Compliance and Investigations: Daniel Michael and Chris Ekimoff at the 2024 ACFE Government Anti-Fraud Summit

At the 2024 ACFE Government Anti-Fraud Summit, Daniel Michael, a partner at Skadden Arps and former chief of the SEC Enforcement Division’s Complex Financial Instruments Unit, and Chris Ekimoff, CFE, CPA, a forensic accountant and podcast host, brought their extensive expertise to the stage. With Michael’s background overseeing groundbreaking regulatory actions involving complex financial products and Ekimoff’s experience in forensic investigations and fraud prevention, the session provided attendees with practical strategies to strengthen compliance programs and effectively manage fraud risks. Together, they offered a deep dive into how organizations can adapt to regulatory challenges and build a culture of accountability. 

Here is a closer look at some of the session’s key takeaways. 

Tailoring Compliance Programs to Fit the Risk 

Both speakers emphasized that compliance programs are not one-size-fits-all. Daniel Michael shared stories from his regulatory experience to illustrate how misaligned compliance policies often lead to major issues. He pointed out that simply following industry-standard practices is not enough—compliance programs must be specifically designed to address the unique risks an organization faces. 

Michael suggested that organizations focus on understanding the factors that drive their financial and reputational performance and evaluate how those factors might be manipulated or exploited. This approach helps organizations identify areas where risks are most likely to emerge and ensures compliance efforts are targeted effectively. 

Ekimoff added that regular diagnostics and assessments are crucial for maintaining compliance programs that can evolve alongside a business and its challenges. 

Investigations: Balancing Thoroughness with Practicality 

A significant portion of the session focused on strategies for conducting internal investigations. Ekimoff explained that effective investigations require a careful balance: they must gather all necessary information without unnecessarily disrupting operations. He discussed how thoughtful planning, such as sequencing interviews and collecting background information in advance, can minimize disruptions while ensuring thoroughness. 

Michael noted that keeping the investigative process well-contained is key. Clearly defining roles and responsibilities can prevent confusion and second-guessing while maintaining focus and accountability during the investigation. 

The Importance of a Speak-Up Culture 

A recurring theme during the session was the role of organizational culture in preventing and responding to fraud. Both speakers highlighted the importance of fostering a “speak-up” culture where employees feel safe reporting concerns. 

Ekimoff shared a poignant story about an employee who identified an issue but was ignored three times before the problem snowballed into a $1.2 million misallocation. “It's not only about speaking up, it's about that person being heard and a response being considered along the way,” Ekimoff said. “It’s about ensuring those concerns are heard and addressed.” Michael added that whistleblower protections and respect for confidentiality are critical to maintaining trust within an organization and encouraging employees to come forward. 

Looking Ahead: Staying on Top of Emerging Risks 

As technology evolves and regulatory priorities shift, Michael encouraged organizations to remain proactive and adaptable. He cited the importance of regularly reassessing compliance programs and staying informed about emerging risks, such as AI-driven fraud and cybersecurity threats. 

Both speakers stressed that compliance is an ongoing process. Regular updates, training and industry engagement are essential to staying ahead of evolving challenges. They encouraged fraud fighters to leverage resources like the SEC’s annual exam priorities and industry conferences to stay ahead of the curve. 

Building Stronger Compliance Programs 

As the session wrapped up, attendees left with practical strategies to enhance their fraud prevention efforts, from scrutinizing incentive structures to tailoring compliance programs and refining investigative techniques. For those who missed the session or want to dive deeper, the speakers’ advice is a strong reminder of why compliance is not just about ticking boxes—it is about creating a culture of accountability and responsiveness.