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Tampa Bay Chapter - ACFE       http://TampaBayCFE.org          May 2009

How Secure is Your Non-Profit

For the past 15 years Frank Webster was the president of a local youth football league. The organization was designed to provide youth sports to school age children who compete with other football teams from neighboring communities. Webster was one of the original planners for the organization and consistently went unopposed during board elections.

Over the many years that Frank ran the organization, he wore many hats. Not only serving as president, Frank acted as treasurer by handling all bills for the organization. Frank would typically be seen collecting gate receipts and concession stand money at every event. Suspicions arose when Frank bounced a check from the organization at a time when revenues from league sign ups were at a high point in the season. When questioned directly from other members, Frank would fail to respond or tell those parents if they didn’t like the way the league was run they could find another team to join.

Instead of “finding another team to join”, the complaint was brought to the State Attorney's Office for review. Financial records for the organization were examined and multiple problems were identified. Upon examination of the leagues finances, it was discovered that the deposits of the organization’s revenues consisted of parent checks for the kids who signed up, but lacked sizable cash deposits. Revenues generated from gate and concession sales didn’t match what was being collected. In addition to the lack of deposits, Frank was paying his personal bills with league money. Numerous checks were found to be issued to him for “reimbursement” on a number of items such as gas and cell phone bills. Checks were identified as having been issued to Frank’s personal credit card bills. And the nail in the coffin was a league check that was sent to Frank’s mortgage company.

In an interview with other board members, they confirmed that all of the board members were volunteers. No one in the organization should be receiving monies for their time, fuel, or cell bills. Like many non profits, the organization was strapped for cash and could barely pay for necessities such as replacement equipment. In an interview with Frank, he advised that he told the board of his “reimbursements”. However, none of these notices were identified in the league minutes of previous board meetings.

Frank was subsequently charged with theft and forgery and booked into the local jail. Having no previous record, he was offered a diversion program where he repaid the organization the money he took and served a probation period.

The opportunity to steal from a non-profit organization exists more than one would believe. Most of the members are reluctant to become involved with the daily work it takes to run the organization. They are volunteers and most lack training that is essential for any type of money handling. Instead, most parents and volunteer members are content with paying dues, participating in the program, and going home. Problems surface when there is a failure to delineate jobs within the organization, and there is little or no oversight for the positions on the board. In addition, having one person serve as a multiple position board member is creating an environment ripe for a compromise.

Measures can be taken by these types of organizations to minimize their risk. Bylaws should detail board members duties and responsibilities. Committees can be empowered to be responsible for the collection of revenues that are ultimately turned over to the treasurer. Simple preventative measures such as having oversight of the organizations finances and asking questions when things do not appear proper or correct greatly reduce the opportunity for theft or fraud.

Author:

Stephen R. Menge, MBA, CFE
Investigator for the State Attorney's Office
10th Judicial Circuit

SafeFlorida.net

TRAINING OPPORTUNITIES

Tampa Bay Chapter

10th Annual Fraud & Computer Crimes Seminar

May 26-27, 2009
Ruth Eckerd Hall
Clearwater, Florida
1111 McMullen Booth Road
Clearwater, FL 33759

Association of Certified Fraud Examiners

20th Annual ACFE Fraud Conference and Exhibition - Las Vegas, NV

2008 - 2009
OFFICERS & DIRECTORS

PRESIDENT
Steve Hooper, CIA, CFE, CCSA, CGAP
Clerk of the Circuit Court Hillsborough County, FL
(813) 276-2029 x3703

VICE PRESIDENT
Christine Dever, CPA, CFE
City of Tampa
(813) 274-7166

SECRETARY
Ellen Wilcox, CFE
Florida Department of Law Enforcement
(727) 298-2482

TREASURER
Laura Krueger Brock, CPA/CFF, CFE, CVA
Kirkland, Russ, Murphy & Tapp, P.A.
(727) 572-1400

DIRECTOR
Mark Dubina, CFE
Tampa Port Authority
(813) 241-1893

DIRECTOR
Sharon Shaw, CFE
Tel: (727) 674-8399

DIRECTOR
Debbie Venanzio, CFE
Branch Banking & Trust Co.
Tel: (727) 302-5498

DIRECTOR
Bill Miles, CFE
Florida Department of Law Enforcement
Tel: (863) 701-1474

DIRECTOR
Gary Chapman, CIA, CGAP, CFE
City of Tampa
Tel: (813) 274-7163

CHAPTER TRAINING
Wayne Boytim, CFE
Retired
(813) 274-7167

Welcome to SafeFlorida.net, a Florida website dedicated to fighting CyberCrime and supporting CyberSafety. In today's world, internet child predators, child pornographers and other cyber criminals are exploiting our children and engaging in online solicitation. My top priority is protecting Floridians from CyberCrime and my Child Predator CyberCrime Unit (CPCU) is working to carry out that mission, arresting online predators and providing services to victims of child pornography.

According to the Federal Internet Crimes Against Children (ICAC) Task Force, one in seven children between the ages of ten and 17 have been sexually solicited online. Additionally, Florida ranks fourth in the nation in the volume of child pornography. Internet predators are a serious threat to the safety of our citizens, particularly our youth. We must do everything possible to protect our children from these predators.

Computer-facilitated crimes are not limited to child pornography or sexual solicitation. In 2007, Florida ranked fifth in the nation for identity theft with more than 19,000 victims. Today's tech-savvy criminals are using the internet and other computer resources to gain access to Floridians' most private information.

With an ever growing population of senior citizens in our state, extra caution must be taken to protect these Floridians who fall victim to many types of exploitation including internet-based fraud. We must remain vigilant in protecting our seniors and providing them with useful information so they are better able to protect themselves.

Whether we are protecting our children from internet predators, shielding individuals from identity theft or keeping our senior citizens safe from those who target them for fraud, your Attorney General's Office will remain diligent in our fight against cybercrime.

Source: http://www.safeflorida.net/

News from the ACFE

Fraud risks are heightened in the current economic climate. Learn the strategies and skills you need to keep ahead of the fraudsters at the 20th Annual ACFE Fraud Conference & Exhibition, July 12-17, 2009 in Las Vegas.

Chapter News

 

10th Annual Fraud & Computer Crimes Seminar

 

There is still time to register for the Tampa Bay Chapter's 10th Annual Fraud & Computer Crimes Seminar. The seminar will feature experts on computer fraud and other topics. As a member of the Chapter, you can receive 16 hours of fraud CPE for $175.00. To view a seminar agenda, please visit our website at:

http://www.tampabaycfe.org/seminar.htm 
 

Student Scholarships

Saint Leo University ($500.00 each)

The first recipient is Joshua Schecker, a senior with a 3.77 cumulative GPA, who was a previous Pinellas County Sheriff’s Office Explorer and who currently works in loss prevention at the retail level.

 

 

The second recipient is Jason Olson, a senior with a 3.89 cumulative GPA, who participated in a police academy and currently works in the security field.

 

 

 

University of Tampa ($1,000.00)

William (Bill) Webb.  Bill is a double major in accounting and information systems and is currently working for the FBI assisting agents with white collar crime investigations.  His long term goal is to become a special agent concentrating on white collar crime.  Bill is a graduating senior and is currently dual enrolled in the undergraduate and graduate programs in accounting.  After this semester, he will be a full-time student in the graduate program in accounting.  

 

St. Petersburg College, Center for Ethics ($250.00 each)

Nina Barron
Awards Ceremony: St. Pete Gibbs, April 9, 1pm Music Center

Denise Ladley
Awards Ceremony: Tarpon Springs, April 24, 3pm, Lyceum 156

Heather Malcolm
Seminole, April 28, 12:30pm – UP – Digitorium

John Marra
Clearwater, May 1, 2pm, Fine Arts Auditorium

Florida Southern University ($1,000.00)

Emily Canterbury

University of South Florida - Tampa ($1,000.00)

TBA

University of South Florida - St. Petersburg ($1,000.00)

Irina Shaker

Dinner Meeting News

Our next Dinner Meeting is scheduled for April 14, 2009

Deborah H. Drake, VP/Corporate Investigations, Mercantile Bank a Division of Carolina First Bank, presented "Red Flags of Fraud." The presentation will encompassed various topics including identifying and recognizing red flags as they relate to Check Fraud, Check Kiting, Online Schemes and Scams, and Identity Theft. Click on the link above for the presentation.

Debbi has approximately 28 years experience in the banking industry and over half of that in the security and fraud related fields.  Graduating from the University of Michigan with a BA in Business Administration and a minor in Economics, she began her career with Barnett Bank where she learned the basics of banking by working as a Teller, Loan Processor, Auditor, and as Assistant Cashier.  Her career took her then to Citizens National Bank where she worked as an AVP Cashier, and began her work in Security.  As mergers took her from CNB to Mercantile Bank she moved from Fraud, Forgeries and Compliance supervising 3 counties, where she now specializes in Corporate Investigations and Fraud which includes fraud training for Tampa Bay, and Central Florida.  She works directly with the FBI, Secret Service, FDLE, Postal Inspector, and all the local Law Enforcement Agencies in Florida.

President's Message

Hal Borland, a well-known American author once said, “Year’s end is neither an end nor a beginning, but a going on, with all the wisdom that experience can instill in us.” As my first year in the current Presidential term ends, here are some of the things that the Chapter has accomplished:

  • The chapter continues to grant scholarships totaling $6000 to our six local colleges/universities.

  • The chapter supports local Explorer programs through donations totaling $2,000.

  • Work on organizing our student boards is ongoing and has received a lot of interested from the chapter members who have been volunteering their time in this effort.

  • Our dinner meetings averages forty-five attendees and continues to be rated outstanding.

  • We have finalized our 10th annual “Fraud and Computer Crimes Seminar” with excellent presentations that are current to our profession.

  • Chapter members remained active with fraud presentations to numerous organizations.

  • We formed seven committees, chaired and co-chaired by board members that created structure in our chapter operation.

  • Our Chapter of the Year nomination package has been submitted, along with nominations for CFE of the Year and Newsletter of the Year.

  • CFE volunteers have facilitated eight CFE Exam Prep study sessions and attendance is growing.

Although these accomplishments are huge, there is still more work to be done. I will be asking for more volunteers during the upcoming chapter year. If you would like to get involved, contact me or any board member.

I would like to thank Deborah Drake for her outstanding “Red Flags of Fraud” presentation at our April 14th dinner meeting. Deborah is the Vice President, Corporate Investigations at Mercantile Bank.

I also want to thank our first time attendees:

  • Laurie Joiner – Mercantile Bank

  • Deborah Fabbri – Brimmer, Burek & Keelan, LLP

  • Phil Geiger – Kirkland, Russ, Murphy & Tapp

  • Gretchen Oswalt – Direct Check Marketing

  • Jennifer Bryk – Raymond James Financial “CONGRATULATIONS NEW CFE”

  • Carol Schindler – Mutual of Omaha

  • Linda Mahnke – Mahnke Consulting

  • Erric Kolbisky – Kolbinsky & Associates

  • Erika Hoselton – No affiliation listed

  • Kjell Purnell – Consultant

I hope to see all new attendees at our first dinner meeting in September 2009 if not sooner at our 10th Annual Fraud and Computer Crime Seminar, May 26 - 27, 2009. In fact, I would like to see all our members at the seminar. Book Now!

While I am on the thank you page, I would like to extend a truly heartfelt thank you to Laurie Joiner, VP-Branch Manager, Mercantile Bank for donating $50 savings bonds to each of our student scholarship winners.

Congratulations to all our student scholarship winners. Throughout ceremonies held at our local colleges/universities, and at our dinner meeting, ten recipients received Chapter scholarships ranging from $250 to $1000 for a total of $6000.

Speaking of Congratulations, our April dinner meeting was also our annual administrative meeting where the results of Chapter elections were released. So congratulations to our returning board members: Laura Brock – Treasurer; Ellen Wilcox – Secretary; Mark Dubina – Director; Sharon Shaw – Director; Gary Chapman – Director.

Again, I want to thank you for giving me the opportunity to serve as your President. My message to you all year was to get involved. I wanted to challenge you to find your compassion for this Chapter. It is, and will continue to be a truly a rewarding experience working for and with you next year. Have a great summer while your Board gears up for the upcoming Chapter year.

Steve Hooper, CFE, CIA, CGAP, CCSA
President, Tampa Bay Chapter - ACFE