Charlotte, NC Monroe, NC CPA / Moyer, Smith & Roller, P.A.

FRAUD IS ALIVE AND WELL IT RUNS DEEPER THAN YOU THINK

Expert Witness

Tom Moyer is a Certified Fraud Examiner (CFE) and has provided expert witness testimony on several occasions on a variety of subjects, all of which were fraud related. Recently, Mr. Moyer was an expert witness in a civil suit, which resulted in the largest jury award in Union County history.

One difficult aspect of fraud and white-collar crime is that it is hidden. We only know about the ones on the surface. With today's ever-present opportunities to commit fraud, we must be proactive in our efforts to identify and deter fraudulent activities.  Education, training, and proper internal controls are keys to effectively addressing issues concerning fraud and abuse.

  • Employees must also know that they can report suspicious activity without the threat of repercussions against them.
  • Through audits and sound accounting procedures, a company can go a long way to deterring and detecting internal fraud.
  • No employee, not even the president, should be able to handle a financial transaction from beginning to end.

These are only a few issues that must be addressed in efforts to combat fraud and abuse.  The best way to prevent fraud is for management to take an active role in establishing policies to detect and respond to the individual cases.

Occupational Fraud

The following statistics regarding fraud and white collar-crime are from the 2006 Report to the Nation by the Association of Certified Fraud Examiners (ACFE).  This report provides the most detailed view yet of how occupational fraud affects organizations in the U.S.
  • Over 80% of occupational frauds involve asset misappropriations.  Cash is targeted 90% of the time.
  • Frauds committed by employees cause median losses of $60,000, while frauds committed by managers or executives cause median losses of $250,000.
  • Losses caused by perpetrators older than 60 are 27 times higher than losses caused by employees 25 and younger.
  • The average fraud scheme lasted 18 months before it was detected.

Contact Tom Moyer for more information: TMoyer@MSR-CPA.com