12th Annual Fraud Conference & Trade Show

The 12th Annual Fraud Conference & Trade Show, Aug. 5-10 at Walt Disney World Dolphin Hotel, features a bountiful buffet of fraud examination ideas and methods. 

The ranks of anti-fraud practitioners are burgeoning. How is it possible to present a conference that will appeal to the eager beginner as well as the experienced veteran? By offering attendees an information buffet ranging from basic appetizers to complex entrees. By the end of the 12th Annual Fraud Conference & Trade Show, you'll be nourished with the latest fraud examination knowledge presented by the best "chefs" in the field. Bon appetit!

Three-in-One
The 12th Annual Fraud Conference & Trade Show is a conference-goer's dream: you have the complete autonomy to strategize exactly what sessions YOU want to attend, to learn what YOU want to learn.
Every year we ask you to put your business on hold, hop on a plane, pin on a name tag and spend time with your colleagues. In return we offer you the best possible continuing education on fraud examination available anywhere.
This event is actually three conferences in one; participants can attend any or all segments.

• The four-hour, Pre-Conference, Off-Book Frauds (Sunday, Aug. 5), will teach about schemes that don't appear in books and records.
• In the 2 ½-day Main Conference (Aug. 6-8), practitioners will choose from 12 tracks (two more than last year) and attend several timely and thought-provoking general sessions taught by experts - in some cases, the criminals themselves.
• The Post-Conference (Aug. 9-10), is divided into tracks for auditors and investigators, and provides basic level training in the tools and techniques of fraud examination.

By attending all segments, fraud examination practitioners can earn up to 44 fraud-related continuing professional education (CPE) hours.

The 12th Annual Fraud Conference & Trade Show will also feature a trade show, beginning on Sunday evening, Aug. 5, and continuing through Tuesday, Aug. 7.

General Session speakers will include: Barry C. Melancon, CPA, president and CEO of the American Institute of Certified Public Accountants (AICPA); Brent Israelson, president and CEO of iLumin Corporation, speaking on "The Virtual World." In addition, former Arkansas Attorney General Steve Clark will describe his rehabilitation process after a felony travel and expenses fraud conviction. (See sidebar.)

At the opening General Session on Aug. 6, Henry N. Pontell, Ph.D., distinguished white-collar criminologist and scholar, will receive the coveted Donald R. Cressey Award. Dr. Pontell is professor and chair of the Department of Criminology, Law and Society in the School of Social Ecology at the University of California, Irvine.

The Association will host three social events: a Welcome Reception on Sunday, Aug. 5; the Rockin' Beach Party at The Rock 'N Roll Beach Club at Downtown Disney© Paradise Island on Tuesday, Aug. 7; and a farewell happy hour on Thursday, Aug. 9.

For the latest 12th Annual Fraud Conference & Trade Show information visit www.fraudconference.com. To register call the Association toll free at (800) 245-3321 or (512) 478-9070 from 7 a.m. to 6 p.m. CST, Monday through Friday, e-mail the Association at info@cfenet.com to ask for a registration form, or simply register online at www.cfenet.com.

Pre-Conference: Off-Book Frauds
Off-Book Frauds is a four-hour executive roundtable seminar and discussion for exchanging ideas on Sunday Aug. 5. Participants will work in small groups in three 70-minute sessions: Identification of Off-Book Schemes, Investigation of Off-Book Schemes, and Prevention of Off-Book Schemes.

Upon registering for the Pre-Conference, attendees will receive in the mail a 70-page outline and other materials. Those who spend up to four hours of study and preparation before the session will receive continuing professional education credit and four more hours at the session.

When registering for the Pre-Conference, participants will be required to complete a questionnaire, which the Association will use to assign them to the appropriate discussion group. Registrants will be grouped with other attendees to provide maximum diversity.

The sessions will concentrate on brainstorming to seek new approaches for the detection and deterrence of off-book frauds. During the first 40 minutes of each session, groups will discuss the advance material and during the remaining 30 minutes, will present conclusions to the rest of the attendees.

At the conclusion of the conference, the Association will prepare a formal position paper and distribute it to Pre-Conference attendees within 120 days. Following are the sections of the Pre-Conference:

Identification of Off-Book Schemes
In this session, participants will identify the types of off-book schemes: kickbacks, gifts or gratuities, and fictitious vendors. They will then be able to determine the most vulnerable areas of an organization.

Investigation of Off-Book Schemes
Off-book schemes are some of the most difficult to investigate since there aren't any audit trails on which to focus. Group will discuss the techniques that have and haven't worked.

Prevention of Off-Book Schemes
If a fraud examiner has the proper controls in place, why would he or she have lost money to off-book frauds? Sometime the answers aren't that easy. This session will explore effective controls, old and new.

Main Conference
The Main Conference, Aug. 6-8, consists of three general sessions, two working lunches, and 12 tracks with subject-specific breakout sessions: Current Issues, Cyberfraud, Embezzlement, Fraud by Customers, Money Laundering, Inventory Fraud and Supply Frauds, Fraud and the Law, Fraud by Vendors, Financial Statement Fraud, Bribery and Corruption, Fraud Examination Management, and Practice Development. Participants will receive 20 hours of CPE credit.

Post-Conference
The two-day Auditors and Investigators Basic Conference, Aug. 9-10, consists of two tracks of introductory fraud examination techniques for the entry-level auditor or investigator. Participants will earn 16 CPE hours.
Auditor sessions include fraud responsibilities for accountants and auditors, fundamental fraud analytical schemes, asset misappropriation schemes, corruption schemes, and fraudulent statement schemes. Investigator sessions include an introduction to occupational fraud schemes, an introduction to confidence schemes, interview techniques, legal issues for investigators, and report writing. Both tracks share sessions an introduction to fraud examination, legal elements of fraud, and the summary.

Prices:
Entire Conference: $1,425
Pre-Conference only: $350
Main Conference only: $895
Post-Conference only: $595
Pre- /Main Conference: $1,105
Pre- /Post-Conference: $915
Main /Post-Conference: $1,325

Hotel Information:
Walt Disney World Dolphin Hotel
1500 Epcot Resorts Boulevard
Lake Buena Vista, FL 32830
407-934-4000; 800-227-1500
Cut-Off Date for Special Rate: July 5, 2001
(reservations subject to availability)
Special Rate: $165 single and $219 double
A deposit of one night's stay is required to hold a reservation.

Breakout Sessions for Main Conference
(Material subject to change.) 

TRACK A: CURRENT ISSUES  

2A or 9A. Anti-Fraud Sites You Must Know
Let's face it. The Internet changes so fast that the sites you know today will be obsolete tomorrow. In this up-to-date presentation, you'll learn the new Web sites that will not only make your job easier but will also teach you how to be much more thorough and complete.

4A or 10A. Knowledge Management and Fraud Examiners What is knowledge management and why are governments and global corporations throwing big bucks into this? And what are the knowledge management challenges facing fraud examiners? This session discusses the skills needed to investigate a virtual reality perpetrator - and more. Can you adapt to this hot topic?

5A or 11A. Conversation and Information Sharing
Fraud examiners and investigators need one thing - good information. For those who don't have the luxury of subpoenas, they need the skill of making others want to provide information. Also in this session learn what the government is doing with data sharing and working with the private sector on task forces.

7A or 12A. Cyberstalking
If other high-tech crimes weren't enough, the government has now identified a serious new threat - the use of e-mail and the Internet to harass, threaten, or stalk employees and citizens. Find out how these bizarre events unfold, and what to do if it happens.

TRACK B: CYBERFRAUD 

2B or 9B. Detecting and Preventing Cyberfraud
Today's frauds almost invariably involve the computer in some aspect of the crime. Whether it's penetrating your system to look around or to steal, it's an issue that you need to address. Learn the latest methods to detect cyberfraud, and perhaps more importantly, how to prevent it from ever happening.

4B or 10B. Career Opportunities for High-Tech Investigators
The new world of technology has greatly increased the need for investigators and fraud examiners with specialized skills. This presentation will give you an overview of the near-term career opportunities, where the jobs are now, and what you have to do to take advantage of this hot new field.

5B or 11B. Fighting E-Commerce Credit Fraud
Companies and consumers are at the mercy of outdated credit verification systems, Internet thieves, and ineffective fraud-fighting tools. Learn, in detail, how credit fraud is taking place, the tools needed to spot and stop fraudulent activities, and ways to examine and protect company assets.

7B or 12B. Information Security in a Network Environment
As commerce continues to evolve toward universal electronic access, some experts are convinced we will have more trouble keeping our own information secure. In this non-technical session, you'll learn the key points to protect both local and wide area networks from outside and inside penetration.

TRACK C: EMBEZZLEMENT  

2C or 9C. Case Study: Traveling in Style on Your Company's Nickel
These were no nickel and dime cases, but ended up costing their employers hundreds of thousands of dollars. This session discusses the impact of travel expense fraud for an organization and provides a framework for investigating these types of cases.

4C or 10C. Pension Plan Fraud - Will It Be There When You Retire?
You're a loyal employee and you've worked long and hard. You're ready to retire, but what happens when the pension fund has been pilfered and there's no money left? Learn how to investigate pension fraud to ensure that it will be there when you retire.

5C or 11C. Embezzlement Detection Software
You're no longer alone in looking for the ingenious ways that your employees are stealing from you - help is on the way. Software programs that are user friendly and affordable are available to you. This session discusses them.

7C or 12C. Hired Today, Fired Tomorrow: Creating Workplace Behaviors to Reduce Employee Fraud
First they hire you, then they fire you. The working relationships in any environment can be the most crucial, yet they are often overlooked, or worse, ignored. Find out how workplace behaviors pose a potential risk to your employer and how properly dealing with these relationships can reduce the risk of embezzlement.

TRACK D: FRAUD BY CUSTOMERS  

2D or 9D. Fraud Detection Software
You know your customers are stealing from you. How do you investigate loss without spending more than the cost of the loss itself? Software companies have developed several products that can help you in your fight against fraud - and they won't break the bank.

4D or 10D. Case Study: The Brotherhood
It started out as a simple case of contested disability, but this case took on twists and turns that had the investigator going in all kinds of directions. When it was over it wasn't just the insured who made a living off insurance claims - his brothers did, too. Learn what it took to bring them down.

5D or 11D. Benford's Law
Companies receive claims, billings, and other financial information from customers and outside vendors to support cash disbursements. In some instances, this data is fraudulent. But thanks to a mathematical calculation, bogus numbers can frequently be detected. This presentation shows you how.

7D or 12D. Don't Eat Your Own Words!
If you're ever required to report the results of fraud investigations, you must be very careful about the words you select. This session teaches you practical ways to word accusations, conclusions, and opinions in writing - regardless of whether the case involves a customer, employee, or outsider.

TRACK E: MONEY LAUNDERING 

2E or 9E. Money Laundering Fronts
Cash-intensive businesses have always been a valuable target for money launderers that use these fronts to disguise their illegitimate enterprises. In this nuts-and-bolts session, you'll find out which enterprises are most likely to launder funds, and why.

4E or 10E. Fool's Gold - The Bre-X Fraud Scandal
Said to be the world's largest gold mine, in the end it was worth about as much as the dirt in your backyard - maybe even less. This case study takes you all over the world including some of the most favored tax havens in a criminal, civil, and international investigation. Don't miss it.

5E or 11E. The Role of Financial Institutions in Money Laundering
Since the advent of federal money laundering statutes, banks and other financial institutions have played an important role in money laundering. Indeed, some of the most notorious crimes were committed by the banks themselves. This session will provide you with an overview of the problem.

7E or 12E. Money Laundering and the Internet
Some experts claim that - thanks to the Internet - money laundering will now skyrocket. But is it really true? In this futuristic session learn how tomorrow's cyber-criminals are likely to try to exploit technology and find out whether the doomsayers are correct.

TRACK F: INVENTORY AND SUPPLY FRAUDS  

2F or 9F. Recovering Fraud Losses Through Insurance
Fidelity bonding provides protection to most businesses against catastrophic losses from embezzlement and other defalcations. In this presentation, you'll learn how to maximize your recoveries from insurance proceeds, as well as how to minimize overall insurance costs for the company.

4F or 10F. The Unhappy Employee
Nothing is worse for a company than trusting its inventory and other assets to an unhappy employee. Studies have indicated that worker discontent is a major motivator for theft and embezzlement. Learn why, and what you can do about it.

5F or 11F. Case Study - Selling on the (Loading) Dock of the Bay
You might expect an employee to steal inventory once in a while. But in this case, it was the general manager and part owner who sold retail merchandise right off the loading dock. In fact, he allowed only enough merchandise to get to the retail floor to cover the vendor payments. Learn how the case was investigated all the way to bankruptcy.

7F or 12F. Technology Solutions for Inventory Security
The safeguarding of inventory increasingly relies on technological solutions: access control through biometrics, sophisticated inventory tracking systems, and even high-tech snooping devices. And although technology is not the whole answer to inventory control, you'll be astounded by what is now available.

TRACK G: FRAUD AND THE LAW 

2G or 9G. How to Package Your Case for Prosecution
You've done the work and now you want to take it a step further with a prosecution. Do you know the best way to get your case prosecuted? In this session you'll learn what a prosecutor needs to prove legally and practically, as well as what isn't needed.

4G or 10G. Expert Witnessing: The Changing Landscape
Recent Supreme Court and other legal decisions have put a new spin on "junk science" experts. In this forward-thinking presentation, you'll learn how recent court interpretations may make it more difficult for even legitimate experts to qualify to testify.

5G or 11G. Legal Remedies for Corporate Espionage
Today's most valuable asset - information - is an attractive target for crime. This session will best explain to you how you can take proactive legal steps to make sure your company is protected. And it will detail the civil and criminal remedies that are available just in case you become a victim.

7G or 12G. Digital Evidence and the Law
Digital evidence may be your only evidence to prove a fraud case. Do you know how to acquire it and the legal issues involved so that you can use it in court? This session explains how in terms a layman can understand.

TRACK H: FRAUD BY VENDORS  

2H or 9H. Investigating Potential Vendors
How do you know a potential vendor can give you the best product at the best price? Indeed, how do you know the potential vendor is even real? This presentation will give you practical, hands-on techniques your organization can use to check out problems before they occur.

4H or 10H. Fraud Detection Software: Vendors
You've put in the controls but still vendors are cheating you. The problem is how to find the problem vendors. This session will show you software solutions that will help you focus on the problem vendors and how to eliminate them - at least for a while.

5H or 11H. Fraud and Paperless Payment Systems
Have you changed the payment of your organization's payables to a paperless system? If so, you know that your company will be much more efficient. But do you also know that now there are unique and often ignored fraud risks? This session will help you evaluate your own internal and security controls.

7H or 12H. To Lease or Not to Lease (Back)?
Perhaps the single most profitable fraud for a contractor to perpetrate is the so-called lease back scheme. It can manifest itself in a variety of ways but involves the billing of costs associated with buildings, vehicles, and equipment. How much have you lost to these schemes? And how can you stop it?

TRACK I (i): FINANCIAL STATEMENT FRAUD 

2i or 9i. Earnings Management, Fraud, and GAAP
Generally accepted auditing principles - designed to bring fairness to financial presentations - are now being used by devious executives for just the opposite purpose. In this eye-opening session, you'll learn the creative tricks used to "manage earnings" that are often fraudulent.

4i or 10i. Are We Doing Enough to Prevent Fraud?
Sometimes we spend so much time on investigating fraud that we forget to pay attention to perhaps an even more important aspect of fraud: prevention. This session will discuss what can be done to stop it from happening in the first place.

5i or 11i. A New Type of Audit to Fight "Cooking the Books"
Could financial statement fraud be made as rare as major airplane crashes, saving investors billions of dollars annually? This session will explore new auditing methods and tools that are in the pipeline and discuss more radical changes that could help achieve this goal.

7i or 12i. Financial Statement Fraud Detection Software
If you're an auditor, you know a lot is riding on the annual report - the least of which is your liability. In the last few years auditors have taken hits for not finding fraud in spite of good audit practices. In this session you'll learn some of the software that is available to help narrow down phony accounts.

TRACK J: BRIBERY AND CORRUPTION 

2J or 9J. Corruption in Government: an Update
Unfortunately, government corruption at the state, local, and federal levels is nothing new. A wide range of public officials have been tempted in the past to accept bribes and kickbacks. Is the situation getting better or worse? Are there any new trends on the horizon? Learn the latest in prevention and detection.

4J or 10J. Combating Fraud and Corruption in International Business Projects
This session introduces you to the most common and costly fraud and corruption schemes in international projects including red flags. You'll also discuss the available investigative resources and methods, and the legal environment, including the U.S. Foreign Corrupt Practices Act and the recently enacted OECD anti-bribery convention.

5J or 11J. Case Study: The Vote is in: He's Busted
As the elections commissioner, he was in a very powerful position. So powerful in fact, that in order to do business with his agency, vendors had to pay kickbacks and dummy up phony invoices. Learn how the auditors busted the commissioner and so can you in any organization.

7J or 12J. Ethics Programs - a Must For Organizations
Most employees don't start out to be corrupt - they seem to develop it along the way. The solution may just be a good ethics program. In this session you'll learn how an ethics program promotes organizational integrity and public confidence as well as how to set one up. It's a win-win proposition.

TRACK K: FRAUD EXAMINATION MANAGEMENT  

2K or 9K. Evaluating, Hiring and Retaining Personnel
As a manager, you know there's no more critical function than hiring and retaining the right personnel. This session will use a checklist approach to show you how to get and keep the best employees.

4K or 10K. Software Management Tools
Now, thanks to rapid advances in software, you can effectively manage personnel and cases with the click of a mouse. Learn the various programs that are available, their plusses and minuses, and how you can use them to your advantage.

5K or 11K. Developing Industry Relationships
As a fraud examination manager, you're responsible not only for what goes on inside your company, but also for interaction with outsiders. This hands-on presentation will show you how to develop relationships with law enforcement, the legal community, and even your competitors.

7K or 12K. Spotting and Handling Problem Employees
Because many fraud examinations can be adversarial, not everyone is up to its confrontational nature. And the wrong employee in the wrong job can lead to serious liability issues. Learn how to spot the problem fraud examiner, and what to do about it.

TRACK L: PRACTICE DEVELOPMENT  

2L or 9L. Starting Your Own Fraud Examination Practice
So, you want to start your own business. This session is the place to start. You'll learn what's required to begin, what you need to do to generate business, and what pitfalls await you.

4L or 10L. Making the Right Presentations
You can easily broadcast your message to prospective clients by making the right presentation. This session gives you the pointers to seek out the speaking engagements that will do you the most good. And it will show you what not to say in your speech.

5L or 11L. Web-based Practice Development Tools
Developing your fraud examination practice could be much easier with the help of the Internet. This presentation shows you a wealth of Web-based products and services that can put you in contact with the meaningful prospects.

7L or 12L. Developing Contacts and Referrals
The number one source of business for fraud examiners is referrals. In this presentation, you'll
learn how to understand the dynamics of generating leads, how to develop referrals and contacts, how to approach them (including tips for organization and preparation of your material for delivery to specific audiences), how to follow-up on prospects, and even the kinds of contacts to avoid. This session will enable fraud professionals - from beginners to experience practitioners - to utilize proven techniques for networking consulting services.

Conference Offers Varied General Session Speakers

Barry C. Melancon, CPA, president and chief executive officer of the American Institute of Certified Public Accountants (AICPA), will give the keynote message during the 12th Annual Fraud Conference & Trade Show, Aug. 5-10 at the Walt Disney World Dolphin Hotel in Lake Buena Vista (Orlando), Fla. At the working lunch on Monday, Aug. 6., Melancon will speak on "Fraud and the New CPA."

Elected to his AICPA position in 1995, Melancon directs the operations of the 329,000-member Institute in New York, New Jersey, and Washington, D.C. Prior to joining the AICPA, he was the executive director of the Society of Louisiana CPAs for eight years. Melancon began his accounting career in 1979 at the firm of Bergeron & Company, CPAs, in Louisiana.

During the morning General Session on Aug. 7, D. Brent Israelson, president and CEO of iLumin Corporation, will speak on "The Virtual World." Israelson will describe the volatile world of the virtual customer. In these exciting new times, stores are in cyberspace, and the customer rules supreme. But are there new and more sinister crimes on the horizon? Israelson will let us know.

During the working lunch on Aug. 7, Steve Clark will describe how as attorney general of Arkansas he had a really good shot at challenging the incumbent governor, Bill Clinton. And when Clinton began to set his eyes on The White House, Clark began his campaign in earnest. But he was soon derailed when a newspaper article reported that his office had spent more than $115,000 on travel and meal expenses in one year. Clark eventually was charged with felony theft by deception, fined $10,000, and surrendered his law license. He eventually ended up in Austin, Texas, where he was finally granted permission to earn his Texas law license, passed the bar exam, left a $6-an-hour bookstore job, and is practicing law once again with a much more humble attitude.1 Clark will tell how he went wrong and what he did to change his life.

1Bruce Hight. " 'It is redemption'; Ex-Arkansas official get second chance in Texas" The Austin American-Statesman, March 10, 2001, pg. A1.

Sponsors and Exhibitors to Provide Support and Professional Assistance 

Two top accountancy firms have signed on as backers of the 12th Annual Fraud Conference & Trade Show.
Arthur Andersen is a Silver Sponsor of the conference and sponsor of the Financial Statement Fraud track, and Deloitte & Touche is a Sponsor of the conference.

At press time, following are the booth numbers and exhibitors:

201 LEXIS-NEXIS
204 Wicklander-Zulawski & Associates
205 BNA
208 G.A. Public Record Services Inc.
209 Bonded Collections
210 National Coalition for the Prevention of Economic Crime
211 Bonded Collections
212 Guidance Software
213 BDO Seidman, LLP
216 U.S. Postal Inspection Service
217 TrustMarque
220 Thomson Financial Publishing
221 WeType4U.com
300 Association of Certified Fraud Examiners
301 ACL Services Ltd.
302 Association of Certified Fraud Examiners
303 Rome Associates
304 FraudInfo.com
305 Dun & Bradstreet
308 National Fraud Awareness Week
309 Xanalys Inc.
310 The White Paper
311 CaseWare IDEA Inc.
312 Association of Certified Fraud Examiners
313 Innovative Investigation Solutions
316 EthicsLine
317 Central Intelligence Agency
318 Tampa Bay Chapter of the Association
319 Arthur Anderson
320 Orlando Chapter of the Association
321 i2 Inc.
400 ISO ClaimSearch
401 CaseSoft
404 Paisley Consulting