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Welcome to the fifth annual Stevenson University Forensics Journal. This year, our authors cover a wider range
of topics than ever before. New areas of exploration include immigration marriage fraud, construction fraud,
arson investigation, and fraud predictors in non-profit organizations. As a result, articles extend beyond our
usual focus areas of accounting, information technology and law.
In the Masters in Forensic Studies program, students are encouraged to consider their own careers and
education and to bring those experiences into their choices for research topics. Our students vary widely
in their skills, expertise, location, age and interest areas, allowing us to harness those differences into the
dynamic and rich group of articles presented this year.
Each edition of the Journal is meant to bring the field of Forensic Studies to the public in a way that is
understandable and relevant to the reader. It is my hope that you agree we have done so in this fifth edition
and that you enjoy the diversity of its content.
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TABLE OF CONTENTS
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INTRODUCTION
CAROLYN JOHNSON
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the company that I worked for was to research new procedures for
marketing infectious disease diagnostics using DNA, which was at
this time in its infancy. At this point, the patent for PCR was being
held by a corporation named Cetus, and was not available for use. I
spent several years researching alternative methods to PCR, but nothing proved more successful than PCR which was eventually licensed
for use. PCR has revolutionized the field of Biotechnology.
The FBI Bomb Data Center was responsible for investigating crimes
involving bombs and explosives. However we did work closely
with them on cases involving what are known as dirty bombs or
bombs that combine radioactive or biological materials with conventional explosives. A bomb expert would be needed to determine
if the device was explosive but a hazardous materials expert would
be needed to examine potential radioactive or biological materials.
On occasion, someone who is responsible for producing destruction
devices such as bombs and explosives, is also experimenting with
weaponizing other materials such as botulism, radiation, and other
chemical hazards. Today the Bomb Data Center of the late 1990s has
evolved into the FBIs Hazardous Devices Operations Section.
DURING YOUR TIME WITH THE FBI HAZARDOUS MATERIALS RESPONSE UNIT, YOU WERE RESPONSIBLE FOR
RESPONDING TO THE SEPTEMBER 11, 2001 ATTACKS.
COULD YOU GIVE SOME BACKGROUND ON YOUR
RESPONSIBILITIES?
During the mid-80s, biotechnology companies were just starting to appear and take off. These were the early days of polymerase
chain reaction (PCR). PCR is a method for replicating DNA which
involves a series of heating and cooling cycles necessary to denature,
anneal, and elongate the original DNA strand to produce replicated
copies of the strand. At this time the PCR procedures were completed exclusively by hand and would require manually alternating the
tubes from ice to heat. Heat stable polymerase was being developed
at this time which allowed this process to be automated. The goal of
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The first step was to determine the strain of Anthrax bacteria that was
being used in the attacks. At the time, there were close to one hundred known strains of the Anthrax bacteria. Only two laboratories in
the country had the ability to identify the strain of the Anthrax and
because the procedure used was very new at the time, it was important that both laboratories conducted the analysis.
Within 24 hours, both of the laboratories conducting the analysis
confirmed that the Anthrax used in the attacks was of the Ames
strain. The Ames strain was named for the location for where the
original strain was believed to be isolated (Ames, Iowa). While it was
later discovered the Ames strain actually originated from Texas, the
name continued to be used.
Determining the strain was a very important step because early in the
investigation, there was no threatening letter to suggest an intentional
act. If the strain of the Anthrax was found to be one that was regularly used in research, this would have suggested that the attacks could
be intentional. If the strain of the Anthrax was one not seen before, it
could suggest a natural infection.
The Ames strain was a well-known strain of Anthrax that was used in
research and was a strain typically used to test vaccine development.
With the knowledge that the strain was used in research and that the
victim was from a location where a natural occurrence was unlikely,
investigators were considerably sure they were dealing with an act of
biological terrorism.
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Due to this mandate, the FBI was able to access the database that
held every transfer of Anthrax across the country to determine which
laboratories had access to the Anthrax strain in question. From this
database, a list of institutions with Anthrax in their possession was
generated. This reduced the potential laboratory sources to 16 located
in the United States and 4 located internationally that possessed the
Ames strain of Anthrax. Obtaining the samples from laboratories
located within the United States was relatively easy since we were
able to use the court system to subpoena the laboratories. However
obtaining the samples from laboratories overseas was a more arduous
task. We could not use the legal system and had to rely on diplomatic
means, which took much longer. We eventually were able to collect
samples from Canada, United Kingdom, and Sweden.
WHAT WOULD YOU SAY WAS THE BIGGEST BREAKTHROUGH IN THE CASE?
There were two important breakthroughs during this case. First and
foremost, the genetics used in this case was groundbreaking. Using
newly available procedures in the field of microbiology, we were
able to find unique mutations in ten of the 1000 plus samples we
had collected. We were able to match the unique mutations in the
samples collected from the letters with the samples in our collections
of known exemplars of Anthrax. All ten matches came from the same
location. This was the first breakthrough, which determined that the
Anthrax came from USAMRIID.
What was unique in the Anthrax case was the way that the FBI
structured their investigative squads. There were three squads of
FBI agents. The squad that I was a part of was responsible for the
forensics and consisted of agents with scientific backgrounds such
as Biology, Forensic Chemistry, Medicinal Chemistry and Genetics.
This was unique because to my knowledge, this structure had not
yet been utilized and has not been used since. All of the agents were
required to have advanced degrees in their field of science and 3 years
of work experience in their area of expertise. The other two squads
consisted of agents with a variety of backgrounds including but not
limited to accounting, engineering, and military officers. This squad
was responsible for interviews, email searches, etc. Each of the three
squads also consisted of several postal inspectors.
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Generally, a 3D printer can either be industrial, for the manufacturing sector and large companies, or commercial, for at home or
consumer use. Industrial 3D printers are massive in size and more
expensive to operate as they are used to create bigger object designs
for manufacturing companies. Software for this type of printer usually involves larger scale prototype designs (What is 3D Printing?,
About3DPrinters.com). For example, the automotive companies use
them to make test vehicle parts. In addition, developers for various
products use 3D printers for prototyping in the beginning stages of
product development before mass production. The availability of
commercial 3D printers for average consumer use is a new phenomenon. These printers are currently being introduced via the consumer
market. Currently, investors are being sought by small hobbyist organizations to bring more 3D printers into the homes of consumers.
This is apparent based on various 3D print funding campaigns that
appear as pop-ups throughout the cyber realm. However, the lack of
demand for 3D printers is based on the lack of knowledge regarding
availability and capability of 3D print technology by the less technical
consumer (What is 3D Printing?, About3DPrinters.com).
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Georgiana Bobolicu, technology journalist, reports that the first computer associated printer was developed in 1953 by an inventor named
Remington-Rand. Bobolicu further reports that International Business Machines (IBM) marketed the first dot matrix printer in 1957.
She notes that the process was a dry print method, known as electro
photography, invented by Chester Carlson. During this process, a
photosensitive surface is uniformly charged with static electricity
forming an invisible layer (Bobolicu). Toner is finely spread, which
reveals the once invisible image. The image is then transferred and
developed. Next, fusion occurs between the toner and paper by
strained heat. Residual toner is cleaned using charged electricity
particles and the process is complete. This dry print process is the
forerunner of the modern laser printer (Laser and LED Printers).
COMPUTER FORENSICS
Computer forensics is defined as the application of computer investigation and analysis techniques to gather evidence suitable for presentation in a court of law (Bassett, Bass and OBrien 22). Forensic
examiners in this field recover data from an array of media sources
which include hard drives, files and even printers. It is the duty of
these individuals to recover and collect important electronic information for evidence. In computer forensics, examiners must follow
rigorous procedures during each investigation conducted on digital
media and keep clear documentation of evidence. During an investigation, examiners must maintain accurate records of conduct and
discoveries for presentation in court. It is the forensic specialists duty
to collect enough evidence to piece together a clear picture in order to
reveal criminal activity.
Unlike 3D printers, 2D print devices are prominent on the commercial market. Despite the fact that large companies and business
institutions may use them, laser and inkjet printers are generally sized
to fit on desks or table-tops. There is no special software required
when using these printers other than the setup programs to connect
the device to a network. These devices generally print documents
such as reports, presentation slides, graphs, photographs, etc. As a
result, only ink or toner and computer paper is needed for document
production.
SIMILARITIES AND DIFFERENCES
3D and 2D printers are the same type of product; printers. These
devices also serve the same purpose, i.e. produce a print from a file
that is sent to it. Although this basic concept is true, these devices
differ in a variety of ways. The most significant difference is that a
3D printer prints up as opposed to across. As stated earlier, a 3D
printer uses materials, while a 2D printer exclusively uses ink or toner
cartridges. In addition, the time it takes to finish a print job on a 3D
printer can be longer compared to the time it takes to finish a print
job on a standard 2D printer. This is because the 3D object is based
on a complex design, while a 2D document is a basic computer file.
A more evident fact is that the end product is obviously different. A
3D printer will produce an object, whereas a 2D printer will produce
a document. Lastly, the 3D printer costs more as new consumer technology usually does, which makes its 2D counterpart more affordable.
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PRINTER FORENSICS
A more significant branch of the computer forensic field to this exploration is printer forensics. Printer forensics is not yet a defined field but
it is emerging in the forensic arena. The ideal goal for printer forensic
data recovery is to be able to identify the technology, manufacturer,
model, or even specific unit that was used to print a given document
(Mikkilineni et al. 223). There are currently two strategies proposed
for printer forensics using support vector machine (SVM) techniques.
According to Mikkilineni et al. these strategies are described as passive
and active. The passive strategy involves identifying features that are
specific to a certain printer, model, or manufacturers products (Mikkilineni et al. 223). This will help to determine which device printed
the document in question. The second strategy, referred to as active,
involves embedded information from the printer to the document.
Within this process, information such as the serial number of the
printer and the date on which a document was printed can be found
embedded within a printed document (Mikkilineni et al. 223).
One other vulnerability involves the ability to circumvent authentication processes. Any maliciously driven individual can entirely
sidestep the process of authentication by making a direct connection
to the port or sending content to print (Guerrero). This is significant because when a print job is sent, labels appear when viewing the
scheduled print job, which include network information, folder setup
and structure as well as names of the folders along with filenames.
This information can be used to gather data about a company, obtain
sensitive information and threaten national security if attacks are carried out on high target printers (i.e. Department of Defense assets).
The fact that printers can potentially store print jobs leaves information vulnerable to unauthorized access. The fact that encryption is
lost once a document is sent to a printer should put many industries
on alert and convince them to secure printers in addition to the usual
computer and other electronic devices containing sensitive information (Guerrero).
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difficult to create a new functional forensic tool that will recover data,
print history, metadata and product production dates.
DATA RECOVERY
This brings the discussion to what significant data can be recovered
from print technology. Generally, metadata is recoverable from a
print file. Metadata is a small hidden description of a file. This data
typically includes the author, date of creation, last date of access,
file type and other small data details. In 2D printers, it is easy for a
computer professional to locate the metadata within the file and discover key elements. This sort of data is useful in determining where a
document was made and by what machine. According to Benjamin
Wright, a Professor in the law of data security and investigations at
the System Administration, Networking and Security (SANS) Institute, metadata can reveal the location of the first owner through code.
He also states that, in theory, a 3D printer can leave trace information
in the form of metadata, which would include numbers, words or
codes physically located within the produced object. Serial numbers,
codes, GPS location details and timestamps would also be likely to be
embedded in printed 3D objects (Wright). This information will be
useful in forensic cases where little information is known.
A plethora of limitations exist that are specific to 3D printers in forensics. First, this technology is up and coming, meaning it is new and
improved each day. This is a limitation because forensic examiners
are bombarded with a complex new technology. In addition to that,
the software component to a 3D printing device is open source or
freely shared. This will present a steep learning curve for examiners.
As a result of the open source nature, it will constantly be upgraded
and forensics cannot keep up with such rapid growth. Examiners are
already at an unfair disadvantage based on the speed in which this
print technology is being introduced to society. Second, printers do
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medications. In this case, a doctor will send the prescription and its
ingredient list to the computer design software. The 3D printer will
create the medication based on the doctors list and custom create a
patients prescription (Rosenbach and Schulz 2).
CONCLUSION
The success of 3D printers means a rise in crime involving fraud,
copyright, product patent laws and licensing rules. 3D printers will
open the door for imitators to copy products, works of art, etc., which
will lead to stricter rules and ethical standards. Many legal conflicts
will arise in the face of this new technology. Because of the intricacies of patent and copyright laws, there will always be a debate about
product infringement. Unfortunately, issues regarding reproduction
are a separate topic of uncertainty in regards to 3D print technology.
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Mikkilineni, Aravind K., et al. Printer Forensics Using SVM Techniques. NIP21: International Conf on Digital Printing Technologies.
Vol. 21. N.p.: n.p., 2005. 223-26. NIP 21. Engineering.purdue.edu.
Web. 23 Mar. 2013. <https://engineering.purdue.edu/~prints/public/
papers/nip05-mikkilineni.pdf>.
Pellet, Jennifer. How 3D Printing Works. T. Rowe Price. T. Rowe
Price Investment Services, May 2012. Web. 23 Mar. 2013. <http://
individual.troweprice.com/public/Retail/Planning-&-Research/
Connections/3D-Printing/How-3D-Printing-Works>.
REFERENCES
Rosenbach, Marcel, and Thomas Schulz. 3-D Printing: Technology May Bring New Industrial Revolution. Spiegel Online. Spiegel
Online, 4 Jan. 2013. Web. 20 Feb. 2014. <http://www.spiegel.de/
international/business/3d-printing-technology-poised-for-new-industrial-revolution-a-874833.html>.
Tyson, Jeff. How Inkjet Printers Work. HowStuffWorks. HowStuffWorks, n.d. Web. 17 Apr. 2013. <http://computer.howstuffworks.
com/inkjet-printer.htm>.
Bobolicu, Georgiana. History of Computer Printers. Softpedia. Softpedia, 7 Nov. 2008. Web. 17 Apr. 2013. <http://gadgets.softpedia.
com/news/History-of-Computer-Printers-032-01.html>.
Guerrero, Sebastin. Exploiting Printers via Jetdirect Vulnerabilities. VIAForensics. viaForensics, 14 Jan. 2013. Web. 24 Mar. 2013.
<https://viaforensics.com/security/exploiting-printers-via-jetdirectvulns.html>.
Hoffman, Tony. 3D Printing: What You Need to Know. PC Magazine. Zaff Davis, 17 Oct. 2011. Web. 9 Apr. 2013. <http://www.
pcmag.com/article2/0,2817,2394722,00.asp>.
How 3D Printing Is Changing the World. About3DPrinters.com.
About3DPrinters.com, n.d. Web. 9 Apr. 2013. <http://www.about3dprinters.com/how-3d-printing-is-changing-the-world.html>.
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rate has decreased from four cents per dollar of benefits redeemed
to one cent per dollar (Lavallee). Even though the fraud rate has
declined, SNAP fraud remains a major problem and costs the Federal Government millions of dollars every year. Between the years
of 2006 and 2008, SNAP lost $330 million in benefits to trafficking
(The Extent of Trafficking 2). The USDA should review the current
methods used to combat SNAP fraud and work to identify technologies and policies which should be revised, upgraded, or modified to
prevent, detect, and prosecute fraudsters.
With the large growth in program participation and costs, the Federal
Government is scrutinizing the methods used to combat SNAP fraud
(Issa). There are four basic methods of SNAP fraud: misrepresentation, multiple states enrollment, misuse of another persons benefits,
and trafficking. The first SNAP fraud occurs when people misrepresent themselves on applications in order to receive or redeem benefits
(Concannon). The applicant may provide false information such as a
fake Social Security number, incorrect address, or inaccurate employment status. The second fraud is when recipients violate program
regulations and receive SNAP benefits in multiple states (Fong). The
third occurs when someone uses another persons SNAP benefits.
Only the recipient is authorized to access and use the benefits he or
she is awarded (Food Supplement Program).
In the program, individuals receive SNAP benefits based on their economic needs. Individuals must apply in the state in which they reside
and are not allowed to receive benefits in multiple states (Residency).
The amount of SNAP benefits a household receives is based on the
household income, household composition, shelter costs, and other
expenses, such as child support and dependent care payments (Food
Supplement Program). According to the Code of Federal Regulations (CFR), a household is eligible based on income if its income is
at or below 130% of the Federal income poverty level (Income and
Deductions). Every household begins with a baseline USDA determination as the maximum allotment for the household size (Supplemental Nutrition Assistance Program). This number is based on
current food prices and will be adjusted periodically to reflect changing prices (Food Supplement Program). The higher the household
income, the lower the household SNAP benefits entitlement. Shelter
costs or qualified expenses will increase the benefit amount and offset
the income adjustment (Food Supplement Program). Applicants
are required to provide verification at the time of application such
as income, identity of the head of household, alien status, and residency (Office Operations and Application Processing). States have
the option to request verification of deductable expenses such as
The program was previously known as the Food Stamp Program. The name was changed to SNAP on October 1, 2008 to emphasis nutrition in the program and
increased benefit amounts (Supplemental Nutrition Assistance Program).
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shelter costs and child care costs (Office Operations and Application
Processing). Also, the administering offices can request additional
documentation if they believe there is inaccurate information on the
application (Office Operations and Application Process).
The EBT system is one of the primary tools used by fraud detection
units to identify fraudulent activities in SNAP (Hatcher). It reads into
the Anti-Fraud Locator EBT Retailer Transactions System (ALERT)
which produces EBT management reports (Fong). The fraud detection
units can look at these reports and take note of any potential fraudulent patterns (Fong). One suspicious pattern is the use of benefits
across state lines (Hatcher). If a majority of purchases are occurring in
a state outside the recipients residential state, this may be an indicator
of someone other than the recipient using the EBT card (Ballou).
Prior to the use of the EBT system, benefits were issued by paper
coupons. It was difficult to track the use of the coupons and individuals could more easily traffic their benefits (Hatcher). In 1993 paper
coupons were still in use and an estimated $811 million dollars in
benefits were trafficked (The Extent of Trafficking 3). The amounts
decreased between 1999 and 2002 to $393 million dollars (The
Extent of Trafficking 3). During this time period, states were beginning to implement the EBT system (Klerman and Danielson 870).
All state EBT systems were operational in 2004 and the estimated
amount of benefits trafficked between 2002 and 2005 decreased from
$393 to $278 million (The Extent of Trafficking 3). These numbers demonstrate that EBT was successful in reducing the amount of
benefits being trafficked.
There are flaws in the EBT system and the way the system is handled
by the states. First, not all states are making use of the EBT management reports to track fraud (State Fraud Detection 2). FNS
requires states to have access to the system, but does not require the
states to utilize the system (State Fraud Detection 2). States must
review the reports the system generates, but they do not have to use
the data from the reports (State Fraud Detection 5). This can result
in fraud detection units overlooking cases of potential fraud. In an
audit done by the USDA Office of the Inspector General (OIG) of
the states of New Jersey and Florida, the auditors discovered 2,600
potentially fraudulent cases through the EBT reports that were not
identified or acted upon by either state (State Fraud Detection 7).
If states are not using the information provided by the system, there
could be more accounts of undetected fraud. This is a problem since
Refer to Code of Federal Regulations 273.4 for a detailed list of qualified alien groups.
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Another problem with the EBT system is that states claim the EBT
management reports are tedious and time-consuming to review
(State Fraud Detection 9). They prefer to use their own methods
of fraud detection (State Fraud Detection 9). In many cases, FNS
and the states have online sites and telephone hotlines for the public to report suspected fraud (Supplemental Nutrition Assistance
Program). The fraud investigators also rely on the administering
offices to refer potential fraud cases (Ballou). Another method of
fraud detection used is when states concentrate efforts in areas where
they believe fraud may be more prevalent (State Fraud Detection
9). These may be areas where trafficking occurred in the past and are
identified as high risk areas (USDA Announces Latest Actions).
CURRENT POLICIES
The Federal Government has policies in place to protect SNAP from
fraudulent activities. The CFR outlines the penalties of SNAP fraud
which can deter individuals from participating in fraud. States also
have discretionary policies to determine what verifications are needed
during the application process. The area of concern encompasses
those policies that are vague, subject to multiple interpretations, complicate both states and the Federal Government efforts to prosecute a
program violator.
In addition to the EBT and ALERT systems used by FNS and the
state fraud detection units, there are systems used by the administering agencies to verify information when someone applies to receive
benefits. One type of system is known as the income eligibility verification systems (IEVS) (Faulkner). With the IEVS, the administrator
reviewing an application enters a persons Social Security number into
the IEVS and verifies his or her employment (Faulkner). The CFR
gives states the authority to use any IEVS to aid with the administering of benefits however the systems vary from state to state (State
Income and Eligibility Verification System).
CFR 271.5 section 15(b)(1) outlines the penalties that can be applied
to individuals caught defrauding SNAP. Any fraudulent behavior
resulting in the misuse of $100 or more in SNAP benefits is considered a felony (Coupons as Obligations). A person can receive up
to $250,000 in fines, up to 20 years in prison, or both for misusing
$5000 or more in benefits (Coupons as Obligations). For violations resulting in $100-$4999 in benefits, a person can be fined up
to $10,000, or face up to five years in prison, or both (Coupons as
Obligations). A person is guilty of a misdemeanor if they misuse less
than $100 in benefits (Coupons as Obligations). The consequences
of a misdemeanor are fines up to $1000, up to a year in prison, or
both (Coupons as Obligations). If a person is convicted two or more
times for any level of violation, then he or she will be subject to both
imprisonment and the fine (Coupons as Obligations). In addition
to facing a conviction in a criminal court, a program violator can
face administrative consequences such as disqualification from the
program (Coupons as Obligations). In lieu of imprisonment, there is
also the option of restitution (Coupons as Obligations).
The benefit of the IEVS is that the systems can identify an applicant
reporting false information on the SNAP application. If the applicant falsely reports no employment, the administrator can pull up
the employment information on the IEVS and despute the claim
(Faulkner). These systems prevent payment errors since they highlight employment discrepancies.
The drawback of the IEVS is that every state has its own system and
the systems may have limitations. For example, the State of Maryland uses an IEVS known as Maryland Automated Benefits System
(MABS) (Ballou). MABS is only able to show someones work history for past quarters and not the current employment information
The benefit of this policy is that individuals can face a felony convic16
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There are aspects of the current technologies and policies that are
successful in the fight against SNAP fraud; however, there are areas
in each of the systems and policies that can be improved upon. The
amount of benefits lost each year to fraud is enormous and there are
ways to increase the efforts to combat fraud. SNAP fraud is a reality. The fraud rate is based on what percentage of benefits issued each
year are lost to trafficking (Lavallee). The amount of benefits issued
every year is increasing. If the fraud rate remains the same, then the
amount of money lost to fraud is increasing as well. The statistics
already show an increase in the amount of money lost every year to
trafficking (Extent of Trafficking 3).
Another SNAP policy that could affect fraud statistics is that which
that allows states to decide what verifications they will request from
applicants and recipients. The Federal Government allows the states
flexibility to decide if they want to require verification of household
deductions (Office Operations and Application Processing). An
example of this is the state option to decide whether or not to require
verification of housing and child care expenses (State Options
Report 6).
The priority is to prevent SNAP fraud. This will save the program
from paying out millions of dollars to ineligible personnel every year.
The key to preventing fraud is to identify fraud during the application
process. When applicants apply to become recipients it is up to the
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Another preventative method is for states to require more documentation during the application process. Requiring less documentation
streamlines the process; however, it facilitates fraud. The lack of
documentation makes it more difficult to verify what is on an application, creates more opportunity for benefits to be issued improperly,
and leads to more cases of undetected fraud and undetected payment
errors. The administrators need to be able to prove that the information on the application is accurate in order to be certain benefits are
being issued properly. Also, fraud investigators rely on verifications to
prove cases where fraud is discovered (Ballou). When there is a lack
of proof to convict someone of fraudulent behavior, then it is more
likely individuals will not be prosecuted or disqualified. Complete,
accurate documentation at the outset is the solution.
The final area where improvements can be made is in the prosecution of violators. There may not be an easy solution to the problem
of courts being inundated with cases; however, the policy can be
changed to ensure SNAP violators who are sent through the system
are not able to find loopholes in the policy. One of these changes
is to make sure the policy is clear and well-defined. FNS should be
actively assessing the situations where SNAP violators are not convicted because the policy is too vague. Based on these cases, FNS can
better determine where the policy needs to be clarified.
Hatcher, Jennifer. Store Food Stamp Fraud and USDA Enforcement. FDCH Congressional Testimony. Committee on House
Oversight and Government Reform, 8 Mar. 2012. Military and
Government Collection. Web. 24 Jan. 2013.
Issa, Darrell E. Store Food Stamp Fraud and USDA Enforcement.
FDCH Congressional Testimony. Committee on House Oversight
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Klerman, Jacob Alex, and Caroline Danielson. The Transformation of the Supplemental Nutrition Assistance Program. Journal of
Policy Analysis & Management 30.4 (2001): 863-88. Business Source
Complete. Web. 23 Jan. 2013. <http://eds.b.ebscohost.com/ehost/
pdfviewer/pdfviewer?sid=e0a6d359-bb03-45bd-8539-77819d040107
%40sessionmgr113&vid=4&hid=115>.
United States Government Accountability Office. Supplemental Nutrition Assistance Program: Payment Errors and Trafficking Have Declined, but
Challenges Remain. By Kay E. Brown. Research rept. no. GAO-10-956T.
N.p.: n.p., 2010. United States Government Accountability Office. Web.
23 Jan. 2013. <http://www.gao.gov/new.items/d10956t.pdf>.
Lavallee, Aaron. FACT vs. FICTION: USDAs Supplemental Nutrition Assistance Program. United States Department of Agriculture
Blog. N.p., 24 June 2011. Web. 3 Feb. 2013. <http://blogs.usda.
gov/2011/06/24/fact-vs-fiction-usda%E2%80%99s-supplementalnutrition-assistance-program/>.
Malone, Rosemary. The Work Number Express Service. N.d. PDF file.
Office Operations and Application Processing. 7 C.F.R. Sec. 273.2.
2011. Print.
Program Informational Activities. 7 C.F.R. Sec. 272.5. 2011. Print.
<http://www.usda.gov/wps/portal/usda/usdahome?contentid=2012%
2F08%2F0269.xml&contentidonly=true>.
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record warrant the request for further information from the petitioner
or beneficiary. Until officers receive the pertinent information, the
investigation of the couple and the immigration proceedings are
suspended.
Once the criminal and immigration record of the petitioner and
beneficiary is complete, the officer examines the biographical data the
couple submits through the I-130. The I-130 asks questions such as
the dates of birth of the petitioner and beneficiary, where the beneficiary plans to live in the United States, and the last address at which
the couple lived together (Instructions for Form-130, Petition).
These questions may seem typical of a government form, however
officers scrutinize the answers for any inkling of fraud. For example,
couples whose dates of birth are several years apart (typically over six
years in age difference) are more closely examined than couples who
may only be three years apart. Officers investigate under the belief
that spouses who are closer in age are more likely to have a bona fide
marriage (Bernstein). A beneficiary who responds to the question
that asks where the spouse plans to live in the United States with
an address that is different than their spouse could encounter delays
in the investigation as it raises a red flag for fraud. USCIS officers
expect to see partners cohabitating before and after filing the I-130
(Bernstein). Officers make note of any discrepancy that they find in
the I-130 in order to discuss and verify their concerns with the couple
during the interview.
The next step in the investigation process is the interview of the couple. Officers see many couples throughout each day and are trained
to make a decision on the legitimacy of the marriage based on several
aspects. The USCIS staff instructs couples to bring evidence that
documents their relationship. Evidence that helps to prove a marriage
is bona fide includes photographs of the couple and their respective
families, photographs from the marriage ceremony, correspondence
such as letters, instant messages, or e-mails, and any trip itineraries
(Chetrit 721). Officers learn to inspect all the evidence the couple
submits for any obvious signs of staged photographs. USCIS officer
Bryant Chisholm recalls viewing, photos of a couple lying in bed
on their wedding nightwhat normal couple would allow someone
to come into their room and photograph husband and wife in bed?
(Winston). Any sort of staged photographs, or photographs that are
supposed to show the couple over a period of time, but instead show
the couple in the same clothes in each photo, are an obvious clue to
officers that the marriage is not bona fide.
In addition, the couple can ask family and friends to write notarized
letters acknowledging the relationship for the interviewing officer to
read. Even these letters can be scrutinized for fraud. Diane McHughMartinez, an immigration attorney who has been in practice for over
twenty years, describes an instance in which the immigration officer
detected fraud. The couple had four affidavits from people who
have similar ethnic names, such as an African last name. The officer
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checked the database to see if those people had marriage cases. The
officer later said you have someone here by this name who is vouching
for your marriage and you wrote a letter vouching for his marriage
(McHugh-Martinez). The detection of a pattern can lead the officer to
believe there is a possibility of fraud. In a case such as this, the officer
searches for a connection between different petitioning couples.
Instead, many immigrants who have overstayed their visas may ask a
friend who is a U.S. citizen to marry them and petition for their green
card (Poole 3). Marrying a friend can make the investigation process easier since the couple already knows one another. During the
interview with a USCIS officer, the couple may appear more at ease
since they know many of the answers to the questions the officer may
ask, such as dates of birth or the names of parents (Paulin). Friends
posing as a married couple will have overall better body language than
an immigrant and a spouse that has been paid thousands of dollars.
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STEVENSON UNIVERSITY
INS official would review the petition and conduct the interview
of the petitioner and the alien spouse. The official would decide to
grant or deny the petition based on the review of the petition and the
interview. If the official felt the marriage was not bona fide, but a
sham marriage, after reviewing the findings, the petition was denied
(Moyce 2).
FDNS is responsible for conducting site visits for immigration applicants. The program uses unannounced site visits as a way to verify
information submitted in I-130 petitions. Officers conduct both
pre- and post- adjudication site visits at random (Instructions for
Form-130, Petition). Site visits for purposes of investigating marriage
petitions usually take place at the home. Many officers refer to home
visits as bed checks, meaning the officer is looking to see both spouses
living in the same residence (Bernstein). Site visits to a couples home
may seem intrusive, however in many cases, the visit can assist in proving a marriage to be bona fide. In addition, the site visits can help
deter others from attempting to commit immigration fraud. During a
site visit, the immigration officer may take digital photographs, speak
with those inside the home or neighbors of the couple, and review
the information submitted with the petition in order to verify that
it matches the actual location. If an officer finds potential proof of
fraud, he or she can forward the case to ICE officers for a possible
criminal investigation (Instructions for Form-130, Petition).
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and law enforcement officers have begun using social networking sites
to investigate persons of interest (Chetrit 720). Facebook is the most
commonly used site for investigations due to its popularity and easy
search options.
the statistic given regarding marriage fraud was completely false (Winston). Immigration marriage fraud is not nearly as prevalent in the
United States as society may think, however it does exist. Over the
years, USCIS has enacted different measures in attempts to prevent
immigration marriage fraud, but there are ways that USCIS could
further decrease the amount of fraudulent I-130 petitions.
In 2008, a memorandum written by FDNS, entitled Social Networking Sites and Their Importance to FDNS was released. The
memorandum suggested USCIS officers create fake accounts in order
to search for couples to add as friends on sites such as Facebook.
By having access to a profile of the spouse, the officer can see their
photographs, relationship status, current city, and other personal
information. Officers can verify that the spouse is listed as married
and that their photographs reflect an individual engaged in an exclusive relationship.
Even though the Immigration Marriage Fraud Act of 1986 was developed after false reporting by the INS Commissioner Alan Nelson, the
IMFA created a program of conditional residency which helped to
detect and prevent fraud in marriage petitions (McHugh-Martinez).
The change from receiving immediate legal permanent resident status
to conditional resident status permitted checkpoints to be established
on the path to naturalization. The two year conditional approval
helped prevent fraudulent marriage petitions because U.S. citizens
realize that assisting an immigrant who has paid them or an immigrant friend who needs a favor, is no longer a quick process of getting
married and filing the petition. Instead, the potential fraudulent
marriage takes much more of a commitment on the part of the U.S.
citizen. The ruse must be maintained for over a two-year time period,
as the couple committing the fraudulent marriage must file a new
petition to have the conditions lifted from the green card of the beneficiary (Poole 1). By filing the new petition, the couple may be asked
to return for another interview. The couple will have to provide the
same sort of documentary evidence to the USCIS officer as they did
during in the initial interview in order to prove that they are still married (McHugh-Martinez). The officer asks the couple similar questions as during the first interview to confirm that the relationship is
bona fide. If the couple does not file to have the conditions removed
from the green card or are not approved for permanent residency at
the interview, the immigrant spouse will no longer have legal status
in the United States and deportation proceedings can begin soon
thereafter (Poole 2). In cases such as these, the consequences that the
fraudulent couple endures can be used as a deterrent to other immigrants who might consider marrying for a green card.
STEVENSON UNIVERSITY
The changes made in 1986 by the enactment of the Immigration Marriage Fraud Act improved the previous process by granting immigrant
spouses conditional residency as opposed to permanent residency.
The new change forces spouses to file a second petition requesting the
removal of the residency conditions two years after the initial petition was granted (Poole 1). In addition, USCIS developed the Fraud
Detection and National Security Directorate in order to better assure
that only deserving immigrants received immigrant benefits. FDNS
uses site visits as an investigative tool to detect fraud in immigration
marriage petitions (Instructions for Form-130, Petition).
FORENSICS JOURNAL
org/newsletter/publications/gp_solo_magazine_home/gp_solo_magazine_index/paulin.html>.
Poole, Heather L. The Quickest Way To a Green Card Is Harder
Than You Think. Orange County Bar Association. July 2007. 1-6.
LexisNexis. Web. 6 February 2013.
Smith, Van. Maryland Immigration Attorney Pleads Guilty to
Sham-marriage Conspiracy. CityPaper. Baltimore City Paper, 11
Jan. 2012. Web. 6 Feb. 2013. <http://citypaper.com/news/marylandimmigration-attorney-pleads-guilty-to-sham-marriage-conspiracy-1.1255644>.
Social Networking Sites and Their Importance to FDNIS. Memo.
20 July 2010. Electric Frontier Foundation. Web. 7 Feb. 2013.
<https://www.eff.org/files/filenode/social_network/DHS_CustomsImmigration_SocialNetworking.pdf>.
Thomas, Brian. Prosecuting Sham Marriage Under 18 U.S.C. 1546:
Is Validity of Marriage Material? Suffolk Journal of Trial & Appellate
Advocacy. 2006. 1-5. LexisNexis. Web. 10 February 2013.
U.S. Census Bureau. Statistical Abstract of the United States: 2006.
125th ed. Washington, DC, 2005. Google eBook file.
Winston, Ali. Marrying for Love? Youll Have to Prove It. City
Limits. n.p. 28 July 2008. Web. 8 February 2013.
SARA TORRES is currently pursuing a
Masters degree in Forensic Studies with a
concentration in Investigations from Stevenson
University. She completed her undergraduate
studies in 2009 at Towson University,
graduating magna cum laude with a BA in
Sociology/Criminal Justice and Spanish. Sara
works in the Protective Services Division at
NASA Goddard Space Flight Center.
25
STEVENSON UNIVERSITY
While the Lacey Act was the first federal law to protect wildlife, it certainly was not the last. The Migratory Bird Treaty Act was enacted in
1918 and made it unlawful to kill, take, or possess any migratory birds
including nests and eggs (Migratory Bird Treaty Act). The Bald Eagle
Protection Act of 1940 made it unlawful to kill or possess the bald
and golden eagle (Bald Eagle Protection Act of 1940). The Marine
Mammal Protection Act of 1972 made it unlawful to kill, possess,
or import any marine mammal without a permit (Marine Mammal
Protection Act). As a way to protect endangered species, Congress
passed the Endangered Species Preservation Act of 1966, which made
it unlawful to kill, take, possess, or transport any endangered or threatened species. This Act was amended in 1969 to combat a global issue
thus making it unlawful to import endangered species into the United
States; it also called for an international conference on the worldwide
protection of endangered species (Endangered Species Act).
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STEVENSON UNIVERSITY
for its gall bladders (Neme 73). The fact that gall bladders are one
of the most profitable animal products, coupled with the fact that
a layperson may not be able to distinguish a bear gall bladder from
another animals gall bladder, creates an opportunity for traders to sell
counterfeit bear gall bladders. In order to prosecute someone for killing the bears and trading their gall bladders, scientists needed to prove
the gall bladders were in fact from the protected black bears. Due to
the corrosive nature of the bile salts contained within the gall bladders, scientists cannot perform DNA analysis (Neme). As a result,
the wildlife forensic scientists had to develop an alternative method to
distinguish bear gall bladders from other species gall bladders.
Scientists at the U.S. Fish and Wildlife Forensic Laboratory were able
to develop a method of positively identifying the bear gall bladders
by the high levels of ursodeoxycholic acid, which is the very reason
bear gall bladders are desired in the first place. The wildlife forensic
scientists used a technique commonly used in traditional forensic
science, high performance liquid chromatography (HPLC). HPLC
separates molecules out by size creating a chromatogram, which is a
color-coded chemical profile. This profile or chromatogram indicates
which molecules and chemicals are present in the sample by the colors
displayed (Neme 101). Each unknown sample was tested along with
a known bear gall bladder sample with which to compare the chromatogram. To ensure the accuracy of the test, the wildlife scientists
also performed a more sensitive test, Thin Layer Chromatography or
TLC. TLC works in a similar manner to HPLC by separating molecules in a mixture based on the size of the molecules. The scientists
determined the chromatogram for the bear gall bladder samples had
three distinct peaks corresponding to the high levels of ursodeoxycholic acid, chenodeoxycholic acid, and cholic acid (Neme 102). With
the results from the HPLC and TLC tests, the scientists realized that
their method of positively identifying bear gall bladders worked;
however, in this case their unknown samples did not have the three
distinct peaks and therefore were not bear gall bladders (Neme).
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For the walrus killings to be legal subsistence hunting, the investigators needed to prove the Native Alaskans killed the walrus, and that
no part of the walrus was wasted (Espinoza et al. 104). If during the
investigation the evidence proved wastefulness with only removal of
the tusks, then the walrus killings would be an illegal act. To be considered non-wasteful, the hunters would recover the blubber, flippers,
liver, heart, and ivory (Espinoza et al. 104). It would be impossible to
bring hundreds of walrus into the laboratory for examination. Thus,
the wildlife forensic scientists and investigators examined the walrus
carcasses and performed necropsies, or animal autopsies in the field.
The species identification methods the U.S. Fish and Wildlife Forensic
Laboratory have developed are fundamentally important to the field
of wildlife forensics. Without these methods, officers would be unable
to conduct proper investigations. Wildlife investigators depend
on the wildlife forensic scientists who conduct and adapt scientific
methods specific to wildlife crimes. Wildlife forensic science is dependent on the widely accepted analytical techniques used in traditional
forensic science. This is especially true when adapting the already
accepted DNA methods to species identification. Moreover, wildlife
forensic investigators employ traditional forensic science methods
of linking the suspect to crime scene and/or evidence on a routine
investigatory basis. Wildlife forensic scientists have used and adapted
many techniques from the field of human forensics. Being able to
adapt and create new and emerging investigatory techniques is critical to the field of wildlife forensics. With a continued focus on the
investigation and prosecution of wildlife crime and the advancement
of wildlife forensic techniques, wildlife forensics may even influence
new traditional forensics techniques in the future.
Many of the federal laws protecting species are effective only after
the date they were enacted. For example, the African Elephant
Conservation Act of 1989 made it unlawful to import or export any
African elephant ivory or product after 1989. Therefore the legality
of the import is contingent upon the 1989 date. If elephant ivory
was imported prior to 1989 it is legal. This may create a problem for
investigators and/or prosecutors because if a suspect knows the law, he
may claim he imported the ivory prior to 1989. Researchers developed a method using radioactive carbon 14 present in ivory tusks,
to determine the year the animal died (Nuke Test). Nuclear tests
conducted in the 1950s and 60s converted nitrogen into carbon-14,
significantly increasing the amount of carbon-14 in the atmosphere
(Nuke Test). Scientists measured the amount of carbon-14 pres-
REFERENCES
About the Lab. U.S. Fish & Wildlife Service: Forensic Laboratory.
U.S. Fish and Wildlife Service. n.d. Web. 20 Sept. 2013.
Appendices. Convention on International Trade in Endangered Species
of Wild Fauna and Flora. n.d. Web. 23 Sept. 2013.
Bald Eagle Protection Act of 1940. Digest of Federal Resource Laws
of Interest to the U.S. Fish and Wildlife Service. U.S. Fish & Wildlife
Service. n.d Web. 20 Sept. 2013.
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STEVENSON UNIVERSITY
Dawnay, Nick, et al. Validation of the Barcoding gene COI for Use
in Forensic Genetic Species Identification. Forensic Science International. 173. 1-6. 14 Feb. 2007. Science Direct. Web. 6 Oct. 2013.
Science Professionals. U.S. Fish & Wildlife Service: Forensic Laboratory. U.S. Fish and Wildlife Service. n.d. Web. 20 Sept. 2013.
Speller, Camilla, et al. Feather Barbs as a Good Source of mtDNA
for Bird Species Identification in Forensic Wildlife Investigations.
Investigative Genetics. 2.16. (2011): 2-7. Web. 3 Oct. 2013.
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FORENSICS JOURNAL
31
STEVENSON UNIVERSITY
SOUTH CAROLINA
FORESTRY COMMISSION
32
FBI NCAVC
Alcoholism, childhood
hyperactivity, homosexuality,
depression, borderline
personality disorder, and
suicidal tendencies.
FORENSICS JOURNAL
There are firefighters who meet some or all of the traits described
above yet do not commit the crime of arson. Forensic psychologist
Rebekah Doley noted that the similarities between firefighters who
light fires and those who dont, emphasizes how difficult it is to spot
the threat from within (Report on Firefighter Arson 17). The
National Volunteer Fire Council described the South Carolina profile
and the FBI profile as popular in large part because they condense
a complex phenomenon into a succinct and straightforward chart
(Report on Firefighter Arson 17). However, many firefighter arsonists do not fall within the parameters of the two profiles and that
while firefighter arsonists may share some statistical similarities, they
are not homogenous (Report on Firefighter Arson 17).
The National Volunteer Fire Council developed several recommendations mirroring Martinezs. Their recommendations included: adopting firefighter arson prevention training programs on a national level;
conducting background checks and applicant screenings for all new
recruits; establishing zero-tolerance policies regarding fire-setting; and
empowering members to take a stand (Report on Firefighter Arson
27). The last point is critical as firefighter arson was not always
considered a bad thing by some firefighters and was actually viewed
as a rite of passage in some fire departments (Report on Firefighter
Arson 12).
A model training program called Hero to Zero was developed by
the Pennsylvania State Police. The program is required for all recruit
firefighters in the state (Martinez 66). The goal of the three hour
program is to reduce the rate of firefighter arsons through awareness
(Report of Firefighter Arson 25). Pennsylvania State Police Trooper
David Klitsch said the program has been credited with uncovering
cases of firefighter arson since its inception. Trooper Klitsch expected
to see an increase in the number of firefighters arrested for arson as
the fire service goes through a period of cleansing as a result of the
information gathered through this program and the action taken by
the students in identifying these criminal actions (Report on Firefighter Arson 25).
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STEVENSON UNIVERSITY
The term company is often used to refer to a fire department as a whole or to a single fire station.
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CONCLUSION
Pennsylvania State Fire Commissioner Edward A. Mann summed
up his views on the problem of firefighter arson by saying but if
you are a firefighter and youre convicted of arson, you ought to have
the entire damn bookcase thrown at you (Burton). In The Myth of
Pyromania, the authors note that many non-arsonists are fascinated
by fire, including firefighters, both professional and volunteer; an
extremely small percentage of firefighters actually are arsonists (Huff,
Gary, and Icove 36).
However, that extremely small percentage of firefighters who commit the crime of arson out of boredom, for excitement, or for some
other reason, cause great harm to the reputation of the fire service.
Chief Aurnhammer describes firefighter arson as a cancer that can
be cured (Aurnhammer 3). Aurnhammer eloquently adds that
aggressively combatting the firefighter arson problem represents the
highest form of loyalty to the fire service and its mission. Improved
firefighter selection and screening processes, better education and
effective fire service and law enforcement investigations can drastically
reduce the occurrence of firefighter arson.
STEVENSON UNIVERSITY
REFERENCES
Anderson, Mark A. Interviewing. Inspector General Criminal Investigator Academy. Glynco, GA. 5 June 2013. Lecture.
Aurnhammer, Thomas W. Addressing the Firefighter Arson Problem. New Mexico Fire Chiefs Association. New Mexico Fire Chiefs
Association, Mar. 2002. Web. 9 Sept. 2013. <http://www.nmfirechiefs.
com/ee/index.php/articles/fullstory/addressing_the_fire_fighter_
arson_problem>.
Australian Institute of Criminology. Firefighter Arson: Part 1 - Incidence and Motives. BushFIRE Arson Bulletin 7 June 2005: n. pag.
Web. 10 Mar. 2014
Domizio, Tony D. Former and Current Sellersville Fire Co. Members Charged with Arson in Wednesday Fire. Montgomeryville-Lansdale Patch. Patch, n.d. Web. 14 Sept. 2013. <http://lansdale.patch.
com/groups/police-and-fire/p/former-and-current-sellersville-fire-comembers-charged-with-arson-in-wednesday-fire>.
FORENSICS JOURNAL
to sell the asset in the market. Similarly, the company is also required
to assess whether there is evidence of impairment for any of their
financial assets, such as an estimated decrease in estimated cash flow
from the asset. If so, the asset must be devalued to the extent of the
lost value (Wells). Subsequently, the accumulated depreciation can be
restated in two ways: (1) restate the amount of accumulated depreciation to the change in the fair value of the assets or (2) eliminate to the
extent of the increase in fair market value (Wells).
INTRODUCTION
The Association of Certified Fraud Examiners (ACFE) defines financial statement fraud as [an act] in which an employee intentionally
causes a misstatement or omission of material information in the
organizations financial reports (e.g., recording fictitious revenues,
understating reported expenses or artificially inflating reported assets)
(Association of Certified Fraud Examiners). According to the ACFEs
2012 report, financial statement fraud cases comprised only 8% of the
cases in 2012, but caused the greatest median loss of all types of occupational fraud considered at an average loss of 1 million dollars per
case (Association of Certified Fraud Examiners). Financial statement
fraud is so costly because investors rely on financial statements to
make important financial decisions. Therefore, accounting standards
must be stringent enough to eliminate loopholes that companies use
to distort their financial statements.
While both methods still depreciate the assets value over its useful
life, the fair value method requires obtaining an updated value for the
asset. Both International Accounting Standards and United States
Accounting Standards set forth three levels of hierarchy on which fair
value can be determined with highest priority given to the highestlevel inputs (International Accounting Standards Board 72). The
IASB explains, Level 1 inputs are quoted prices in active markets for
identical assets or liabilities that the entity can access at the measurement date (International Accounting Standards Board 76). If an
asset has an active market, like most publicly traded stocks do, the
asset should be valued at such. Nevertheless, not all assets have a
readily active market to value their assets in, and if no active market
exists for that specific asset, the fair market value of a similar asset that
can be readily traded in an active market will suffice under a Level 2
input (International Accounting Standards Board 81). Lastly, if the
asset cannot be valued at either of the previous two levels, an entity
can estimate the assets fair value using an alternate valuation technique such as a Level 3 input (International Accounting Standards
Board 86). When addressing Level 3 inputs, IFRS sets forth a general
rule that the value reflected must reasonably reflect what amount
could be expected for the asset if sold (International Accounting
Standards Board 87-89).
Most concerns have been expressed about valuing assets with no active
market due to the recent financial crisis (KPMG). Critics of fair value
accounting believe that during the financial crisis, fair value accounting inflated the value of assets to reflect a market value that was not
appropriate due to the long-term nature of the assets held (Centre
for Economic Policy Research). The general principles described give
broad guidance to accountants, but the IASB also recognized the
professions need for further guidance in this area.
IFRS RECENT REGULATIONS
Internationally Accepted Accounting Principles include IFRS 13, which
was enacted to provide more clarity to companies on how to apply fair
value principles to fixed assets. According to the international accounting firm KPMG, the standard does not introduce any new requirements for financial reporting. Instead, it provides more guidance on
how the principles defined earlier can be applied, and addresses the
detail that companies must provide for disclosures pertaining to the
accounting methods used to value these assets (KPMG).
Fair Market Value Accounting does not value an asset at its original
cost. Instead, the asset is periodically revalued to reflect what the
entity could receive if the asset were sold. Under the International
Financial Reporting Standards (IFRS) revaluation method for fixed
assets, the asset must be revalued periodically to fair market value,
less accumulated depreciation and the aggregate amount of losses
from the impairment of value (Wells). Each period, the company
first revalues its fixed assets to the value they could receive if they were
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STEVENSON UNIVERSITY
Over the years, the Financial Accounting Standards Board (FASB) has
extended fair value accounting to valuing debt and equity securities
held for sale, derivatives, and reporting changes in fair value in the
income statement and comprehensive income (Lefebvre, Simonova
and Scarlat). In recent years, FASB and IASB have been working
together to converge U.S. GAAP with IFRS. The American Institute
of Certified Public Accountants (AICPA) distinguishes the meaning of convergence and adoption: convergence involves the U.S. and
IASB working together to develop high quality, compatible financial
statements whereas adoption would require the SEC to set a specific
time in which public companies would be required to issue financial statements based upon international standards (International
Financial Reporting Standards). As of this writing, the Securities
and Exchange Commission (SEC) is only focused on convergence,
with the expectation that it will make a determination on whether
or not the U.S. will incorporate IFRS into U.S. financial reporting.
Since IFRS relies heavily on fair value accounting when valuing assets,
convergence could involve the U.S. adopting these same rules.
FORENSICS JOURNAL
Financial journalists claimed, By making the banks look so valueless in the middle of a credit crunch, mark-to-market accounting was
procyclical in that it accelerated the downturn (Best of 2008).
Fair value accounting forced banks to devalue their long-term assets;
despite the fact that these assets were no longer liquid in nature. It
may not be appropriate to value illiquid assets at fair value because
it represents the current value of an asset at a given time. While fair
value accounting can provide beneficial information to investors when
an asset will be sold in the near future, fair value accounting may not
be appropriate for assets held for longer terms.
Based on the results of the study, the implementation of IFRS standards across European countries did little to resolve the discrepancies
in financial reporting. Therefore, if the U.S. was to implement IFRS
fair value standards, there would be a risk of inconsistency in financial
reporting. At the same time, results still show that fair value reporting supports financial transparency. Therefore, the U.S. could benefit
from implementing such a standard because some investors may find
fair value information more useful than historical cost information
when making investment decisions.
IFRS IN GERMANY
In 2005, the European Union (EU) required publicly traded firms
in Germany to prepare their financial statements based upon IFRS
(Liao, Sellhorn and Skaife). By requiring other countries to report
their financial statements under IFRS, the EU was encouraging comparability of financial information across the EUs states. Despite this
effort, comparability of financial information can only be achieved
when companies report their financial information in the same manner (Liao, Sellhorn and Skaife). When accounting standards allow
companies to report transactions based on multiple methods, comparability may be sacrificed. Qing Liao, Thorsten Sellhorn, and Hollis
Skaife investigated the comparability of financial information in the
EU by comparing the valuation usefulness of earnings and book
values (Liao, Sellhorn and Skaife).
As noted earlier, IFRS allows companies to choose between reporting their assets at historical cost or fair value, with changes in value
recognized through income. To encourage consistency, IFRS requires
that companies implement one method for all investment property
reported (International Accounting Standards Board). While firms
are encouraged to hire independent valuation analysts with relevant
qualifications and experience to determine asset values, they are not
required to do so (International Accounting Standards Board). By
reporting changes in fair value through income as opposed to equity,
asset value volatility will affect and possibly distort a companys
reported earnings.
The results of the study suggested that in the initial years of IFRS
adoption, the book values of French and German firms were similar
(Liao, Sellhorn and Skaife). However, over time, the book values of
French and German firms were less comparable (Liao, Sellhorn and
Skaife). Countries may use similar valuation techniques in the initial
STEVENSON UNIVERSITY
and Abdullatif ). Unlike the previous countries, Jordan is a less-developed country. Even though Jordan has an open economy and exports
phosphate, it has limited natural resources and scarce water supplies
(Siam and Abdullatif ).
years of IFRS adoption, but the companies stray from these methods
in later years.
The study of initial Germany IFRS adoption shows that a single set of
accounting standards may not always produce comparability. IFRS
allows multiple methods for valuation techniques, and choices may
differ across businesses and countries. When considering the benefits
of implementing IFRS, comparability is not as a guaranteed result.
Since 1998, Jordan has required its banks to report financial statements based upon IFRS principles (Siam and Abdullatif ). Therefore,
fair value accounting has been implemented on a larger scale than
U.S. standards allow. In 2005, many banks in Jordan saw a boom
in their stock values because their financial statements made the banks
appear very prosperous. This was due in part to a prosperous economy; new capital was entering Jordans economy at the time (Siam
and Abdullatif ). While the banks may have in fact been more prosperous at the time, fair value accounting increased the volatility in the
banks financial position (Siam and Abdullatif ). When the economy
stopped expanding, investors unexpectedly lost large amounts from
their bank investments.
IFRS IN CANADA
Despite its close ties with the United States, Canada decided to
adopt International Accounting Standards rather than U.S. standards
because of the growing international acceptance of IAS in the rest of
the world (The Case for Interntional Accounting). The Certified
General Accountants Association of Canada (CGA) recognizes that
U.S. standards are more rule-oriented and descriptive than international standards but felt international standards would give them an
opportunity to open more trade with the rest of the world (The Case
fo Itnernational Accounting).
IFRS IN CHINA
China is one of the worlds largest emerging markets; therefore, it
plays a significant role in the global economy (He, Wong and Young
538). Financial reporting in China is tailored towards a contractual
role rather than an informational role; if firms report losses for three
consecutive years, they are delisted (He, Wong and Young). Therefore,
business managers in China receive more pressure to report profits
than businesses in most other economies. He et al. conducted a study
to determine if the pressure China businesses receive reduced the benefits intended from fair value accounting (He, Wong and Young).
IFRS IN JORDAN
Walid Siam and Modar Abdullatiff conducted a survey detailing the
utility of fair value accounting in the Jordan banking industry (Siam
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FORENSICS JOURNAL
nies to miss their targets as well. The study identified that due to this
pressure and the potential loss resulting from fair value accounting,
firms will be more likely to set up sales for their available securities
in order to offset these losses with gains (He, Wong and Young).
While the intended benefit of fair value accounting was to encourage
transparency, the fair market values were difficult to determine due to
the differences in Chinese markets compared to other countries the
Chinese rarely exchanges assets between independent parties (He,
Wong and Young). Despite efforts to produce a more accurate value
for Chinese assets, fair value accounting actually devalued the assets
to an amount lower than the company would receive when it sold the
asset. While convergence of International Standards globally would
be ideal, the Chinese case study highlights the fact that markets differ
around the world.
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Harman, Bryn. Top 3 Pitfalls of Discounted Cash Flow Analysis. Investopedia. Investopedia US, 22 Sept. 2010. Web. 26 Feb.
2013. <http://www.investopedia.com/articles/07/dcf_pitfalls.
asp#axzz2L7jBrQ00>.
Siam, Walid, and Modar Abdullatif. Fair Value Accounting Usefulness and Implementation Obstacles: Views from Bankers in Jordan.
Research in Accounting in Emerging Economies 11: 83-107. Web. 11
Mar. 2014.
He, Xianje, T.J. Wong and Danquing Young. Challenges for Implementation of Fair Value Accounting in Emerging Markets: Evidence
from China. CAR 29.2 (2012): 538-562.
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The frauds described thus far are executed by outsiders of the victim
company, such as contractors performing work for the victim company. A more disturbing fraud is one involving insiders at the victim
company. Collusion occurs when two or more people work together
in order to commit fraud (Part I - Kickbacks). In the construction
industry this most commonly occurs between an employee of the
victim company and an employee of a subcontractor, vendor, supplier
or customer. Bribery is a common byproduct of collusion and corrupts the construction industry to an extraordinary degree. According
to the anti-corruption agency, Transparency International, the Public
Works Contracts and Construction sector is the most likely to commit bribery (Corruption Prevention). The long duration of most
contacts, the involvement of multiple suppliers, subcontractors and
vendors, plus the varying rules and regulations depending on the
jurisdiction the work is being conducted in create a complex structure
that is ripe for manipulation (Corruption Prevention). Construction companies have to be sensitive to these types of fraud as they can
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Another collusion fraud affecting construction companies is bidrigging. The bidding process to win the right to take on a construction job is intended to foster a competitive environment in which
the best contractor for the job will be awarded the contract (Part I
- Kickbacks). However, with the help of someone inside the company offering the contract, an unfair advantage can be created and
the process tainted. Bid-rigging can occur in a number of ways, but
in its simplest form an employee inside the victim company offers
inside information to a competing contractor to help them win the
bid, usually in exchange for a kickback (Part II Bid-Rigging). This
information could include when the bid is going to be made available
to contractors and what specifications the bid entails so the contractor
can get a head start on the competition (Farragher 18). Alternatively,
the corrupt employee could use his power inside the company to
manipulate the bid in some way. He could alter the specifications of
the contract to involve a task that only the designated contractor can
complete or mandate qualifications on the bid with which competitors will not be able to comply (Farragher 18). Ultimately, this harms
the victim company because they do not obtain the best possible bid
on the job.
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tions of the business can quickly spot when something is awry. The
infamous WorldCom fraud case in which executives used accounting
maneuvers to misstate over $7 billion in earnings was uncovered by a
team of internal auditors who noticed that $500 million in computer
purchases did not have any supporting documentation (Pulliam and
Solomon). While WorldCom will be remembered as one of the largest occupational frauds in American history, the same concepts can
be applied to any company. It is important for auditors to look for
discrepancies and then gather evidence to support those discrepancies.
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that project (Noyes 10). Many times visual observations can alert an
auditor or owner to fraudulent acts. As described in the Baker Tilly
case above, on-site auditors were able to note that substandard materials were being used on the job and not as much waste as predicted was
being generated by the project (Construction Fraud: Stories). Auditors should examine how many people are working on the job site and
compare that to the daily payroll records (Noyes 10). This will help
detect if the owner is being overbilled for labor costs. On-site audits
operate as effective internal controls and should be utilized to detect
and prevent fraud.
The methods described above are some of the many detection tools
and techniques owners, auditors, employees, customers, vendors,
and suppliers can utilize to uncover fraud. However, the easiest and
most effective way to combat fraud is to prevent it before the scheme
begins. The ACFE recommends that of all the prevention techniques
available to business owners, the most critical to implement is targeted fraud awareness training for all levels of employees (Report
to the Nations). This training should be mandatory and should be
conducted at least once a year. During the training, fraud should
be defined with specific examples related to the industry of operation (Report to the Nations). Upper management is responsible to
ensure the rules are understood throughout their organization. The
fraud training should also cover how fraud is destructive to everyone
within and around the entity (Report to the Nations). First-time
offenders may believe they are actually helping the company when
they falsify the financial statements in order to make results look more
favorable. However, they need to understand their actions are directly
harming potential investors, bankers who rely on financial information to approve the company for loans, and the future of the entire
company when the fraud is eventually discovered. Lastly, the training
should articulate how someone can disclose suspicious activity to the
appropriate source (Report to the Nations). This would be an ideal
time to mention the whistleblower hotline if one is in place or direct
their complaints to another objective source such as the independent
auditors, the Board of Directors, or even the Securities and Exchange
Commission (SEC). The training will serve as a solid base for preventing fraud throughout the company and will help ensure everyone
is following the same ethical guidelines.
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Similar to interviewing employees, owners of construction companies should also screen their business partners (Noyes 10). As with
employees, it is impossible to know unequivocally whether someone
is more prone to commit fraud, but there are traits to avoid in business relationships so as to reduce the risk of dealing with a crook.
Construction companies are encouraged to conduct research before
working with a new supplier or subcontractor (Noyes 10). First, it
is important to find out how long the company has been in business (Noyes 10). This does not imply that all start-up companies
are corrupt, but lack of experience may result in a company being
susceptible to fraud. Construction companies should also perform a
background check on the supplier or subcontractor to see if they have
been involved in any illicit business in the past (Noyes 10). A quick
internet search can uncover any unfavorable media attention the company may have received and a search of the SEC filings can determine
if they have ever been investigated for fraudulent activity. A clear
record is a good sign, but should not be misconstrued as an indicator of a flawless company. Owners of construction companies could
also contact industry peers to check if anyone else has conducted
business with the potential candidate (Noyes 10). People who have
worked with the supplier or subcontractor can share their experiences,
whether positive or negative, thus allowing the owner to obtain a better understanding of the quality of work the company performs.
Subcontractors are crucial to the success of a construction contractor because they are relied upon to perform work for which general
contractor will be ultimately responsible. Subcontractors usually
perform work according to a contract agreed upon with the general
contractor. A useful fraud prevention technique is to ensure the
contract is detailed enough to specifically cover what the general
contractor wants completed. If a fixed price for the project has been
set, the general contractor needs to stipulate the type and quality of
materials he wants for the job (Palmer 21). Since the price on the
contract is essentially non-negotiable, general contractors need to be
very precise about the end result so the subcontractor cannot take any
cost-cutting measures. If the contract is a cost-plus contract, then the
price will fluctuate depending on the materials and labor used on the
job (Palmer 19). In this case, the general contractor can protect himself from overbilling by setting a price ceiling that the contract cannot
exceed (Palmer 21). The more detailed a contract becomes, the less
room it will leave for misinterpretation and mismanagement.
REFERENCES
Auditing: CPA Exam Review. Becker Professional Education. 2011
ed. Devry, 2010. Print.
Construction and Procurement Fraud. False Claims Act Resource
Center. False Claims Act, 2013. Web. 8 Sept. 2013.
Construction Fraud: Stories from the Field. Baker Tilly. Baker Tilly
Virchow Krause, LLP, 2010. Web. 8 Sept. 2013.
Corruption Prevention in the Engineering and Construction industry. PricewaterhouseCoopers. PricewaterhouseCoopers, LLP, 2009.
Web. 24 Sept. 2013.
Another essential element to include within the contract with a subcontractor is a right to audit clause (Palmer 21). This clause states
a distinct time period during which the general contractors audit
team can examine the accounting records of the subcontractor (Noyes
10). The inclusion of this clause in all contracts is advantageous to
the general contractor because he will have the ability to perform
substantive audit procedures that may detect fraud. The audit team
can compare what the general contractor was billed for supplies
Eaton, Tim V., and Michael Akers. Whistleblowing and Good Governance. CPA Journal 77.6 (2007): 65-71. Web. 30 Sept. 2013.
Farragher, George P., and Stephen M. Nelder. Construction FraudThe Cost Of Doing Business? Construction Law & Business Journal
2.2 (2001): 17-20. Business Source Complete. Web. 10 Sept. 2013.
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One smaller scale case study conducted in 2012 focused on the Philadelphia Police Department (PPD). The research scope was limited to
arrests by the PPD through the use of community outreach on social
media. These social media arrests were made by posting information
about the crimes on the social media accounts owned by the department (Philadelphia, Pennsylvania, Police). The primary social media
websites used by the Philadelphia Police Department were Facebook,
Twitter, and YouTube. The PPDs social media public outreach begins
on YouTube with posting of a video and further dissemination to
other social networks (Philadelphia, Pennsylvania, Police). The
social media methods used by the PPD are replacing or supplementing
the traditional methods used by law enforcement in the past. Traditional techniques included: speaking to news reporters, placing tips in
newspapers, holding press conferences, going door-to-door requesting
crime details, or spreading the pertinent information through CDROMs. The Philadelphia Police Department finds the new social
media outreach approach to be more effective and efficient than past
communication methods with the public. As the crime details are
an online link which is easily accessible to the public on social media,
the agency receives a greater number of tips about suspects still on the
loose (Philadelphia, Pennsylvania, Police). Not only is the department obtaining a large amount of feedback, but it is also saving time
and money due to the relative ease of using social media and the lack
of service fees (Philadelphia, Pennsylvania, Police). These statements
and details provided in the case study demonstrate that social media
methods of communicating with the public are effective in time,
feedback, and money thus positively increasing the number of successful arrests.
To answer this query, the social media foundation used by law enforcement requires analysis. Social media websites law enforcement may
use include: Facebook, Twitter, YouTube, Myspace, LinkedIn, and
other smaller, tight-knit social networks. In 2010, the International
Association of Chiefs of Police (IACP) Center for Social Media conducted a survey examining the use of social networks as a tool for law
enforcement agencies. The survey encompasses 728 law enforcement
agencies with an 81 percent positive response rate for active social
media use (International Associations of Chiefs, 1). When asked
which social media websites were utilized, the most prominent network was Facebook reflecting 66.8 percent of the 728 police agencies
(International Associations of Chiefs, 1). Additional social media
sites law enforcement agencies signed up for include: Twitter (29.8%),
Nixle (29.8%), Myspace (21.6%), and Youtube (17.6%) (International Associations of Chiefs, 6). The study reflected estimated future
growth rates with 61.6 percent not currently using social media planning to begin signing onto such websites (International Associations
of Chiefs, 4). The results of this study show the use of social media is
quickly gaining traction in the field of law enforcement.
The Philadelphia Police Department is a prime example of successful community outreach by law enforcement through social media.
Corporal Frank Domizio of the Philadelphia Police Department
explained that while the chance of arrest, clearance rate, and number
of closed cases associated with social media may not seem impressive, the statistics would be much lower without the agencys use of
networking (Philadelphia, Pennsylvania, Police). The Philadelphia
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in the investigation progress. On the fourth day after the riot, the
Vancouver Police department released statistics that provided insight
as to just how much help the agency received from the public. Within
a four day span, the community sent approximately 3,500 e-mails to
the Vancouver Police Department (Riot Investigation Fact Sheet).
The department noted 676 of the e-mails contained hyperlinks to
YouTube videos and 1,011 provided links to social media networks,
with most hyperlinks from Facebook (Riot Investigation Fact
Sheet). The department reported twelve suspects voluntarily reported
to the Vancouver Police and three other persons to other jurisdictions
(Riot Investigation Fact Sheet). The information received from
the public is still being used two years after the investigation. The
police reported in June 2013 that ten more rioters were charged with
crimes, bringing the total number of rioters charged to 325 (Riot
Investigation Update). While not every rioter was arrested and
charged through the assistance of the social media community, the
ample amount of social media evidence received by the department
was undoubtedly a factor in the arrest of many rioters. The Vancouver
Police Department, in an effort to assist with the identification of rioters, even created a website listing the top most wanted rioters in June
2012 (Riot Investigation Update). By the next year, law enforcement
was able to identify seven of the rioters on the list through the public
and the website (Riot Investigation Update).
The analysis of the 2011 Vancouver Stanley Cup riot does not reflect
the exact number of persons brought into custody solely due to social
media outreach. However, the Vancouver Police and people who
have studied the riot have provided evidence that social media made a
difference in some cases. The Vancouver Police Department released a
review entitled 2011 Stanley Cup Riot which stated that the phenomenon of turning oneself into the police seems to be impacted by
the media and social media commentary (Schiender & Trottier, 64).
The review further explained that there was a slight increase in the
number of people who turned themselves in because of social media
(Schiender & Trottier, 64).
From June 2011 to the present, the Vancouver Police Department has
posted updates, released statements, and kept the community engaged
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the investigation and justice. As Kotylak was still a minor, his name
should not have been made public (Beaumont). As a result of his
name being released, Kotylak and his family were forced to flee their
home because their address was posted on social media and the internet by the public (Beaumont). The posting of the address by social
vigilantes caused the family to relocate, thus impeding the investigation, prompting concerns about rights, and violating the Youth Criminal Justice Act (Schiender & Trottier, 60).
The Boston Marathon bombing also prompted negative public behavior through social media which adversely affected the investigation.
Early in the investigation, a bombing suspect was identified through
social media. Users on these social networks believed a missing college
student, Sunil Tripathi, was a possible suspect due to a former high
school class posting on a popular social news site that she recognized
him in a picture of the finish line near where the bombs exploded
(Sunil Tripathi). On the social media site Twitter, members began to
re-tweet messages saying that Tripathi was one of the suspects (Sunil
Tripathi). People continued to spread this news despite the fact police
announced Tripathi was not one of the suspects (Sunil Tripathi).
While people eventually began to realize that Tripathi was misidentified, the damage was already done. The media had already begun to
hound the Tripathi family with a multitude of phone calls and attacks
on the Facebook page maintained by the family who were attempting
to locate the missing relative (Sunil Tripathi). Even after the manhunt for the two true suspects ended, the effects continued to be felt
by Sunil Tripathi and his family.
The survey should be meticulously designed and beta tested. If possible, the IACP Center for Social Media should head the initiative due
to the organizations current experience with social media research.
Funding would hopefully come from the federal government as the
studies could assist in persuading law enforcement organizations at all
levels of the benefits or consequences of utilizing social media public
outreach methods. The survey should not ask questions about the
number of cases solved through social media outreach because accurate
statistics will not be produced. The questions should examine what
types of cases were assisted by social media outreach, but also seek to
obtain some sense of how much social media use affected the case.
The study should be voluntary and the IACP Center for Social Media
could contact the law enforcement agencies used in the past surveys
Police were unable to locate Sunil Tripathi after the Boston Marathon
bombing, and the search for him continued until April 25, 2013,
when his body was found in a river near the City of Providence (Family of Sunil Tripathi). Although an official statement as not been
released, the police examiner explained while further examination is
necessary, he does not believe there was any foul play involved (Family of Sunil Tripathi). While the lack of foul play does not automati-
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such as the 728 law enforcement agencies who answered in the 2013
Social Media Survey. The researchers should create a trend study that
is one of the three sub-types of longitudinal surveys. Since the research
will include a longitudinal survey, the analysis will be gathered over a
long period of time such as one year. To keep the populations consistent, the survey should focus on rural versus urban police departments.
The trend study would request police departments to submit the
number of cases that used any form of social media public outreach to
further the investigation. This could include a tip submitted on social
media, a photo posted to assist in identification, a cellphone video
tweeted to a police organization, or any submission over social media
by the public to help the investigation. In order for a case to count
towards the survey, the social media public outreach must further the
case in some way, such as providing evidence, assisting in identifying a
suspect or posting a location of stolen goods. The information should
be gathered at the end of the month for a year. The survey would then
show a year trend of social media public outreach and whether the
cases affected by social media are increasing, fluctuating, or decreasing.
The trends could also show whether social media public outreach is
better implemented in urban, rural, or both areas. This information
gathered from such a survey would allow police departments to make
more effective decisions about how to utilize social media.
Social media in the hands of law enforcement is a powerful tool, especially when the public is included in the process. Police departments
can choose to reach out to the public by posting details on agency
profiles in hopes of receiving tips from the public, a method found to
be successful in cases such as the Boston Marathon bombing, the 2011
Vancouver Stanley Cup riot, and the Philadelphia Police Department
case studies. While social media outreach has had great success in the
field of law enforcement, it has also caused issues that affect investigations negatively. Asking for the assistance from the public can lead to
persons sponsoring vigilantism or initiating witch hunts. Vigilantism
and harassment may have caused a suicide in the Boston Marathon
bombing and also impeded the investigation of 2011 Vancouver
Stanley Cup riot. While there have been many small scale examples
of social media outreach, not many studies have looked at the bigger
picture. A more accurate assessment of how law enforcement should
use social media and social medias effect on law enforcement should
be conducted using teams of researchers to send out surveys on a large
scale that ask agencies questions regarding social media outreach.
The current research being conducted is a step in the right direction;
however, more research needs to be conducted before the true impact
of the use of social media techniques by law enforcement can be
understood.
REFERENCES
Beaumont, Peter. Vancouver Rioters Named and Shamed in Internet
Campaign. The Guardian. Guardian News and Media, 30 June 2011.
Web. 8 Oct. 2013.
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World War II
Franklin Rooseveltin the aftermath of the attack on Pearl Harborsuspended habeas corpus via Executive Order 9066. This Order
relocated people of Japanese ancestry, involuntarily placing them
in government run internment camps. According to the National
Archives and Records Administration, Nearly 70,000 of the evacuees
were American citizens. The government made no charges against
them, nor could they appeal their incarceration (National Archives
and Records Administration). The Supreme Court decisions handed
down in Hirabayashi v. United States, Yasui v. United States, Ex parte
Endo, and Korematsu v. United States upheld the legality of Executive Order 9066, thus depriving Japanese-Americans (United States
citizens) the right to challenge their detentions.
Global War on Terror (GWOT)
In response to the attacks of 9/11, Congress passed legislation aimed
at bringing to justice those responsible for creating such devastation,
ultimately granting the President extensive authority. George Bush,
in his memoir, aptly attributed his wartime powers as President to
Article II of the Constitution and the Authorization for Use of Military Force (AUMF) issued by Congress following 9/11 (Bush, 154).
On November 13, 2001, President Bush signed a Military Order
titled Detention, Treatment, and Trial of Certain Non-Citizens in
the War Against Terrorism which established military tribunals to try
captured terrorists. According to Bush, this system was based closely
on the one created by FDR in 1942 (Bush, 167). The ensuing suspension of habeas corpus, as witnessed, would be the eventual cost of
doing business in the Bush Administrations post-9/11 world. Unfortunately, for the Administration, a series of complex legal challenges
would expose this policy to keen scrutiny, and it would ultimately
face strong resistance.
INDEFINITE DETENTION
The Bush Administration cautiously acknowledged that the war
on terror would be drastically different from any war ever fought
(Margulies, 3). In order to effectively fight terrorism there would
be sacrifices both abroad and at home. The Administration cited Ex
parte Milligan, Ex parte Quirin, and Johnson v. Eisentrager to legitimize its legal policy, but this did not pacify the critics. According to
Margulies, in regard to the ongoing war in Afghanistan, The Bush
Administration maintains that people seized in this conflict may be
takenkidnapped if necessaryfrom any location in the world, even
thousands of miles from any battlefield, without the knowledgeof
the host government and without any judicial process (Margulies, 3).
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Bay holding facility. In his first year in office, Obama amended the
MCA by signing into law the National Defense Authorization Act for
Fiscal Year 2010. This Act contained revisions to the MCA of 2006
and ultimately became known as the MCA of 2009. This amended
version of the MCA addressed concerns about detainee resources,
but otherwise remained unchanged, thus reinforcing the MCA of
2006. This was not the expected outcome. Also unchanged was the
promise to permanently close Guantanamo Bay. What remained was
an ad hoc court system charged with addressing the rising concerns
regarding potentially unlawful and indefinite detentions. While the
Boumediene decision guaranteed defendants a habeas review, it was
the lower courts responsibility to decide what evidence, if any, was
sufficient to justify continued imprisonment (Boumediene v. Bush).
This caused confusion amongst law professionals, as the burden of
proof was less than uniform.
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CLASSIFIED EVIDENCE
Since the wars inceptionand after several key decisionsthe
amount of evidence required to indefinitely detain a suspected terrorist has unquestionably changed. The courts have, over time, created
a more uniform standard in dealing with suspected terrorists, but
debate continues. The governments stance on classified evidence has
created what can be considered an unfair advantage which favors the
government. For example, while petitioners are now afforded habeas
corpus protection, they may find themselves unable to refute governmental claims as incriminatory evidence may be deemed classified;
this renders it inaccessible by the defense. The underlying concept
suggests that evidence detrimental to government interests and
national security be excluded.
STANDARDS OF PROOF
In the early years of the GWOT, the standard of proof required to
detain suspected terrorists was vague and open to interpretation; only
some evidence was required to lawfully detain suspected terrorists. The
various levels of the American court system created their own requirements for what was deemed, in the eyes of the individual judge, to
be sufficient. Over time this changed to a more universally accepted
system of finding. Referencing Al-Bihani v. Obama, Stephen Vladeck
stated, the court (as it did with respect to the governments detention
authority)agreed with the government that preponderance of the
evidence is the appropriate burden of proof (Vladeck, 1466). Matthew Waxman suggests that the courts probably gravitated toward
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While CIPA was not drafted with the GWOT in mind, it is the current accepted framework being utilized to address issues arising from a
non-traditional war environment. There is no readily available remedy
to appease the critics; however, some solutions have been proposed,
such as a National Security Bar (Litt and Bennett, 13). As proposed
by Litt and Bennett, Congress should establish a National Security
Bar, consisting of lawyers with the highest level of security clearance.
These lawyers would agree to be available for appointment to represent defendants in terrorism-related cases (Litt and Bennett, 13). The
courts will continue to review the procedures outlined in CIPA in
order to make them more applicable to the current, ongoing war.
GATHERING EVIDENCE
Gathering sufficient evidence during an active military operation is
a difficult task at best. Professionals have developed an across-theboard standard; however, new approaches are being examined. While
a range of theories are available for consideration, they all seek to
address the same fundamental issue: how can one effectively collect
and maintain evidence on an active battlefield? It is undoubtedly difficult, at times, for qualified law enforcement professionals to observe
and gather evidence within a secure, domestic crime scene. Envision
now a young soldier: no law enforcement experience, in the mountains of a foreign country, attempting to gather evidence in the heat of
combat. Some may offer that it is virtually impossible. Furthermore,
one must consider that evidence may be inaccessible or destroyed on
the battlefield.
Reid says, many of CIPAs provisions have provided a skeletal infrastructure but relatively little substantive guidance to courts, leaving
judges to set forth differing standards on classified informations use,
relevance, and admissibility at trial (Reid, 278). CIPA allows the
government, upon approval, to withhold or redact classified evidentiary material. As illustrated by Robert Litt and Wells Bennett,
critical evidence against a defendant may derive from the interception of communications, yet the government may not wish to reveal
that it has the capability to intercept those communications (Litt and
Bennett, 6). This poses a significant challenge for defendants, as their
lone source of exoneration may rely upon information that has been
deemed inadmissible due to security concerns. While the process may
be controversial, it does follow appropriate procedure. For example, if
the government does not wish to disclose specific information during proceedings, they must abide by the rules set forth in Section 4
of CIPA (Reid, 280). According to Reid, Section 4 applies when a
defendant is unaware of the classified information, and the prosecutor
does not want to disclose such information during discovery (Reid,
280). Reid further states Section 4 authorizes the government to
file a written motion requesting either a protective order prohibiting
disclosure of the classified information or the granting of a partial
redaction/substitution/summary of the classified materials at issue
(Reid, 280).
CONCLUSION
The governments decision to deny enemy combatants the right to
petition for a writ of habeas corpus, and to detain them indefinitely,
has been a source of great controversy and debate. The GWOT
remains a war like no other. The series of decisions made in the
immediate aftermath of the attacks of 9/11 were done so hastily
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and without due regard for civil liberties. The idea of indefinitely
detaining someone with no legal resources and no immediate end in
sight remains controversial. Nevertheless, this power was ultimately
granted to the President via Article II of the U.S. Constitution, and
the AUMF of 2001.
hensive study of relevant law confirms the legality of its actions. The
current system in place is not flawless, but an unconventional war
calls for unconventional methods. While they may not be widely
accepted, present governmental actions are permissible under this
nations current system of laws.
REFERENCES
Al Bihani v. Obama. 590 F.3d 866. District Court of the United
States. 2009. Legal Information Institute. N.p., n.d. Web. 29 Jan. 2013.
Al Mutairi v. United States. Civil. Action No. 02-828 (CKK). District
Court of the United States. 2009. Legal Information Institute. N.p.,
n.d. Web. 7 Feb. 2013.
American Civil Liberties Union. Indefinite Detention, Endless Worldwide War and the 2012 National Defense Authorization Act. New York:
American Civil Liberties Union, 22 Feb. 2012. Web. 27 Jan. 2013.
Authorization for Use of Military Force Against Terrorists. Pub. L.
107-40. 115 Stat. 224. 18 Sep. 2001. Web. 26 Jan. 2013.
Standards of proof have remained the same as a result of the Boumediene and Al-Bihani rulings; however, the level of evidence required
to satisfy the preponderance requirement still rests solely with the
presiding judge. This ultimately creates a system of imbalance. As
was illustrated, the same evidence can authorize the continued detention of a suspected terrorist, or conversely direct their release. These
inconsistencies in court opinion must be minimized, and current
criterion must be reviewed in order to preclude the potential for an
unfair trial. The Supreme Court should offer unequivocal guidance in
lieu of the broad discretion currently practiced. Contradictory court
opinions (e.g., Al Mutairi and Boumediene) only create skepticism
and confusion.
Evidentiary omissions and redactions, chiefly the exclusion of classified evidence in a criminal trial, are an issue that should be addressed
as well. CIPA provides an operational framework, but this framework
was never intended to combat terrorism at its current level. Several
ideas have been proposed, and some are plausible. The suggestion of
a national review panel of lawyers and judges seems reasonable, but a
definitive decision must be made. Evidence gathering techniques also
are a work in progress. The concept of an embedded forensic expert
seems to be the most practical method of combating evidentiary
concerns. Evidence is the backbone of the prosecution, and proper
collection techniques, along with a clear and indisputable chain-ofcustody, are indispensable.
Hamdi v. Rumsfeld. 542 U.S. 507. Supreme Court of the US. 2004.
Legal Information Institute. N.p., n.d. Web. 25 Jan. 2013.
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Hirabayashi v. United States. 320 U.S. 81. Supreme Court of the US.
1943. Legal Information Institute. N.p., n.d. Web. 25 Jan. 2013.
Yasui v. United States. 320 U.S. 115. Supreme Court of the US.1943.
Legal Information Institute. N.p., n.d. Web. 25 Jan. 2013.
Litt, Robert, and Bennett, Wells. Better Rules for Terrorism Trials.
Counterterrorism and American Statutory Law 8 May 2009: 1-29.
Print.
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INTRODUCTION
As digital computing technology continues to rapidly evolve and
become more affordable and accessible to the public, law enforcement and digital forensic investigators will be increasingly challenged
to identify and respond to electronic devices leveraged for criminal
activities. An emerging technology that will test digital forensic skills
and resources involves adaption of embedded microcontroller systems
for criminal use. Embedded microcontrollers enhance functionality
of refrigerators, microwaves and automobile control systems but have
recently emerged as deployable criminal tools. Once the exclusive
domain of electrical engineers, embedded microcontrollers have been
adapted and adopted by hackers and criminals at a disturbing rate.
Malicious hardware previously described technological devices
designed to perform targeted covert missions. Today the definition
includes small embedded microcontroller systems that can be rapidly
prototyped, quickly programmed and discretely deployed in order to
execute a spectrum of nefarious targeted missions. In a counter intuitive sense, the complexity and availability of these devices has become
inversely proportional to their sophistication and criminal capability.
Digital forensic investigations deal almost exclusively with conventional computing devices such as cell phones, laptops, tablets and
personal computers. While extracting evidence from these digital
systems can certainly be challenging for the forensic investigator, data
storage mediums and evidence extraction techniques for these devices
are generally well understood. With embedded malicious hardware,
classic digital forensic methodology is inadequate.
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device to execute directed missions such as confidential communication interception. The introduction of malicious hardware into systems
running critical national infrastructure presents a clear and present
danger. Large scale manipulation of hardware was articulated by the
Defense Science Board Task Force 2005 report on High Performance
Microchip Supply. The report noted, Because of the U.S. dependence
on advanced technologies whose provenance is progressively more
offshore, opportunities for an adversary to clandestinely manipulate
technology used in U.S. critical microelectronics applications are
enormous and increasing (Department of Defense 14). The Defense
Science Board has noted that this type of malicious hardware can be
placed in any domain that inherently relies on circuit based technology. However, the most common large scale malicious hardware operation that law enforcement is likely to encounter would be some form
of covert communication interception and/or corporate espionage.
The 2005 Defense Science Board report was referenced by an October, 2012 report released by U.S. Government House Intelligence
Committee. The 2012 report announced that there could be substantial security risks if domestic companies purchase communications
equipment from Chinese companies such as Huawie or ZTE (House
of Representatives, Permanent). In the report, Chairman Mike
Rogers (R-MI) stated, Any bug, beacon, or backdoor put into our
critical systems could allow for a catastrophic and devastating domino
effect of failures throughout our networks (House of Representatives,
Permanent). These interlocutor devices include communication infrastructure components such as routers, switches and other evolving
man-in-the-middle communications technology that could allow for a
variety of espionage acts.
While this paper asserts the ease of use and accessibility of microcontrollers such as the Arduino will facilitate criminal potential, there
exist even more advanced and sophisticated microcontrollers such as
the ARM (found in many modern cell phones). These are more powerful however require a higher degree of microcontroller architecture
understanding and programming. With the ubiquity and simplification of these devices, the domain of the criminal threat landscape is
destined to expand. As a result, many law enforcement agencies will
contend with devices as compact as a small cellphone but capable of
performing any number of sophisticated criminal operations.
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to acquisition of private information to invasion of privacy. In previous decades, a remote control toy was simply that, but today there
is an increasing likelihood that the device is actually on a targeted
mission.
For the digital forensic team there must be a standardized and legally
sustainable approach to examining a microcontroller. One possible
method is debugging. If a debugging option is available on the malicious device and it is enabled, (or the option has not been locked
out), a forensic investigator has non-destructible access to valuable
features, i.e. internal memory structures and input/output decoding.
Debugging permits an embedded system developer to validate various functioning aspects of the system design during prototyping. It
is normally a non-destructive technique that gives a unique view into
the processor and can possibly reveal a disassembly of the code running on the device. This can be important and useful for a variety of
forensic related reasons such as unique code based signatures, undisclosed or undiscovered device functionality and functionality specific
to criminal development and deployment.
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REFERENCES
Anthony, Sebastian. Black Hat Hacker Gains Access to 4 Million
Hotel Rooms with Arduino Microcontroller. Extreme Tech. Ziff
Davis, 25 July 2012. Web. 18 Jan. 2013. <http://www.extremetech.
com/computing/133448-black-hat-hacker-gains-access-to-4-million-hotel-rooms-with-arduino-microcontroller>.
While malicious hardware related crime will not rival the scope of
conventional criminal acts, it is inevitable that malicious hardware
related crime will expand and become pervasive in society. A major
reason for this is the increasing computerization of the social environment. The phrase the Internet of things relates to the connection of
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Gorman, Siobhan. Fraud Ring Funnels Data From Cards to Pakistan. The Wall Street Journal. Dow Jones & Company, 11 Oct.
2008. Web. 26 Feb. 2014. <http://online.wsj.com/news/articles/
SB122366999999723871>.
House of Representatives. Permanent Select Committee on Intelligence. Investigative Report on the U.S. National Security Issues Posed
by Chinese Telecommunications Companies Huawei and ZTE. By
Mike Rogers and Dutch Ruppersberger. U.S. House of Representatives
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26 Feb. 2014. <https://intelligence.house.gov/sites/intelligence.house.
gov/files/documents/Huawei-ZTE%20Investigative%20Report%20
(FINAL).pdf>.
Kirk, Jeremy. Pacemaker Hack Can Deliver Deadly 830-volt Jolt.
Computerworld. Computerworld, 17 Oct. 2012. Web. 19 Feb. 2013.
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Krebs, Brian. Skimmers Siphoning Card Data at the Pump. Krebs
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Seidle, Nathan. SparkFun Gets a Subpoena. SparkFun. SparkFun
Electronics, 9 May 2012. Web. 12 Feb. 2013. <https://www.sparkfun.
com/news/836>.
Tehranipoor, Mohammad, and Farinaz Koushanfar. A Survey of
Hardware Trojan Taxonomy and Detection. IEEE Design & Test of
Computers 27.1 (2010): 10-25. Web. 26 Feb. 2014. <http://aceslab.
org/sites/default/files/A%20Survey%20of%20Hardware_0.pdf>.
Wang, Jennifer. Entrepreneur of 2012: Limor Fried. Entrepreneur
Magazine 18 Dec. 2012: n. pag. Web. 26 Feb. 2014. <http://www.
entrepreneur.com/article/225213>.
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While most organizations are predisposed to these fraud risk factors, non-profit organizations are usually more vulnerable due to one
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The separation of duties involves the assignment of authorization, custody, and record-keeping functions to separate individuals (Gallagher
and Radcliffe 322). This fundamental principle of internal controls
simply requires different individuals to complete different steps of an
accounting process. As a result, the likelihood of theft [asset misappropriation] or error going unnoticed is greatly reduced (Gallagher
and Radcliffe 322). If one person completes all steps of the process,
the offender is also able to conceal his/her fraud.
FORENSICS JOURNAL
board members who only received cash compensation. This established that cash-based compensation [was] not associated with an
increased risk of fraud (Kim et al. 148).
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Again, the most prominent example of external fraud against a nonprofit organization is healthcare fraud. The Federal Bureau of Investigation estimates $80 billion in annual healthcare fraud costs, and
close to $700 million annually when fraud and improper payments
are combined (Worth). The Centers for Medicare and Medicaid
Services (CMS) is a prime target for fraudulent claims. Processing
more than 4.8 million claims per day, CMS is the most well-known
healthcare entity using analytics (Worth). The 2010 Small Business
Jobs Act authorizes the use of predictive modeling and other analytics technologies to identify improper claims for reimbursement and
to prevent the payment of such claims under the Medicare fee-forservice program (Roehrenbeck). This predictive modeling program
is intended to capture and provide a comprehensive view of provider
and beneficiary activities across all regions with the goal of detecting
patterns and networks that represent a high risk of fraud (Roehrenbeck). This modeling program can also be used to identify other
improper payments not related to fraud.
The analytics are divided into four categories: normal rules of healthcare and how these rules may be violated; anomalies; predictive
modeling using patterns based on cases of fraud; and social networking that analyzes the financial ties of a fraudster-provider (Worth).
This fourth category is a form of link analysis, which is a data analysis
technique that examines the relationships among claims, people,
and transactions (Schreiber). With the natural evolution of fraud
schemes and interrelated factors, the inherent intelligence in the predictive analytic system learns from the new rule patterns and builds
increasingly more sophisticated models, adapting for new types of
fraud as new rules are developed (Schreiber). Predictive analytics
and link analysis relate a greater number of highly arbitrary, and even
unexpected, variables to detect and prevent fraud. This is significant
as external fraud can be more elusive and less discernible when compared to the typical predictors of internal fraud.
Due to the nature of healthcare needs and associated costs, the rate of
external fraud against non-profit healthcare organizations is probably
one of the highest. A 2004 article notes that the National Health
Care Anti-Fraud Association estimates 3% to 10% of every dollar
spent on healthcare in the U.S. is lost to fraud, totaling $39 billion
to $150 billion a year (Mantone). With increasing healthcare costs,
one would only expect these fraud losses to increase. To mitigate this
risk of external fraud, non-profit healthcare organizations currently
use fraud detection software and predictive modeling in a continuous effort to detect fraudulent claims before making payments. The
Government Employees Hospital Association uses a Fair Isaac Corporation (FICO) software product that assigns a fraud-risk score for
each billing transaction. According to the Associations data analysis
manager, the software also increases productivity as employees can
focus more on the fewer number of flagged claims instead of attempting to review all claims as possible fraudulent cases (Mantone).
Overall, the Association is better equipped to reduce fraud and related
costs, as well as improve employee productivity and positively impact
customer service.
While the use of data mining, predictive analytics, and link analysis
may be useful for external fraud prevention efforts of larger nonprofit organizations, prospective detection may still prove difficult for
smaller non-profit organizations. These entities can purchase more
modest versions of fraud detection software or build their own internal databases and create rules to flag suspicious applications or claims
for benefits or services. Key factors to consider may include timing
and frequency of applications, referral sources, application inconsistencies, and other observable characteristics. These fraud detection
and prevention efforts could also become the impetus for larger multiorganizational databases managed by federal or local government
agencies or other related support agencies. The availability and use
of this type of information can be key for non-profit organizations to
conduct risk self-assessments, reduce exposure to external fraud, and
enhance their ability to manage and mitigate that risk.
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Kim, Joung Yeon, Dianne Roden, and Steven Cox. The Composition
and Compensation of the Board of Directors as Predictors of
Corporate Fraud. Accounting and Finance Research. 2.3 (2013): 142154. Directory of Open Access Journals. Web. 28. Aug. 2013.
Lenard, Mary Jane, Ann Watkins, and Pervaiz Alam. Effective Use
of Integrated Decision Making: An Advanced Technology Model for
Evaluating Fraud in Service-Based Computer and Technology Firms.
Journal of Emerging Technologies in Accounting. 4 (2007): 123-137. Web.
Mantone, Joseph. Like a locomotive. Modern Healthcare. 34.26 (28
Jun. 2004): 28-30. Business Source Complete. Web. 14. Sep. 2013.\
Nisbet, Robert, John Melder, and Gary Miner. Handbook of Statistical
Analysis & Data Mining Applications. Oxford: Elsevier, 2009. Print.
Nonprofits Not Immune to Fraud. EisnerAmper Accountants and
Advisors. EisnerAmper, 22 Apr. 2010. Web. 26 Feb. 2014. http://
www.eisneramper.com/non-profits-fraud-0410.aspx
Keller & Owens, LLC. Preventing and Detecting Fraud in Not-forProfit Organizations. Digital file.
Association of Certified Fraud Examiners. Report to the Nations on
Occupational Fraud and Abuse. Austin: ACFE, 2010. Digital file.
Roehrenbeck, Cybil. Predictive Modeling: The New Frontier in
Medicare Claims Review. ABA Health eSource. 8.8 (Apr 2012). Web.
8 Sep. 2013.
REFERENCES
RENITA E. DANDRIDGE-SHOATS is
a graduate student in the Forensic Studies
program at Stevenson University. She
received her B.S. degree in Accounting from
Morgan State University (Baltimore, MD).
She is a Certified Public Accountant and has
worked in the private accounting sector for
several public and private companies.
Grice, Sr., John Stephen. Fraud Detection in Audits of Not-ForProfit Organizations. National Public Accountant. 46.1 (Feb/Mar
2001): 10-15. Business Source Complete. Web. 14 Sept. 2013.
Holtfreter, Kristy. Determinants of Fraud Losses in Nonprofit Organizations. Non Profit Management & Leadership. 19.1 (Fall 2008):
45-63. Business Source Complete. Web. 13 Sept. 2013.
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