Workplace Fraud and Forensics: Ferreting out the Facts
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Workplace Fraud and Forensics: Ferreting Out the Facts Friday, July 13, 2012 9 a.m.–4 p.m. Oregon State Bar Center Tigard, Oregon 6.25 General CLE credits WORKPLACE FRAUD AND FORENSICS: FERRETING OUT THE FACTS The materials and forms in this manual are published by the Oregon State Bar exclusively for the use of attorneys. Neither the Oregon State Bar nor the contributors make either express or implied warranties in regard to the use of the materials and/or forms. Each attorney must depend on his or her own knowledge of the law and expertise in the use or modification of these materials. Copyright © 2012 OREGON STATE BAR 16037 SW Upper Boones Ferry Road P.O. Box 231935 Tigard, OR 97281-1935 ii TABLE OF CONTENTS Schedule .............................................................................v Faculty ..............................................................................vii 1. The Workplace Fraud Profile—Presentation Slides ................................ 1–i — Bill Douglas, Cost Advisors, Inc., Portland, Oregon 2. Background Checks ........................................................... 2–i — Kelly Paxton, Financial CaseWorks LLC, Portland, Oregon 3. Legal Issues in Employee Fraud—Presentation Slides ............................. 3–i — Katherine Heekin, The Heekin Law Firm, Portland, Oregon 4A. PC vs. Mac Computer Forensics Registry Analysis—Win 7 Focus—Presentation Slides .......................................................................4A–i — Joel Brillhart, Professional Forensic Services, Portland, Oregon 4B. Mac and iOS Computer Forensics ..............................................4B–i — Eli Rosenblatt, Eli Rosenblatt Investigations, Portland, Oregon 5. A Skeptic’s Guide to Advanced Internet Searching—Presentation Slides ............ 5–i — Jan Davis, JT Research LLC, Portland, Oregon 6. Which One Is Different—Data Mining and Forensic Analytics—Presentation Slides ........................................................................ 6–i — Bill Douglas, Cost Advisors, Inc., Portland, Oregon iii iv SCHEDULE 8:00 Registration 9:00 The Workplace Fraud Profile F Prevalence of occupational fraud F How fraud is committed and how much is lost F Detecting and preventing fraud F The perpetrators Bill Douglas, Cost Advisors, Inc., Portland 10:00 Background Checks F Why conduct background investigations F How to conduct a background investigation F Pitfalls of background investigations Kelly Paxton, Financial CaseWorks LLC, Portland 11:00 Break 11:15 Legal Issues in Employee Fraud F Gathering evidence F Interviews—order, environment, and techniques F Discharge F Engaging law enforcement Katherine Heekin, The Heekin Law Firm, Portland 12:15 Lunch 1:00 Computer Forensics: Mac vs. PC F Techniques F Expected results F Case histories Moderator: Bill Douglas, Cost Advisors, Inc., Portland Moderator: Kelly Paxton, Financial CaseWorks LLC, Portland Joel Brillhart, Professional Forensic Services, Portland Eli Rosenblatt, Eli Rosenblatt Investigations, Portland 2:00 A Skeptic’s Guide to Advanced Internet Searching F Search engine battles (Bing, Google) F Browsers wars (Firebox, IE) F Business and individual background checks F Social media as a research tool Jan Davis, JT Research LLC, Portland 2:45 Break 3:00 Which One Is Different—Data Mining and Forensic Analytics F Data mining examples F Excel as a data mining tool Bill Douglas, Cost Advisors, Inc., Portland 4:00 Adjourn v vi FACULTY Joel Brillhart, Professional Forensic Services, Portland. Mr. Brillhart is a Certified Forensic Computer Examiner by the International Association of Computer Investigative Specialists and a CPA (license issued by the Iowa Accountancy Board). He conducts examinations of computers, cell phones, PDAs, and other digital media and provides expert analysis, data recovery, and witness services for criminal and civil litigation, internal corporate investigations, and private concerns. He has worked as a Media Exploitation Analyst in Iraq, as a Special Agent for the Federal Bureau of Investigation, and as an internal auditor. Mr. Brillhart has lectured on electronic forensics on several occasions. Jan Davis, JT Research LLC, Portland. Ms. Davis is president of JT Research, where she coordinates a team of trained information specialists to provide business professionals with the data they need. Her primary clientele consists of financial analysts, business appraisers, CPAs, business brokers, and economists. Ms. Davis is the former library director at Willamette Management Associates and understands the research needed for business valuation reports and litigation support cases. Her five years of experience as business/economics librarian at Willamette University give her a strong background in academic research. She received her Masters in Library and Information Studies from U.C. Berkeley and has over 15 years of experience in academic and corporate libraries. Bill Douglas, Cost Advisors, Inc., Portland. Mr. Douglas is the president of Cost Advisors, Inc., a consulting firm that he founded in 1999; Cost Advisors’ focus is accounting investigation and fo- rensics. Mr. Douglas also volunteers with the Fraud and Identity Theft Enforcement Team of the Washington County Sheriff’s Office. He has managed nearly 100 financial projects at both large and small companies. Before founding Cost Advisors, Mr. Douglas held management positions at Tektronix, Inc., and FLIR Systems, Inc. He has also been an auditor with Deloitte and CFO of a software firm. Mr. Douglas is a CPA in Oregon, California, and Washington, certified in Financial Forensics, a Certified Information Technology Professional, a Certified Fraud Examiner, a Certified Internal Auditor, and an Oregon Licensed Private Investigator. He is a member of the American Institute of CPAs, the Northwest Fraud Investigators Association, and the Oregon Association of Licensed Investigators and an affiliate member of the Multnomah Bar Association. Mr. Douglas is past chair of the Oregon Society of CPAs Business & Industry Committee, a past board member of the Oregon Association of Certified Fraud Examiners, and a past officer of the Oregon chapter of the Institute of Internal Auditors. He is a frequent speaker, writer, and trainer on topics related to white-collar crime and financial controls. Katherine Heekin, The Heekin Law Firm, Portland. Ms. Heekin resolves business disputes, particu- larly complex fraud-related claims. As an attorney and a certified fraud examiner, Ms. Heekin is among a select group of professionals educated, trained, and experienced in preventing and rem- edying fraud. She is also a proven leader in electronic evidence management techniques and tech- nologies. She has been engaged as a consultant in electronic evidence management and as a trainer in fraud prevention. She is a Fellow of the American Bar Foundation, an instructor for the Forensic Accounting Academy, a member of the Federal Bar Association, and a member and past secretary of the Uniform Civil Jury Instructions Committee. vii FACULTY (Continued) Kelly Paxton, Financial CaseWorks LLC, Portland. Ms. Paxton specializes in financial investigations from the initial background interview to the tracing of funds in embezzlement, elder abuse, and misappropriation of assets. Ms. Paxton also has investigated mortgage fraud. She brings over 13 years of law enforcement experience to her current role as principal of Financial CaseWorks LLC, a private investigative firm. Ms. Paxton also is a contract special investigator for Keypoint Government Services, performing background investigations for the Department of Homeland Security. She maintains a security clearance for this contract. In addition, Ms. Paxton has been a public arbitrator for the Financial Industry Regulatory Authority since 2001. Previously, Ms. Paxton was the analyst for the Fraud Identity Theft Enforcement Team at the Washington County Sheriff’s Office, where she worked with FITE detectives on a variety of financial crime cases. Ms. Paxton started her law enforcement career as a Special Agent for the U.S. Customs Office of Investigations. Before entering law enforcement, Ms. Paxton was a licensed stockbroker and a trader/contract negotiator. Eli Rosenblatt, Eli Rosenblatt Investigations, Portland. Trained in the early 1990s at the California Appellate Project, Mr. Rosenblatt began freelance work assisting attorneys with death penalty appeals and expanded his investigation practice to include numerous types of criminal defense and civil cases. He now works as an investigator and forensic expert based in Portland, where he conducts workplace, background, fraud, civil, and criminal defense investigations for lawyers and individuals. As a Certified Fraud Examiner who is also certified for forensic examination of Apple devices, Mr. Rosenblatt is especially qualified to conduct comprehensive professional forensic ex- aminations to detect and understand evidence of alleged fraud on all Macs and iOS devices. Mr. Rosenblatt is Oregon’s only Board Certified Criminal Defense Investigator (CCDI) and one of only three CCDIs in the nation that is also a Certified Fraud Examiner. In addition, he is a Certified Forensic Interviewer and has been certified by the State Medical Examiner as a Medicolegal Death Investigator. viii Chapter 1 THE WORKPLACE FRAUD PROFILE— PRESENTATION SLIDES BILL DOUGLAS Cost Advisors, Inc. Portland, Oregon 1–i Chapter 1—The Workplace Fraud Profile—Presentation Slides 1–ii 6/22/2012 Chapter 1—The Workplace Fraud Profile—Presentation Slides The Workplace