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

2009 ACFE Chapter of the Year Winner
President's Message

Steve Jobs, Apple co-founder once said “innovation distinguishes between a leader and a follower.” As the ACFE’s 2009 Chapter of the Year, we are recognized as the leader - to represent the mission and purpose of the association. We are not the follower. I hope to be bringing you some exciting news in the very near future of another innovative idea, that was brought to your Board’s attention from one of our CFEs. The idea is indeed innovative and not something previously done by any other ACFE chapter. Your Board continues to find ways to fulfill our pledge of providing you the most valuable, current techniques, which are used to detect and deter fraudulent acts. Steve also once said “Be a yardstick of quality. Some people aren't used to an environment where excellence is expected.” That is your Board’s focus this chapter year – to be THE measurement of quality. I believe that if we can be successful with all the programs we have in place, we will be that measurement of quality – one that all other chapters will strive to emulate.

One program we are re-introducing this year, is to ask members to share their fraud related investigations/stories at our dinner meetings. Anyone who is interested in presenting, notify me or Christine Dever, and we will get you scheduled. We are also looking for quality speakers for our two-day seminar in May, 2010. Again, you may contact me or Christine or if you or someone you know of would like to present. 

At the September dinner meeting, I urged those present, as I am doing with you now, to become involved with your chapter. We are in need of volunteers in many of our endeavors. Volunteering is extremely rewarding especially when you see the success of your work. We need volunteers to work on our student board committee, and we need CFEs to share their work with our CFE Prep Study Group. We need volunteers to write and submit topics for our newsletter, and we are also looking for innovative ideas of things we can do as a chapter.  Contact any Board member if you are interested in volunteering your time with us or want to share your idea with us.

With reference to the last dinner meeting, I would like to thanks our first time attendees for coming: They are:

Terry Lauzon with Syniverse Technology
Steven Genevish with Drug Enforcement Administration
Beverly Fon with HCA
Angie Gross with Oscher Consulting, P.A.
Ashley Hammond with Oscher Consulting, P.A.
Rob Westlake with Oscher Consulting, P.A.
Nancy Litif with Stough International 

Also New Members and First Time Attendees: 

Dali Kranzthor with KBL, LLP
Jingming (Jimmy) Ma, student at University of Tampa 

I hope to see everyone at our next dinner meeting being held on 10/13/09 at the West Shore Hotel. If you have not been to one our dinner meetings in a while, why don’t you circle this date on your calendar and join us for a great evening of networking and a great fraud presentation. I look forward to seeing you there.  Over the course of the last year, I have continually spoken about the chapter’s structure – being organized into committees with Chairs assigned, to allow us to  better achieve our goals and objectives in the coming years. With that being said, I will close with a quote from Albert Einstein, “innovation is not the product of logical thought, although the result is tied to logical structure.”

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

Dinner Meeting News

Our next Dinner Meeting is scheduled for October 13th, 2009

New Trends in Retail Theft a Case Study

Florida Department of Law Enforcement (FDLE) Special Agent Telly Sands will be the ACFE Tampa Bay Chapter guest speaker in October. SA Sands is a career law enforcement officer, who has worked on a variety of major cases as a member of the Hollywood Police Department and FDLE.

SA Sands is currently assigned to the Economic Crimes Squad in Tampa, and just recently completed a long term retail theft case, which resulted in a number of convictions. SA Sands will share details of the case and discuss current trends in retail theft.

In June 2007, the Polk County Sheriff’s Office uncovered an organized retail crime group in central Florida believed to be responsible for several thefts at local retailers. The case was presented to the Florida Department of Law Enforcement and the Florida State Attorney Generals Office. A task force was put together consisting of agents from the Florida Department of Law Enforcement and detectives from local agencies, with Special Agent Telly Sands assigned as the lead investigator. Over the course of the next seven months, the task force identified 18 suspects involved in the crime ring.
 
On January 24, 2008, the task force arrested the 18 suspects, with five search warrants being served. All of the suspects were charged under the Racketeer Influenced and Corrupt Organizations (RICO) Act. Through their investigation the task force determined the crime ring was responsible for the loss of up to $100 million to local retailers. This case scored national recognition and brought a renewed attention to the problem of organized retail crime.

The National Retail Federation recognized the efforts of SA Sands and her partner from the Polk County Sheriff’s Office by presenting them with the Law Enforcement Retail Partnership Award, which is given each year to individuals in law enforcement who have gone above and beyond the call of duty to support the retail industry in its fight against retail fraud, organized retail crime and other major incidents that affect the retail industry.

The dinner meeting will be held at the Westshore Hotel, located at 1200 N. Westshore Boulevard. The hotel is just north of I-275 and Cypress Avenue on the east side of Westshore (map). Evenings will begin with a social at 6:00 P.M., followed by a buffet dinner at 6:30 and a presentation at 7:00. The cost is $25.00, payable at the door.

To make your reservation, please use the following link Chapter Meeting Reservation and complete the form at the bottom of the page.  You can also make your reservation by emailing Gary Chapman by 1pm October 9, 2009. Reservations will not be accepted after 1:00 PM on Friday. Walk-ups are always welcome, but will only be accommodated if space is available. Please remember that cancellations are accepted up to the afternoon of the meeting. No shows will be billed after the second missed meeting. Please help us keep our costs down by letting us know if you are unable to attend.

News from the ACFE

ACFE Online Self Study Courses

 Earn CPE any time any where with the ACFE's online self study courses.  Courses feature interactive review questions and instant grading.  For more information look under the Training and Events section of the ACFE website.
 
Free Archived Webinars For Members
  
As part of the ACFE's 20th Anniversary, they have provided free webinars exclusively for ACFE members:

ACFE members can log into the ACFE website and find the webinars under announcements.

Check Out the New Fraud Risk Assessment Tool 

Use this tool to assist your organization in identifying fraud risks and developing a fraud risk response. Log into the ACFE  member website to view this and other member-only resources.

The Association of Certified Fraud Examiners website contains the latest in fraud news and resources.

TRAINING OPPORTUNITIES

Tampa Bay Chapter

Dinner Meeting October 13, 2009- "New Trends in Retail Theft"

Dinner Meeting January 12th, 2010 - "Information Security"

Dinner Meeting February 9th, 2010 - "Ethics - Behavior (Un)becoming of a Department Manager"

11th Annual Fraud & Computer Crimes Seminar May 2010

Association of Certified Fraud Examiners

Legal Elements of Fraud Exams/ Interview Techniques - New York October 2009

 21st Annual ACFE Fraud Conference and Exhibition - Washington DC
July 25-30 2010

2009 - 2010
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/CFF, 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 M. 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


Chapter News

Chapter Members Participate in CFE Panel at USF

On September 16th, 2009 eight members of our chapter presented a panel discussion to the Beta Alpha Si Chapter of USF Tampa.  Each of the panel members conducted a discussion on their chosen career path and how the ACFE and CFE certification has played an important role in their success.  They noted how the CFE certification and ACFE have added to their already extensive knowledge of fraud prevention & investigation and provided many networking and training opportunities.  It was wonderful to hear about the vast experience our members have.  We would like to extend a special thank you to the following people who participated in the panel discussion:

Judith Botham, CFE, MBA
Finance Reimbursement Administrator, Coordinated Childcare 

Hector Collaxo, CFE, CISA, CFS
Director, Pinellas County Clerk of The Court Inspector General  

Christine Dever, CPA/CFF, CFE
VP Of Tampa Bay Chapter
Senior Internal Auditor, City of Tampa 

Mark Dubina, CFE
Director of Security Operations, Port of Tampa 

Yvonne Fumes, CFE
Senior Criminal Financial Analyst, Office of Statewide Prosecution 

Marie Hunniecutt, CPA, CIA, CFE
Director of Special Projects, Moffitt Cancer Center 

Rodney Pitzer, CFE
Managing Director of Research, Wall Watchers, Inc. 

Ellen Wilcox, CFE
Special Agent, Florida Department of Law Enforcement

Please follow their example, get involved, it required very little preparation and only about an hour of presentation time. 

2009 Annual Tampa Bay Ethics Award Breakfast

The Tampa Bay Chapter sponsored the University of Tampa's Ethics Breakfast again this year. Christine Dever, Ellen Wilcox, Wayne Boytim, Roger Strout, Tom Sanchez, Jim Madden, and Gary Chapman represented the Chapter at the breakfast. The Tampa Bay Ethics Award was presented to Colonel Joseph W. House. Gol. Joseph W. House began his military career shortly after graduating from the U.S. Military Academy at West Point in 1957. During his service career, he commanded several units and was awarded many awards and personal decorations. After retiring from the Army in 1984, House became the General Manager for the USAA Southeast Regional office in Tampa. In this position, he "gave credit where credit was due, built morale, empowered his employees to stretch to their highest goals, and gave positive reinforcement for everyone who exhibited a caring attitude." according to his nomination. After nearly 13 years, House retired from USAA to become chairman of the advisory board for BECK, where he advises on strategic planning, marketing, proposals, presentations and community relations. House was chair of the Board of Trustees at The University of Tampa from 1993-1995. He has supported Metropolitan Ministries and the Alpha House for Battered Women and Children, and he has served on the board of the Greater Tampa Chamber of Commerce.

Our Chapter Vice-President has joined the National ACFE Foundation Board

We would like to recognize that Christine Dever, our Chapter Vice-President has accepted a position as a board member on the National ACFE Foundation Board.

The mission of ACFE Foundation is to increase the body of anti-fraud knowledge and support future anti-fraud professionals worldwide through the funding of scholarships, endowments, research, and other educational projects.  ACFE Foundation works to encourage students to pursue careers in fraud examination and provide resources for research on the detection and deterrence of fraud.

Through the Ritchie-Jennings Memorial Scholarship Program, the ACFE Foundation supports the education of collegiate accounting and criminal justice students around the globe.

Our Chapter donated a pass to the “Two Day Seminar in May” for the silent auction at the ACFE Conference in 2009 and it was won by one of our Chapter members.

The Ritchie-Jennings Memorial Scholarship program was named after two members of the ACFE, Larry Jennings, CFE, CPA, 49; and Tracy Ritchie, CFE, CPA, 41; both of Houston, Texas.  They were among five people fatally wounded when terrorists in Karachi, Pakistan, fired upon their vehicle on Nov. 14, 1997.  All five people killed were employees of Houston-based Union Texas Petroleum Holdings Inc – Mr. Ritchie served as senior audit supervisor and Mr. Jennings served as audit manager for the company.  They were in route to Union Texas' Karachi office.

Surviving spouses Jacqueline Ritchie and Deborah Jennings are proud that their husbands' names are associated with the program, which was established in 1992.  "I can't think of a more appropriate way to honor Larry and Tracy," said Mrs. Jennings.

"I'm very pleased that the program is named in their honor," said Mrs. Ritchie.  "It's very fitting.  My husband enjoyed being part of the Association.  This is a wonderful cause," she said.

Mrs. Ritchie and Mrs. Jennings have raised funds for the program, and ACFE members help underwrite the scholarship fund with their donations.

"Both men exemplified the true spirit of our organization with their devotion to detecting, investigating, and deterring fraud and white-collar crime," said Joseph T. Wells, CFE, CPA, Chairman and founder of the ACFE.

For more information regarding the scholarships log onto the ACFE website

For more information regarding the Tampa Bay Chapter Scholarship programs, click here.

 Member Contributions Needed for Chapter Newsletters

 We need articles, which we can feature in our Newsletters and information about events that our members participate in.  Please email Sharon Shaw at newsletter@tampabaycfe.org with contributions or questions.

 

In The News

39 Defendants Convicted for Participation in Costa Rican-Based Fraudulent Telemarketing Schemes

 The scheme is estimated to have defrauded U.S. citizens out of more than $20 million many of the victims were over the age of 55.  Read the full press release here.

Faux Collection Agent Sentenced to 11+ Years

Jagunna, the defendant admitted he maintained an account with a commercial database provider in the
name of Elam Collection Agency, which Jagunna held out to be a legitimate debt collection company. Using the database account, Jagunna looked up information relating to more than 100,000 individuals, including their Social Security numbers and provided them in person and by e-mail to co-conspirators for approximately $30 per Social Security number.  Read more here.

UK Elaborate Package Delivery Scam Funds Other Scams

Counterfeit package delivery cards were used to dupe consumers into providing their credit card details.  Their credit cards where then used to pay for elaborate advertisements in national newspapers.  These adverts proclaimed to be mail order companies with various gadgets for sale.  Consumers never received the goods which they ordered and it is estimated that the fraud is responsible for around one million pounds worth of losses so far.  Read more here.

Organized Retail Crime

According to the Coalition Against Retail Crime, organized retail crime is a growing problem, which employs highly sophisticated techniques to steal large quantities of goods from multiple retailers, and then sells them to unsuspecting consumers. 

Organized retail crime involves interstate or international theft rings, which use the funds to facilitate other types of criminal activity such as the purchase of illegal drugs or terrorism.  There are two parts to these crime rings.  The "boosters" who do the initial stealing and the fence operators who convert the stolen goods to cash or drugs. 

The boosters employ various methods to obtain goods including "ticket switching" which is the process of changing UPC barcodes, so that items ring up for less at the register.  They may also use stolen credit cards to pay for goods or may even just walk out of the store with the stolen items.  In some cases delivery trucks are intercepted and their contents redistributed.  In 2008 a delivery truck containing over $1 million worth of PlayStation 3 games was stolen in Northampton, England. The police did recover the truck and it’s contents however it was stolen a second time before any evidence could be collected.  The truck was later found but minus its contents.

Once the boosters have obtained the items the fencers convert them by selling them at flea markets, pawn shops or Internet sites.  According to the NRF 2009 Organized Retail Crime Survey, retailers have seen a 50% increase in "E-Fencing" over the last twelve months.  E-Fencing is the liquidating of stolen goods through the Internet.  Online auctions are popular as they provide anonymity for the seller.  Often items can be found in their original packaging with the store tags still attached.  Respondents to the NRF survey believe that more than half of "new in box" goods sold through auction sites are obtained fraudulently.

Organized Retail Crime is big business and anyone who tries to obstruct the criminal activities could be in grave danger.  An assassination plot to kill a police detective, a special investigator from Immigration and Customs Enforcement, and a federal prosecutor, was hatched behind bars by a Texas crime ring.  Luckily it was foiled just as their crime ring, which had obtained $2.7 million in stolen assets, including $1 million in stolen baby formula.

According to the National Retail Federation, criminals view the global recession as an opportunity to abuse retailers and consumers. However retailers are fighting back.  The survey states that although retailers are cutting staff, they are dedicating additional resources to address the increase in retail crime.  The FBI estimates, according to industry information, that organized retail crime could be a $30 billion a year crime.   

Consumers demand huge discounts on hot new products, and organized retail crime gangs are ready to provide them.  In some cases consumers end up buying the stolen goods from the store they were originally stolen from.  Thieves may steal goods from a store, repackage them, and sell them at huge discounts to a supplier.  The supplier may then unknowingly sell the items back to the original victim at considerably less than their normal suppliers.  Consumers face many dangers when purchasing stolen goods.  Goods which have been stolen are unlikely to be kept at regulated temperatures so items such as over the counter medicines and baby formula may be extremely harmful to consumers.  

In an effort to tackle the problem a database that is available to law enforcement and retailers was created.  The database called the Law Enforcement Retail Partnership Network, or LERPNet provides a uniform way of tracking retail theft and improves information sharing.  Information about an incident can be entered immediately after the event, and photos or video footage can also be added to help in prosecution.  The database can help when trying to connect incidents even when they occur in different jurisdictions.  Companies, which currently use the system, include Sears Holdings Corp., J.C. Penny Company and Coach.

Organized Retail Crime affects everyone as it forces retailers to increase their prices, which only adds to the vicious cycle of consumers looking for lower prices.  Earlier this year three new bills were introduced in Congress to help law enforcement fight organized crime.  The bills Combating Organized Retail Crime Act of 2009, Organized Retail Crime Act of 2009 and the e-fencing Enforcement Act of 2009 offer a legal definition of organized retail crime which would classify the offense as a federal crime.

Next time you are tempted to buy something at a huge discount from an unknown vendor think about the long term consequences and the unknown danger you may be putting yourself in.

Sources
Coalition Against Retail Crime
FBI Organized Retail Theft
Law Enforcement Retail Partnership Network
Switched.com
National Retail Federation Organized Retail Crime Survey

Author:
Sharon M. Shaw, CFE
Director, Tampa Bay Chapter ACFE


More Training & Events

Free Webinars

Vere Software is offering a series of free Webinars over the coming months.  Topics include Tracing IP Addresses, MySpace Investigation Basics, Identity Theft on the Web and Legal Issues with Online Investigations.  Go to Vere Software Investigative Tools for more information.

DFI News Scholarships for Techno Forensics & Digital Investigations Conference  

Deadline Extended For DFI News™ Scholarships to the Techno Forensics & Digital Investigations Conference
DFI News™, in partnership with TheTrainingCo. — producers of the annual Techno Forensics & Digital Investigations Conference at NIST Headquarters in Gaithersburg, MD — is sponsoring a limited number of scholarships available to DFI News subscribers for this year's conference being held on October 26 - 28, 2009. The scholarships will cover the cost of the 3 day conference, a $1,095 value. Register by October 9, 2009, to qualify for this exclusive scholarship.

In order to take advantage of this DFI News scholarship offer, subscribe to DFI News at http://vicon-sub.halldata.com/DFnew?pk=DFTK09, then register for the conference at www.techsec.com/conferences/register.cgi?c=TF-2009. Select VIP, enter “0” for amount paid and “DFI News Scholarship” in the promo code section of the form. For attendees who hold a CISSP, CISA, or CISM certification, this conference also provides 20 CEU hours.