Case Study

Based on your readings, current literature, research of the detailed case, and the Fraud Examiners Manual analyze the case you selected using the template provided in the Appendix (Sample Fraud Examination Reports -Short-Form Report) of the manual and be sure to include the following specific items in your report:

As part of the Scope include specific legal aspects of the fraud suspected in the case and if you think the fraud would fall under civil, criminal, or both.

Do you think the loss may be higher or lower than reported, etc?

As part of the Approach also include at least 2 completed consent forms you feel are needed in the case to discover the actual amount of the loss. Samples can be found in the Appendix Sample Forms of your Fraud Examiner’s Manual.

As part of the Findings identify specific legal aspects that the fraud examiner must consider in the case to the US Constitution as far as the evidence needed to convict the suspect in court.

$1.2 million in false expenses. David Smith, a former Quest Diagnostics manager, managed to get reimbursed for over $1.2 million in false expenses through a complex web of deception. He set up fake companies, created fake invoices and turned in fake expense reports for payments he’d supposedly made to companies on Quest’s behalf.

The FBI eventually caught on, and Smith was sentenced to five years in prison. His undoing? In addition to poorly named fake companies like Environmental Tech and Rep Med Services, Smith’s mailing addresses didn’t match up. Example: Environmental Tech’s address was an entrance ramp to a Tampa freeway.