Red Flags of Internal Fraud, Asset Misappropriation, and Corruption

Why Should You Attend:

Millions of investors have lost their lifesavings in high-profile frauds over the past several years, including Bernie Madoff’s $50 billion fraud and Allen Stanford’s $7 billion scheme. These frauds have also led to significant liability and exposure for feeder funds, accounting firms and custodial banks.

Corporations are also under increasing scrutiny and many companies have been faced with ethical scandals and allegations of misconduct and corruption. Given this trend, companies should be reviewing their protocols regarding how to identify and combat fraud and deal effectively with allegations of fraud and how to conduct internal investigations.

This webinar explain why it is critical to have controls in place to attempt to identify red flags of fraud, and systems established to properly investigate allegations of fraud that are raised within the company.

Areas Covered in the Webinar:

• An analysis of the Bernie Madoff fraud
• Identification and definition of the most common types of frauds and internal threats faced by organizations
• A discussion of the warning signs or “red flags” for each type of threat
• A discussion of policies, procedures, and tools that can deter or mitigate various risks
• A discussion of remedial steps to take to investigate and resolve threats when they materialize
• A discussion of investigative techniques that are used in different fraud situations
• A discussion of how to gather additional evidence through interviews
• Elements of internal investigations: Plan of action, description of the sources of evidence, collecting and securing the evidence and finally presenting it in an understandable manner.
• How to draft a comprehensive investigative reports, draw conclusions and make recommendations

Who Will Benefit:

• Compliance Officers
• Risk Professionals
• Internal Investigators
• CEOs and Senior Management Officials of Small to Mid-size Firms
• Operational Managers
• Internal Auditors
• External Auditors
• Fraud Professionals
• Staff with Roles and Responsibilities in Compliance Departments.
• Staff with Roles and Responsibilities in Risk Assessment Departments

H. David Kotz
Managing Director, Berkeley Research Group LLC

H. David Kotz , presently serves as a Director at Berkeley Research Group, a leading global expert services and consulting firm. Mr. Kotz focuses on internal investigations and matters relating to Foreign Corrupt Practices Act and Anti-Money Laundering regulations. He also serves as a compliance monitor for firms that have entered into deferred prosecution agreements and similar arrangements with government agencies. He also serves as an expert witness in litigation matters relating to securities regulation and the identification of fraud.

Prior to Berkeley Research Group, Kotz served for over 4 years as the Inspector General of the Securities and Exchange Commission (SEC). During his tenure at the SEC, he authored the landmark, widely publicized report investigating the failure of the SEC to uncover Bernard Madoff’s $50 billion Ponzi scheme. Mr. Kotz also authored numerous high-profile reports of investigation while at the SEC concerning, among others, a $7 billion alleged Ponzi scheme perpetrated by Allen Stanford, an SEC settlement of enforcement action against Bank of America, and alleged SEC coordination with Congress and the White House concerning the timing of the bringing of an enforcement action against Goldman Sachs & Co. In addition, he authored a landmark audit report analyzing the SEC’s oversight of Bear Stearns and the reasons for its collapse. He has testified before Congress, including televised appearances before the House Financial Services Committee and Senate Banking Committee regarding the Madoff and Stanford Ponzi schemes. He also previously served as Inspector General of the Peace Corps.

Topic Background:

In the current political and regulatory environment, government oversight and enforcement activities are increasing rapidly and internal and external scrutiny over corporate practices is at an all-time high. Identifying red flags of fraud and undertaking prompt and thorough internal investigations of allegations of asset misappropriation and corruption are critical to companies that need to respond to a governmental investigation or threatened litigation.

Corporations are under increasing scrutiny and many companies have been faced with ethical scandals and allegations of mismanagement and corruption. Understanding how to react to allegations is critical to managing the process as effectively as possible.

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