strategic remedies for fraud victims
DESCRIPTION
Early Warning Signs… And Resources. STRATEGIC REMEDIES FOR FRAUD VICTIMS. BACKGROUND INTELLIGENCE, INC. 213/243-0707 www.backgroundintelligence.com. Orrick, Herrington & Sutcliffe 213/612-2204 www.orrick.com. ?. “...not by the hand of Pablo Picasso.”. D epartment OF J ustice. - PowerPoint PPT PresentationTRANSCRIPT
STRATEGIC REMEDIES FOR FRAUD VICTIMS
Early Warning Signs…And Resources
ORRICK, HERRINGTON& SUTCLIFFE
213/612-2204www.orrick.com
BACKGROUNDINTELLIGENCE, INC.
213/243-0707www.backgroundintelligence.co
m
?
“...not by the hand of Pablo Picasso.”
OPTIONS FOR FRAUD VICTIMS
TOP BIGGEST COLLEGE SCAMS OF ALL-TIME
Email harvesting scam
Financial aid scam
Student aid heist
Textbook Scam
Website Hackers
U.S. News College Rankings Manipulation
Fake college enrollment
Terrorist Visas through fake college enrollment
Unqualified admissions for privilege
Student loan scandal
WHO ARE THE SCAMMERS?
Based on Top Biggest College Scams Former and current students College presidents, university officials,
trustees, director of admissions, and other administrators
International gangs Politicians Financial aid and lending institutions Other, including grandmothers and
multi-generational swindles
CURRENT TRENDS
Organized fraud rings and financial aid fraudsters target
University of Phoenix: 850 potential fraud schemes reported to federal authorities since 2009 (prosecution rate: approximately 25%)
WHAT TO DO ABOUT “RED FLAGS”
Depends on: Type of fraud or loss Who is involved Evidence Corroboration from others
Get facts: Before making a major decision Before reacting to a situation
IMMEDIATE STEPS
Follow your institution’s protocol and published Policies and Procedures Manual
Contact legal counsel (attorney-client privilege)
Get facts: fully investigate the incident with the assistance of independent professionals
THEN…you can start to make intelligent decisions
INVESTIGATIVE TOOLS
Interviews Proprietary databases* Public records Internet and social networking sites Surveillance, dumpster diving,
undercover
TYPES OF INVESTIGATIVE SUPPORT AVAILABLE TO FRAUD
VICTIMS Verifying identities
Finding assets
Defining complex business structures and personal interrelationships
Identifying potential “bad guys” or people in cahoots with the bad buys
Clarifying anomalies
Identifying potential witnesses
Obtaining documentation and independent verification for self-reported “facts”
NATURE OF FRAUD
Most fraud and white collar crime goes unreported
Only 8% of cases reach proper authorities
MEANING: they’re out there to do it again (Source: National Public Survey on White Collar Crime)
COMPLEXITY OF THE RISK
Critical to understand: The nature and extent of the fraud The individual(s) involved Domestic or international
REASONS NOT TO MAKE A REFERRAL
WHERE TO MAKE THE REFERRAL?
COORDINATED EFFORT REQUIRED
No panacea for dealing with fraud
Lengthy, dedicated, persistent effort
Leadership and coordination required
ACTIVE…ON-GOING CYBERCRIME CASE
Fraud took place: June 2011
PRO-ACTIVE STEPS TAKEN
PROBLEMS
Unknown identity of the fraudster(s) Unknown nature of the scam Identifying other victims Unknown potential sources of remuneration, due to
all of the above
SAMPLE RESPONSE…EMAIL FROM FBI AGENT
Tuesday, December 13, 2011
“Olivia,
Per my office’s investigative supervisors, this case doesn’t meet our guidelines or the guidelines for the U.S. Attorney’s Office.
If you get more victims and a higher dollar loss, please let us know.”
Special AgentLos Angeles Field Office
INTERNET FRAUD RING INDICTED
MITIGATING LIABILITY
SELF-POLICING STRATEGIES BEING USED BY COLLEGES
Community Colleges are adopting pro-active strategies
Challenges to financial aid applicants
TYPICAL REACTIONS
Disbelief… Whistleblowers and victims are always
placed in a challenging position Victims are embarrassed at being
duped
MOSTLY…WANT TO AVOID BAD PRESS
PRESENTED BY:
Olivia RobinsonBACKGROUND
INTELLIGENCE, INC.
213/243-0707www.backgroundintelligence.
com
Mark MermelsteinORRICK,
HERRINGTON& SUTCLIFFE
213/612-2204www.orrick.com