It Pays to be a Fraud Fighter

GUEST BLOGGER

Bruce Dorris, J.D., CFE, CPA
ACFE Program Director

Every week, ACFE brochures, newsletters and magazines make their way across my desk. I often see quotes from members or course attendees that jump out at me and remind me of the reason we strive so hard to be the best association in the world dedicated to fighting fraud, stopping at nothing to reach that goal. While testimonials in our publications and quotes on our website do speak volumes about what we do, there is nothing like hearing a success story from someone face to face.

I was recently talking to an attendee at the Annual Fraud Conference in San Diego, and something she said really stuck with me. She took great pleasure in telling me how much she had learned and all the people she met at the conference, but then she stopped, and the conversation took a more personal tone. Like many before her, she had taken the time and used her personal funds to attend a CFE Exam Review Course in Chicago. She distinctly remembered me saying in class that half of the attendees present will not pass the CFE Exam — not because they can’t, but because they will go back home and not take the time to actually sit and take the exam. What was striking to me was what happened after the class and the way she described her trajectory as a new CFE.

She went from having just a “job” to a new career as a fraud examiner with a completely different company — with higher compensation, more benefits, the works. All of the work, studying and saving paid off…literally. She was able to achieve this because she set herself apart by dedicating the time and resources to obtain the best fraud credential in the world. It is a credential that showed her employer that she was serious about the anti-fraud profession. Success stories like that are awesome. It reinforces the principles that the ACFE was founded upon.

If you are not a CFE, I encourage you to take a look at it and seek out a new path for your professional life. If you are a CFE, use the 2010/2011 Compensation Guide to strengthen your current position, showing the value the marketplace holds for such a prestigious title.

Are you up for the challenge? Find out more about the CFE credential here.

News of the World: ‘Everybody is Doing It’ is Not a Defense

GUEST BLOGGER

Sheila Keefe, CFE, CPA
Principal, BDR Advisors LLC

At the center of the News of the World scandal is the premise that violating the law is okay as long as it’s done consistently throughout the industry. To wit, as a rising star in tabloid journalism, Rebekah Brooks (then known as Rebekah Wade) stated to investigators in 2003 that she was sure that “we have paid the police for information in the past.” Upon further inquiry about specifics, Brooks declined to comment, implying that while she did not know of any specific bribes, she was indeed aware that payments to law enforcement were prevalent in the tabloid industry.

Even if we were to believe that Brooks did not know of any specific bribes, her statement in 2003 indicates that she was savvy enough about the tabloid journalism industry to know that juicy tidbits often come at a price. As Brooks ascended the, ranks in News of the World, one would reasonably assume that she knew darn well the origins of salacious details that would later bubble up from her staff that are at the center of the current hacking scandal.

Brooks has been arrested, without charges filed at the moment, and has resigned. Aside from the outcome of Brooks individually, the higher lesson of the News of the World case is that tone at the top dictates the course of an organization. News of the World follows in the embarrassing footsteps of other organizations that have previously enjoyed the public trust, specifically Hewlett-Packard and Berkshire Hathaway.

In the case of HP, board chairman Patricia Dunn worked through intermediaries to obtain phone recordings of other HP board members and nine journalists. This scandal was the first of many blunders HP shareholders had to endure, including the misguided ‘leadership’ of Carly Fiorina who questioned the very premise of the honored and revered ‘Bill and Dave Way’ that made HP a legend and, later, the ethical violations attributed to the now-departed Mark Hurd.

As for Berkshire Hathaway, this corporate scandal involved the use of insider information by heir-apparent David Sokol. While Warren Buffett had specifically prohibited the practice of inner circle management proposing investment in a particular company for which a senior staffer had an existing or imminent financial interest, Sokol just couldn’t help himself. He went right ahead and bought a stake in Lubrizol prior to Berkshire Hathaway taking a $9 billion stake in the company. While Sokol’s actions were shameful, Buffett took a share of the blame in the public eye when he was less than forthcoming in initial press dealings as to the reasons for Sokol’s unexpected departure.

Left unchecked, poor ethical practices are likely to recur in organizations that have suffered at least one ethical breach. As such, Rupert Murdoch must be tireless in the coming days, weeks and months to assert affirmative control over the ethical leadership of his many other enterprises to ensure that such shameful events do not recur.

Retired Federal Special Agent Finds New Career 'Beyond the Badge'

MEMBER PROFILE

John Jupin, CFE
Senior Special Agent (retired)
U.S. Department of Labor-Office of Inspector General
 
John Jupin, CFE, retired Senior Special Agent for the U.S. Department of Labor and FBI, spent more than 20 years as a fraud investigator before deciding to become a Certified Fraud Examiner in March of 2011. "To me, obtaining my CFE credential was part of the plan to transition from being someone with a gun and badge to being beyond the badge," Jupin said. Jupin advises those new to a career or those looking for employment to embrace the change that comes with any profession. Whether you are just starting out or leaving a legacy, or both in Jupin's case, confidence is the key to career success.

What made you decide to become a Certified Fraud Examiner (CFE)?

I had been a fraud investigator for more than 20 years; first as a Special Agent with the FBI and later with the U.S. Department of Labor-Office of the Inspector General. I realized when I was within five years of retirement that any training I was to receive would have to be on my own. Federal Special Agents (Job Classification 1811) are forced to retire at age 57. To me, obtaining my CFE credential was part of the plan to transition from being someone with a gun and badge to being beyond the badge.

What advice would you give to someone looking to become a mentor or looking to help other ACFE members to develop professionally?

I recently saw a number of postings on the ACFE LinkedIn account by CFEs looking for work. I have no experience in job hunting in the private sector. All of my experience has been as an 1811. In that role, I worked with other federal agencies and state and local law enforcement officers. There is a crying need for more experienced and financially-trained officers. I would recommend those looking for work to consider becoming a certified peace officer through your state's Peace Officer Standards and Training Council (POST).

For more advice about changing careers, read John's full profile here in the Career Center on ACFE.com.