September 2016 Newsletter
fraud
Penny Hill, Chapter Administrator
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Kathleen Watson CFE, Newsletter Editor
The Annual Canadian Fraud Conference
Condominium Fraud by William Vasiliou, MBA, CPA, CGA, CFE, DAC
In recent years there have been several frauds perpetrated on condominium corporations. As with not for profit agencies, condo-corps are subject to legislative standards and rely on the honesty and integrity of those that volunteer to serve on the board and the business and management companies that service the corporation. How then can these entities be defrauded? In this brief overview we will deal with the property management company: Misrepresentation and Deceit: To be awarded the contract, the prospective management company may lie about the number of units and or properties under administration and the infrastructure it has in its ability to administer the property. Most board members are busy with their own lives to be able to undertake proper due diligence and on many boards the members rely on the information being presented or may lack business acumen. Proper due diligence in hiring a property management firm is essential. Visit the company’s office talk to the accounting staff, note the background of the property manager to be assigned to look after your interests. Since they will be looking at your financials you may want to check out theirs.
Volume 11, Issue 7
acfe.toronto@sympatico.ca
Returns home to Toronto!!! Once again the Association of Certified Fraud Examiners is bringing the Annual Canadian Fraud Conference home to Toronto. The 23rd edition of this premier conference is set to take place in 2017. This conference, geared towards the needs of the Canadian CFE, is by far the most comprehensive and informative program available. The conference will include two and a half days of workshops, presentations by distinguished fraud professionals and countless opportunities to network with other CFEs from across the country and around the world. We are so very proud to be part of this prestigious program returning home to the greatest city in Canada! Stay tuned for exact dates!!!
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Career Corner If you have a position you would like posted email us at acfe.toronto@sympatico.ca.
Community Partner Update At the ACFE Toronto Chapter, we like to keep up-to-date on what our Community Partners are doing. If any of our members know of anything new taking place with any of our Community Partners please send email us acfe.toronto@sympatico.ca.
Condominium Fraud ‌Continued from page 1
Procurement Fraud: On large infrastructure projects most if not all condo corporations obtain at least three quotes. Where the weakness lies is that these quotes are not sealed bids to be opened and discussed by the board. The property manager and/or the management company tend to open the bids and provide advice which gives these individuals an advantage. Since these bids are opened before being presented to the board, management is able, through a straw business, to underbid the lowest contractor. All major bids should remain sealed and only opened by a board member in front of the other members. Mortgage and Banking Fraud: Moving from misrepresentation to procurement fraud it is simple to move the big leagues. The property management company handles all the financial assets of the condominium corporation; from opening the bank account, obtaining the signatures of the signing officers and transferring funds between accounts. The financial institutions on the other hand, do not see the condominium as its client they believe their client is the property management company. Given the financial institutions view as to who the real client is they fail to follow proper lending procedures in belief their security is the 200 or so owners in the building who will have a mortgage charge placed on their unit. So how can one steal $25,000,000.00? 1) Create and sign a borrowing bylaw that has never been approved or voted on by the owners of the condo corporations. 2) Obtain a letter of opinion from a law firm. 3) Go to the financial institution and borrow funds for a major repair such as balconies; which in one case the building did not have. 4) Open bank accounts in the various corporation’s names. 5) Transfer the funds to one’s personal account and skip the country. What should board members do?
a) Never sign or provide personal information to the property management company. b) If you are a signing officer, sign all documents in front of a bank representative. c) Ensure that the bank understands that the corporation is their client, and d) Other than the accounts used for reserve and operating funds no other accounts are to be opened without expressed authority from the condominium corporation. About the Author Bill Vasiliou was a professor at Seneca College and has over 30 years of forensic and investigative experience in the financial services industry, in both the private and public sectors. Bill is now retired, but still provides consulting services.
William Vasiliou, MBA, CPA, CGA, CFE, DAC Chapter President
Coming Tuesday November 15!!! CPIO – ACFE CYBERXCHANGE CYBERCRIME & DIGITAL FORENSICS FORUM & AGM This one-day event will focus on cybercrime, how to protect yourself and your business, and what to do when it happens to you. Expert speakers will help Fraud Examiners and Investigators navigate everything from avoiding both accidental and intentional compromise of your company`s secure systems to looking at a computer forensics criminal or civil case from a defense perspective in order to ensure the best preparation of your case. The Cyberxchange will be held at the BMO Conference Centre, 3550 Pharmacy Ave. Toronto. Breakfast, lunch and afternoon snack will be provided. Stay tuned for more information!!!
Alleged ringleader of fraud against disabled man arrested nearly 10 years later The man who allegedly orchestrated the defrauding of a disabled Ottawa man — a case which saw the suspect's wife sentenced to four years in prison — has now been arrested, nearly 10 years after charges were laid against him. Read More
Mississauga Doctor Arrested, Charged with Fraud A Mississauga doctor is in hot water after an investigation from Ontario Provincial Police has him suspected of fraud. Read More
Two people were arrested and charged with immigration fraud The Canada Border Services Agency (CBSA) announced today that two people, acting as immigration consultants, were arrested by the CBSA’s Criminal Investigations Division and will face charges of fraud and conspiracy as well as counselling, aiding or abetting others to make misrepresentations. Read More
Man Sentenced For Fraud Committed Through Online Dating Steinbach RCMP say the offender, 32-year old Jesse Cole, was sentenced for his role in a planned, pre-meditated and sophisticated fraud on Steinbach-area residents. Read More
'Terrified and ashamed': What led Ina Koe to commit fraud It didn't happen every day. But sometimes after work Ina Koe would return to her home in Fort McPherson, N.W.T., go online and gamble for hours while her children were in bed. Read More
“To remain indifferent to the challenges we face is indefensible. If the goal is noble, whether or not it is realized within our lifetime is largely irrelevant. What we must do, therefore, is to strive, and persevere, and never give up.” – Dalai Lama XIV
Connect on LinkedIn Did you know the ACFE Toronto Chapter has a new LinkedIn group? Find lots of great connections, articles, discussions, postings. Just go to LinkedIn ACFE Toronto Chapter page by clicking here and ask to be connected to be a part of this lively site.
Your Board of Directors President
William Vasiliou, MBA, CPA, CGA, CFE, DAC
Vice President and Training Chair
Astra Williamson, CPA, CGA, CFE
President Emeritus, Secretary and Conference Chair
Tom Eby, MBA, CPA, CA
Treasurer
Erik Bettencourt, CPA, CMA, CFE
Director and Newsletter Chair
Kathleen Watson, CFE
Director and Membership Chair
Ryan Duquette, MsC, CFE, CFCE, CEECS, EnCE, ACE
Director and Social Media Chair
Ryan Watt
Director and Membership and Certification Chair
Linda Lister, CPA, CGA, CMA, CFE, DIFA
Director and Community Outreach Chair
Dorian Dwyer, CFE
Director and Chapter Administrator
Penny Hill
About the ACFE The ACFE is the world's largest anti-fraud organization and premier provider of anti-fraud training and education. Together with more than 70,000 members, the ACFE is reducing business fraud world-wide and inspiring public confidence in the integrity and objectivity within the profession. Visit www.acfe.com for more details.
Upcoming Events: September 11 to 14, 2016 – The Association of Certified Fraud Examiners presents: 2016 ACFE Fraud Conference Canada Venue: Palais Des Congrès de Montreal, 1001 Place Jean-Paul Riopelle, Montreal,Quebec More Information and Registration October 25, 2016 – ACFE – Toronto Chapter presents – Dinner Meeting: “ Where have all the Fraudsters Gone” Speaker: Ross Dunsmore has been advising employers and litigating the termination of bad employees for over 40 years. He is one of the most experienced employer counsel in the country. Venue: Royal Canadian Military Institute (RCMI), 426 University Avenue, Toronto 5:30 – 6:15 pm registration, networking and dinner 6:15 – 7:15 pm presentation and Q&A More Information and Registration
November 15, 2016 ACFE Toronto and CPIO presents – Cyberxchange Watch for more information