FBI Organization - PowerPoint PPT Presentation

Loading...

PPT – FBI Organization PowerPoint presentation | free to view - id: 1ed68-NWQ4O



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

FBI Organization

Description:

Combat Major White Collar Crime. Combat significant violent crime ... 'Me First') Self-dealing by corporate insiders includes: Insider Trading ... – PowerPoint PPT presentation

Number of Views:2802
Avg rating:5.0/5.0
Slides: 38
Provided by: winu3
Category:
Tags: fbi | collar | fbi | me | organization

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: FBI Organization


1
(No Transcript)
2
FBI Organization
  • 56 Field Offices
  • Operations in dozens of countries worldwide
  • Paradigm shift following Sept. 11, 2001

3
FBI Newark
  • Headquartered in Newark
  • Five Resident Agencies
  • Atlantic City
  • Trenton
  • Red Bank
  • Franklin Township
  • Garret Mountain (Woodland Park)

4
FBI NATIONAL PRIORITIES
  • Protect the US from terrorist attack
  • Protect the US from foreign intelligence and
    espionage
  • Protect the US against Cyber-based attacks and
    high-tech Crime
  • Combat Public Corruption at all levels
  • Protect Civil Rights

5
Priorities (contd)
  • Transnational and national criminal organizations
    and enterprises
  • Combat Major White Collar Crime
  • Combat significant violent crime
  • Support federal, state, local, and international
    partners
  • Upgrade technology to support FBIs mission

6
White Collar Crime?
  • In the words of Gordon Gecko
  • Greed is good!

7
White Collar Crime?
  • Some Characteristics
  • Less risk
  • More reward
  • Often very complex
  • Often very simple
  • Color of authority invoked

8
Financial Crimes
  • Corporate/Securities Fraud
  • Health Care Fraud
  • Financial Institution Fraud
  • Insurance Fraud
  • Mass Marketing Fraud
  • Money Laundering

9
What is Corporate Fraud?
CHEATING

STEALING
10
Corporate Fraud Definition
  • Part One Accounting Fraud
  • (Cooking the Books)
  • The falsification of financial information,
    including
  • False accounting entries
  • Bogus trades designed to inflate profits or hide
    losses
  • False transactions designed to evade regulatory
    oversight

11
Part 1 Accounting Fraud
  • Accounting 101
  • Profits Revenue - Expenses
  • Accounting Frauds are committed by
  • Falsely decreasing expenses
  • Falsely increasing revenues

12
Corporate Fraud Definition
  • Part Two Self-Dealing
  • (Me First)
  • Self-dealing by corporate insiders includes
  • Insider Trading
  • Manipulating stock option dates
  • Kickbacks
  • Misuse of corporate property for personal gain
  • Individual tax violations related to
    self-dealing

13
Part 2 Self-Dealing
  • Examples of Self-Dealing
  • Executive loans with no intention to repay
  • Extraordinary personal expenses charged to the
    company
  • Trading on material, non-public information
  • Accepting stock in another company in return for
    awarding a contract
  • Manipulating exercise/issue dates of executive
    stock options

14
Corporate Fraud Definition
  • Part Three Obstruction of Justice
  • (The Cover-Up)
  • Obstructive conduct is designed to
  • Conceal
  • Accounting Fraud
  • Self-Dealing
  • Impede
  • SEC inquiries
  • Other regulatory agencies investigations

15
Corporate Fraud Victims
  • Individual Shareholders
  • Employee Pension Plans
  • Mutual Funds
  • Financial Institutions (Lenders)
  • Market Stability and Reliance

16
Securities and Commodities Fraud
  • General Types
  • Market Manipulation
  • High Yield Investment Fraud
  • Advance Fee Schemes
  • Fraud Schemes via Hedge Funds
  • Market Timing (Late day trading)
  • Commodities Fraud
  • Foreign Exchange Fraud
  • Broker Embezzlement

17
Securities and Commodities Fraud
  • Market Manipulation
  • A.K.A. Pump Dump
  • Penny stocks falsely inflated
  • False Corporate Filings
  • Deceptive Sales Practices
  • Boiler Room Tactics
  • Fraudulent Public Information
  • Computer Intrusion
  • Perpetrators receive kickbacks or profit from
    trades while stock is inflated

18
Securities and Commodities Fraud
  • High Yield Investment Fraud
  • Too good to be true offers
  • Unusually high rates of return
  • Claims of little or no risk
  • Common Forms
  • Ponzi Schemes
  • Prime Bank Schemes
  • Advance Fee Schemes

19
Bernie Madoff
20
Securities and Commodities Fraud
  • Fraud Schemes via Hedge Funds (HFs)
  • Common Forms
  • Insider Trading
  • Market Timing/Late Trading
  • Overstatement of Assets
  • Misappropriation of Assets
  • Miscalculation of Performance Fees
  • Ponzi Schemes

21
Securities and Commodities Fraud
  • Market Timing Schemes
  • Late day trading
  • Profit from material information released after
    market close.
  • Betting on yesterdays horse races
  • Use of international exchanges
  • Mergers of foreign market exchanges

22
Financial Crimes
  • Corporate/Securities Fraud
  • Health Care Fraud
  • Financial Institution Fraud
  • Insurance Fraud
  • Mass Marketing Fraud
  • Money Laundering

23
Financial Institution Fraud
  • Bank Fraud
  • Check Fraud
  • Mortgage Fraud

24
Mortgage Fraud
  • At the heart of current economic crisis
  • Several Types
  • Origination fraud
  • Foreclosure rescue
  • Builder bailout

25
Sub-Prime Lending
  • A problem of Underwriting
  • No-doc loans
  • NINJA loans
  • False appraisals
  • Collateralized securities

26
Appraisals.
27
Matter!!!!!!
28
Check Fraud
  • American Bankers Association
  • The biggest threat to international finance is
    check fraud.

29
Method of Operation
  • Counterfeit checks are primarily manufactured by
    desk top publishing
  • Lap top and desk top computers
  • The accounts of large corporations often targeted
    based on the size of corp., geographic location,
    and amount of funds in account.

30
Check Fraud Schemes
  • Straight alteration of real checks.
  • Duplication of checks from legitimate accounts.
  • Fraudulent orders for check drafts through
    legitimate check draft supply houses.

31
Desk Top Publishing Tools
  • Offset print press
  • Desk Top Publishing
  • Color Laser Copiers
  • Combination of both (cut and paste)

32
Check Fraud Defense
  • Positive Pay
  • Low-cost
  • Virtually eliminates customer liability
  • Requires customer compliance

33
Identity Theft
  • Involves the use of personal identifiers such as
    names, social security account numbers, and
    credit card numbers, typically for criminal
    purposes.

34
Identity Theft
  • Rarely the sole objective of the crime.
  • Almost always employed as a means to commit other
    crime
  • Unique in that it is a component of many types of
    crimes and spans multiple investigative programs

35
Points of Compromise
  • Outsiders Stealing documents from businesses that
    contain personal information from business
    offices or through dumpster diving
  • - Rental contracts, loan applications,
    employment applications, medical records, video
    membership card applications, hotel records,
    grocery store discount cards
  • Electronic Means hacking into servers
    containing customers or employees personal
    information
  • Public Records

36
Points of Compromise
  • Point of Sale
  • U.S. Mail
  • Data Repositories
  • Social Engineering
  • Family Members, Associates

37
(No Transcript)
38
Fraud Containment Challenges
As the skimmer is removed, you notice that part
ofan existing label on the ATM was partially
obscured(see the previous slide).
39
(No Transcript)
40
Money Laundering
41
Money Laundering
  • Process by which criminals conceal or disguise
    the proceeds of their crimes and/or convert those
    proceeds into goods and services.

42
Who Needs Money Laundered?
  • Terrorists
  • Kidnappers
  • Bank robbers
  • White collar criminals
  • Illegal drug operations
  • Organized Crime
  • Tax evaders
  • And so on and so on

43
Money Laundering Methods
  • Bulk Smuggling cash or monetary instruments
  • Stored Value Cards (eg. Smart cards, gift cards)
  • Informal Value Transfer Systems aka underground
    banking (eg. Hawalas)
  • Black Market Peso Exchange

44
Schemes (contd)
  • Global Financial System (ie. Banks, securities
    firms, insurance companies)
  • Money Service Businesses
  • Corporate Laundering Schemes
  • Digital Currency

45
Emerging Trends
  • Cyber-based Pump-n-Dump
  • Collateralized Loan Fraud
  • Internal Embezzlement
  • Ponzi Schemes

46
Cyber Pump-n-Dump
  • Hack-n-Dump
  • Boiler rooms and cold calls vs. computers to
    artificially inflate worthless stock
  • Computer intrusions into brokerage accounts
    designed to buy/sell stock without owners
    knowledge
  • Subjects sell stock at inflated price to obtain
    profits

47
Collateralized Loan Fraud
  • Common requirement for daily operating cash for
    many businesses
  • Loans against Accounts Receivable
  • Loans against inventory
  • Combination of both
  • Governed by strict covenants to establish
    borrowing limit
  • Often mezzanine lenders also extending credit
  • Lenders may be TARP recipients
  • Motive????

48
Internal Embezzlement
  • The greatest threat to businesses regardless of
    size
  • Separation of duties/responsibilities
  • Victims often have poor controls
  • Use of fictitious vendors
  • Misuse of expense accounts
  • Subjects range from bookkeepers to board members

49
Ponzi Schemes
  • Old or new?
  • Investment schemes range from simple to complex
  • Investments of all kinds real estate,
    commodities, precious metals .
  • Caveat Emptor
  • Transparency
  • Returns too good to be true
  • Returns consistently outperforming the market

50
Questions
SSRA Doug Veivia Garret Mountain
RA douglas.veivia_at_ic.fbi.gov (973) 684-6614
About PowerShow.com