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Toronto Chapter Newsletter

July 1, 2011

May 2014


Volume 11, Issue 7

Penny Hill, Chapter Administrator:

Erik Bettencourt, CPA,CMA, CFE, Newsletter Editor

New Board Members Added The Toronto Chapter board is delighted to announce the addition of two directors to our board. Penny Hill has been with the Association of Certified Fraud Examiners (Toronto Chapter) as administrator since 2000. She is responsible for maintaining membership and all information pertaining to the functioning of the chapter. She communicates with chapter members, Board of Directors, ACFE Austin, and various organizations in which we cosponsor events. She is the event coordinator for our Annual Fraud Forum, chapter meetings and special events. She also works for The Conference Board of Canada as On-site conference and events coordinator and Manager of the Toronto office. She is a graduate of University of Western Ontario and a Fellow of the Institute of Canadian Bankers.

Toby J.F. Bishop is a globally known anti-fraud strategist currently seeking fraud problems that he can help organizations to solve. Most recently he served as Director of the Deloitte Forensic Center where he led the development of global thoughtware to help Deloitte's clients manage their fraud and corruption risks. Prior to that he was the President and CEO of the Association of Certified Fraud Examiners, the association of 70,000+ anti-fraud professionals globally. Toby is a contributing author and a member of the Board of Editors of Business Crimes Bulletin, a member of the Institute of Internal Auditors Research Foundation's Committee of Research and Education Advisors and a member of the Association of Certified Fraud Examiners' Advisory Council. He is a thought leader in the area of corporate fraud prevention and detection, with a special focus on financial statement fraud. Born in England, Toby is a graduate (MA) of the University of Oxford. He is a Certified Public Accountant (CPA) licensed in Illinois and Massachusetts, a Certified Fraud Examiner (CFE) and a fellow of the Institute of Chartered Accountants in England & Wales (FCA).

April 2014 Dinner Meeting Negligent Fraud Investigations The ACFE Toronto Chapter hosted a dinner meeting on April 30, 2014 at The University Club. The board would like to thank Reid Lester, Partner at Laishley Reed LLP for his insightful presentation on Negligent Fraud Investigation and Malicious Prosecution.

We would like to congratulate Richard Petri, who was the winner in our draw for a free admission to an ACFE dinner meeting and an ACFE messenger bag. All registrants names are entered for the draw at the end of the meeting. Please join us for our next dinner meeting, on May 27, 2014. Please see our website for details.

Congratulations to our newest CFE!

Suzette Warner

What is a Due Diligence Investigation? By: Brian Willingham “Due diligence investigation” is a phrase that varies in meaning among different business organizations and industries. From the perspective of a venture capitalist or a private equity investment manager, it’s about assessing the business model, conducting market research and talking to the market. For an accountant, it may be analyzing the books and records. From an investigator’s perspective, a due diligence investigation is utilized to assess the character, integrity and reputation of potential business partner(s) or key player(s) in a venture before the client enters into a substantial financial relationship. What is a due diligence investigation? A due diligence investigation is conducted to assess the qualifications and track records of the people involved in the deal, to identify potential inconsistencies, misrepresentations, omissions or controversies in their backgrounds. When is a due diligence investigation performed? These investigations are commonly performed prior to transactions such as a merger or acquisition, formation of a business partnership or strategic partnership, or a significant investment or financing arrangement. Who requests a due diligence investigation? Due diligence investigations are typically conducted on behalf of small and medium-size businesses, large corporations, investment banks, private equity firms or other investors. In many cases, the investigation is initiated by a legal team involved with the deal in order to protect the integrity of the information. What is included in a due diligence investigation? Information that is typically covered in a due diligence investigation includes the following:       

Personal and professional history, which includes work history, board memberships and nonprofit affiliations Historical news media research on the individuals and businesses with which they have been affiliated Details of civil litigation and criminal case history, including on-site court research and retrieval, where applicable Regulatory records, professional licenses and government compliance checks Financial history, which includes personal assets, judgments, liens, bankruptcies and U.S. Tax Court cases Corporate affiliations, sex offender registries, driving history records and political contribution records Credit history (with consent)

In addition to the above, a due diligence investigation can include interviews with references, sources or relevant parties. …Continue on page 3

About the Author Brian Willingham has been a private investigator since 2001. He founded Diligentia Group in July 2009 after nearly nine years working with a New York investigative firm. Brian writes regularly on a blog and has contributed to a number of industry magazines and publications like Pursuit Magazine, and ACFE Insights for the Association of Certified Fraud Examiners.

What is a Due Diligence Investigation? …Continued from page 2 What kind of information is found in a due diligence investigation? Some of the more common issues that are revealed in a due diligence investigation includes the following:       

Misrepresentations of employment history or falsified degree information Financial troubles, including bankruptcies, tax liens and foreclosures Accusations in lawsuits, such as harassment or fraud Regulatory issues Past criminal trouble, including drunk driving History of litigiousness Undisclosed corporate affiliations, government scrutiny or a trail of failed companies

Why conduct a due diligence investigation? In today’s business world, information is power. In the end, the purpose of conducting a due diligence investigation is to gather as much intelligence and information as possible to help you make a more informed decision.

14th Annual Toronto Fraud Forum Presented by: ACFE Toronto Chapter & CASIU (Canadian Association of Special Investigations Unit) Trillium Chapter September 23, 2014 marks the date for the 14 th Annual Toronto Fraud Forum. A one day joint fraud conference held at Le Parc at the southwest corner of Hwy 7 and Leslie Street, Thornhill, Ontario. The joint fraud conference hosts a variety of speakers in two tracks, one for general fraud and one for insurance fraud, with a keynote lunch speaker. Topics will include: Fraud in the Intertubes – A Cyber Perspective Speaker: Kevin Ripa The Domestic and International Capture of Funds Speakers: Douglas Best, LL.B., Partner, Miller Thomson LLP, Eric S. Rein, Horwood Marcus & Berk, Chartered, Chicago, Eugene Becker, Lawyer, New York Fraud Risk Assessment and The Tone at the Top in Fighting Fraud Speaker: Cam McCaw

Upcoming Events May 22, 2014 – Institute of Internal Auditors – Toronto Chapter presents – Lunch Education Series: “How Internal Audit Can Add Value to Outsourcing Arrangements” Speakers: Duane Borkowski, CIA, Risk Advisory Services, Experis (formerly Jefferson Wells) Venue: Albany Club, 91 King Street East, Toronto. 12:00 – 12:30 pm registration, networking and light lunch 12:30 – 2:00 pm presentation and Q&A To register: May 27, 2014 – ACFE - Toronto Chapter presents – Dinner Meeting: “Procurement Fraud – Strategies for Prevention, Early Detection and Response” Speaker: Denise Bambrough, LL.B, Partner, Borden Ladner Gervais LLP. Venue: The University Club, 380 University Avenue, Toronto. 5:30 – 6:15 pm registration, networking and dinner 6:15 – 7:15 pm presentation and Q&A To register: May 29, 2014 – Institute of Internal Auditors – Toronto Chapter presents – One Day Conference: “Great Expectations – The Role of Internal Audit from a Stakeholder Perspective” Speakers: The day will feature speakers from various disciplines and governance bodies and will give overall context to meeting the Great Expectations put on today’s Internal Auditors. Venue: PricewaterhousCoopers LLP, 18 York Street, 3rd Floor, Toronto, Ontario. 7:30 – 8:30 am registration, networking and light breakfast 8:30 am – 12:00 pm presentations, Q&A and networking breaks 12:00 – 1:00 pm networking lunch 1:00 pm – 5:00 pm presentations, Q&A and networking breaks To register: June 17‒ 20, 2014 – Institute of Internal Auditors Canada and Institute of Internal Auditors – Toronto Chapter presents – National Training Week A high caliber, multi-track training opportunity presenting in-demand sessions by qualified IIA instructors that promise to help you build the capacity and expertise of your internal audit function. Venue: Hilton Toronto, 145 Richmond Street West, Toronto. To register: September 7‒ 10, 2014 – The Association of Certified Fraud Examiners presents – The 2014 ACFE Canadian Fraud Conference. Discover cutting-edge techniques and proven best practices for fighting fraud from Canada’s leading antifraud experts at the 2014 ACFE Canadian Fraud Conference. With a stronger focus on elements of fraud, regulations and laws specific to Canada, you’ll walk away with practical skills that are relevant and can be immediately implemented into your anti-fraud strategy. Venue: Toronto Marriott Downtown Eaton Centre, Toronto, Ontario. Check out for further details and to register September 23, 2014 – ACFE – Toronto Chapter and the CASIU (Canadian Association of Special Investigation Units) – Trillium Chapter presents –The 14th Annual Toronto Fraud Forum. This one day joint About fraud conference has two tracks, one for general fraud and one for insurance fraud. the Author Venue: Le Parc, Hwy 7 and Leslie Street, Thornhill, Ontario. Stay tuned to for further details




South Western Ontario



Your Board of Directors President Vice-President Treasurer Secretary Director and Newsletter Editor Director Director and Chapter Administrator Director Director and Immediate Past President Director and Social Media Editor Director

Astra Williamson, CGA, CFE Linda Lister, CGA, CMA, CFE, DIFA William Vasiliou, CGA, CFE, CCRA, CREA, DAC Tom Eby, CPA, CA, MBA Erik Bettencourt, CPA, CMA, CFE

Toby Bishop, MA, CPA, CFE, FCA Penny Hill

Graham Ospreay, FACFE, CSP Steven E. Silverberg, CPA, CA, CFE

Ryan Watt

Jeffrey Weigensberg, CA, CFE, CFF, CPA, CA.IFA, CI

Ex Officio Members Alexander J. Wright, CD, BA, MB, A, CFP, RFP, Capt. (Retired) Kathleen Watson, CFE Bruce Armstrong, CA, CFE

About the ACFE:

Trillium Health Centre employee charged with fraud

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 for more details.

Police are looking for more victims after a Trillium Health Centre employee was charged with fraud for defrauding several elderly hospital patients. Read more

Kitchener residents charged in alleged $21-million investment fraud A Kitchener husband and wife stand accused of stealing more than $21 million from at least 160 people. Read more

Alleged fraud, bribes swirl over World Cup host Brazil’s new stadium The cost of building Brasilia’s World Cup stadium has nearly tripled to $900 million in public funds, largely due to allegedly fraudulent billing, government auditors say. Read more

“Personally I'm always ready to learn, although I do not always like being taught.” ~ Winston Churchill

ACFE Toronto Newsletter May 2014  

The ACFE is the world's largest anti-fraud organization and premier provider of anti-fraud training and education.

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