Red Flags of Internal Fraud, Asset Misappropriation, and Corruption

Why Should You Attend:

The internal economic threats posed by employees or business insiders can be divided into the categories of fraud, asset misappropriation, and corruption. In order to effectively combat the wide range of internal threats faced by organizations, it is important for decision-makers and advisors within these organizations to understand the threats they face, what forms these threats take, and how their organizations may be vulnerable.

In this webinar, we will identify, define, and provide examples for the most common forms of these threats. In addition, we will discuss a variety of methods that can be used to identify red flags of those threats, procedures and tools to reduce the risks, and actions that should be taken when the threats materialize.

Areas Covered in the Webinar:

• 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
• Gathering 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 Officers
• Internal Auditors
• General Counsel
• Human Resources Staff

Instructor Profile:

Sinai Megibow, Esq., CFE, is the founder of Venture Risk Investigations, a specialized investigative consulting firm. Sinai is responsible for leading, conducting, and managing investigations and due diligence consulting matters. Sinai’s work includes collecting evidence in support of litigation, internal investigations and fraud prevention consulting, conducting business intelligence operations and transactional due diligence, locating assets, locating missing persons, and conducting background investigations. His clients include other law firms, corporations, financial institutions, associations, and individuals. His cases have addressed issues such as public corruption, fraud, embezzlement, money laundering, witness tampering and intimidation, matrimonial and custodial disputes, insurance claims, forensic accounting issues, and criminal matters.

Prior to founding Venture Risk Investigations, Sinai served as Vice President of Investigations at a corporate investigations firm. Sinai came to that company from the law firm of Kramer Levin Naftalis & Frankel LLP in New York City, where he was an Associate. Sinai’s practice focused on conducting internal investigations, representing clients facing government investigations and regulatory matters, and commercial litigation. Some of his representative cases included investigating a variety of accounting improprieties at a Fortune 100 company, and, on behalf of its Audit Committee, recommending remedies to correct those improprieties; working with clients facing investigation by both the Department of Justice and the SEC to gather and analyze evidence, address liability issues, and develop defensive strategies; and negotiating favorable resolution of several commercial disputes.

Sinai holds a J.D. from the UCLA School of Law, where he was a member of the Order of the Coif; an MA in humanities from the University of Chicago; and, a BA, magna cum laude, in Classical Studies from Tulane University. He is licensed to practice law in New York State and is licensed as a private investigator in New York and Florida.

Sinai is a Certified Fraud Examiner and a member of the Nassau County Bar Association. He has also received extensive training in the Reid Technique of interviewing and interrogating suspects and witnesses, bail enforcement/fugitive recovery operations, and executive protection.

Topic Background:

Fraud and other forms of employee misconduct can strike any business or organization, anywhere. In fact, the largest percentage of fraud victims are private businesses, and those businesses are almost always victimized by long-term, trusted employees. Religious and non-profit organizations are just as vulnerable as businesses, and in some cases more so, due to the often charitable nature of the organizations themselves.

Given the extensive damage that internal threats such as fraud or other forms of employee criminality can cause to an organization, not only in financial terms, but also to the victimized entities’ reputation, internal operations, morale, and, in some cases, even their continued existence, it is imperative that those responsible for protecting their organizations understand the most common forms those threats can take. A solid conceptual foundation in the mechanisms of fraud, embezzlement and misappropriation, corruption, harassment and stalking, and other threats, will enable an organization’s leaders to understand how these threats arise, how to identify structural weaknesses that can be exploited, and red flags that some form of misconduct is afoot.

Of equal importance to understanding the forms that these threats can take is the ability to design procedures and make use of tools to deter potential threats, mitigate the potential risks, and reduce the possible exposure that can be caused by the realization of one or more of these threats. Finally, even the most robust deterrence protocol is not foolproof. In the event that an organization, or one of its employees, becomes victimized by a malfeasor, the organization’s leaders must understand the best practices to follow to halt the damaging conduct, investigate the situation fully, and resolve the situation in order to minimize its own exposure to liability or other harm.

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