German Regulators Investigate the Investigator During Wirecard Debacle

German Regulators Investigate the Investigator During Wirecard Debacle

Like many fraud examiners, reporters often hate being part of their stories. They’d much rather remain in the background, asking the questions and discovering the facts. Dan McCrum, an investigative reporter for the Financial Times, described that less-than-ideal scenario in his keynote address during the Monday afternoon session of the virtual 32nd Annual ACFE Global Fraud Conference. McCrum is the recipient of the ACFE Guardian Award.

“I have pictures here of a couple of criminal suspects,” McCrum said as he showed photos on the screen of himself and Markus Braun, the former CEO of the infamous German company, Wirecard AG. Wirecard collapsed in June of 2020 when Braun announced that 1.9 billion euros of its funds were “missing.”

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Betrayed Bank Assistant Vice President Embezzles $22 Million as Payback

Betrayed Bank Assistant Vice President Embezzles $22 Million as Payback

A misplaced paycheck stub started it all. Gary Foster, a former assistant vice president in Citigroup’s internal treasury finance department, said the stub — left next to an office printer — showed that a subordinate made $10,000 more than him.

“I was shocked,” Foster said during an interview with John Gill, J.D., CFE, ACFE vice president – education, at the Wednesday closing General Session. “I was in love with the company. I felt completely devastated. I’m working like crazy. … I felt betrayed.”

During the next two years, Foster’s resentment against Citibank festered. Finally, he realized that he needed some payback for what he deserved.

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Javier Pena, Stephen Murphy Spin Hair-Raising Stories of Pablo Escobar’s Terror

Javier Pena, Stephen Murphy Spin Hair-Raising Stories of Pablo Escobar’s Terror

Pablo Escobar was trapped. The murderous drug cartel lord, and one lone bodyguard, were holed up in a Medellin, Colombia, house, and the Bloque de Busqueda or “Search Bloc”— special operation units of the country’s national police — were closing in.

Javier Pena and Stephen Murphy, retired U.S. Drug Enforcement Agency agents, and consultants and inspiration for the Netflix show, “Narcos,” told Escobar’s sordid story, and their parts in his demise, during the Tuesday afternoon General Session.

“Pablo grew up poor in Medellin,” Pena said. “He started experimenting [with selling] one, two kilos of cocaine. Before it was all over, Pablo Escobar was producing and sending 80% of the cocaine that was reaching the world. … We called him the inventor of narcoterrorism.” At any time, Escobar had 40 to 50 tons of cocaine ready to sell. During Escobar’s heyday, Forbes ranked him the seventh-richest person in the world, Murphy said, with estimated total worth of $8 billion to $30 billion.

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Whistleblowers Are Better Protected, but Still Face Retaliation

Whistleblowers Are Better Protected, but Still Face Retaliation

Is this a good time to be a corporate whistleblower? Probably, according to a panel of watchdog experts, with some caveats.

The ACFE’s 2020 Report to the Nations shows that tips remain the most common way for fraud to be detected, which accounted for 43% of the survey respondents’ cases. However, panelist Stephen Kohn, a longtime counsel to whistleblowers, said employees should think twice before they report problems internally.

“My message to members is, don't fall on your sword,” said Kohn, chairman of the board of the National Whistleblower Center and partner, Kohn, Kohn & Colapinto LLP. “If you raise a concern, if you issue an audit report, if you make an internal complaint — and you get resistance from the company — don't set your hair on fire,” he said.

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‘Accidental Whistleblower' Decries Corporate Irresponsibility

‘Accidental Whistleblower' Decries Corporate Irresponsibility

Howard Wilkinson, the recipient of the 2020 ACFE Cliff Robertson Sentinel Award, admits that he’s a bit of an accidental whistleblower. And if his employer had been more responsible, he wouldn’t have been a whistleblower at all.

“Back in summer 2012, I had to help someone in the Estonian branch of Danske Bank where I was working [as a trader] get some financial information on a client,” Wilkinson said, during the lunch general session. “The client was a British limited liability partnership (LLP), so I went to Companies House, which is the U.K.’s official government agency that collects all the company information and annual financial statements,” he said. “I paid one pound, and I downloaded this company's financial statements.”

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Jules Kroll Stresses That Practitioners Can’t Grow Without Innovating

Jules Kroll Stresses That Practitioners Can’t Grow Without Innovating

Jules Kroll recently had a shocking conversation with the head of compliance at a major European bank. “I asked them what they had seen in terms of fraud in the first quarter of the year,” said Kroll, during the Monday Opening General Session of the 31st Annual ACFE Global Fraud Conference. “They were seeing [fraud] up over 600%. So, we have our work cut out for us. … I don't think we're ever going to see a sudden outbreak of honesty.” Kroll, the 2020 recipient of the ACFE’s Cressey Award, says the profession needs to continue to innovate to find new ways to combat fraud as he did when he was a pioneer of the modern intelligence and corporate security industry.

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Bill Browder Fights Against Corruption in Sergei Magnitsky’s Name

Bill Browder Fights Against Corruption in Sergei Magnitsky’s Name

For much of his life, Bill Browder’s goal was simple: to be the most successful capitalist in Eastern Europe. And he reached his goal there and in Russia. He made fortunes and lost them and then made them again. But that all changed in 2009 when his lawyer and friend, Sergei Magnitsky, died in prison under suspicious circumstances one month after submitting detailed documentation of a governmental scandal to Russian investigators. The year before, Magnitsky had exposed a complicated $230 million web of tax-refund fraud and graft involving Russian government officials. And for his courageous efforts, he lost his life.

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