influence: The Elephant (or Donkey) in the Room — In the next issue GREETINGS! Welcome to the October edition of our newsletter! In this issue, with the presidential debates underway and the election slightly more than a month away, we’ll look at how opposition research is conducted and how it can help — and harm — political campaigns on all levels. DOWN IN THE MUCK: THE ROLE OF OPPOSITION RESEARCH Let’s face it: politicians in 2008 rival used car salesmen in terms …

September 2008   IN THIS ISSUE — Everyday Thieves: What Makes Honest People Do Dishonest Things — Indicators of Financial and Emotional Stresses That Can Motivate Fraud — In the next issue GREETINGS! Welcome to the September 2008 edition of our newsletter! In this issue, we’ll examine the role civil records play in serving as potential predictors for embezzlement or asset misappropriation. EVERYDAY THIEVES: WHAT MAKES HONEST PEOPLE DO DISHONEST THINGS It’s something that has happened to everyone at some point — an employee abuses their position, often acting seemingly out of character. The water cooler starts to buzz with …

August 2008 IN THIS ISSUE — Broken Trust: The Problem of Elder Care Financial Fraud — The ‘Red Flags’ of Elder Care Financial Fraud — In the next issue GREETINGS! Welcome to the August 2008 edition of our newsletter! As the dog days of summer creep upon us, we’ll look at an oft-overlooked and vulnerable segment of the population — senior citizens. Routinely seen as ideal victims for various fraudulent schemes, we’ll look at some of these schemes and how caregivers or relatives can spot ‘red flags’ before it’s too late. BROKEN TRUST: THE PROBLEM OF ELDER CARE FINANCIAL FRAUD …

July 2008   IN THIS ISSUE — Speaking Out: How Whistle-blowers Can Save Your Company — Protecting Whistle-blowers While Protecting Your Company — In the next issue GREETINGS! Welcome to the July 2008 edition of our newsletter! In this issue, we’ll look at how whistle-blowers in your company can help ferret out fraud, waste and abuse. SPEAKING OUT: HOW WHISTLE-BLOWERS CAN SAVE YOUR COMPANY Secrets. Everyone has them. Since organizations are simply collective groups of people working toward the same goal, the chances are that your company has its fair share of secrets. Sometimes these secrets can be costly if …

June 2008   IN THIS ISSUE — In Employees We Trust? The Effects of Embezzlement — Means, Motive and Opportunity: Red Flags of Embezzlement Schemes — In the next issue GREETINGS! Welcome to the June 2008 edition of our newsletter. In this issue, we’ll look closely at various types of embezzlement schemes, how to spot the red flags of such abuses, and create a culture that inhibits these costly infractions from happening in the future. IN EMPLOYEES WE TRUST? THE EFFECTS OF EMBEZZLEMENT Much has been made of the ethical makeups of top executives at large companies, some of whom …

May 2008   IN THIS ISSUE — When Good Nest Eggs Go Bad: Cases of Pension Fraud — Protect the Nest: Combating Pension Fraud — In the next issue GREETINGS! Welcome to the May 2008 edition of our newsletter. In this issue, we’ll examine the various motives behind pension fraud, and offer some suggestions for how to detect & prevent it. WHEN GOOD NEST EGGS GO BAD: CASES OF PENSION FRAUD As the 20th century came to a close, some of the ideals that made it such a dynamic era of American prosperity seemed to fade away as well. As …

April 2008   IN THIS ISSUE — Friends in High Places: When Divided Loyalties Can Lead to Fraud — Taking Action Against Contract & Procurement Fraud — In the next issue GREETINGS! Welcome to the April 2008 edition of our newsletter. In this issue, as the presidential campaigns take shape, we’ll examine a shadowy problem plaguing state and federal governments: contract and procurement fraud. FRIENDS IN HIGH PLACES: WHEN DIVIDED LOYALTIES CAN LEAD TO FRAUD Darleen Druyun had been an anonymous member of a faceless Air Force bureaucracy during most of her decade as a military procurement officer. If she …

March 2008   IN THIS ISSUE — From the Water Cooler to the Big House: Detecting Employee Fraud Through Hotlines — Case Studies in Hotline Effectiveness — In the next issue GREETINGS! Welcome to the March 2008 edition of our newsletter! In this issue, we’ll examine the effectiveness of employee tip hotlines in detecting and deterring fraud, as well as their cost and implementation. FROM THE WATER COOLER TO THE BIG HOUSE: DETECTING EMPLOYEE FRAUD THROUGH HOTLINES Most large companies have one, and in the post-Enron, Sarbanes-Oxley environment, the employee fraud hotline referenced in your company’s Standard Operating Procedures manual …

February 2008   IN THIS ISSUE — Investigations, big and small, into mortgage fraud crisis — Investigating the Business of Mortgages — In the next issue GREETINGS! Welcome to the February 2008 edition of our newsletter. In this issue, we’ll examine how you can research potential mortgage fraud and abuse. INVESTIGATIONS, BIG AND SMALL, INTO MORTGAGE FRAUD CRISIS In a possible denouement to a crisis that has made major headlines for much of the last year, also affecting the American economy and millions of victims, the Federal Bureau of Investigation has announced that it has launched a criminal investigation targeting …

January 2008   IN THIS ISSUE — Corporate governance and shareholder proposals — Shareholder proposals as a research tool — In the next issue GREETINGS! Welcome to the January 2008 edition of our newsletter. We’ll kick off the new year looking at the usefulness of shareholder proposals for research, and how the recent SEC decision to allow companies to bar shareholder proposals from going before all shareholders for a vote may affect these research efforts. CORPORATE GOVERNANCE AND SHAREHOLDER PROPOSALS The voices of large institutional shareholders, and also smaller individual shareholders, have always been key components in agitating for change …

December 2007   IN THIS ISSUE — Building a Profile of a Publicly Traded Company: The Basics — Connecting the Dots to Take the Research to Another Level — In the next issue GREETINGS! Welcome to our December newsletter. In this issue, we’ll look at the different types of documents filed by and about publicly traded companies within the United States, as well as the types of information each can yield to aid researchers in their efforts. BUILDING A PROFILE OF A PUBLICLY TRADED COMPANY: THE BASICS Each year, a publicly held company’s filings disperse a vast array of facts …

November 2007   IN THIS ISSUE — Small Talk, Big Results: Differing Interview Approaches — Reaping the Whirlwind: How to Handle Hostile Subjects — In the next issue GREETINGS! Welcome to the November 2007 edition of our newsletter. In this issue, we’ll discuss in greater detail the techniques used to either elicit information or, in cases where wrongdoing is suspected, gain an admission of culpability from an interviewee. SMALL TALK, BIG RESULTS: DIFFERING INTERVIEW APPROACHES While gathering information from public sources is an important tool in any investigative effort, most often witnesses hold key information to what really happened that …

October 2007   IN THIS ISSUE — Looking Over the Hedge: The Basics About Hedge Funds — Managing Risk When Clients Consider Investing in a Hedge Fund — In the next issue GREETINGS! Welcome to the October edition of our newsletter. In this issue, we’ll explain how to research private equity entities such as hedge funds. While many of these groups operate in an ethical manner, some use deceptive means to achieve high rates of return, and there are some relatively simple checks you can perform which will help determine if the hedge fund in which your client is considering …

September 2007   IN THIS ISSUE — Increasing accountability, or just accountants fees? Sarbanes-Oxley debated — The pros and cons of detecting corporate cons — In the next issue GREETINGS! Welcome to the September edition of our newsletter. As we commemorate the fifth anniversary of President Bush signing the Sarbanes-Oxley Act into law in July 2002, we should assess what it has improved, what negative effects it has had, and how the law might evolve. INCREASING ACCOUNTABILITY, OR JUST ACCOUNTANTS FEES? SARBANES-OXLEY DEBATED When Sarbanes-Oxley swept into action in the summer of 2002, the nation’s investors were still reeling from …

August 2007   IN THIS ISSUE — Not so Idle Chatter: Pump and Dump and “Cyber Smears” — The Truth Squad: How to Identify Scammers and Fight Back — In the next issue GREETINGS! Welcome to the August edition of our newsletter. In this issue, we’ll examine the threat posed by market manipulators who employ various tools to inflate or drive down the price of common stock issuances by spreading misleading statements about the stock. This is commonly known as a “pump and dump” scam. Your clients are likely heavily invested in several types of financial vehicles, some of which …

July 2007   IN THIS ISSUE — Going Abroad: Keys to Investing in Foreign Companies — Bring More Than Your Atlas: Researching Foreign Companies — In the next issue GREETINGS! Welcome to the July edition of our newsletter. In this issue, as we reflect upon the heritage of the United States in the summer holiday season, we’ll look abroad for the risks and benefits to your clients when the subject is overseas investment. The benefit of investing in international markets can be huge — niches like natural resources in the Middle East or Africa present great opportunities for return on …

June 2007   IN THIS ISSUE — Acquiring or Investing in Privately Held Companies — Conducting a Thorough Check-up: Researching Private Firms — In the next issue GREETINGS! Welcome to the June edition of our newsletter. In this issue we’ll examine the process of researching a potential acquisition or partner that is privately held, and the pitfalls that can occur if that process is not handled correctly. Your clients, customers or colleagues may see investment in smaller, private firms as the engine that will drive their business growth. Follow these simple steps to be sure they aren’t led astray. ACQUIRING OR INVESTING IN …

May 2007   IN THIS ISSUE — Taming the Corporate Wild West: Fighting Financial Statement Fraud — Warning Signs of Financial Fraud — In the next issue GREETINGS! Welcome to our May newsletter. In this issue, we’ll examine the matter of financial statement fraud, from the difficulties in detecting it to the proactive steps your company can take to prevent it from happening. TAMING THE CORPORATE WILD WEST: FIGHTING FINANCIAL STATEMENT FRAUD At the dawn of the 21st century, a rash of corporate scandals made big headlines and generated even bigger shareholder losses. From Enron and Worldcom to Tyco, Adelphia, …

April 2007   IN THIS ISSUE — Cruel Intentions: A History of Charitable Organization Fraud — Protecting Yourself Against Charitable Organization Fraud — In the next issue GREETINGS! Welcome to the April edition of our newsletter. In this issue we’ll look at the risks involved with charitable giving, and offer some ways to manage that risk. As the tax filing deadline approaches, many clients may be looking for ways to minimize their tax burden while promoting good works. Giving to lesser-known charities can be very rewarding but can also carry greater risks. Your clients — whether corporations, charitable endowments, or …

March 2007   IN THIS ISSUE — Using Electronic Records to Fight Fraud — Caught in the Act: Examples of Successful Electronic Data Analysis — In the next issue GREETINGS! Welcome to the March edition of our monthly newsletter. In this issue we’ll address the efforts to detect fraudulent activity by using various electronic records — telephone logs, electronic mail messages, analysis of hard drive contents and keystroke loggers — to determine the scope of various employee frauds, from embezzlement and conflicts of interest to employees using company time and resources to maintain a side business. USING ELECTRONIC RECORDS TO …

February 2007 IN THIS ISSUE — Digging up the Dirt: How to Gather Competitive Intelligence — Rules of the Road: What Not to do in Gathering Intelligence — In the next issue GREETINGS! Welcome to the February edition of our newsletter. In this issue, we’ll look at the role competitive intelligence can play in giving your clients a strategic advantage versus peers of all sizes, which will translate into increased market share and revenues for them — and for you as well. Knowing why your competitors succeed — especially in areas where you may not — can be crucial to long- term strategic …

January 2007 IN THIS ISSUE — Catching Financial Criminals with Forensic Accounting — Get People Talking: The Art of the Interview — In the next issue GREETINGS! Happy New Year and welcome to the first issue of our newsletter for 2007. In this issue we’ll focus on how forensic accountants can help detect and deter financial crime in your company or that of your client. As certified fraud examiners and forensic accountants, we can assist your company and your clients in making certain company assets are accounted for and that internal controls work to prevent employee theft or deception. CATCHING FINANCIAL …

December 2006 IN THIS ISSUE — Not so Sweet Charity Begins at the Office: How to Avoid Employee Crime — What you can do to curtail employee crime among your clients — In the next issue GREETINGS! Welcome to the December edition of our newsletter. In this issue, we’ll focus on the problem of employee fraud, financial crimes and misconduct, and how best to both resolve existing problems and to prevent them from happening in the future. NOT SO SWEET CHARITY BEGINS AT THE OFFICE: HOW TO AVOID EMPLOYEE CRIME A busy dental practice depends as much on the skill of its support …

November 2006 IN THIS ISSUE — Look Before You Leap — Making your decisions better: success stories in due diligence — In the next issue GREETINGS! Welcome to the first edition of our monthly newsletter. Each month, we’ll highlight trends in fraud that are of importance to your firm and your clients. This month we’ll take a closer look at what’s involved in performing more thorough and careful due diligence before signing off on a transaction or making a new hire. LOOK BEFORE YOU LEAP Trust. It’s an essential part of both your client’s lives and your client’s business. Yet …