CRJ557: FRAUD INVESTIGATION

Credit Hours: 3
Contact Hours: This is a 3-credit course, offered in accelerated format. This means that 16 weeks of material is
covered in 8 weeks. The exact number of hours per week that you can expect to spend on each course will
vary based upon the weekly coursework, as well as your study style and preferences. You should plan to

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spend 14-20 hours per week in each course reading material, interacting on the discussion boards, writing
papers, completing projects, and doing research.

COURSE DESCRIPTION AND OUTCOMES

Course Description:

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The course explores types of commonly investigated financial frauds. Topics include investigative techniques,
evidence gathering, embezzlement issues, and how to testify professionally in legal proceedings. Students will
learn about document coverage, such as search warrants, seizure warrants and civil injunctions through lecture
and practice using real-life cases and discussions.

Course Overview:
This course examines a variety of financial fraud that is commonly investigated. Fraud, including financial
misstatements and embezzlements, will be introduced. Topic coverage will include investigative techniques,
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evidence gathering, and how to testify professionally in legal proceedings. In addition, coverage of documents,
such as search warrants, seizure warrants, and civil injunctions, will be interlaced throughout the term. The
material coverage will be reinforced and enhanced using real-life cases and discussions.

Course Learning Outcomes:

1. Analyze the process and the problems of fraud investigations including illicit transactions that indicate
fraudulent activity or the heightened risk of fraud.
2. Evaluate the elements of proof peculiar (e.g., terrorism financing) to white-collar crimes.
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3. Apply accounting and auditing theories for investigators as well as techniques for effective financial
interviewing and interrogation.
4. Infer and identify issues that arise when obtaining public information, a subpoena, and search warrants.
5. Determine practices of evidence and documentation in court proceedings.
6. Create an investigative report.

PARTICIPATION & ATTENDANCE

Prompt and consistent attendance in your online courses is essential for your success at CSU-Global Campus.
Failure to verify your attendance within the first 7 days of this course may result in your withdrawal. If for some
reason you would like to drop a course, please contact your advisor.
Online classes have deadlines, assignments, and participation requirements just like on-campus classes. Budget
your time carefully and keep an open line of communication with your instructor. If you are having technical
problems, problems with your assignments, or other problems that are impeding your progress, let your
instructor know as soon as possible.

COURSE MATERIALS
Textbook Information is located in the CSU-Global Booklist on the Student Portal.

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COURSE SCHEDULE

Due Dates
The Academic Week at CSU-Global begins on Monday and ends the following Sunday.
• Discussion Boards: The original post must be completed by Thursday at 11:59 p.m. MT and Peer

Module 1
Readings

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Responses posted by Sunday 11:59 p.m. MT. Late posts may not be awarded points.
Critical Thinking: Assignments are due Sunday at 11:59 p.m. MT.

WEEKLY READING AND ASSIGNMENT DETAILS

Chapters 1 & 4 in Forensic Accounting and Fraud Examination

PowerPoint for Chapter 1 in Forensic Accounting and Fraud Examination
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· Mehmet, M., Wijesekera, D., & Buchholtz, M. F. (2013). Money laundering detection framework to
link the disparate and evolving schemes. Journal of Digital Forensics, Security & Law, 8(3), 41-70.

Discussion (25 points)

Critical Thinking Assignment (100 points)

Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your
assignment choice in the title of your submission.
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Option #1: Fraud Investigations and Financial Crimes

Describe the major and legal elements of fraud theory. Identify the roles of the forensics accountant and certified
fraud examiner during an investigation assignment.
 Discuss the asset forfeiture and seizure process during an investigation. What system tools (e.g., ratios, ACL, etc.)
are applicable to this type of investigation? Your responses to the questions and statements must be supported
with 2-3 sources. The CSU-Global Library is a good place to find these references.
Your paper should be 2-3 pages in length and conform to CSU-Global Guide to Writing and APA Requirements.
Option #2: Fraud Investigations and Red Flags
Red flags are a key component in developing an effective anti-fraud program for a company. In this activity, you
will assume the role of a fraud investigator who has been asked to consult on a recent white-collar crime.
Conduct research using the internet and/or the CSU-Global library and locate a company that was recently
involved in a white-collar crime. This could be a case of financial statement fraud, embezzlement or something
similar. You have been asked by this company to develop a presentation for its executives that showcases what red
flags were present and how addressing them could have helped prevent the crime that was committed.

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In your 6-slide PowerPoint presentation, you must support your claims with at least two references in addition to
your textbook. Your submission must be formatted according to CSU-Global Guide to Writing and APA
Requirements. The CSU-Global Library is a good place to search for references.
Portfolio Project Options #1 and #2 Reminder
A Portfolio Project is due at the end of Week 8 of this course.

folder.

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This week, read the Portfolio Project Description and review the Portfolio Project grading rubric in the Week 8

There is no Portfolio Project activity due this week Review all pertinent documents and ponder your strategy for
this activity.
You will be required to submit your Portfolio Project outline in Module 3 and then your references in Module 5.

Module 2
Readings

· Chapters 6, 8, & 9 in Forensic Accounting and Fraud Examination

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· PowerPoint for Chapter 9 in Forensic Accounting and Fraud Examination
· Alalehto, T. (2011). The rate of white collar crime: The hot spot of white collar crime in Sweden
during the 2000 decade. Journal of Current Issues in Crime, Law & Law Enforcement, 4(4), 459-468.

Discussion (25 points)

Critical Thinking Assignment (125 points)

Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your
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assignment choice in the title of your submission.

Option #1: Legal and Effective Financial Interviewing Techniques
During an investigation process, you determined that the subject is not cooperating. Identify tools that could be
used to overcome this situation. What steps could be used to formulate a successful interview or interrogation?
Next, identify the subject’s amendment rights and how to overcome the loopholes in the court system to complete
a successful investigation. What are the pros and cons of the amendment rights in this situation?
Your analysis and statements must be supported with 2-3 scholarly sources in addition to the textbook from the
CSU-Global Library.
Your paper should be 3-4 pages in length. Be sure the paper is double-spaced and includes title and reference
pages. Your submission must be formatted according to CSU-Global Guide to Writing and APA Requirements. See
CSU-Global Library for sample paper found under the “APA Guide & Resources” link.
Option #2: Legal and Effective Financial Interviewing Techniques
 Consider what you have learned this week regarding financial interviews and interrogation. Assume the role of a
fraud investigator who has been asked to provide a PowerPoint presentation at a law enforcement conference on
this topic. Specifically, you have been asked to develop 6 PowerPoint slides that evaluate the similarities and
differences in conducting an interview and interrogation of a white-collar criminal as compared to a violent
criminal, such as Jodi Arias. The video below shows the Jodi Arias criminal interview.
http://www.huffingtonpost.com/2013/03/29/jodi-arias-complete-interrogation-videos_n_2979658.html
In your 6-slide PowerPoint presentation, you must support your claims with at least two references in addition to
your textbook. Your submission must be formatted according to the CSU-Global Guide to Writing and APA
Requirements.

Module 3

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Readings

· Chapter 10 in Forensic Accounting and Fraud Examination

· PowerPoint for Chapter 10 in Forensic Accounting and Fraud Examination
· Hussain, S. N., & Manzoor, S. R. (2014). Enhancing firm financial position by reducing white collar
crime through financial crime control remedies: a study of KP Hospitals. Pakistan Journal of

Discussion (25 points)

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Commerce & Social Sciences, 8(2), 384-398.

Portfolio Milestone (50 points)

Develop and submit a one-page word document outline that presents the specifics you plan to address in your
final paper. Use APA formatting in your outline, i.e., Section I, II, III etc. Content must be well written and
formatted according to CSU-Global Guide to Writing and APA Requirements.

Module 4
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Readings

· Chapter 11 in Forensic Accounting and Fraud Examination

· PowerPoint for Chapter 11 in Forensic Accounting and Fraud Examination
· Mei, F., Chan, L., McVay, S. E., & Skaife, H. (2015). Does Ineffective internal control over financial
reporting affect a firm's operations? Evidence from firms' inventory management. Accounting
Review, 90(2), 529-557. doi:10.2308/accr-50909
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Discussion (25 points)

Critical Thinking Assignment (100 points)

Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your
assignment choice in the title of your submission.
Option #1: Case Study: Taking from the Poor to Give to the Rich
Review the Cash Receipt Schemes and Other Asset Misappropriations case study in Chapter 11 of your textbook.
Identify the internal controls that were compromised. Then, respond to these questions:
• Why did the auditor(s) not detect this crime?
• Who is responsible for monitoring 501(C) 3 entities?
• How should the fundraising entity fund collections have been managed?
• What elements of the fraud triangle were violated?
 Your analysis and statements must be supported with 2-3 sources in addition to the textbook. The CSU-Global
Library is a good place to find academic sources.
Your paper should be 2-3 pages in length, and must be formatted according to CSU-Global Guide to Writing and
APA Requirements. Be sure the paper is double-spaced and includes title and reference pages.
Option #2: Inventory Fraud
Assume the role of a fraud consultant who has been hired by ACME Company to provide a presentation to 100
nationwide managers. Specifically, create a PowerPoint presentation that will outline the key preventative steps
for each store to follow in order to reduce the potential for inventory fraud. Assume that ACME is a big box home
improvement company similar to Home Depot and Lowes. Make sure you tailor your presentation to these mid-
level managers.
In your 6-slide PowerPoint presentation, you must support your claims with at least two references in addition to

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your textbook. Your submission must be formatted according to CSU-Global Guide to Writing and APA
Requirements. The CSU-Global Library is a good place to find academic sources.

Module 5
Readings

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Chapter 12 in Forensic Accounting and Fraud Examination
PowerPoint for Chapter 12 in Forensic Accounting and Fraud Examination
Sanchez, M. (2012). The role of the forensic accountant in a Medicare fraud identity theft case.
Global Journal of Business Research (GJBR), 6(3), 85-92.

Discussion (25 points)

Portfolio Milestone (50 points)

Conduct research and locate at least 5 outside sources that you will be using in your final portfolio project; utilize
the CSU-Global Library for this search. List your references in a word document and then provide a summary of at
least 2 sentences per resource of how this source will be used in your paper.
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Content must be well written and formatted according to CSU-Global Guide to Writing and APA Requirements.

Module 6
Readings

· Chapter 12 in Forensic Accounting and Fraud Examination

PowerPoint for Chapter 10 in Forensic Accounting and Fraud Examination
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· Holland, R. (2014). Of discounts and dangers: Swapping, discounting, and the anti-kickback statute.
Journal of Health Care Compliance, 16(1), 37-40.

Discussion (25 points)

Critical Thinking Assignment (125 points)

Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your
assignment choice in the title of your submission.
Option #1: Corruption and Scam Artists
The following link provides a transcript of the documentary, Inside Job, narrated by Matt Damon.
http://www.sonyclassics.com/awards-information/insidejob_screenplay.pdf
 Peruse the transcript and reflect on the financial tools and measures described. (You may also search and review
portions of the film on YouTube.) Then, identify the controls that were compromised. Consider what regulatory
agency(s) are responsible for investigating this type of crime. Finally, discuss the audit test steps to uncover this
type of fraud. Provide recommendations and conclusion.
Your analysis and statements must be supported with at least two sources in addition to the textbook. The CSU-
Global Library is a good place to find academic sources.
Your paper should be 3-4 pages in length, and formatted according to CSU-Global Guide to Writing and APA
Requirements.
Be sure the paper is double-spaced and includes title and reference pages.
Option #2: Negative Impact of Fraud

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You have been hired as a fraud consultant by ABC Insurance Company to provide a keynote presentation at its
annual kickoff meeting. The theme of the meeting is Ethical Awareness and you are tasked with addressing the 200
employees of this company at the meeting. In attendance will be all employees, from the CEO to the customer
service representatives who answer the main phone lines. Consider all you have learned about ethics and fraud
motivation and develop a 6-slide PowerPoint presentation that will serve to develop an awareness of potential
fraud in this company. The company has asked you to create an awareness of the negative impact of fraud and
how ethics plays a major role in this. Consider your audience when developing your presentation.

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In your 6-slide PowerPoint presentation, you must support your claims with at least two references in addition to
your textbook. Your submission must be formatted according to CSU-Global Guide to Writing and APA
Requirements. The CSU-Global Library is a good place to find academic sources.

Module 7

· Chapters 14 & 15 in Forensic Accounting and Fraud Examination

· PowerPoint for Chapter 14 in Forensic Accounting and Fraud Examination
· Seitz, J., Oeding, J., & Wiese, M. (2015). Is it ethical for the U.S. government to offer financial awards
to potential whistleblowers of financial statement fraud and internal control violations? Journal of
Theoretical Accounting Research, 10(2), 68-90.
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Discussion (25 points)

Module 8
Readings

· Chapter 16 in Forensic Accounting and Fraud Examination

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· PowerPoint for Chapter 16 in Forensic Accounting and Fraud Examination

· Sanchez, M. H., & Zhang, S. W. (2012). The role of the expert witness in accounting fraud cases.
Global Journal of Business Research (GJBR), 6(1), 103-111.
Discussion (25 points)

Portfolio Project (350 points)

Choose one of the following two Portfolio Project assignments to complete before midnight of Week 8. Do not do
both assignments. Identify your assignment choice in the title of your submission.
Also be sure to complete and deliver the Portfolio Milestone assignments that are due before midnight of Weeks 3
and 5. For details, review the Portfolio Project Milestone assignment descriptions in the Weeks 3 and 5 folders and
the Portfolio Project grading rubric in the Week 8 folder.
 Portfolio Option 1: Real World Government Investigation (350 points)
For Portfolio Project Option 1, you will assume the role of a government investigator who has been asked to
examine the case of insurance fraudster Rick Hoyle.
Read the Portfolio Project Fact Pattern Sheet linked at the bottom of the page.
Prepare a memorandum that addresses the following items in detail:
• What is the type of fraud being investigated?
• Why did he get away with these crimes for such a long period of time?
Based on the facts presented, identify possible deficiencies within the internal control system of this case. Is there
anything that could have been developed that would have assisted with identifying his fraud’s early on? Address
any possible violations of the Sarbanes-Oxley Act? Please list all sections of the Act that are potentially violated and
the evidence that supports your position. How can the deficiencies of the internal control system be mitigated?

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• Identify any conflicts of interests within this case and analyze possible outcomes that may occur.
• What are some of the motivating factors and criminal opportunities that would cause this crime to occur?
• What patterns of behavior point could have been detected?
For investigative purposes, what evidence needs to be procured in order to substantiate a conviction for the
individual(s) involved? Please list the documents needed, what items will require a subpoena or search warrant,
etc., assuming that you are a public investigator from a state agency authorized to conduct such investigations.

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After obtaining and reviewing the evidence, you feel you are ready to interview the perpetrator(s). What is your
recommended approach to such an interview? What series of questions (maximum of ten questions) would you
most likely use?
You should have a section in your report that addresses each item separately and in chronological order.
Your paper should be approximately 8-10 pages in length, be supported by at least 5 outside sources, and conform
to the CSU-Global Guide to Writing and APA Requirements.
Your sources may be from this course or from the CSU-Global Library.
Portfolio Project Option #2: Real World Criminal Case Analysis
For Portfolio Project Option #2, you will assume the role of a fraud investigator and analyze a real-world criminal
case that has been investigated and prosecuted. There are several components to this project and two preliminary
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deliverables due before Module 8.
Read the Portfolio Project Fact Pattern Sheet, which is linked to this assignment in the Module 8 folder.
In this project, you will perform a comprehensive review and evaluation of fraud at CIT Computer Leasing Group,
Inc. and then answer key questions in regard to this fraud occurrence. As you construct your responses, you must
use key concepts and principles from the course. Be sure to integrate accounting and auditing theory, sound
practice of evidence and documentation for court, subpoenas, and search warrants.
As a fraud investigator hired by CIT, you are tasked with reviewing this case and providing detailed responses to
the questions listed below. You will be presenting your PowerPoint to the executive team, so develop your
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answers accordingly. Furthermore, make sure to indicate specific investigative tactics that you would have utilized.
1. Analyze and evaluate the system of internal controls at CIT and create a new program that you think
would be more effective.
2. Consider the behavioral aspects of the fraud at CIT; what employee behavioral cues were present and
how could they have helped to detect fraud earlier?
3. Analyze how Niakan’s role at CIT violated the segregation of duties.
4. Explain the three aspects of the fraud triangle and how these factors enabled fraud to occur at CIT.
5. What were the red flags that signaled fraud was occurring at CIT? What should auditors, fraud examiners,
and colleagues pay attention to that could indicate fraud?
6. What techniques did Werle use to uncover the fraud? Should she have done anything differently?
7. Do you think a regularly scheduled ethics training program would have helped prevent fraud at CIT?
Your project should be approximately 12-20 PowerPoint slides in length, and be supported by at least 5 outside
sources. Be sure to address all seven questions and also integrate recommendations at the conclusion of your
 presentation. Content must be well written and formatted according to the CSU-Global Guide to Writing and APA
Requirements. The CSU-Global Library is a good place to find academic resources.
Your final PowerPoint is due by the end of Module 8. Ensure it is well crafted, free from errors, and clearly
organized.

COURSE POLICIES

Grading Scale Course Grading

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A 95.0 – 100 20% Discussion Participation
45% Critical Thinking Assignments
A- 90.0 – 94.9 35% Final Portfolio Project
B+ 86.7 – 89.9

B-

C+

F
83.3 – 86.6

80.0 – 83.2

75.0 – 79.9

70.0 – 74.9

60.0 – 69.9

59.9 or below
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IN-CLASSROOM POLICIES

For information on late work and incomplete grade policies, please refer to our In-Classroom Student Policies
and Guidelines or the Academic Catalog for comprehensive documentation of CSU-Global institutional policies.
Academic Integrity
Students must assume responsibility for maintaining honesty in all work submitted for credit and in any other
work designated by the instructor of the course. Academic dishonesty includes cheating, fabrication, facilitating
academic dishonesty, plagiarism, reusing /re-purposing your own work (see CSU-Global Guide to Writing and
APA Requirements for percentage of repurposed work that can be used in an assignment), unauthorized
possession of academic materials, and unauthorized collaboration. The CSU-Global Library provides information

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on how students can avoid plagiarism by understanding what it is and how to use the Library and Internet
resources.

Citing Sources with APA Style

All students are expected to follow the CSU-Global Guide to Writing and APA Requirements when citing in APA
(based on the APA Style Manual, 6th edition) for all assignments. For details on CSU-Global APA style, please

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review the APA resources within the CSU-Global Library under the “APA Guide & Resources” link. A link to this
document should also be provided within most assignment descriptions in your course.

Disability Services Statement

CSU–Global is committed to providing reasonable accommodations for all persons with disabilities. Any student
with a documented disability requesting academic accommodations should contact the Disability Resource
Coordinator at 720-279-0650 and/or email ada@CSUGlobal.edu for additional information to coordinate
reasonable accommodations for students with documented disabilities.

Netiquette
Respect the diversity of opinions among the instructor and classmates and engage with them in a courteous,
respectful, and professional manner. All posts and classroom communication must be conducted in accordance
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with the student code of conduct. Think before you push the Send button. Did you say just what you meant?
How will the person on the other end read the words?

Maintain an environment free of harassment, stalking, threats, abuse, insults or humiliation toward the
instructor and classmates. This includes, but is not limited to, demeaning written or oral comments of an ethnic,
religious, age, disability, sexist (or sexual orientation), or racist nature; and the unwanted sexual advances or
intimidations by email, or on discussion boards and other postings within or connected to the online classroom.
If you have concerns about something that has been said, please let your instructor know.
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