Employee Fraud in a Faltering Economy

Thursday, November 10, 2011
Bent Creek Country Club
620 Bent Creek Drive, Lititz, PA 17543
Lunch available starting at 11:30 a.m.
Program: Noon to 1:30 p.m.
R.S.V.P. by Wednesday, November 2, 2011

 

Today’s economy, and its impact on organizations and individuals, can aggravate all sides of the Fraud Triangle, criminologist Donald Cressey’s widely accepted theory to explain why people commit fraud.

Opportunity exists when people have access to assets and information that allows them to commit and conceal fraud.

Motivation is the pressure or “need” felt by the person that commits fraud. Motivation is often a financial need.

Rationalization is the excuse that employees use to justify fraudulent behavior.

Owners, managers and employees of organizations, charged with stewardship of the entity’s funds, must manage the risk of fraud by addressing that portion of the fraud triangle over which they have the most control: the opportunity. A sound system of internal controls minimizes opportunities to commit fraud, and helps to detect fraud when it occurs.

Join our panel of experts as they explore actual fraud cases and discuss what could have been done to detect and deter the fraud. Learn about:

• How incidences of fraud have increased during this current economic downturn.
• The Fraud Triangle – Understand why people commit fraud and the three elements that are present in every fraud.
• The importance of strong internal controls to help prevent and detect fraud.
• Employee behavior red flags.

We will present numerous cases of fraud in various organizations and point out the controls which could have helped to prevent the fraud or detect it at an earlier stage.

We will also discuss the insurance aspects of fraud specifically related to crime and employee dishonesty coverages.

 

Our Presenters

Peter Wengrenovich, Sr. Vice President
Murray Risk Management and Insurance
Pete joined Murray Risk Management and Insurance in 1986 as Commercial Marketing Manager. He became Vice President in 1988 and was promoted to Senior Vice President in 1999. Pete earned a Bachelor of Science degree in Accounting from Bloomsburg State University. He attended Liberty Mutual Commercial Underwriting and Loss Control School. He is a member of the Insurance Agents and Brokers of Pennsylvania and is currently a member and Past President of the American Business Club. Pete has served on a number of insurance company advisory councils and was active as an insurance program instructor at Harrisburg Area Community College.

Patricia H. Herr, CPA/CFF, CFE
Trout, Ebersole & Groff, LLC
Trish has been with Trout, Ebersole & Groff, LLP, since 1985 and a partner since 1993. She is the Firm’s consulting partner on fraud related engagements. Trish serves on the Firm’s forensics, valuation and litigation support practice group and the quality control committee. She also performs annual in-house reviews for quality assurance and is active with the Firm’s peer review process. Trish received a Bachelor of Arts degree from the University of North Carolina - Chapel Hill in 1973. Trish is licensed to practice as a Certified Public Accountant in the State of Pennsylvania. She has also been certified as a Certified Fraud Examiner by the Association of Certified Fraud Examiners, and became Certified in Financial Forensics in 2010.

Peter Faranda-Diedrich, CPA
Trout, Ebersole & Groff, LLC
Peter has been with Trout, Ebersole & Groff, LLP, since 1999. He serves on the marketing and practice development committee. He is a well-known local and regional speaker and has authored numerous articles that have appeared in professional journals and business publications. He is an Adjunct Instructor at Pennsylvania State University, Elizabethtown College, and Lebanon Valley College. Peter is a graduate of Lycoming College. He is a member of both the American and Pennsylvania Institutes of Certified Public Accountants.

Carol E. Roland, CFE
Trout, Ebersole & Groff, LLC
Carol joined Trout, Ebersole & Groff, LLP in 2006, with sixteen years of financial management experience in government entities. She specializes in audits of local governments, internal control studies, and fraud investigations. Carol serves on the Firm’s governmental subcommittee of the quality control committee and the forensic, valuation and litigation support practice group. Carol received a Bachelor of Business Administration degree (summa cum laude), with a concentration in accounting, from the Pennsylvania State University in 1983. She earned a Master of Business Administration degree from the Pennsylvania State University in 1994. Carol has been certified as a Certified Fraud Examiner by the Association of Certified Fraud Examiners.