Joseph L. Ford, CFE

Joe Ford's responsibilities include overseeing investigations and fraud examinations, fraud prevention, physical security, information security and business continuity. He leads a team of 85 people, plus contractors. During the 23rd Annual ACFE Fraud Conference & Exhibition, the ACFE presented him with its highest honor, the Cressey Award, for a lifetime of achievement in the detection and deterrence of fraud. The award is named for the late Dr. Donald R. Cressey, a renowned fraud researcher and an ACFE founding father. Ford retired as the third-ranking official within the FBI. While introducing Ford at the annual conference, ACFE founder and Chairman Dr. Joseph Wells, CFE, CPA, said, "Almost single handedly, our winner started the FBI's crusade against health care fraud. One notch in his white-collar crime gun was Columbia/HCA Health Care, which resulted in multiple convictions and civil fines of $1.6 billion. Another notch was when he was personally selected to head up the Enron task force. Still a third notch was when he figured out how to get terrorists where they are very, very vulnerable: in their bank accounts." (See Ford's acceptance speech at the bottom.) 

Fighting fraud is not easy. Start your career working with someone who can mentor and guide you. Begin working on smaller fraud cases and challenge yourself by exposing your experiences to more complex schemes. It's vitally important to understand the basics.

You need discipline in paying attention to details. Take a methodical approach in tying details to actions. As you grow in the field, you'll want to lead fraud investigations, and it is important to build a high-performing team.

I attended Essex Community College in Baltimore initially majoring in mechanical engineering. After completing its two-year course, I was admitted into the engineering program at Johns Hopkins and spent one year in their evening program. During my year at Johns Hopkins, I started working for the FBI as a clerk, later becoming an accounting technician. Eventually, I decided to switch majors to business and accounting so I could become an FBI agent. At that time, my best chance to become an agent was to apply under the accounting program, because they weren't much interested in hiring engineers. It took a little longer, but I eventually graduated from the University of Baltimore with a Bachelor's in Business Administration with a major in accounting.

When I began working for the FBI, I was able to experience firsthand the commitment of its men and women to fighting fraud. After working for the agency for two years, I started working as an accounting technician with agents on the white-collar crime squad. It was my apprenticeship in fraud. Later, when I became an FBI agent, I had the opportunity to expand my experiences by working my own cases, presenting evidence to federal grand juries and testifying in federal court.

Investigating fraud and seeing fraudsters convicted was a thrill. Trying to understand the white-collar criminal psyche became a passion and vocation as my FBI career progressed. I had the opportunity to lead or be part of many landmark investigations.

During the 1980s, I led a corruption investigation involving Department of Defense employees, consultants and contractors resulting in more than 35 convictions. We used seven months of wiretaps from Pennsylvania to Florida to gather the evidence. The corruption was systemic and began before World War II.

During the 1990s, I led the FBI's efforts in rebuilding its health care fraud program. I was lucky to lead or be part of the successful criminal and/or civil prosecutions of the Columbia/HCA case, National Medical Enterprises, Eckerd Pharmacy, KPMG, Olsten Home Health Care, staged accident frauds and a number of medical laboratories. Collectively, the government recovered more than $2 billion dollars in fraudulent claims from these companies. I also led the Enron investigation as well as the investigation that led to the prosecution of the Arthur Andersen accounting firm.

In 2008, I retired from the FBI as its associate deputy director following a 30-year career in federal law enforcement. I was still young and needed to work. Retiring early without a job was a leap of faith but within four months, one of my friends told me Bank of the West was looking for a chief security officer. My wife and I had spent almost a year in San Francisco when I worked for the FBI, and we decided I should apply. Bank of the West's culture was very comfortable and similar to the FBI's. The role also offered me the opportunity to build my own program at a pace that allowed me to create a high-performing team.

The two most important aspects for someone working fraud examinations is attention to detail in reviewing records and strong interviewing skills. White-collar criminals are pathological liars. I've said many times that if you are selling drugs, possession is a crime and easy to prove. Proving criminal intent in a fraud matter is much more difficult, because many times only the financial records can speak to intent … unless you have a wiretap or recorded conversations.

Probably the most important lesson I learned from all the FBI cases I worked was that you need to understand the underlying business to appreciate how the frauds were committed. I took it upon myself to understand the nuances of the many aspects of the medical industry before immersing myself in a case. A clinical lab billing fraud was much different than a Medicare Part A hospital or home health care cost report fraud scheme which was much different than a psychiatric hospital fraud.

I also learned that sometimes you had to take calculated approaches, even if it meant taking a path less traveled or not so popular. Appellate courts and even the Supreme Court have reversed and upheld convictions related to cases that I've worked on. I have always felt that losing a case on appeal did not mean the individual was innocent, especially after a jury found them guilty.

Being elected an ACFE regent by my anti-fraud peers was humbling, which was first and foremost the best aspect of becoming a regent. Secondly, being able to serve the ACFE staff and members for the greater good was enlightening. The Board of Regents tackles many difficult issues, and weighing many needs and working with the other Regents in making difficult decision was mentally stimulating. I think I speak for all former Regents when I say, I wish I could have served longer.

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Ford's Cressey Award acceptance speech

Introduction by Dr. Jospeh T. Wells, CFE, CPA, founder and Chairman of the Association of Certified Fraud Examiners: The Cressey Award is the highest distinction that can be bestowed on a member of the ACFE. This is an honor for me today because it is only the second time in the 23rd presentation of the Cressey Award that I have known the recipient personally. He is a great friend of mine but, as you will hear, that has nothing to do with him receiving the recognition that he so justly deserves.

People who work in the anti-fraud industry are not typically household names but we've a had few: Rudy Guialni - not the politician but the prosecutor who went tooth and nail jailing corporate titans when it was unheard of at the time. John Stossel, the Pulitzer Prize-winning investigative television reporter who first telecast how Nigerian scams work. Ken Hunter, the former head of the U.S. Postal Inspection Service. And the list goes on.

Today's winner was born in Niagra Falls, New York. Like me, he graduated with a degree in accounting and went on to serve a two-year sentence in auditing. We were both FBI agents but I didn't know him; he was of a younger generation. Actually, we met as CFEs. By this time, I was aware of this man's legend.

Almost single handedly, our winner started the FBI's crusade against health care fraud. One notch on his white-collar crime gun was Columbia/HCA health care, which resulted in multiple convictions and civil fines of $1.6 billion. Another notch was when he was personally selected to head up the Enron task force. Still a third notch was when he figured out how to get terrorists where they are very, very vulnerable: their bank accounts.

Our winner's legendary victories did not go unnoticed at FBI headquarters. Starting his career as a street agent, he retired as the third-ranking official of the Federal Bureau of Investigation. He could have easily rested on his laurels and government pension. But he didn't. He is now the executive vice president and security officer for the Bank of the West, one of the largest banks in the country, where he is in charge of security and investigations for more than 800 branches.

I've heard it said that behind every great man there is a great woman. In this case, it is the beautiful Kathleen who is in our audience today. On a personal note, he has a twin sister. His other sister has a twin brother. And his other brother has a twin sister. Yes, ladies and gentlemen, our winner came from a family with not one, not two, but three sets of boy/girl twins. But there is no confusing our winner: He is one of a kind.

I'm honored to call him my friend. You should be honored that he is the 2012 Cressey Award winner. Ladies and gentlemen, may I present to you Mr. Joseph Leonard Ford.

Joseph L. Ford, CFE: Dr. Wells, thank you for those kind remarks. It is wonderful to be in Orlando today to accept the Cressey Award. To say that I am honored to be chosen for this recognition would be an understatement. When I received the call in February to tell me that I had been chosen to receive the Cressey Award, I was a little stunned and very humbled by the recognition. Today, and since learning that I was chosen to receive the award, I feel fortunate to be part of a very special group of honorees.

I was asked to make a speech. Well, those of you that really know me know that public speaking is not in my comfort zone. I have always been more comfortable rolling up my sleeves and working as part of a team. That's why I joined the ACFE almost 20 years ago. The ACFE is a tremendous organization and represents the largest team of professionals committed to detecting, investigations, preventing and educating each other and the public about anti-fraud in the world. It is also a world-class organization.

I have always felt the CFE designation represented more than a fancy credential. To me, being a CFE represents the individual who knows what is right and lives their professional life with integrity and a passion for seeking truth and exposing deception. I'm proud to be part of the ACFE and count many of you as friends.

I would be remiss if I did not thank a few people who are responsible for me being here and many who have provided me the support, encouragement, love and direction that allowed me to benefit from such a wonderful life.

First would be my father who taught me it was best to learn by being an apprentice, before becoming an expert. My mother who said many times as I was growing up, that it was the quality of life — not quantity — that matters. My wonderful wife who, for the past 12 years — and is with me today — has moved across the country not once but three times, her support and love has kept me grounded.

I'd also like to thank Joe Wells and Jim Ratley. Joe is a true visionary and a loyal friend; and Jim Ratley, a man I truly believe represents the heart and soul that is the ACFE.

I've told this story on a few occasions, but I think it is relevant to why the ACFE exists today. In the late 1990s, I led the investigation of Columbia/HCA Healthcare. This wasn't the glamorous, door-busting stuff you see on TV. Although they were none too happy one July day back in 1997 when 300 agents searched about 28 of their locations. It was several years of painstaking work.

Early in the investigation we subpoenaed the auditor's work papers and reviewed them for evidence. As we began poring through the 14-by-17 inch dusty green work papers, the audit process became clearer … and anomalies that tracked one of the central frauds in the investigation were actually detected outside in the workpapers.

The auditors discovered the fraud, but did not recognize its significance. The auditors questioned reserves that were linked to the criminal activity but did not pursue the critical questioning other than to satisfy themselves that proper reserves were established. CFEs would have. But there was one hole in the work papers — and it was important. Missing from the reams of bound work papers was one work paper — DD-55, which referenced a conversation the Arthur Andersen engagement partner had with his bosses and the HCA managers.

We asked the auditors to see if it had been misplaced and conducted a similar review. Countless hours were spent looking for that piece of evidence. No luck. A critical piece of evidence, work paper DD-55 was lost, missing or — had been destroyed. It was never located. Five years later the same accounting firm was embroiled its own scandal for destroying critical work papers in the Enron corporate fraud investigation. Seeking truth and exposing deception. That is what the ACFE is all about.

Back in the early 1900s there was a famous award-winning movie called "Citizen Kane." It was a fictional account of the life of William Randolph Hearst, the famous American newspaper publisher. Many of you may have seen this movie. The movie opened with Charles Foster Kane mumbling the word "Rosebud" as he died. Throughout the movie, it was the central theme and the mystery the reporter tried to solve throughout the movie. Who or what was "Rosebud"? Movies can sometimes be a reflection of true life experiences and memories. I could see at some point in my life someone will find me in a nursing home cleaning drool from my chin and mumbling, "D-55."

Thanks again for this wonderful recognition; I am truly honored.