00:01
An accountant with the atlanta olympic games was charged with embezzling over $60 ,000 to purchase mercedes -benz and to invest a certificate of deposit.
00:14
Police alleged that he created fictitious invoices from two companies that had contracts with the olympic committee, international protection consulting and languages services.
00:25
He then wrote checks to pay the fictitious invoices and deposited them into a bank account that he had opened under the name of one of the companies.
00:32
When he was apprehended, he cooperated with police to the extent of telling them of the bogus bank account and the purchase of the mercedes -benz and the cd.
00:42
The accountant was a recent honors graduate from a respected university who, supervisor stated, was a very trusted and loyal employee.
00:51
A, how does the accountant fit the profile of a fraudster? how does he not fit the profile? b, what fraud scheme did he use to perpetrate the fraud? and c, what controls could have prevented his fraud.
01:04
And d, what controls could have detected the fraud? so let's start with part a.
01:12
How did he fit the profile? so ways he fit the profile, he was young and energetic, he possessed knowledge, experience, and the skills required.
02:02
He was dedicated, loyal, and trusted employee, and he was considered an honest, valued, and respected member of the community.
02:45
Ways in which he didn't fit the profile actually are very similar.
02:51
So the ways in which he didn't fit the profile are really the same as the ways he did.
03:14
And i know this might seem weird in saying, well, how can those be things that let them fit the profile and be things that may he didn't? but that's what makes it hard to detect.
03:26
Why somebody who is or may not be a fraudulent individual.
03:32
He's young and energetic, and young people who are gung -ho on their careers may be more likely to take risk leading to fraud, but on the same hand, those young and energetic people who are eager to establish their careers and make a name for themselves could be very diligent about following the rules because they're looking for advancement and to really make a name for themselves.
03:54
So which way are they going to lean? we don't know.
03:59
Possessing the knowledge experience and skills required, well, that doesn't, i mean, that makes it, it's going to help you fit the profile because you need that knowledge experience and skills to commit the fraud.
04:13
But at the same time, just because you have the knowledge experience and skills, doesn't mean you're going to commit fraud.
04:18
He needed those knowledge experience and skills to do his job.
04:22
So he needed them regardless.
04:23
They just allowed him to commit the fraud as well.
04:27
Well, dedicated, loyal, and trusted employee, that makes it easier to get away with fraud for longer because people aren't going to suspect you because you're trusted...