Annual Fraud Seminar

Monday, February 22, 2010

8:30am – 5:00pm

CPE Credit: 8 Hours

Gleacher Center  

 450 North Cityfront Plaza
Chicago, Illinois

Directions and parking:  http://www.chicagobooth.edu/visit/gleacher/

 Register Online: https://www.123signup.com/register?id=mgthc 

Worried about fraud happening at your company?  Looking for ways to improve your fraud investigation skills?  Join us at the Annual Fraud Seminar!  Meet with Audit and Investigation experts from Microsoft, General Growth and TransUnion, as well as learn new ways to properly and efficiently complete your Fraud Risk Assessment and more! Protect yourself from fraud!

Agenda:

Topic 1 – Fraud Risk Assessment

Incidences of fraud are so common today that we no longer talk about it as a rare and remarkable instance; rather, we discuss at what scale it is occurring.   Any entity that fails to protect itself appropriately should expect to become a victim of fraud.  Preventive measures are the least expensive way to find out the entity’s vulnerability to fraud. Most entities score very poorly in initial fraud prevention checkups because they don’t have appropriate anti-fraud controls in place. By finding this out early, they have a chance to fix the problem before becoming a victim of a major fraud.  One such effective anti-fraud control is the fraud risk assessment.  Join Jonathan Marks as he takes you through an interactive fraud risk assessment and explains how to do it effectively and efficiently. 

 Presenter:

Jonathan Marks - As a Partner of the Fraud & Ethics Group of Crowe Horwath LLP, Jonathan advises engagement teams and clients on anti-fraud and fraud related matters, including the Foreign Corrupt Practices Act.  He works with boards and senior management on various corporate governance matters, which include but are not limited to business practices and ethics and risk management. Jonathan has more than 20 years experience and is certified in financial forensics and is accredited in internal Audit Quality Assessment/Validation from the IIA.

 Topic 2 – New Research: Fraud Triangle Analytics Links E-Mail Communications to One's Pressure, Opportunity and Rationalization

The authors from FRAUD Magazine's two part series on Fraud Triangle Analytics discuss their research and findings. This session will describe the latest anti-fraud research that links e-mail communications to one's incentive/pressure, opportunity and rationalization - the key elements of the Fraud Triangle.  What's unique about this approach is that this is the first methodology/tool that objectively measures (via a fraud index score and keyword hit analysis) what fraud investigators have intuitively (or subjectively) been using since Dr. Donald Cressey came up with the theory in the late 1950's.  This research, which was co-developed by the Association of Certified Fraud Examiners (ACFE) and reviewed by the FBI, uses Ernst & Young's proprietary library of over 3,000 terms that describe financial statement fraud, corruption/FCPA, and asset misappropriation schemes and has been translated into seven languages thus far.

Presenters:

Mike Sherrod - Mark is a senior manager at Ernst & Young in the Fraud Investigation & Dispute Services practice based in Washington, DC.  His area of focus has been audits of construction and manufacturing companies and governmental audits of Cities, Counties, Authorities, and School Boards.  He also was involved in conducting investigations of allegations of suspected charges of embezzlement and other misappropriation of assets schemes.  At EY, Mike has focused primarily in the area of fraud investigative work, specifically in the proactive identification of fraud risks, fraud awareness trainings and investigations into revenue recognition, embezzlements and other misappropriation of asset investigations for various clients in various industries.  Mike is a certified fraud examiner.

Daniel Torpey – Daniel is a Forensic Accountant, CPA and a partner with Ernst & Young and the Americas Leader for the firms Forensic Technology Practice and a member of the leadership board for the Fraud Investigation & Dispute Services (FIDS) group.   He continues to assist clients, law firms and brokers on a wide variety of forensic accounting issues in dealing with complex insurance claims.  Mr. Torpey is a member of the American Institute of Certified Public Accountants, the New York State Society of Certified Public Accountants, the Texas Society of Certified Public Accountants, and AIDA Reinsurance and Insurance Arbitration Society (ARIAS).  He serves on several nonprofit organization boards and is a member of The Lumen Institute, an organization to help form leaders in business.  

Topic 3 – Internal Fraud Case Study

This entertaining, in-depth case study involves a complex internal fraud where employees misappropriated Microsoft intellectual property for personal gain and personal recognition. The case study will show how two software developers committed to making their research project a reality, were able to work together with a third employee in the conspiracy of a decade. Those employees while still employed were able to start a new company, obtain vendor status and avoid almost every internal control on their way to making hundreds of thousands of dollars. As a result, the employees were paid over a half a million by one company alone for IP that was stolen and resulted in terminations, process changes, loss of reputation and additional legal action.

This case study will detail issues such as:  conflict of interest, IP protection and security, manager oversight failures, employee-manager relationship issues, inappropriate vendor set-up procedures, procurement issues, third party payment vendors, employee non-reporting of issues and finally, attempts to cover-up the conspiracy.

Presenter:

 Tammi Johnson – Tammi is a Senior Investigations Manager in the Financial Integrity Unit (FIU) at Microsoft Corporation. The FIU was formed in 2002 to provide increased attention to financial fraud and abuse issues impacting Microsoft and to strengthen the integrity of the internal control environment through financial fraud detection, investigation, recovery, awareness and prevention. Tammi has conducted many investigations for the FIU throughout the world. With her background in database reporting, fraud investigation and analytics, Tammi has been frequently asked to speak the use of data analysis techniques in fraud investigations. Tammi rejoined the FIU in December 2008 after three years as Senior Manager of Piracy Prevention on the Microsoft Anti-Piracy enforcement team.  In that role, she advised Microsoft business groups on ways to prevent genuine software leakage, assisted in investigations of targets and participated in raids of top targets. Tammi provided expert witness testimony for civil cases relating to genuine software leakage and worked with operations teams to remediate programs that had substantial leakage.  Tammi has a Masters Degree in Criminal Justice from Washington State University and has been a Certified Fraud Examiner for 5 years.

Topic 4 – How can internal audit work together with the external auditors to prevent, detect and monitor fraud? 

This session will be a panel discussion on the experiences our panelists have had in their internal audit functions working external auditors.

Presenters:

Jeff Perkins – Jeff is the Vice President of Internal Audit at TransUnion LLC. TransUnion, headquartered in Chicago, is a global leader in credit and information management and has operations in 25 countries and supports more than 50,000 customers and more than 500 million consumers worldwide. Jeff also has experience in Public Accounting and the insurance industry, and is a past President of the IIA Chicago Chapter, a current IIA Chicago Chapter Board member, and serves as a Trustee on the IIA's International Research Foundation. His experience includes over 25 years of audit experience and he is also a CPA, CIA, CISA, CISSP, CISM.

Daniel W. Draz – Daniel is the Corporate Investigations Manager at TransUnion LLC, a leading global information solutions company based in Chicago, Illinois. Prior to joining TransUnion, Daniel was a Fraud Investigator in the Special Investigations Unit at Standard Insurance Company in Portland, Oregon where he conducted sophisticated insurance (Life, Health and Disability) investigations (Civil and Criminal) into questionable/fraudulent claims; referred insurance fraud investigations to local, state and federal law-enforcement agencies nationwide for prosecution consideration; coordinated investigations with law-enforcement agencies and prosecutors and advised counsel, senior management and business units on fraud issues/problems/solutions. Daniel is a Certified Fraud Examiner (CFE) and is also a member of the American Society for Industrial Security’s (ASIS) Economic Crime Council.  Daniel is a member of the International Association of Special Investigation Units (IASIU) and a frequent speaker at industry conferences.

Dean Jones – Dean is a long term member of the IIA both in the United Kingdom and United States. He has served as President and board member, and brings a great deal of passion and enthusiasm to the roles held and the Chapter itself.  Dean has worked in the financial services sector for 17 years of which 16 has been as an Internal Auditor in the United Kingdom, Switzerland, Canada and currently in the United States.  He has and continues to provide audit focus on all areas of general and life insurance including information technology.  After having achieved certificates for investment management and languages (French and German), Dean is currently studying for the CFSA certification in June 2010.  He is also working with IIA personnel in the Chicago region to establish a financial services and insurance committee to provide support and represent those IIA members who work in these areas.

 John Covell - John is the Vice President of Corporate Audit for General Growth Properties.  His responsibilities include developing and implementing an annual risk-based audit plan covering operations, construction projects, and financial and IT controls; supporting management’s testing of controls over financial reporting in compliance with Sections 302 and 404 of the Sarbanes-Oxley Act of 2002 and ensuring that financial and internal control and fraud risks are appropriately identified and managed throughout the company. John is a Past President, and current member of the Board of Governors of the Chicago Chapter of the Institute of Internal Auditors . He chaired the 64^th International Conference of the Institute in Chicago in 2005.  He is a frequent speaker on risk management and auditing topics. 

Location 

Gleacher Center  

 450 North Cityfront Plaza
Chicago, Illinois

Directions and parking:  http://www.chicagobooth.edu/visit/gleacher/

Seminar Fees:

IIA Members: $150 each

Unemployed IIA Members: $50

IIA Retirees, Students and Educators: $100

Non-Members: $200 No Group Discounts