Kelly Todd, member in charge of forensic investigations, discusses the prevalence of fraud in businesses and actions one should take when they suspect fraud in their organization, including assembling a team for the fraud investigation and securing potential evidence.
Kelly J. Todd
Managing Member
Kelly J. Todd is a managing member and the member in charge of forensic investigations at Forensic Strategic Solutions. Ms. Todd has a broad range of forensic experience including financial and white‐collar investigations, fraudulent financial reporting, accounting malpractice, and the calculation of economic damages.
False Claims Investigation
When a whistleblower sounded the alarm on their employer that had allegedly violated the Anti-Kickback Statute and submitted false claims to the government, FSS was hired by the whistleblower’s attorneys to pinpoint evidence and determine the value of any identified claims.
READ FULL CASE STUDYVulnerability Assessment – Cash Flow Shortages
FSS was hired by a company to perform a vulnerability assessment to determine if cash flow shortages were the result of financial mismanagement or asset misappropriation.
READ FULL CASE STUDYVulnerability Assessment
FSS was engaged to perform a vulnerability assessment of a large construction company’s accounts payable and payroll.
READ FULL CASE STUDYEmbezzlement – Nonprofit
FSS investigated allegations of misappropriation of assets and excessive spending by an employee of a federally funded nonprofit organization with reporting responsibilities to the Office of the Inspector General.
READ FULL CASE STUDYAsset Tracing – Misappropriation of Assets
FSS investigated the alleged misappropriation of assets by two former employees of a multi-faceted conglomerate.
READ FULL CASE STUDYInternal Investigation
FSS was hired by a company to investigate whistleblower allegations to the IRS of underreported revenue.
READ FULL CASE STUDYPonzi Scheme
FSS was hired by the bankruptcy trustee to determine if an investment run by a rogue money manager (“the Project”) was a Ponzi scheme and to testify before the bankruptcy court regarding our findings. New investors were promised unusually high rates of return. The payment of accrued interest to short term investors was paid current […]
READ FULL CASE STUDYEmbezzlement
FSS investigated the allegations of misappropriation of assets from a medical practice amid concerns that the accounting clerk was embezzling funds.
READ FULL CASE STUDYCorruption and Conflicts of Interest
The Los Angeles Unified School District (LAUSD) is the second largest school district in the country with an annual budget in excess of $11 billion. Mired with problems and a price tag estimated over $200 million, the LAUSD hired FSS to determine the sources and uses of funds for the Belmont Learning Center project. The […]
READ FULL CASE STUDYThe Power of Advanced Data Analytics | Lindsay H. Gill
Lindsay H. Gill, director of forensic technology, explains the benefits advanced data analytics bring to financial investigations Advanced data analytics can provide unparalleled insights when attorneys enlist forensic investigators, helping to ensure vital information does not go undetected.
WATCH VIDEOAnalyzing the Variety of Data | Lindsay H. Gill
Lindsay H. Gill, director of forensic technology, discusses the differences between structured data – or “traditional” data – and unstructured data, which investigators use to help fill the holes or see the bigger picture within a case. Lindsay also explains how forensic investigators should use and compare structured and unstructured data.
WATCH VIDEOSpeech, Voice and Body Language as a Lie Detector | Kelly J. Todd
Kelly J. Todd, managing member and member in charge of forensic investigations, discusses how investigators can use vocal tone and body language as a lie detector. Kelly also outlines how statement analysis can help an investigator understand the meaning behind the words, and highlights body language red flags to look for in an interview.
WATCH VIDEODetecting Deception: Determining the Baseline | Kelly J. Todd
Kelly J. Todd, managing member and member in charge of forensic investigations, explains that everyone has a “norm”– a basic pattern of behavior that they exhibit under normal amounts of stress, which is also known as their baseline. In this video, Kelly outlines the steps to take to determine the baseline during an interview. She […]
WATCH VIDEOMyths in Detecting Deception | Kelly J. Todd
Kelly J. Todd, managing member and member in charge of forensic investigations, discusses common myths in detecting deception. Contrary to popular belief, detecting deception can be a challenge, as people tend to focus on the wrong signals. Kelly explains misconceptions about the behaviors and body language of someone who is lying, and how to increase […]
WATCH VIDEOUsing Data to Tell a Story & Find the Answers | Kelly J. Todd
Kelly J. Todd, managing member and member in charge of forensic investigations, discusses how FSS uses advanced data analytics to ferret out the truth in fraud investigations via data visualization. Kelly explains how electronic evidence and data can be leveraged in forensic investigations, from verifying or challenging a plaintiff’s testimony to identifying trends and patterns […]
WATCH VIDEODefining Embezzlement & How to Prevent It | Kelly J. Todd
Kelly J. Todd, managing member and member in charge of forensic investigations, explains what embezzlement is and how it occurs. To prevent embezzlement from occurring, it is essential for employers to trust their employees, but verify their actions. In the video, Kelly provides best practices that employers should implement to accomplish this.
WATCH VIDEOLeveraging Technology in Auditing | Ralph Q. Summerford
Ralph Q. Summerford, president, discusses technology’s presence in the world of forensic accounting, focusing on the old – data mining – and the new – artificial intelligence and digital currency, such as bitcoin. He explains how FSS has extensive experience in leveraging these technologies to take their work to the next level, and stresses the […]
WATCH VIDEOThe Benefits of Technology in Auditing | Ralph Q. Summerford
Ralph Q. Summerford, president, examines the benefits data mining and artificial intelligence provide to auditors. Ralph discusses the differences between these technologies, and how they help auditors spot trends and unusual transactions. While auditors are beginning to introduce data mining and artificial intelligence into their processes, Ralph stresses that these technologies do not allow auditors […]
WATCH VIDEOAccounting Malpractice Lawsuits: The Importance of CPAs Seeking Outside Counsel | Ralph Q. Summerford
Ralph Summerford, president of Forensic Strategic Solutions, discusses the importance and benefits of CPAs hiring outside counsel if they are at the center of an accounting malpractice case. He also discusses confusion that CPAs often have surrounding accounting malpractice insurance.
WATCH VIDEOAccounting Malpractice Lawsuits: The Value a CFE Brings to Attorneys | Ralph Q. Summerford
Ralph Summerford, president of Forensic Strategic Solutions, discusses the critical value a certified public accountant (CPA) who is also a certified fraud examiner (CFE) can add to an accounting malpractice case for attorneys, whether the attorney is prosecuting or defending an accountant. One of the greatest values a CFE can add is their ability to translate […]
WATCH VIDEODepreciation & Capital Expenditures – Business Valuations | Kelly Schmid
Kelly Schmid, director of valuation services at Forensic Strategic Solutions, discusses the process of estimating depreciation expenses and capital expenditures in a cash flow forecast. She also examines how an incorrect estimate can impact a business valuation.
WATCH VIDEOWhat Are Capital Expenditures & How Do They Depreciate? | Kelly Schmid
Kelly Schmid, director of valuation services at Forensic Strategic Solutions, explains what capital expenditures are (also known as fixed assets). She also discusses the replacement and depreciation of capital expenditures, as well as the common misconception that depreciation and capital expenditures should always be equal in a normalized cash flow forecast.
WATCH VIDEOConflicts of Interest: Educational Tools for Employers | Kelly J. Todd
Kelly Todd, managing member at Forensic Strategic Solutions, discusses how conflicts of interest can arise in the workplace and challenges associated with conflicts of interests that employers often face. She also discusses educating employees on conflicts and how to detect conflicts.
WATCH VIDEOThe Common Denominator of Corruption: Conflicts of Interest | Kelly J. Todd
Kelly Todd, managing member at Forensic Strategic Solutions, discusses the close relationship between conflicts of interest and corruption. She also discusses preventative measures that can be taken to minimize opportunities for conflicts of interest to morph into corruption.
WATCH VIDEOActive/Passive Appreciation in Divorce Litigation: Part Two | William C. Dameworth
WATCH VIDEOActive/Passive Appreciation in Divorce Litigation: Part One | William C. Dameworth
WATCH VIDEOLeveraging Social Media in Fraud Investigations – II | Lindsay H. Gill
Lindsay Gill, director of forensic technology at Forensic Strategic Solutions, shares insight into the benefits associated with attorneys hiring forensic investigators to uncover evidence on suspects’ social media accounts. She also discusses how to authenticate the evidence gathered and the methods to do so.
WATCH VIDEOLeveraging Social Media in Fraud Investigations – I | Lindsay H. Gill
Lindsay Gill, director of forensic technology at Forensic Strategic Solutions, discusses social media and its role as a helpful tool to uncover fraudulent electronic evidence in an investigation. She also describes best practices for forensic investigators to collect, analyze and interpret findings to connect the dots.
WATCH VIDEOWhat to do When You Suspect Fraud at Your Organization – II | Kelly J. Todd
Kelly Todd, member in charge of forensic investigations, discusses how to handle the alleged perpetrator, including notifying the perpetrator, conducting an admission-seeking interview and restricting the wrongdoing employee from company access. She also notes the importance of notifying your insurer when you think you might have fraud occurring in your organization.
WATCH VIDEOWhat to do When You Suspect Fraud at Your Organization – I | Kelly J. Todd
Kelly Todd, member in charge of forensic investigations, discusses the prevalence of fraud in businesses and actions one should take when they suspect fraud in their organization, including assembling a team for the fraud investigation and securing potential evidence.
WATCH VIDEOAccounting Malpractice: When CPAs Miss the Fraud | Leslie P. Littrell
Leslie Littrell, forensic analyst at Forensic Strategic Solutions, discusses accounting malpractice and the recent increase in claims as well as the importance of fraud education. Ms. Parker cites FSS’ work with Auburn University to develop its forensic accounting courses within its Master of Accountancy program as an effort to help expand the knowledge of fraud […]
WATCH VIDEOData Analytics with a Focus on Technology | Lindsay H. Gill
Lindsay Gill, director of technology at Forensic Strategic Solutions, reviews the key areas in which technology has changed the landscape of fraud investigation and how data continues to become a growing risk for businesses.
WATCH VIDEOBusiness Valuation for Private Companies | William C. Dameworth
Bill Dameworth, member in charge of valuation services at Forensic Strategic Solutions, discusses the differences between the valuation of privately-held and publicly-held companies and those focused on profit maximization versus tax minimization.
WATCH VIDEOEmployee Fraud Awareness Training | Kelly J. Todd
Kelly Todd, member in charge of forensic investigations, gives fraud prevention tips aligning with the ACFE 2014 Report to the Nations research describing employee fraud awareness training as an extremely effective way to reinforce fraud policies, encourage anonymous tips from whistleblowers and establish compliance.
WATCH VIDEOFraud in Charitable Non-Profit Organizations | Ralph Q. Summerford
Ralph Summerford, president of Forensic Strategic Solutions, cites recent New York Times statistics to help reveal some reasons for the high frequency of fraud in non-profits, including high turnover, poor management and lack of tax audit enforcement. All of these issues make it increasingly difficult for the IRS and law enforcement to uncover and prosecute […]
WATCH VIDEODetecting Deception: Gathering Evidence and Seeking Admission | Kelly J. Todd
OPEN is a key word to remember when detecting deception. Open body language – and an open mind – are your best friends when looking for the truth. An open mind is going to help keep you in the “information-gathering” mode, which usually proves to be more effective than the gruff interrogation techniques you’ve seen […]
READ FULL BLOGDetecting Deception: Body Language | Kelly J. Todd
Now that we’ve peeked behind the curtain of speech and facial expressions, it’s time to move on to body language. But before we focus on our subject’s nonverbal cues, let’s shine the light on our own body language. Remember: when detecting deception, we aren’t looking for the lie – we are looking for the truth. […]
READ FULL BLOGDetecting Deception: Facial Expressions | Kelly J. Todd
THE FACIAL FAUX PAS Now that you have gathered your intel – you have your subject’s baseline squared away and you’ve peeked behind their words – it’s time to focus on the facial faux pas. There are many facial signs that are likely indicators of deceptive hot spots. When your subject’s expressions and gestures don’t […]
READ FULL BLOGDetecting Deception: Speech and Voice as a Lie Detector | Kelly Todd
Once we’ve established the baseline, it’s time to drill down to expose the meaning behind the words. While body language has long been the focus of detecting deception, research has shown that the analysis of a person’s speech may be much more accurate than merely observing non-verbal behavior. No matter the lie, there will always […]
READ FULL BLOGDetecting Deception: Calculating the Baseline | Kelly J. Todd
In my previous blog post, I noted that when assessing whether someone is lying, you must first consider the person’s baseline – their typical behavior. A LIAR IS CAUGHT… OR IS HE? Body language helps us identify a person’s stress signals of deception. The key word here is “helps” – body language is far from […]
READ FULL BLOGDetecting Deception: Common Myths | Kelly J. Todd
THE MASTER OF DECEPTION Bernie Madoff infamously stole $65 billion reflecting 4,900 client accounts in a Ponzi scheme. All told, his investors lost approximately $20 billion of real principal. How was he able to look hundreds of people in the eye without arousing suspicion, all the while knowing he was robbing them blind? This man […]
READ FULL BLOGTrust Your Employees, but Verify Their Actions | Kelly J. Todd
Our team recently wrapped up another sizeable fraud examination for a small business whose trusted bookkeeper embezzled hundreds of thousands of dollars. While the names and the faces of fraud change, the story remains the same: the employee you least expect, the most trusted of them all, takes advantage of their position – and you […]
READ FULL BLOGBest Practices for Employers: Conflicts of Interest | Kelly J. Todd
In my last blog, I discussed why corruption in the workplace always requires a conflict of interest. Conflicts of interest arise when employees have interests that may make it difficult to maintain one’s duty of loyalty to their company in an objective and effective manner. Quashing all conflicts of interest within businesses would be difficult to conduct; therefore, it is important to know how to reduce the risks inherent in conflicts of interest.
READ FULL BLOGWhy Corruption Always Requires a Conflict of Interest | Kelly J. Todd
When it comes to corruption, there is almost always a common denominator: a conflict of interest. A conflict of interest exists when an individual or corporation has the opportunity – real or perceived – to exploit their position for personal or corporate benefit. Corruption occurs when the individual or corporation takes advantage of that opportunity and indeed abuses their position for private gain.
READ FULL BLOGThe Give and the Take in Charitable Giving | Ralph Q. Summerford
Charitable giving, while good with intent, is not always received as expected. Let’s say you and I give to a seemingly worthwhile charity. You may be surprised at who really takes from the charity – frequently, it’s the fundraisers and executives. Oftentimes the fundraisers and executives are one in the same, since many founders will leave the charity to start a consulting and fundraising business to contract with the charity. This is really where it begins to get out of hand.
READ FULL BLOGFraud Suspected in the Workplace? Employers, You Better Read This – Part Two | Kelly J. Todd
When you think of fraud within an organization, a newer employee may be top-of-mind, but according to the Association of Certified Fraud Examiners (ACFE), seven percent of perpetrators committed fraud during their first year and more than 53 percent had been with their organization for more than five years.
READ FULL BLOGFraud Suspected in the Workplace? Employers, You Better Read This – Part One | Kelly J. Todd
There’s no way around it—according to the Association of Certified Fraud Examiners, an estimated five percent of annual revenues are lost to financial crime. What do these numbers mean for you? Big or small, public or private – with statistics like these, there’s a good chance your business is more likely than not to fall victim to internal fraud.
READ FULL BLOGA Lesson on Investigating Fraud from A Fictional Investigator | Ralph Q. Summerford
As a frequent speaker on the subject of fraud, people often ask me, “How do you investigate fraud?” My answer is always the same: You look for the anomaly. To me, it sounds so simple until I step back and realize that most people cannot see the anomaly, although it is usually right in front of them.
READ FULL BLOGIdentifying Fraud Symptoms: What Really Goes on Between the Balance Sheets? Part II | Kelly J. Todd
Identifying fraud symptoms in financial statements requires observation and recognition. If you don’t look, you’re unlikely to find it. Worse yet, if you do look, are you sure you will recognize the symptoms of fraud?
READ FULL BLOGIdentifying Fraud Symptoms: What Really Goes on Between the Balance Sheets? | Kelly J. Todd
Fraud, unlike acts of terror, murder, or bank robbery, is rarely observed. Instead, only symptoms or indicators, most often exhibited through changes in the financial statements, are present.
READ FULL BLOGCareful Out There – Ponzi Schemes are Alive and Well | Ralph Q. Summerford
With all of the publicity that surrounded the Bernard Madoff, Scott Rothstein, ZeekRewards and Allen Stanford Ponzi schemes, among many others, you would think that people would have by now received the message about Ponzi Schemes; how they work and how those investors lose their money.
READ FULL BLOGWhen Crowdfunding Becomes Crowdfrauding | Leslie P. Littrell
Crowdfunding is the relatively new process of using social media to receive small contributions from many different individual investors.
READ FULL BLOGKnow Your ABCs – Serving on Nonprofit Boards | Forensic Strategic Solutions
As professionals, many of us have had or will have the opportunity to serve on the Board of Directors of a nonprofit organization. This can be a rewarding experience and a way to maintain civic involvement and a connection to the community. But what if the nonprofit organization is defrauded by an employee, or worse yet, by the CEO? This event can have serious ramifications, especially if the organization receives government grants, not to mention the effects on those whom the nonprofit benefits.
READ FULL BLOGWhen Should You Start Looking for Fraud? | Kelly J. Todd
Larger organizations are more likely to experience fraud by an employee’s misuse of influence in a business transaction in order to gain a direct or indirect benefit. Small organizations, however, typically fall victim to the rogue employee who directly steals the organization’s assets or misuses its resources.
READ FULL BLOGLook for the anomaly to find fraud | Ralph Q. Summerford
Events may happen in a person’s life that can lead to an act of desperation. And desperate people may take irrational actions. I am talking about bad economic times, the failure of a business, the loss of a job, divorce, a family member on drugs, disease, children in trouble, criminal acts by a family member […]
READ FULL BLOGTime off to discover fraud | Lindsay H. Gill
Regardless of the time of year, employees will always have reasons to come and go in the office. Vacations, conferences and meetings are a regular part of most employees’ daily schedules. So rather than worrying about the empty chair they leave behind, take advantage of the time they take off to measure efficiency and expose […]
READ FULL BLOGPreventing fraud during the holidays | Lindsay H. Gill
As we discussed in last week’s blog post, there can be more fraud during the holiday season for a variety of reasons. A few quick steps you can take to reduce your vulnerability to fraud include: Be present – The perception of detection is often one of the strongest controls against fraud. Business owners need […]
READ FULL BLOGWhy is there more fraud during the holidays? | Lindsay H. Gill
Fraud happens all the time, but the holiday season provides situations that people may try to take advantage of. The “fraud triangle” has three points to it: Need or Greed Opportunity Rationalization During the holidays, we often see changes in two of these points: increased need or greed and increased opportunity. People want to be […]
READ FULL BLOGGuarding Against Embezzlement Fraud: Defensive Measures | Ralph Q. Summerford
Now that you’ve gained valuable information from the first and second parts of our educational series, Guarding Against Embezzlement Fraud, we offer insight into defensive measures. It is extremely important to understand the necessity of an adequately controlled investigation. The moment embezzlement or fraud is suspected,steps should be taken to mitigate the company’s damages while assuring […]
READ FULL BLOGGuarding Against Embezzlement Fraud: What Can Go Wrong? | Ralph Q. Summerford
Welcome to the second installment of our three-part educational series on Guarding Against Embezzlement Fraud. Catch up on part one, Guarding Against Embezzlement Fraud: Developing An Action Plan. Simply adopting an action plan doesn’t necessarily eliminate the risk altogether. What can go wrong? Many varied problems. The reason unexpected situations arise is because they are unexpected. […]
READ FULL BLOGGuarding Against Embezzlement Fraud: Developing An Action Plan | Ralph Q. Summerford
We’d like to introduce our three-part educational series on Guarding Against Embezzlement Fraud. In this first installment, we will discuss preventive measures you can take. The second part will explain how embezzlement cases can bring about unexpected problems, and the third and final part of our series will discuss defensive measures. It’s not something business […]
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