protiviti forensic soq - november 2016 updated

Internal Audit, Risk, Business & Technology Consulting

STATEMENT OF QUALIFICATIONS

PROTIVITI FORENSIC

FINANCIAL CRIME, ANTI-CORRUPTION, FRAUD RISK MANAGEMENT

NOVEMBER 2016

© 2016 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and

does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners.

TABLE OF CONTENTS

03 About Protiviti

07 Our Capabilities

13 Credentials and Case Studies

28 Fraud thought leadership and event

credentials

35 Resumes

ABOUT PROTIVITI



WHO WE ARE

4

*Inclusive of Protiviti’s Member Firm network, revenue for the year ending 2015 was $797M

3,500professionals

Over 20 countriesin the Americas, Europe,

the Middle East and

Asia-Pacific

70+offices

Our revenue*:

$743 million in 2015

Protiviti (www.protiviti.com) is a global consulting

firm that delivers deep expertise, objective

insights, a tailored approach and unparalleled

collaboration to help leaders face the future with

confidence. Through our network of more than 70

offices in over 20 countries, Protiviti and our

independently owned Member Firms provide our

clients with consulting solutions in finance,

technology, operations, data analytics,

governance, risk and internal audit.

We have served more than 60 percent of Fortune

1000® and 35 percent of Fortune Global 500®

companies. We also work with smaller,

growing companies, including those looking

to go public, as well as with government

agencies. Protiviti is a wholly owned

subsidiary of Robert Half (NYSE: RHI).

Founded in 1948, Robert Half is a

member of the S&P 500 index.

http://www.protiviti.com/



THE PROTIVITI ADVANTAGE

5

Protiviti Big Four

Boutique

Firms

Recognized in the marketplace

Global presence

Methodologies and tools

Experienced professionals

Depth of risk consulting services

Financial and management stability

Lack of SEC restrictions

Responsive client service

Focus on core technology risk, business risk,

and internal audit offerings

Independent from attestation and tax services

Better teaming with external auditors



PROTIVITI’S SOLUTION OFFERINGS

6

Protiviti helps companies around the globe identify, measure, and navigate the risks they face, within their industries

and throughout their systems and processes, using proven value-added solutions. Protiviti’s government solution

group focuses on a select few:

Data And Analytics

• Model Risk

• Business Intelligence

• Predictive Analytics

Information Technology Consulting

• Technology Strategy and Operations

― IT Governance and Risk Management

― IT Operations Improvement

― IT 3PM

― IT Strategy and Architecture

• Enterprise Application Solutions

― ERP Solutions

― Enterprise Content Management

― Custom Developed Software

― Risk Technologies

• Security and Privacy Solutions

― Data Security and Privacy Management

― Digital I&AM

― Cybersecurity Intelligence Response

Center

― Incident Response & Forensic Services

― Security Program & Strategy Services

― Technical Security Assessment

Risk and Compliance

• Credit Risk

• Compliance

• Customer Engagement

• Enterprise Risk Management (ERM)

• Market and Commodity Risk

• Operational Risk

• Change Management, Policy & Strategy

Communication

Business Performance Improvement

• Capital Project Consulting

• Corporate Restructuring & Recovery

• Finance Optimization

• Due Diligence

• FSI Operations Improvement

• Healthcare Operations Improvement

• Litigation Consulting

• Revenue Enhancement

• Supply Chain

• Tax Advisory Services

Internal Audit and Financial Advisory

• COSO

• Financial Investigations

• IT Audit

• IT SOX

• SOX and Financial Controls

• Other Internal Audit

• Financial Remediation & Reporting Compliance

Updated

OUR CAPABILITIES



PROTIVITI FORENSIC - SOLUTION OFFERINGS

8

Protiviti Forensic is a trusted advisor to some of the world’s leading companies, their in-house counsel, chief

compliance officers, chief audit executives and the top tier law firms that they engage to assist them with their most

critical challenges. Our professionals include: Former FBI Special Agents, CPAs, Certified Fraud Examiners, Fraud

and Corruption Experts, and Bank Crime Investigators.

Financial Crime, Misconduct and

Bribery Investigations

• Investigate the facts

• Stem ongoing losses and ensuring

vital evidence is not destroyed or

lost.

• Quantify losses and pursue avenues

for recovery

• Facilitate productive dialogues with

law enforcement, regulatory and

prosecutive agencies, insurance

carriers and other constituencies.

• Assist in applying the lessons

learned to control framework

Anti-corruption Programs

• Gap Assessments vs. Hallmarks

of an Effective Compliance

Program

• Examination of government

“touchpoints” within acquisition

targets

• Design, implementation and

administration of “third party anti-

corruption” programs

• Performance of Investigative Due

Diligence of acquisition targets /

prospective buyers and their

executives

• Program Enhancement

• Program Audits

Consideration of Email

• Data acquisition, normalization,

deduping and processing

• Application of thoughtful key words

designed to produce targeted

results and project size

• Email reviews overseen by forensic

accounting and investigative experts

• Complete transparency into costs of

overall email review

Fraud Risk Management

• Fraud Risk Governance

• Risk Assessment

• Fraud Detection Techniques

• Fraud Detection



PROTIVITI FORENSIC - OUR CAPABILITIES

9

Protiviti Forensic is a trusted advisor to some of the world’s leading companies, their in-house counsel, chief

compliance officers, chief audit executives and the top tier law firms that they engage to assist them with their most

critical challenges.

Most organizations have little experience investigating white collar crime, misconduct or bribery allegations. When incidents occur,

there is often confusion as to who should conduct the investigation, legal and privacy considerations, and the overall lack of resources

inhibiting a company’s ability to make timely, risk-based decisions, stem ongoing losses and ensuring vital evidence is not destroyed or

lost. Protiviti Forensic is led by some of the foremost experts In the investigation of white collar crime, corruption, financial institution

fraud and money laundering. The team is accustomed to assisting audit committees, corporate boards and senior executives in taking

a strategic approach to formulating an investigative approach, gathering and evaluating evidence and presenting it in clear, easy to

understand terminology to allow our clients to make timely decisions and have productive dialogues with law enforcement, regulatory

and prosecutive agencies, insurance carriers and other constituencies.

Event-driven financial crime, misconduct and bribery investigations

Many clients come to us having already concluded their anti-corruption program is lacking. Others need help evaluating the corruption

risk of acquisition targets or other partners. Protiviti Forensic has extensive experience evaluating anti-corruption compliance programs

and the controls underlying them. At the center of our evaluative process is “A Resource Guide to the U.S. Foreign Corrupt Practices

Act”, jointly published by the DOJ and SEC in November 2012. We utilize “the Guide”, the “Hallmarks of an Effective Compliance

Program” within it and other authoritative guidance to objectively evaluate the current state of an anti-corruption compliance program,

identify missing or weak program elements and chart a course to remediate the program elements needing attention.

Elevating anti-corruption programs to meet the Government’s definition of “effective”

Although COSO 2013 does not have the force of law, the Public Company Accounting Oversight Board has made it clear to the

accounting profession that they expect the publicly traded companies that they audit to transition to the new COSO framework and

consider the potential for fraud in assessing risks. Protiviti Forensic brings both a real world understanding of financial crime and how

the control environment was defeated to allow the crime to occur along with many years of experience in the evaluation and

remediation of fraud risk frameworks. These two combine in our ability to assist clients to take a strategic view to their risk of fraud that

is pragmatic and yet highly effective.

Effecting positive change in connection with Fraud Risk Management



WHITE COLLAR CRIME AND BRIBERY INVESTIGATIONS

10

Event-driven financial crime, misconduct and bribery investigations

Allegations of white collar crime, misconduct or bribery can dissipate a company’s resources, detract from its

operational focus and impair its reputation. Protiviti Forensic follows a proven methodology to resolve bribery

and financial crime allegations no matter how complex they may be. Investigations often include the collection and

analysis of hard copy and electronic evidence, data review and analytics, in-depth witness and admission-seeking

interviews, written reports, background investigations, expert and fact witness testimony. The analysis itself may

encompass enterprise-wide processes and protocols such as accounting, internal controls, procurement, expense

reimbursement, gifts, travel and entertainment and corporate governance.

Protiviti has excellent working relationships with government and regulatory agencies. These relationships, coupled

with an understanding of the current rules and regulations affecting our client’s business operations and industries, as

well as the rules of evidence and chain of custody requirements, enable us to assist clients to better understand the

government’s perspective and mindset which in turn better positions them to tailor the scope of investigations that are

likely to satisfy government investigators and prosecutors as well as any auditing firms who may have obligations to

perform “shadow investigations”.

Protiviti investigators and forensic accountants have wide-ranging experience working with outside and in-house

counsel investigating white collar crime, bribery and misconduct; quantifying losses; tracing criminally derived assets;

engaging with government investigators, prosecutors and regulatory agencies and pursuing available avenues for

financial recovery including fidelity and directors & officers insurance claims.

Our unique combination of investigative, accounting, internal auditing, controls, regulatory compliance and technology

expertise complement the skills and experience of our clients’ outside legal counsel and in-house compliance, audit

and legal personnel. By collaborating with our clients, we are able to consistently deliver high quality results, assist

them strategically and transfer our knowledge so that they can apply and sustain the lessons learned long after the

investigation is concluded.



ANTI-CORRUPTION ADVISORY AND AUDIT SERVICES

11

Elevating compliance programs to meet the Government’s definition of “effective”

Anti-Corruption Compliance and Education/Awareness Programs – Clients seek out Protiviti Forensic

experts in the development of anti-corruption compliance policies and supporting internal control frameworks to

create robust governance, supervision, due diligence, risk assessment, reporting mechanisms, monitoring, training,

education, communications, awareness capabilities to support their regulatory initiatives across the entire

organization.

Corruption Risk Assessment/Program Reviews – Clients request support to identify common corruption scenarios,

facilitate measurement and prioritization of corruption risk and control evaluation activities, develop action plans to

mitigate corruption risk and assist management in ongoing electronic monitoring capabilities for compliance purposes.

We assist our clients to identify program elements that could benefit from being strengthened and chart a course to

remediate those program elements that are falling short. These reviews can be internally focused or performed as a

part of acquisition due diligence.

Compliance Audits – Internal audit professionals request our subject matter expertise when auditing and evaluating

existing Anti-Corruption policies and programs including policy and certification/affirmation, educational and

awareness programs, gift logs, compliance reporting and response, third-party due diligence and third-party

agreements/contract language, sensitive payments and transactions.

Investigations – Clients benefit from access to our highly experienced FCPA investigators and forensic accountants

to investigate the merits of an allegation and uncover facts -- often in preparation for self-disclosure to federal

regulatory and law enforcement officials. Protiviti Forensic practitioners have extensive experience interacting with law

enforcement, regulators and other parties on behalf of its clients.

Many companies see the benefit of outside perspective when evaluating their bribery and corruption risk and the

efficacy of their compliance frameworks related to the Foreign Corrupt Practices Act ("FCPA"), the UK Bribery Act of

2010 (“UKBA”), Japan’s Unfair Competition Prevention Act (“UCPA”), Brazil’s Clean Companies Act and other similar

anti-bribery laws. Program reviews and risk assessments provide insights that allow clients to key on program

shortcomings and risks that are not being properly considered better positioning those organizations to strengthen their

compliance and monitoring programs.



FRAUD RISK MANAGEMENT -PROGRAMMATICALLY ADDRESSING FRAUD

12

Effecting positive change in connection with Fraud Risk Management

Fraud Risk Assessments – Whether it is to be able to adopt COSO 2013 or to better understand the various

risks of fraud or corruption that are unique to your business operations, product mix, customer base and

geographic footprint, Protiviti has extensive experience performing fraud risk assessments and designing fraud

programs. Fraud risk assessments range from high level, fraud risk brainstorming sessions to in-depth examinations of

process-level fraud controls, our clients gain keen insights into their fraud risks and their existing fraud risk controls

which then enables them to make incremental or wholesale improvements to their ability to detect, detect, investigate

and report suspected fraud and corruption.

Fraud Risk Management – Utilizing Protiviti’s proprietary consulting methodology, clients receive step-by-step

assistance in creating an inventory of and comparing the organization’s existing fraud risk management activities (also

known as “anti-fraud program” or “entity-level anti-fraud controls”) in the context of authoritative guidance and leading

practices. This provides management with a meaningful roadmap to help strengthen its fraud risk evaluation,

mitigation and monitoring activities.

Fraud Audits – Clients frequently seek assistance in connection with auditing compliance with existing anti-fraud

policies and programs including policy and certification/affirmation, existing educational and awareness programs,

fraud detection systems, hotline reporting, investigations, investigative units and disciplinary actions.

Investigations – Many organizations do not have all of the skillsets necessary to perform internal investigations.

Protiviti’s team includes former FBI special agents, forensic accountants, certified fraud examiners, fraud and

corruption compliance experts, forensic data analysts and experts in background investigations to capable of providing

either turn-key investigations or to augment in-house investigative teams.

Many organizations are now well into the adoption of COSO 2013 as their integrated control framework in complying

with Sarbanes-Oxley Section 404 (SOX) and for other purposes, but are still struggling with Principle 8 – a critical part

of the Risk Assessment component of COSO 2013. Principle 8 focuses on four types of fraud – fraudulent reporting,

corruption, asset misappropriation, and management override of controls – and the potential for each risk to occur.

CREDENTIALS ANDCASE STUDIES

Financial Crimes and Forensic Investigations



CREDENTIALS AND CASE STUDIES:

Financial Crime and Forensic Investigations

14

Revenue Recognition Review

Acting at the direction of outside counsel, Protiviti performed a review of certain revenue transactions associating

with issuing product upgrades to customers. The review was performed after the client received allegations that

certain of its customers with the European Middle East and Africa (“EMEA”) region had been receiving free upgrades

when the company’s policy clearly states that all such upgrades were to be purchased. The work included the

identification of the universe of customers who received product upgrades, determination as to whether individual

customers paid for the upgrades, quantification of volume, geographic disbursement and timing of the unpaid

upgrades and to identify process improvements that could be implemented to better control the granting and

documentation of product upgrades.

State and Local Sales and Use Tax Whistleblower Investigation

Protiviti assisted in-house counsel of a global consulting firm in with an internal investigation of a whistleblower

complaint. The tipsters alleged that members of management were deliberately overstating expenses and understating

revenues in connection with their preparation and submission of hundreds of state and local sales and use tax returns

prepared and submitted on behalf of one of its clients. The investigation included a review of the policies and

procedures of the responsible business unit, in-depth interviews of the members of management named in the

whistleblower complaint and numerous other employees and a review of a cross section of sales and use tax returns

and the transactions underlying them. The investigation yielded information suggesting the likelihood that the

whistleblower was a disenfranchised employee motivated by having received a negative performance review. The

investigation did not reveal any information in support of the allegations put forth in the whistleblower letter.





15

Accounting Investigation and Financial Re-statement

A large wholesaler discovered a $150 million difference between its book and perpetual inventory balances in the

latter stages of preparing a filing with the SEC. Upon discovering the issue, the Company’s Board of Directors

immediately engaged Protiviti to help assess the situation, identify the root causes, quantify the impact each fiscal year

end, and assist with reconstructing and restating financial statement accounts. In addition to reconciling and restating

financial statements, Protiviti also performed a financial investigation with outside counsel to determine “who, when,

why, and how” this error occurred.

A diverse team of consultants with financial reporting, data analytics, forensic accounting, and information technology

expertise was assembled by Protiviti to assist with execution of the following: (a) Quantify the reported book and

perpetual inventory balance differences for the past five years, (b) Identify components and root causes of the

variance, (c) Determine the reasons the variance went undetected by management, (d) Assess the risk of accounting

errors extending beyond the inventory process, (e) Ascertain whether intentional conduct occurred in relation to these

issues, (f) Identify journal entries required for prior year financial restatements, and (g) Conduct regular communication

with multiple constituencies including (client’s Board of Directors, banks, note holders, and external auditors)

In addition, to the initial financial reconciliation and restatement engagement, Protiviti was also retained by the Board

to assist with its financial statement close process and remediate the underlying control issues contributing to this

accounting error.





16

Ponzi Scheme Investigation

Protiviti assisted outside counsel to the largest investor in an asset-backed lending company in the investigation of

what is now believed to a $90 million Ponzi scheme. The investigation revealed that the company had perpetrated a

massive fraud on its senior, secured lenders over a period of many years. The fraud included the systemic creation of

fictitious records of loans secured by accounts receivable and inventory that either did not exist at all or were greatly

exaggerated. The initial investigation was undertaken in order to quantify the loss, identify the fraudulent books and

records and demonstrate to law enforcement that a crime had in fact been committed. Subsequent to the arrest of the

company’s founder, the investigation continues in an effort to identify and seek to recover criminally derived assets on

behalf of its largest investor.

Officer Embezzlement, Kickback and Money Laundering Scheme

Protiviti undertook an investigation of the CEO of a mid-sized commercial construction alleged to have embezzled

money through a series of fictitious vendors. The investigation revealed that the CEO and numerous co-conspirators

generated fictitious invoices as though they were for subcontractor expenses incurred on construction projects for

projects that likewise were non-existent. A total of seven fictitious companies were identified and the proceeds of the

vendor frauds were found to have been laundered through an attorney-escrow account established by the CEO’s

personal attorney. Protiviti has secured the cooperation of the co-conspirators and is in the process of quantifying the

amounts diverted to each of the seven as part of ongoing settlement negotiations that include the reimbursement of

portion of the embezzled monies which the co-conspirators each received as kickbacks. Investigation is also

continuing on efforts to identify and recover embezzled assets directly from the now former CEO.`





17

Kickback Investigation - Real Estate Development Company

On behalf of a global real estate development and property management firm, conducted an in-depth investigation

originating upon receipt of a whistleblower allegation. The anonymous tip alleged that a particular subcontract on a

develop project had been tainted by corruption. Specifically, it was alleged that an insider presiding over the bid

process had accepted cash and gift cards as partial payment for awarding the bid to a particular bidder with the

balance to be paid after the award of the contract. The investigation included extensive witness and subject

interviews in both English and Chinese, an examination of various bid documents and related correspondence and the

imaging and analysis of a number of computer hard drives, network servers and email accounts. The investigation

confirmed some of what had been alleged in the whistleblower letter and enabled the client to isolate the employees

responsible for the improprieties and take appropriate action against them.

Misappropriation of Assets – Outsourced Services Provider

On behalf of a U.S.-based outsourcing provider, undertook a limited internal investigation of allegations of theft on the

part of an outsourced employee from the client location where that individual was working. The investigation included

our taking possession and examining the emails and files recovered from company computers and their email system,

limited background investigations and interviews of several witnesses. The investigation enabled the client to

demonstrate to its customer the extent of the employee’s impropriety, provide negative assurance that the theft was

fairly limited as well as how seriously the client was taking the allegations.





18

Internal Investigation – Magazine Publisher

In response to allegations that the CFO of the magazine had an undisclosed interest in three company suppliers,

Protiviti was engaged to perform an investigation and to secure and image a number of computer work stations. The

investigation included after hours searches of several offices including that of the CFO, a limited review of certain

business records related to the three suppliers and interviews of a number of witnesses and the subject. The

investigation led the client to conclude that the allegations had merit and provided them with sufficient basis to

terminate the CFO’s employment.

Allegations of Senior Management Misconduct

Protiviti was engaged by outside counsel of an industrial leasing organization to assist in the investigation

of potential inappropriate activity by the former CEO of the Company. Initial allegations included misuse of the

company credit cards by the CEO and other members of the executive management team, non-repayment and write

off of company advances to the former CEO and current president of the Company, inappropriate lending to members

of the executive management team, as well as, failure of the CEO to disclose the sale/transfer of collateral pledged

under a shareholder loan agreement. Protiviti was asked to document the initial allegations and to determine if any

other inappropriate activities occurred. Protiviti conducted interviews with personnel, performed significant legal

research, examined relevant emails, and analyzed financial transactions to identify instances where the former CEO

violated corporate policies and failed to perform his fiduciary responsibilities. As a result, Protiviti was able to provide

counsel with a significant number of examples where the former CEO engaged in inappropriate activity and violated

the terms of his shareholder loan agreement that allowed them to build a substantial case for litigation. Protiviti was

also able to provide counsel with the financial impact of inappropriate charges made by the former CEO and other

members of executive management through the company, totaling in excess of $500,000, and to identify control

weaknesses that allowed the activity to occur.





19

Misuse of Company Funds – Spirits Manufacturer

Protiviti was engaged to assist the Internal Audit Department of the US division of this global company with an internal

investigation into the nature and propriety of business transactions entered into by employees at one of their wine and

spirit manufacturing locations. The allegations arose from anonymous comments made to select members of the

Executive Committee relating to excessive and questionable use of company funds by personnel. The investigation

was conducted under the direction of the Internal Audit department with assistance by Protiviti personnel and included

interviews, review of General Ledger transactions, and review of receipts and supporting documentation maintained by

the local accounting office. Specifically, the team analyzed the use of petty cash funds, management of cash and

bank accounts, vendor invoices, the use of procurement and/or gift cards and travel and entertainment expenses.

Purchasing and Sales Kickback Investigation

Employees in the Security Group of an international bank were accused of receiving kickbacks related to forging

invoices, conspiring with vendors, inappropriately awarding construction contracts, time and expense fraud, and

misappropriating company purchased gift cards. Protiviti secured, retrieved, analyzed and produced data relating to

the case. Protiviti’s Data Forensic specialists developed and executed a work plan with the Client Information

Technology and Security teams to acquire data from the appropriate personnel's workstations, share drives, Accounts

Payable, Project Management and Expense systems. Protiviti prepared in-depth analyses from the system

information including keyword searches, financial analyses and the preparation of data for the client. Results were

used in trial depositions to support allegations against vendors and personnel. Secured data was also provided to the

FBI for use in their investigation. As a result, the client was able to identify acts of employee misconduct, prevail in a

legal action to freeze funds that would otherwise have been lost and begin to establish an enhanced control

environment.





20

Theft of Industrial Gold Investigation and Insurance Claim

Protiviti was retained by outside counsel to a manufacturer of printed circuit boards to review the results of internal

theft investigation of the theft of industrial gold, quantify the loss and assist the client in preparation and submitting the

associated fidelity insurance claim. The assignment consisted of debriefing with counsel and the client, reviewing

investigative reports, and performing a detailed analysis of raw materials expenses incurred before and after the

discovery of the thefts. Our work established the value of the stolen gold which was submitted along with the results

of our records analysis in the furtherance of an insurance claim that is still under consideration.

Inventory Shortage Investigation

A large metal recycling company discovered a significant and, what appeared to be, sudden inventory shortage

at one of their locations. Protiviti was engaged through outside counsel to investigate the cause of the shortage and to

assess whether fraud or diversion of assets had occurred. Our investigative team reconstructed and analyzed

historical inventory activity, conducted extensive e-mail and electronic evidence review and interviewed multiple

individuals both at the location under review and Corporate offices. We identified multiple root causes contributing to

the shortage, determined that the previously undetected shortage had been accumulating over a multiple year period

and concluded that poor controls and inaccurate accounting had masked the building shortage. Additional procedures

were performed for other locations to assess the pervasiveness of the root causes in relation to other

locations. Protiviti developed a comprehensive set of policy and internal control recommendations that the company

implemented to mitigate the likelihood of this recurring in the future.





21

Food Tampering Investigation

Protiviti performed an investigation of suspected food tampering at the manufacturing facility of a large consumer

products company. The investigation was of four separate tampering incidents in which a contaminant was detected

in the production lines of the product as it was moving through production. An inspection of the contaminant revealed

that it had metallic properties that triggered metal detection devices placed at the end of the production lines as a

safety measure. The investigation included an examination of access control records and time card system records to

identify which employees and/or contractors were present in the plant facility for all four incidents, perform background

investigations of each employee who was present during the incidents, review the results of the investigation

previously performed by plant personnel, review and examine the production lines that had been tampered with and

interview plant personnel and numerous witnesses including each employee that was determined to have been

present in the plant for all four tampering incidents. The interviews revealed that one individual had been passed over

for promotion 3 days prior to the first incident and exhibited a great deal of anger and resentment at plant management

which he was unable to contain despite the formality of the interview process. In addition to identifying the most likely

suspect, the investigation also revealed numerous remedial measures to better prevent the food from tampering in the

future and deter and detect suspicious behavior by means of enhancements to the plant’s existing security and video

surveillance systems.





22

Improper Exchange of Funds

Protiviti was engaged by outside counsel of a propylene producer to assist in the investigation of a report involving

the acceptance of funds by an employee from a third-party vendor. Protiviti conducted interviews with personnel and

the third-party vendor, performed email keyword searches, and analyzed procurement activity and financial

transactions involving the third party vendor. As a result, Protiviti was able to provide counsel with information

regarding the amount, circumstances and nature of funds exchanged. In addition, Protiviti identified other potential

risks arising from the organization’s procurement and financial processes and suggested control enhancements to

help mitigate these risks.

Misuse of Company Funds through Travel & Entertainment

We were engaged by outside counsel to investigate allegations of abuse related to travel and entertainment

expense by the company’s CEO. The issue arose during the latter stages of the company finalizing its 2nd quarter

10Q filing. Management had engaged a consultant to perform an investigation; the quality of their results and their

independence were questioned by the company’s auditors. We responded with a team in the field within 2 business

days of receiving the initial call from the Audit Chair and counsel.

Protiviti performed a thorough investigation of all historical travel & entertainment expenses for the individual in

question and all other members of senior management, along with e-mail and other electronic data review. We

quantified the amount of inappropriate travel & entertainment expenses reimbursed by or paid for by the company

related to the CEO. The team determined that the CEO’s misconduct was confined to travel & entertainment

expenses – no other areas impacted (e.g., exerting inappropriate influence on financial accounting, etc.) and that there

was no inappropriate reimbursement, etc. of T&E expenses related to any other members of senior management. We

completed our investigation an reviewed our report with counsel and the BOD in sufficient time for the company to still

be able to file its 2nd quarter 10Q on time.





23

Fraudulent Spending Investigation

The Board of Trustees of a private educational institution received anonymous complaints of inappropriate spending

by the University President over a multiple-year period. The Board engaged Protiviti through Independent Counsel to

investigate the complaints, which required assistance in the area of forensic accounting. Protiviti’s investigative steps

included document collection, financial analysis and interviews which resulted in evidence of wrongdoing by the

University President. The Board of Trustees demanded the resignation of the University President after hearing the

evidence accumulated by Protiviti investigators. The results of the Protiviti investigation and related investigative

report were used by the government to initiate a grand jury investigation involving the University President and to

commence a Congressional Inquiry into abusive spending at Universities.

Conflict of Interest Investigation

In response to a whistleblower allegation, Protiviti was engaged by General Counsel to investigate allegations of

previously undisclosed and alleged improper relationships between company employees and various outsource

providers of services and potential billing irregularities. We conducted interviews with various subjects, reviewed

email correspondence, conducted background checks on selected individuals and reviewed the history of invoices

paid to various 3rd party outsourced providers. We documented our findings in a comprehensive report to General

Counsel, which led to internal disciplinary actions and a revision in the company’s contracting guidelines and

employee ethics disclosure requirements.





24

Securities Fraud Investigation – Fortune 20 Financial Institution (Confidential)

Protiviti assisted a client in defense of securities fraud/breach of fiduciary duty claims related to their role as co-

placement agent and indenture trustee for $2 billion of asset-backed securities, where investor losses exceeded $1.5

billion. Protiviti’s main role was to reconstruct the financial records of trust vehicles, understand the cash movement

to/from the various providers/hospitals, investigate the relationships with providers/hospitals and analyze the financial

records of the client and examine the trust reserve accounts for potential manipulation. Within 48 hours, over one

terabyte of data was extracted and a data warehouse was created using SQL database and leveraged litigation

support tools to allow efficient review of the voluminous documents pertaining to the case.

FCPA Investigation (China) – Top 50 New York Law Firm (Confidential)

Protiviti assisted counsel to a U.S. based client with a Chinese subsidiary suspected of illegal payments to government

officials. A Computer Forensics and e-Discovery team was dispatched to China within 48 hours and was able to cost-

effectively reduce the targeted data population by 92% (from over 1.5 Terabytes to 120 Gigabytes) and rapidly

assemble a document review team of 22 Mandarin speaking professionals utilizing an industry standard review

platform.





25

Bankruptcy Matter – One of the Top 10 U.S. Bankruptcies with over

$36 Billion in Assets

Protiviti provided computer forensic services to ensure early attention to proper preservation of potentially relevant and

responsive data. In doing so, Protiviti supported the design and evaluation of the plan to extract and process terabytes

of data from hundreds of ESI sources including on-line, near-line and offline repositories. The services also included

assisting in the development and implementation of the plan for data transition and access by multiple parties and

providing just-in-time and on-demand e-Discovery project and process management support.

Litigation Dispute – Nationally Recognized Bankruptcy

Protiviti provided e-Discovery services to counsel involved in a $500 million dispute with creditors. The services

included acquiring and processing over 53 million accounting transactions recorded over a five year period. Complex

financial transactions were modeled using data, contracts and financial statements. Protiviti was able to extract

relevant data that enabled counsel to pursue questionable journal entries that improperly added billions of dollars of

debt to solvent entities that impaired the creditors’ expected recoveries.





26

Neutral Expert – Data Spoliation Issue in Multimillion Dollar Lawsuit

Protiviti was selected and served as a neutral expert comparing the data collected by two nationally recognized

computer forensics service providers in a civil lawsuit. Forensic analysis of over 100 images of ESI sources

comprising over 3 terabytes of data was conducted. Protiviti also provided expert report and testimony regarding the

differences in the data and implications related to the data destruction subsequent to a court order for data

preservation.

Incident Response – Leading Insurance Company

Protiviti provided Incident response and computer forensic services to a leading insurance company in response to an

IT Security Breach. Within 24 hours of the notification of the event, Protiviti assisted the client with scoping and

developing a response strategy. The response included forensically preserving and analyzing over 70 data sources

using enterprise acquisition technology without disruption to the client’s regular business operations. Protiviti also led

forensic investigation efforts of the client’s vendors’ and process partners’ systems to evaluate all threat vectors related

to the potential breach. In doing so, over 95 images with 7.5+ terabytes of data was acquired and analyzed.





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E-Discovery Director – Global Hospitality/Entertainment Corporation

Protiviti served as the in-house e-Discovery Director and assisted in establishing an in-house e-Discovery function and

transition plan (people, process and technology). Protiviti established capability and capacity to preserve and acquire

data for approximately 5 matters per day with approximately 12 custodians per case from multiple locations

simultaneously. Part of the duties performed included keyword, date range and subject matter extracts of over several

hundred gigabytes of data to support e-Discovery processing and review by multiple parties. Protiviti also developed

processes and procedures to effectively and efficiently manage case load and assignments to a disbursed workforce.

Support was provided for the development of a policy and implementation of records retention and disposition of all

active and historical hardcopy documents located at the client’s corporate headquarters.

Environmental Dispute – International Mining Company

Protiviti supported counsel in the identification and preservation of over 15 years of ESI sources for one of the largest

international mining, mineral processing and metallurgical companies. Protiviti performed forensic and targeted logical

collection of terabytes of electronically stored information from both international and US locations. Protiviti also

assisted in developing the strategy to prioritize and reduce the volume and cost by over 60% prior to providing to the e-

Discovery processing and hosting vendor.


Anti-Corruption Compliance Services




• ANTI-CORRUPTION/FCPA AND CORRUPTION RISK EXPERIENCE

Semiconductor Manufacturer - Anti-Corruption Compliance Program Review

Engaged by the Legal Department, Protiviti planned and executed a review of the Company’s anti-corruption

compliance program to identify potential gaps with authoritative guidance and enhancements to help achieve leading

practices. Over 75 documents were analyzed to understand the company’s anti-corruption compliance framework

and identify potential touch points with government officials. Interviews were conducted with Management from

various departments including: accounting, compliance, marketing, sales, government relations, human resources,

procurement, supply chain, logistics and the company’s charitable foundation. A report was issued to the Legal

Department in its consideration of Management’s control activities intended to deter and detect potential corruption

risk.

Cloud-Based Software Provider – Corruption Brainstorming Exercise

Protiviti was engaged by in-house counsel to plan and execute two (2) anti-corruption compliance brainstorming

exercises to help Management identify potential touch points with government officials and corresponding anti-

corruption compliance controls (entity-level). A memorandum was issued to in-house counsel summarizing the

results of the exercise for use in strengthening the company’s anti-corruption compliance framework.

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CREDENTIALS AND CASE STUDIES

Leading Global Telecommunication Company – Japan

Following a breach of Japanese anti-bribery laws and conviction of a company employee for bribing a Japanese

government official, a Japan-based global telecommunications company engaged Protiviti’s Japan office to perform a

risk assessment to address the risk of fraud, including common fraud scenarios involving bribery and corruption. The

scope of the project included the Japanese parent company and its subsidiaries. As a result, the company was able

to identify and prioritize fraud/bribery risks, understand the current state of mitigating controls, develop a plan to

address such risk in future operations and ensure compliance, particularly with anti-bribery laws.

Content Developer (Multimedia Platforms)

– Anti-Corruption Compliance Program Review

Working with in-house counsel of a developer for high-profile content for lifestyle media platforms, Protiviti performed

a review of the company’s anti-corruption compliance program in the context of authoritative guidance and leading

practices.

In the initial phase of the project, Protiviti performed document review and conducted interview with designated

members of Management in three (3) geographic regions – Europe, Asia and Latin America. Protiviti then planned

and executed a review of commissions paid by the company to its sales agents in order to evaluate compliance with

contractual agreements, as well as identify potential patterns, trends and anomalies in order to identify the indicia of

corruption risk.

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Global Consulting Firm – Anti-Corruption Audit

Following an anti-corruption program review performed by outside counsel, Protiviti was retained by a global

consulting firm to review certain aspects of their rapidly expanding international operations to perform audits of such

things as the use of purchasing cards (p-cards), use of petty cash, local bank accounts and gift travel and

entertainment expenditures. The audit revealed that a number of required compliance activities associated with the

client’s anti-corruption program were not being consistently followed in certain parts of the organization, particularly

their business units operating in the Middle East.

Multinational Manufacturer (Medical Research and Diagnostic Products

and Equipment) - FCPA Investigation

While providing internal audit support to a multinational manufacturer of medical research and diagnostic products

and equipment, Protiviti assisted in assessing the company’s FCPA compliance policies and procedures. Through

these efforts, potential transactions that appeared to be exceptions were identified and we were engaged to assist the

FCPA investigation efforts of outside counsel through our litigation support, eDiscovery, and FCPA remediation teams.

Protiviti was retained to investigate transactions over a five year period in several geographic locations. We

performed data analysis, reviewed financial records, analyzed transactions within the general ledger systems and

reviewed underlying supporting documentation and email files. As a result of these efforts, our team identified and

closely reviewed various questionable transactions which appeared to potentially violate the company’s FCPA policy.

Additionally, Protiviti analyzed distributors’ agreements, compensation arrangements as well as other business

transactions and identified potentially inappropriate business relationships and practices in several geographies. Our

findings and analyses were utilized by counsel in interviews with key client personnel and were used as the basis for

discussions held with the DOJ and SEC.


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FCPA Audit – Global Financial Institution

Protiviti assisted in the performance of an audit of a bank’s Global Anti-Bribery and Corruption Policy and Procedures

framework for its U.S. operations. Areas of focus included gifts and entertainment, government and SOE related

hiring, third party due diligence, charitable contributions and sponsorship. Protiviti reviewed and analyzed the

relevant policies and procedures, conducted interviews with the policy stakeholders, assisted the client in the

compilation of a risks and control matrix and performed design effectiveness assessment testing and operating

effectiveness testing for each area of focus. Results of the audit were provided to outside counsel to assist them in

determining controls weaknesses that needed to be remediated as a part of the bank’s overall anti-corruption

program continuous process improvement.

FCPA Compliance Audit – Global Financial Institution

At the direction of the client’s anti-corruption compliance audit team, Protiviti assisted the bank in auditing

compliance sensitive areas including Anti-Bribery and Corruption policies, M&A, expense report reimbursement, gifts

and entertainment, charitable contributions, third parties, SOE hiring and SOE customers and the bank’s use of

surveillance as a means of identifying red flag transactions.


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Insurance Company – FCPA Risk Assessment and Monitoring Activities

Protiviti was engaged by external counsel to assist client with development of risk assessment methodology to

identify and prioritize key risks related to Foreign Corrupt Practices Act (“FCPA”) within international operations.

Protiviti created and executed a work plan that included document review and analysis, interviews with designated

company professionals in multiple overseas locations, brainstorming exercises with corporate compliance and

internal audit, and facilitated discussion with management to validate FCPA risk ratings and profile.

Results of the FCPA risk assessment served as the basis for development of FCPA risk monitoring activities.

FCPA Investigation

Protiviti was engaged by external counsel to assist in the investigation of “red flags” involving the potential

violation of the Foreign Corrupt Practices Act following identification by a company’s Internal Audit team.

Protiviti obtained 100 bank boxes (300,000 pages) of hard copy documents and 1.5 terabytes of scanned

document images; reduced data universe to 100 GB of useful data. We then created and standardized document

categories for coding process. We next performed forensic restoration (replication) of financial services from the

site and conducted forensic data analysis.

We had immediate availability of six (6) Protiviti personnel fluent in Mandarin who possessed financial and

investigative skills, and utilized twenty (20) Mandarin speakers obtained from Robert Half International (RHI) to

assist with document review and coding.


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Advertising and Marketing Company – FCPA Awareness and Training

Organization requested Protiviti to provide facilitated, in-person training to internal auditors on the topic of the

Foreign Corrupt Practices Act, FCPA compliance auditing and on-going monitoring activities.

Protiviti delivered two-hour (2) presentation with question and answer session that qualified for continuing

professional education (CPE) credits.

Global Offshore Drilling Company – FCPA Compliance Program Diagnostic

Protiviti was retained by in-house counsel to perform a high-level diagnostic of the client’s FCPA compliance

program activities in comparison to leading practices. In addition, Protiviti provided subject matter expert

assistance in the execution of agreed-upon procedures developed by client to evaluate compliance with corporate

policies and the Foreign Corrupt Practices Act at three of its overseas facilities. As a result of our work, the client

added new scenarios, corruption risk and controls for consideration within its fraud risk assessment. In addition, it

has implemented new monitoring procedures to better detect potential indicators of corruption risk related to gifts,

meals and entertainment, as well as third-party payments.


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Global Manufacturer (Industrial Trucks and After-Market Parts)

– Anti-Corruption Compliance Audit Assistance

Protiviti provides resource support to the company’s Internal Audit Department in the planning and execution of

annual corporate anti-corruption compliance audits. Locations are selected by the Internal Audit Department on a

rotational basis. The company’s own anti-corruption compliance audit work program is utilized by Protiviti’s

experienced resources when field procedures are performed over a one (1) to two (2) week period in various regions

of the world. The Internal Audit Department reports its findings to the General Counsel, as well as the Audit

Committee. Supplemental procedures are performed under the direction the General Counsel on an as-needed

basis.

Global Insurance Brokerage – FCPA Risk Assessment

Working with client's in-house and external counsel, Protiviti created a robust and sustainable FCPA Risk

Assessment Methodology to help management identify and measure risk related to FCPA compliance and potential

corruption events. We provided a work plan to supplement client's existing processes and internal controls to help

ensure explicit and robust consideration of FCPA compliance and corruption risk. Next, we executed the FCPA Risk

Assessment using resources with requisite FCPA compliance and insurance brokerage industry experience, as well

as risk and internal control expertise. Our FCPA risk assessment was performed through a combination of document

review and analysis and interviews with 20 designated management professionals across the client's global

operations. As a result of our work steps, we provided recommendations and work plans to help create key risk,

compliance and performance indicators to actively monitor FCPA compliance and corruption and assist management

to establish priorities in the context of its current operations.


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Global Manufacturer – US Subsidiary of Japanese Company

– Anti-Corruption Compliance Gap Analysis

Protiviti provided assistance to the Legal Department of a US subsidiary of a Japanese company in the review of

its Anti-Bribery Compliance Program in comparison to Chapter 8.B.2 of the Federal Sentencing Guidelines and the

OECD’s Good Practice Guidance on Internal Controls, Ethics, and Compliance, as well as Resisting Extortion and

Solicitation in International Transactions (the “RESIST Tool”) published by the International Chamber of Commerce

(“ICC”), Transparency International, United Nations Global Compact and the World Economic Forum (“WEF”).

Protiviti also provided assistance to enhance the company's Code of Conduct and gift policies, facilitated training

for the Board of Directors' on FCPA compliance requirements, and offered guidance in the framework for the

company's compliance program.

Global Hospitality Company – Anti-Corruption Compliance Program Review

In conjunction with in-house counsel and Internal Audit, Protiviti conducted a review of the company's global

FCPA and anti-corruption compliance program in comparison to authoritative guidance and leading practices.

Work steps included document review and analysis, as well as over 20 interviews with executives in the

company's international development, financial, legal, procurement, communication and human resource

departments. We provided a report of our observations, recommendations and leading practices to enhance the

company's FCPA and anti-corruption compliance activities. As a result, the client has developed a multi-year

plan to deploy a cohesive global anti-corruption compliance program.


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Global Project Management and Construction Claims Company

– Anti-Corruption Compliance Program Assistance

The client’s legal department engaged Protiviti to provide assistance in the review and enhancement of the

Company’s policies and procedures with respect to compliance with the U.S. Foreign Corrupt Practices Act

(“FCPA”). The project was organized into three (3) primary phases in order to help the Legal Department focus its

FCPA compliance priorities and leverage existing people, policies, processes and procedures for the development

of a more cohesive and coordinated approach to FCPA and anti-corruption compliance activities.

In its initial phase of work, we created an inventory of the client’s FCPA compliance policies based upon a review of

documentation provided by the Company, as well as 35 interviews of designated senior management across the

enterprise. We compared the company’s FCPA compliance program in comparison with requirements of the

Foreign Corrupt Practices Act (“FCPA”) and authoritative guidance including: Chapter 8.B.2. – Effective

Compliance and Ethics Programs (Federal Sentencing Guidelines, U.S. Sentencing Commission) and Good

Practice on Internal Controls, Ethics and Compliance (Organization For Economic Co-Operation and Development,

or “OECD”). As a result, we provided observations and recommendations to help the client’s Legal Department

strengthen the company’s FCPA compliance activities in order to achieve greater conformity with authoritative

guidance and leading practices.

In the second phase of work, we assisted the client in creation of a FCPA Compliance Committee to enhance its

FCPA and anti-corruption compliance activities. As a result, the client has revised its Code of Ethics and Business

Conduct, FCPA Policy and on-line training program. In addition, the client has developed an Agent and

Representative Due Diligence Policy and corresponding process for the consideration of third-parties working on

the client’s behalf.

In the third phase of work, we planned and executed a FCPA compliance audit at one of the client’s overseas

locations. Our work plan included statistical testing of transactions in high-risk areas, including (but not limited to)

gifts, meals and entertainment provided by employees, petty cash, political and charitable contributions, agent

payments, and other third party payments.


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Financial Services Company – FCPA Compliance Audit

Protiviti was engaged by in-house counsel to develop and execute a review of the company’s Foreign Corrupt

Practices Act compliance and training programs for a foreign subsidiary. We created and implemented a work plan

that included document review and analysis, interviews with designated company professionals, and testing of

designed internal controls as well as transactions in the areas of salary, time and expense, charitable donations, legal

and consulting fees, marketing expenses, gifts, petty cash and agent/finder/broker fees. Results of the FCPA

compliance audit and training program review resulted in enhancements to both programs.

Global Offshore Drilling Company

– Anti-Fraud and Anti-Corruption Control Assessment

Retained through external counsel, Protiviti reviewed the client’s documentation related to its control

environment, anti-fraud program and controls and FCPA compliance program in comparison to authoritative

guidance and leading practices. We executed over 30 electronic data routines in order to identify potential fraud

and corruption risk indicators related to vendor and agent payments. In addition, we conducted interviews of

designated company personnel located in US and overseas field offices to understand the impact of the

company’s FCPA compliance program in the daily course of work. Protiviti provided External Counsel and

management with a report detailing its observations and recommendations in preparation for discussion with

external auditors and Federal regulators.

Results of investigation were reported to external counsel and company’s Board of Directors.


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Global Entertainment Company

– Anti-Bribery Compliance Program Development

Protiviti was engaged by the US subsidiary of a Japanese company to assist them in the development of a

global anti-bribery compliance program in order to meet the standards of the UK Bribery Act of 2010. Protiviti

assisted in project management, policy deployment and acknowledgement, training development and

deployment to 6,000 employees in 13 languages and process design and implementation. The results of our

work have assisted the organization in putting an efficient and effective compliance program in place.

Leading Global Pharmaceutical Company – Japan

Protiviti's Japan office was retained by a Japan-based leading global pharmaceutical company to help address

fraud risks during a global operations restructuring initiative that focused on emerging markets. A fraud risk

assessment was conducted, resulting in the development of policies and guidelines to implement newly-

designed internal controls. These policies and guidelines served as the foundation for the company to address

and mitigate risks of fraud and bribery, as well as meet regulatory compliance requirements of the FCPA and

other anti-bribery laws. In addition, Protiviti conducted a review of expense payment policies and procedures,

as well as conducted interviews with key personnel in the Accounting/Finance/Compliance divisions, of more

than 10 key subsidiaries in Japan, US, Europe and Asia. Protiviti analyzed the findings and designed a

guideline suitable for all of the company's subsidiaries to address fraud and bribery risk.


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Government-Owned Development Company – United Arab Emirates

– Fraud and Corruption Scenario Assessment

In order to fulfill government requirements, management of a government-owned development company

engaged Protiviti’s Member Firm (Middle East) office located in Abu Dhabi to perform a scenario-based risk

assessment to address potential risk events involving fraud, corruption, waste, abuse and misconduct. In

addition, Protiviti’s Member Firm (Middle East) office conducted an assessment of the organization’s fraud risk

management program, which resulted in recommendations to enhance the organization’s anti-fraud and anti-

corruption initiatives.

Multi-Industry – Anti-Corruption Compliance Loan Staff Assistance

Protiviti has provided multiple Fortune100, 500 and 1000 companies with loan-staff assistance in the execution

of FCPA/anti-corruption compliance projects around the world. The length of assignments has varied from two

(2) days to several months based upon the client’s need and objectives.


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Numerous Italian Companies

Our Italy professionals have worked with almost 100 companies over the years in addressing their compliance

with Italy Legislative Decree No. 231 which is Italy’s anti-bribery law. Protiviti has extensive experience in

performing risk assessments, conducting training, assessing compliance program effectiveness and performing

compliance audits.

US-Based Oilfield Services Company – FCPA Risk Assessment

Protiviti developed a sustainable FCPA risk assessment process that is utilized by the Client in the evaluation of

its overall risk and control activities. We interviewed designated professionals across the company’s global

operations to help identify potential FCPA risk scenarios. Next, we developed common fraud scenarios

associated with bribery and kick-backs in multiple foreign countries to help identify and prioritize client’s FCPA

risk. We then created criteria in conjunction with IA team to rank countries according to potential FCPA risk in

order to develop a multi-year global Internal Audit plan. Finally, we developed test scripts for FCPA compliance

audits as supplement to operational audits executed in foreign countries.


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Joint-Venture Companies – Oil and Gas Industry

– Anti-Corruption Compliance Program Assistance

Protiviti was engaged by three (3) joint venture companies of two (2) global organizations to review their existing

Code of Ethics (“Code”) and supporting policies and procedures to help management evaluate, mitigate and monitor

the risk of non-compliance with the Foreign Corrupt Practices Act (“FCPA”). Our work was conducted in three (3)

phases and resulted in development of a cohesive set of revised policies and procedures to govern key activities

relevant for anti-corruption purposes, as well as a new Anti-Corruption Compliance Program Framework, monitoring

procedures and compliance audit work program.

Global Insurance Company

Protiviti was engaged by external counsel to assist client with development of risk assessment methodology to

identify and prioritize key risks related to Foreign Corrupt Practices Act (“FCPA”) within international operations.

Protiviti created and executed a work plan that included document review and analysis, interviews with designated

company professionals in multiple overseas locations, brainstorming exercises with corporate compliance and

internal audit, and facilitated discussion with management to validate FCPA risk ratings and profile. Results of the

FCPA risk assessment served as the basis for development of FCPA risk monitoring activities.


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Pharmaceutical Developer

– Anti-Corruption Compliance Program Review

Prior to its acquisition, Protiviti was engaged by the Internal Audit Department of a global orphan drug developer

to conduct an anti-corruption compliance review in order to identify potential gaps in the company’s anti-

corruption compliance activities. Protiviti conducted interviews with selected members of management and

reviewed several corporate policies and procedures provided by the Company in order to benchmark the design

of its anti-corruption compliance framework against authoritative guidance.

US-Based Hospitality Company

– Anti-Corruption Compliance Assistance

Protiviti was engaged by the Legal Department of a leading owner, operator and franchisor of hotels with

operations in the US, Canada and Mexico to provide assistance in the review of the Company’s anti-corruption

compliance activities, as well as develop a third-party due diligence policy. Work steps included document review

and analysis of corporate policies which guide the company’s anti-corruption compliance activities, as well as field

interviews with designated members of Management. As a result of procedures performed, Protiviti provided a

report to the Legal Department outlining suggested enhancements to its anti-corruption compliance controls

(entity-level), as well as third-party due diligence policy to help guide the company’s consideration of potential

business partners and representatives.


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Privately-Held U.S. Holding Company

– Anti-Corruption Compliance Audit Assistance

Working under the direction of in-house counsel, Protiviti provided “on-call” subject matter expertise to the

company’s Internal Audit Department during the planning and execution of anti-corruption compliance audits at

designated subsidiaries. The Internal Audit Department’s findings resulted in recommendations to help

strengthen the company’s anti-corruption compliance activities, as well as the additional due diligence of one of

the company’s business partners.

Global Offshore Drilling Company

– Anti-Corruption Compliance Audit (Third Party Marketing Agent)

Protiviti was engaged by the company’s Chief Compliance Officer to perform an anti-corruption compliance audit

of the company’s third-party marketing agent in Southeast Asia. Planning activities were conducted on a remote

basis prior to execution of field procedures. The scope of work included review of the company’s due diligence

file, interviews with the third-party marketing agent’s personnel and testing of invoices since inception of the

business relationship. A report was issued to the Chief Compliance Officer in consideration of the company’s on-

going business relationship with the third-party marketing agent.


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International Offshore Drilling Company

– Anti-Corruption Compliance Audit Procedures

Working under the direction of in-house counsel, Protiviti performed agreed-upon anti-corruption compliance

audit procedures as a supplement to operational reviews conducted by Internal Audit across the company’s

geographic footprint. A risk analysis was conducted prior to each site visit in order to identify potential touch

points with government officials. Field work was typically executed over the course of one (1) to three (3) days

and the results reported to in-house counsel for the purpose of addressing control gaps and any matters involving

non-compliance with the company’s anti-corruption compliance policy and procedures.

Global Financial Services Provider

– Anti-Corruption Compliance Audit Procedures

Protiviti was engaged by External Counsel of a global financial services provider to conduct transaction testing

of its client’s local books and records. The objective of the project was to identify potential patterns, trends and

anomalies of non-compliance by employees with corporate policies and procedures in multiple overseas

locations. Protiviti participated in interviews with designated members of Management that were facilitated by

external counsel. We also provided resources with requisite language skills and anti-corruption compliance

experience to conduct transaction testing activities. Results were reported to External Counsel in order to

provide legal advice to the client in support of on-going anti-corruption compliance reviews.


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Commercial Real Estate Developer

– Anti-Corruption Compliance Program

The Legal Department of a commercial real estate developer with global interests engaged Protiviti to conduct

an anti-corruption compliance program assessment of its operations in Brazil. Work steps included testing the

local implementation of the company’s anti-corruption compliance program and operating effectiveness of its

corporate policy. A combination of remote and on-site field procedures were used to execute interviews with

designated members of Management and transaction testing. A report was issued to the Legal Department in

order to assist in providing advice to the company regarding its anti-corruption compliance program.

Financial Services Brokerage

– Post-Acquisition Due Diligence

Protiviti was engaged by in-house counsel to perform post-acquisition due diligence of payments and

transactions involving a newly-acquired subsidiary of a global financial services brokerage company. Protiviti

reviewed documentation to understand the internal control infrastructure of the acquired company, conducted

informational interviews with senior executives and performed testing of senior executives’ employee expenses,

as well as certain General Ledger transactions.

Results of testing procedures were reported to in-house counsel for consideration in the integration of the newly

acquired company within the parent company’s compliance framework.


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Fraud Risk Management and Financial Crime



CREDENTIALS AND CASE STUDIES:• FRAUD RISK MANAGEMENT EXPERIENCE

Public Utility Company – Fraud Risk Assessment Review

Initially engaged by the Legal Department to perform an internal investigation related to a major employee

embezzlement scheme, Protiviti highlighted several areas whereby the Company had increased exposure to fraud risks

enterprise-wide. At the conclusion of the investigation, Protiviti performed a review of the Company’s fraud risk

management framework, comprising both the entity and process level internal control environment, to identify potential

gaps with authoritative guidance and program enhancements to help achieve leading practices in the industry. Over 75

documents were analyzed to understand the company’s fraud risk assessment framework and interviews were

conducted with Management from various departments including: accounting, legal, compliance, generation,

transmission, water, government relations, human resources, procurement, and supply chain management. A report

was issued to the Legal Department recommending necessary changes in Management’s control activities to strengthen

processes intended to prevent and detect potential fraud and corruption risks, both internal and external, against the

company.

Fraud Risk Assessment – New Product (Financial Services)

In conjunction with the client’s anti-money laundering practice group, Protiviti assisted the client in identifying potential

fraud risks associated with the release of its new on-line banking product through review of product and process

documentation, along with discussion involving its third party client/account processor. This project identified significant

fraud risks which had not been addressed by the third-party processor. While this resulted in a delay in the release of the

product, the client was able to successfully re-negotiate services provided by its vendor and implement additional fraud

monitoring techniques in order to enhance its fraud risk mitigation plan.

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CREDENTIALS AND CASE STUDIES:• ANTI-CORRUPTION/FCPA AND CORRUPTION RISK EXPERIENCE

Anti-Fraud Program and Controls Assessment (Financial Services):

Protiviti assisted the client’s Audit Services team in its review of the fraud risk evaluation, mitigation and monitoring

activities conducted by its financial services’ business unit. Work steps included document review and analysis, as well

as interviews with management. As a result of the review, the client was provided with information to help strengthen the

business unit’s fraud risk management program through potential realignment of budget and resources.

Anti-Fraud Controls and Fraud / Loss Prevention Unit Assessment (Financial Services):

Protiviti performed an assessment of a client’s anti-fraud controls at three locations and assessed the effectiveness of

Fraud and Loss Prevention Unit. During this review, interviews were held with Senior Management, prior internal audits

were reviewed and the client’s Internal Control Excellence program was tested. After performing these procedures,

Protiviti identified processes / activities that represented areas of elevated fraud risk. Protiviti then facilitated

management’s prioritization of these risks. Based upon our discussions with management and the results of testing

procedures, we identified certain control weaknesses and recommended improvements to enhance the activities of the

client’s Fraud and Loss Prevention Unit.

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Fraud Risk Assessment – New Product

Client requested assistance of Protiviti’s subject matter specialists to execute fraud risk assessment procedures for a

new loan product. Our work steps included: review of policies, procedures and marketing materials; interviews and

facilitated discussion with designated members of management; development of common fraud scenarios;

identification of key fraud risk in designated processes; and electronic data mining and analysis. Based upon results

of fraud risk assessment, seven (7) key areas of fraud risk were identified. Protiviti provided recommendations to

help strengthen fraud risk mitigation and detection activities for new loan product. In addition, electronic data mining

and analysis procedures identified procedural breakdown that was subsequently corrected by client.

White Collar Crime and Financial Investigations

Protiviti has deep, wide-ranging experience performing internal investigations of allegations of financial impropriety,

external fraud, kickbacks, procurement fraud, vendor scheme, payroll fraud, travel and entertainment expense

irregularities, bribery and corruption, product tampering, theft of intellectual property, network intrusions, harassment

and discrimination. In virtually every investigation, our objectives are two fold. Determine whether the allegations

have merit and, if so, gather and analyze evidence in support of the investigation to assist clients in pursuing civil

remedies, to make criminal referrals, file insurance claims and/or discipline the responsible parties. Secondarily and

of equal importance, our investigations are conducted in such a way as to expose deficiencies in the control

environment and the techniques used to circumvent the controls that allowed the improper conduct to occur and to

continue undetected. Our experience performing internal investigations provides us with practical insights into the

efficacy of the victim organization’s fraud control frameworks.

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• FRAUD RISK MANAGEMENT EXPERIENCE

THOUGHT LEADERSHIP AND EVENT CREDENTIALS



PROTIVITI FCPA AND ANTI KLEPTOCRACY CONFERENCE IN NEW YORK MAY 13, 2016

52

Convene Conference Center

810 Seventh Ave (52nd and 53rd)

New York, NY 10019

(646) 854.7949

Protiviti (www.protiviti.com), a

global consulting firm, hosted an

FCPA (Foreign Corrupt Practices

Act) and Anti-Kleptocracy

conference featuring the head of

the FBI’s FCPA and Anti-

Kleptocracy Squad and officials

from the Department of Justice

along with attorneys and experts in

fraud investigation and regulatory

compliance.

Friday, May 13, 2016

8:00 a.m. – 4:00 p.m. EDT

Speakers, included officials from the FBI

and DOJ, attorneys and compliance

experts, to discuss combatting

corruption; FCPA investigations; the

Panama Papers and more

• FBI and DOJ: Where We Are Today

and The Road Ahead

• DOJ’s New Pilot Program and

Current

Enforcement Trends

• FCPA Compliance Success Stories

• Dark Money – An Analysis of the

“Panama Papers” and the

Implications on Compliance

Programs

• Necessary Evils – Bringing Existing

Third Parties into Alignment with

Your Compliance Program

AG

EN

DA

WH

O

WH

EN

WH

AT

WH

EN



THOUGHT LEADERSHIP

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2016 White Collar Crime and Fraud Risk Survey

Protiviti and the Economic Crime and Justice Studies Department at Utica College conducted a survey of white-collar crime

and the fraud risk management frameworks used to combat them. Notable finding that emerged was ‘Many organizations

conducting investigations are under-resourced and are spending more time “putting out fires” than focusing on fraud

detection and applying a consistent investigative approach.’ Other notable takeaways include:

• Most companies are still reactive, rather than proactive, in managing fraud risk and responding to fraud and corruption

once issues have been identified because they lack resources and strategy.

• Few companies are availing themselves of the tools and best practices for mitigating fraud risk.

• Third-party fraud and corruption risk is barely on the radar of most organizations.

• Organizations without strong fraud detection and reporting programs face a higher risk of damaging “whistleblower”

disclosures.

• The trend toward “consultative” internal audits must be weighed against the deterrent effect of surprise audits.

Viewing Your Anti-Corruption Efforts Through the Lens of the Hallmarks of an Effective Compliance Program

In November 2012, the Criminal Division of the U.S. Department of Justice and the Enforcement Division of the U.S.

Securities and Exchange Commission jointly released A Resource Guide to the U.S. Foreign Corrupt Practices Act. The

guide is a clear statement from the government that “this is what we are looking for” in your anti-corruption program. Indeed,

when evaluating a compliance program and designing audit procedures to test the efficacy of such programs, it is prudent to

consider the elements that the government construes to be of critical importance. This white paper summarizes these 10

program hallmarks and includes excerpts from each section of the guide and information intended to provide further insight.

A Strong Compliance Culture Starts With Managing Third-Party Corruption

An effective third-party anti-corruption program is an important component of an organization’s overall anti-corruption

program, and helps the business to identify potentially problematic commercial partners. For those stakeholders striving to

build a sustainable third-party anti-corruption management program, this white paper will provide important guidance and

best practices to help ensure optimal results.



WEBINARS (1/4)

54

Speakers:

George Stamboulidis

Partner, BakerHostetler

Scott Moritz

Protiviti Managing Director

Dr. Don Rebovich

Chair, Economic Crime & Justice

Studies Department Utica College

Pamela Verick & Peter Grupe

Director, Investigations & Fraud

Risk Management Practice,

Protiviti

Complimentary CPE Webinar

• Protiviti and Utica College organized a webinar to analyze recent trends

based on the results of the inaugural White Collar Crime and Fraud Risk

Survey.

• Given the dynamic nature of white-collar crime and fraud, Protiviti and the

Economic Crime Unit and Justice Studies Department at Utica College

conducted a comprehensive survey of white-collar crime and corruption and

the fraud risk management and anti-corruption frameworks used to combat

them.

• Speakers discussed the trends shaping businesses today and key survey

findings, including:

– How few companies are availing themselves of the tools and best

practices for mitigating fraud risk

– Third-party fraud and corruption risk is barely on the radar of most

organizations

– Organizations without strong fraud detection and reporting programs

face a higher risk of damaging “whistleblower” disclosures

– The implications of the Yates Memorandum and the DOJ’s increased

scrutiny of corporate compliance programs

Taking the Best Route to Managing Fraud and Corruption Risk Webinar



WEBINARS (2/4)

55

Speakers:

Kimberly A. Parker

Partner, WilmerHale

Scott Moritz

Protiviti, Managing Director

Pam Verick

Protiviti, Director Save

Robert Hennigan

Protiviti, Associate Director

Addressing the Spiraling Costs and Length of Investigating

Allegations of Corruption in Your Organization

• In recent months, a lively debate has been raging around the government’s

position that the rising costs of investigating potential FCPA violations are

the result of companies and their law firms “boiling the ocean” and the

defense bar’s position that rising costs are a direct result of executing on the

government’s wishes.

• While there are no doubt merits to both sides of the argument, there are also

strategies that companies and their counsel can employ to limit the costs of

their investigation while still addressing the allegations at hand.

• This webinar was intended to provide strategies, tips and other guidance to

assist companies to conduct efficient investigations that are responsive to

the allegations at hand while avoiding some of the pitfalls that cause

investigative costs to mushroom out of control.

Taking a Pragmatic Approach to FCPA Investigations



WEBINARS (3/4)

56

Speakers:

Scott Moritz


Peter Grupe

Director, Protiviti

• Vendor fraud is one of the most common fraud schemes perpetrated against

companies.

• This was the second in a series of webinars focusing on internal

investigations. This second installment focused on investigating vendor

fraud.

• In the webinar, topics covered included:

– Identifying vendor fraud

– Scoping the investigation

– Establishing investigative protocols

– Assembling the investigative team

– Interviewing techniques

– Documenting and presenting investigation findings

Misplaced Trust: Investigating Vendor Fraud



WEBINARS (4/4)

57

• The complimentary CPE webinar focused on internal investigations. The

first installment of this webinar series provided an overview of internal

investigations, dos and don’ts and practical examples of the issues that

come up and how best to deal with them when they do.

• According to the speakers, the need to perform an internal investigation

typically comes without warning and most organizations do not have

dedicated investigative headcount with the skillsets, tools and experience

necessary to performance an internal investigations.

• Instead, the staffing of an internal investigation is much more likely to

consist of “battlefield promotions” of some combination of internal audit,

legal, IT and HR being asked to come together to perform an internal

despite the possibility that none of them have ever performed an

investigation before.

Internal Investigations for Non-Investigators

Speakers:

Scott Moritz


Peter Grupe

Director, Protiviti

RESUMES



Scott Moritz

59

Managing Director,

New York

Direct: +1 212.603.8356

Mobile: +1 917.930.5903

E-Mail: [email protected]

Areas of Expertise

• Investigations

• Financial Crime

• Anti-Corruption

• Anti-Money Laundering

• Corporate Intelligence

• Monitoring

Industry Expertise

• Financial Services

• Hardware & Software

• Telecommunications

• Oil & Gas

• Mining

• Life Sciences

• Construction

Education

• B.S. – Marketing & Management Jacksonville

University

Professional Memberships and

Certifications

• Certified Fraud Examiner (CFE)

• Certified Anti-Money Laundering (CAMS)

• Certified Information Privacy (CIPP)

• Society of Former FBI Special Agents

Professional Experience

Scott is a managing director in Protiviti’s New York office and global leader of Protiviti Forensic. He has more than 30

years of investigative and regulatory compliance experience working with a variety of organizations, government and

regulatory agencies to identify, triage, investigate and remediate a wide variety of risks and complex financial crimes.

With extensive experience investigating transnational crime, corruption and money laundering, Scott is widely regarded

as a leading authority in the evaluation, design, remediation, implementation and administration of corporate

compliance programs/ codes of conduct and in the establishment, training and oversight of the investigative protocols

carried out by financial intelligence, corporate security and internal audit units. He innovated the use of risk scoring and

enabling technologies in an anti-corruption context to identify, investigate and remediate high risk commercial

relationships and case manage overall compliance processes and has participated in the strategic design and

implementation of some of the world’s leading ethics & compliance programs.

Mr. Moritz was previously a managing director in the Global Investigations & Compliance practice at Navigant

Consulting, was amongst the four founding executive directors of Daylight Forensic & Advisory before its sale to

Navigant, held leadership positions in the forensic practices at KPMG and PwC and served as an FBI Special Agent

where he focused on white collar crime, domestic and international corruption and money laundering

Major Projects

• Mr. Moritz has led fraud risk management and remediation projects of behalf of public companies including those

involving fraud risk assessments and program enhancements; transactional analysis; customer reviews;

compliance program strategic advisory, program design, training, reengineering and optimization projects and the

creation of the investigative, customer identification and enhanced due diligence protocols currently followed by

several major public companies. He has also been the architect of numerous third party screening programs.

• Mr. Moritz has served as lead investigator on numerous major financial crimes in a wide range of industries

including banking, insurance, oil field services, oil drilling, software and technology, professional services, medical

equipment, pharmaceutical and telecommunications.

• He is widely considered to be an expert in the integration of traditional investigative techniques into ethics &

compliance programs.



Peter F. Grupe

60

Director,

New York , US

Direct: +1 212.399.8613

Mobile: +1 631.605.5127

Fax: +1 212.399.8781


Areas of Expertise

• Financial Crimes

• Corruption


• FCPA

• Crisis Management

Industry Expertise


• Professional Sports

• Construction

Education

• M.B.A. – Finance

• B.S. – Management, Finance/Accounting


Certifications

• FBI Agents Association

• Association of Certified Fraud Examiners –

Associate


Peter is a Director with Protiviti Forensic. He has successfully managed many different engagements in the last couple

of years to include financial crime investigations, forensic accounting services, whistleblower investigations, security

assessments, FCPA compliance program reviews and fraud risk reviews at financial institutions. He has over thirty

years of experience in consulting, law enforcement and corporate finance.

Major Projects

• He most recently served as the President of an international corporate security consulting firm specializing in

fraud detection and prevention, risk mitigation, due diligence, executive protection and crisis management. The

firm provided services to many different industries, with a special emphasis in the financial services sector. He is

credited with designing programs to protect employees, assets and products.

• Peter has also held various executive management roles with the Federal Bureau of Investigation (FBI). He

retired after 24 years of service as the Assistant Special Agent in Charge of the largest White Collar Crime Branch

of the FBI (New York Office). In that capacity, Peter had direct supervision over approximately 1500 pending

investigations, 200 Special Agents, 40 Forensic Accountants, 15 Intelligence Analysts and 40 Professional

Support employees. He was responsible for all investigative, financial and administrative functions associated

with every investigative program. These investigative programs included Financial Institution Fraud, Corporate

and Securities Fraud, Anti-Money Laundering, Public Corruption, Foreign Corrupt Practice Act, Health Care Fraud

and Bankruptcy Fraud. He is credited with successfully managing the Bernard Madoff investigation, the largest

insider trading investigation in history, and sensitive investigations of elected and appointed public officials.

• In addition to Peter’s significant role in managing the White Collar Crime program at the FBI, he was also a senior

member of the New York SWAT Team. The New York SWAT Team was responsible for the execution of all high

risk arrests and operations to include VIP and Dignitary Protection, and planning and preparedness for special

events. He held the position of On-Scene Commander for all New York SWAT operations upon his retirement.

• Prior to his appointment with the FBI, Peter was a mid-level executive at two major financial institutions where he

specialized in leveraged buyouts, mergers and acquisitions, and new business development. He completed the

Loan Officers Development Program with the Bank of Boston.

• Peter has also lectured and provided training around the world on corporate security matters, fraud detection and

prevention.



Pamela Verick

61

Director,

McLean, VA, USA

Direct: 703.299.3539

571.382.7243

Mobile: 703.338.2322

Fax: 571.382.7276


Areas of Expertise

• Fraud Risk Management

• FCPA/UKBA

• Forensic Investigations

• Compliance and Ethics

Industry Expertise

• Energy


• Federal, State and Local Government

• Non-Profit Organizations


• Consumer and Industrial Manufacturing

Education

• B.A., Justice, The American University

• M.S., Justice/Judicial Administration, The

American University


Certifications

• Association of Certified Fraud Examiners,

Member and Certified Fraud Examiner

• American Bar Association, Associate Member

• Institute of Internal Auditors, Member

• The Junior League of Washington, D.C.,

Sustainer

• Member, Greater Reston Arts Center


Pamela (“Pam”) Verick is a Director in Protiviti Forensic where she focuses on investigations and leads our fraud risk

management initiative. Pam has over 22 years of risk management experience, including creation of global fraud

prevention and anti-corruption compliance programs, as well as investigations involving allegations of fraud,

misconduct, bribery and kickbacks. She also collaborates with clients on the planning and execution of corruption risk

assessments, as well as corresponding compliance audit and monitoring activities to detect potential red flags

associated with fraud and corruption. Pam develops and delivers training and awareness programs to international

audiences on various topics associated with fraud governance, fraud and corruption risk and investigations in the world

market.

Prior to joining Protiviti, Ms. Verick was a Director in the Forensic practice of a Big 4 professional services firm, where

she served as a global product champion for fraud and misconduct diagnostic services. Her practice focused on fraud

risk management and forensic investigations and she has provided assistance to internal and external audit teams on a

myriad of issues, including financial investigations and implementation of SAS 99.

Major Projects

• Conducted an assessment of the anti-corruption compliance program for an international construction claims

management company with offices in over 30 countries. Work steps included document review and analysis, as

well as interviews with 30+ global management executives. Developed recommendations to enhance the

company’s anti-corruption compliance activities. Remediation activities included revision of the company’s anti-

corruption compliance policy, development of an agent and representative policy and corresponding monitoring

procedures, and a global anti-corruption compliance audit work program and internal audit “toolkit.” Provide on-

going consulting assistance to the company’s Compliance Committee.

• Executed an anti-bribery program review in conjunction with in-house counsel for the U.S. subsidiary of a

Japanese-owned global leader in turbo machinery. Work steps included review of the company’s anti-bribery

activities and 40+ interviews with global personnel. Provided recommendations to strengthen the company’s anti-

bribery program and framework for a global corporate compliance program, as well as support during the

selection of a global corporate compliance officer. Also provided in-person training on global corruption issues,

including the Foreign Corrupt Practices Act (“FCPA”) and UK Bribery Act of 2010 (“Bribery Act”), to the company’s

Board of Directors (“Board”) to educate non-US board members on compliance requirements arising from the

FCPA and Bribery Act, and to assist the Board in understanding their compliance oversight and governance

responsibilities.

• Conducted a multi-phased fraud governance project on behalf of a state-owned entity in Abu Dhabi, UAE. Work

streams included: (1) review and benchmarking of the organization’s fraud control policy and fraud risk

management program against authoritative guidance and leading practices; (2) fraud scenario assessment to

identify vulnerabilities arising from fraud, corruption and misconduct; (3) development and delivery of fraud risk

awareness training program for employees; and (4) remediation activities to enhance fraud prevention and

detection capabilities



Diane Walker

62

Director,

New York, US

Direct: +1 212. 603.8388

Mobile: +1 201.725.7508


Areas of Expertise

• Investigations

• FCPA/Anti-Corruption

• Forensic Accounting

Industry Expertise

• Consumer Products

• Retail

• Toy Manufacturing


• Life Sciences

Education

• B.S. Economics, concentrations in Accounting

and Finance, Wharton School, University of

Pennsylvania


Certifications

• Association of Certified Fraud Examiners

• Certified Insolvency and Restructuring

Accountant (CIRA)


Diane is a Director in the New York office and specializes in performing corruption, fraud and forensic investigations. In

addition, she is experienced in advising various parties-in-interest in Chapter 11 bankruptcy proceedings,. She has

over 25 years of experience in these practice areas and her industry experience includes retail, health and beauty aids,

telecommunications, computer system design and installation, futures trading, general manufacturing and toy

manufacturing.

Prior to joining Protiviti in July 2002, Ms. Walker was a Manager with Cherpock & Rosenfeld LLP (“C&R”), a consulting

firm specializing in turnaround/crisis management, fraud and forensic investigations and litigation support. Prior to her

work with C&R, Ms. Walker was a Director with FTI Consulting, a boutique consulting firm specializing in forensic

investigations, bankruptcy and turnaround consulting and litigation consulting.

Major Projects

• She has extensive forensic experience including managing an investigation of alleged violations of the Foreign

Corrupt Practices Act (“FCPA”) involving a multinational manufacturer of medical research and diagnostic

products and equipment. In conjunction with this investigation, she reviewed and analyzed financial records,

identified questionable transactions and analyzed distributors’ agreements and other business arrangements.

• Assisted a global consumer products manufacturer with a review and enhancement of the Company’s anti-

corruption compliance program, policies and procedures with respect to compliance with the FCPA, as well as

provided assistance in management’s identification and prioritization of potential corruption and FCPA risks

across the enterprise.

• Assisted outside counsel in performing an anti-corruption compliance review in several international locations for a

global financial services client. Analyzed general ledger transactions to identify fraud indicators and other

anomalies and unusual patterns to select testing samples. Reviewed company policies, performed review of

selected samples and highlighted notable transactions for further review with Counsel.

• Conducted multiple investigations of whistleblower allegations of diversion of corporate assets, provision of

kickbacks and other fraudulent activity. In addition, she conducted a fraud investigation of a copper, silver and

gold futures trading scheme.



Jim Gibson

63

Director,

Chicago, US

Direct: +1 312.476.6423

Mobile: +1 630.215.4659


Areas of Expertise

• Investigations

• Financial Crime

• Anti-Corruption

Industry Expertise

• Manufacturing

• Wholesale Distribution

• Consumer Packaged Goods

• Professional Services

Education

• B.A. – Economics, DePauw University


Certifications

• Certified Public Accountant (CPA)

• Certified in Financial Forensics (CFF)

• American Institute of Certified Public

Accountants (AICPA)

• Institute of Internal Auditors (IIA)


Jim is a Director with responsibility for Protiviti Forensic’s services within the Central Region. He has extensive

experience in the areas of forensic accounting, financial investigations and complex accounting reconciliation projects

Jim has over 28 years of professional experience in these and other related financial services practices. Some of his

nationally recognized engagements include the Royal Ahold and Ace Hardware financial investigations. Mr. Gibson is

based in Protiviti’s Chicago office.

Major Projects

• Investigated an international accounting fraud centered primarily around accounting for vendor rebates that

misstated reported results of a public company by close to $1 billion. Reconstructed individual rebate income and

receivable accounts for each vendor and reconciled to recorded amounts. Conducted extensive interviews with

management personnel to assess involvement in and means by which the fraud had been perpetrated over an

extended period of time. This work required working closely with the DOJ, SEC and other regulators.

• Led the forensic accounting investigation of a major wholesaler which led to the restatement of 3 year’s financial

statements, culminating in the write-down of nearly 1/3 of the company’s equity (over $150 million).

Reconstructed inventory accounting, encompassing millions of transactions, over a 5 year timeframe to determine

root causes of the accounting error. Extensive coordination and communication with the company’s debt holders

was required to prevent acceleration of over $200 million of notes due to technical defaults triggered by the

company’s accounting error. External auditors signed off on restated results within 4 months of the completion of

the investigation without any additional adjustments to inventory.

• Assisted outside counsel in an investigation on misconduct allegations related to the CEO of a publicly-held

company. Identified areas where misconduct occurred and quantified. Developed remediation plan to mitigate

future risk.

• Led a wide variety of investigations into embezzlement, employee theft, travel and entertainment expense abuse,

employee code of ethics violations, financial statement fraud and potential FCPA violations. Interfaced with

CAEs, in-house legal counsel, outside counsel and law enforcement entities. Several projects involved extensive

e-discovery activities, e-mail review and financial statement reconstruction. Retained in some cases after

conclusion of investigations to assist with remediation activities.

• Jim began his career in the mid 1980s with Arthur Andersen & Co. He spent five years in Andersen’s Chicago

Audit Group and eleven years in its Business Consulting Group where he specialized in a variety of financial and

operational consulting services to the finance organizations of his clients.



Kelly N. Flagg

64

Associate Director,

New York, US

Direct: +917.940.4421

Office: +212.603.5416

Fax: +212.603.5483


Areas of Expertise

• FCPA/Anti-Corruption Compliance




• Compliance and Ethics

Industry Expertise


• Life Sciences

• Mining

• Manufacturing

• Energy & Utilities

• Industrial Products


• Hardware & Software

Education

• B.S. in Accounting/Smith School of Business,

University of Maryland

• B.A. in Criminology & Criminal Justice/University

of Maryland


Certifications

• Certified Fraud Examiner


Kelly is an Associate Director in Protiviti Forensic. She has over 10 years of experience working with organizations of

various size and in a range of industries, in the areas of anti-corruption compliance, fraud risk management, financial

investigations, and litigation support.

Kelly’s experience in conducting in-depth financial investigations includes probes which focused on violations of the

Foreign Corrupt Practices Act, misappropriation of funds, fraudulent financial reporting and false claims to insurance

companies. Her skill in litigation support largely stems from a long-term relationship with a major insurance company in

which she gathered evidence to support the client’s position in numerous disputes. Kelly also applies her knowledge of

fraud and corruption schemes to consulting clients in proactive engagements, designed to assist clients in the

evaluation and assessment of their anti-fraud and anti-corruption programs and controls.

Prior to joining Protiviti, Kelly interned with a “Big 4” professional services firm in its Forensic Practice and External

Audit Practice, gaining experience in financial investigations and audit standards.

Major Projects

• Assisted in the fraud risk assessment of a Fortune 1000 aerospace, defense, and commercial business

manufacturing company. Specifically, Ms. Flagg helped develop a fraud risk assessment survey questionnaire,

designed to assist management with the identification and prioritization of potential risk and controls associated

with common fraud scenarios applicable to the organization.

• Investigated allegations of fraud and misappropriation of company assets at global advertising and marketing

agency. The investigation focused on activities performed by the former CEO, CFO, and Controller of the

organization. Specifically Ms. Flagg assisted with reviewing and analyzing financial statements, vendor

disbursements, employee expenses, and email and instant messaging communications, and other business

documentation. As a result of the work performed, the company was able to reclaim 50% of the losses incurred

under their insurance policy covering fraudulent activities.

• Assisted in a Foreign Corrupt Practices Act investigation of a large global medical research and diagnostic

products and equipment manufacturing company. In conjunction with this investigation Kelly analyzed

transactions within the general ledger systems, invoices, compensation arrangements, and other business

transactions associated with various locations around the world.

• Participated in the fraud audit of a subsidiary of a Fortune 1000 financial institution. Specifically, Kelly assisted

the company with reviewing the operations of the subsidiary for potential red flags of fraud, corruption, and/or

bribery. As part of the audit, the project team reviewed and analyzed corporate credit card activity and expenses

incurred by upper management, as well as expenses processed through accounts payable for the 4 office

locations of the organization.



James E. Gallo

65

Associate Director,

New York

Direct: 212.603.8320

Mobile: 516.353.6707

Fax: 212.399.8702


Areas of Expertise

• Anti-Bribery & Corruption


• Investigations

• Internal Audit

• Corporate Security

• Expense Management

• Executive Compensation

Industry Expertise


Education

• B.B.A – Accounting Adelphi University


Certifications


Background

Jim is an Associate Director in Protiviti Forensic. He has more than 25 years experience in the financial services

industry with a primary focus on leading internal investigations and ethics matters and directing teams to execute a

risk-based approach for auditing fraud globally.


Jim most recently was the Global Director for Financial Crimes in the financial services industry, where he developed a

forensic data lab that produced predictive analytics to search for expense reduction opportunities and potential

employee embezzlement, resulting in substantial savings for the company. He also implemented the charter for

ensuring the company developed appropriate fraud risk measures to identify, test and report on mitigating controls to

reduce fraud and franchise risks for the corporation.

Jim led all internal investigations and ethics matters for the Internal Audit department globally that resulted in cost

recoveries for the company and the strengthening of the internal control environment to mitigate fraud risks as they

related to vendor management, bribery, kickbacks, embezzlement and other forms of financial crimes.

He was also an Internal Audit Director where he developed a global risk based approach for auditing and monitoring

compliance with applicable regulations and corporate policy for Executive Compensation, Procurement, Third Party

Relationships, Accounts Payable, Realty Services, Foreign Corrupt Practices Act, Anti-Bribery & Corruption, Human

Resources, Global Government Affairs and Corporate Security.

Jim has spoken at numerous conferences as a recognized leader in the development in financial services for

implementing best practices to detect and prevent fraud risks and also provided training on strengthening fraud

awareness.



Robert J. Hennigan

66

Associate Director,

New York

Direct: 646.428.8231

Mobile: 973.479.8568


Areas of Expertise

• Corruption and Anti-Bribery Investigations


• Corporate Security/Investigations

• Healthcare

• Crisis Management

Industry Expertise


Education

• B.S. – Accounting Lehigh University


Certifications

• FBI Agents Association

• Society of Former FBI Special Agents


Background

Robert is an Associate Director in Protiviti Forensic. He has almost thirty years of experience in law enforcement,

financial services, and internal audit. He is also a Certified Fraud Examiner.


Robert has held various management roles at the Federal Bureau of Investigation and retired after over 24 years of

service. Robert specialized in Corruption, Foreign Corrupt Practices Act, Healthcare/pharmaceutical Fraud, Financial

Institution Fraud, and Crisis Management. He served as the FBI, New York Supervisory Special Agent and Public

Corruption Coordinator managing numerous investigations of elected and appointed public officials.

At retirement, Robert served as the FBI New York’s Crisis Management Coordinator responsible for the management

of FBI specialty teams including SWAT, evidence recovery, special events, VIP and dignitary protection, command post

operations, and international deployments. Robert recently managed the FBI, New York’s security posture for Super

Bowl 2014, the New York City Marathon, and the 2015 NBA All-Star Game. In addition to his investigative

responsibilities, Robert served as a Senior member of the FBI New York SWAT Team responsible for the execution of

all high risk arrests and security operations.

Prior to his appointment with the FBI, Robert was an Assistant International Stock Trader and Internal Auditor at a

major financial institution and Fortune 500 corporation. He is Series 7 and 63 certified.

Robert has also lectured and provided training around the world on corruption, white collar crime, fraud detection and

prevention, and crisis management.



Karen E. Wendelken

67

Senior Manager,

New York

Direct: +212. 399.8608

Mobile: +917.696.3102

Fax: 212. 399.8723


Areas of Expertise


• Investigations

• Corruption and Anti-Bribery Investigations


• Corporate Security/Investigations

• Third Party/Vendor Due Diligence

• Investigative Due Diligence

• FCPA/Anti-Corruption

Industry Expertise


• Insurance

• Hospitality

Education

• B.A. – English, Boston College

• J.D.- Legal Studies, William & Mary Law

School


Certifications

• B.A. – English, Boston College

• J.D.- Legal Studies, William & Mary Law

School

Background

Karen is a Senior Manager in Protiviti Forensic, specializing in investigations. She has over eighteen years of

experience in business intelligence, background investigations, litigation support, third party and anti-corruption due

diligence, and industry research.


Karen has focused on investigative and enhanced due diligence efforts as well as the regular data combing and

distribution of real time marketplace intelligence. She has served as the subject matter expert for enhanced due

diligence and conflict of interest guidance, and acts as corporate profiler for targets and entities of interest. Karen’s

fluency of litigation filings, and alacrity with information databases and public sources has been integral to the

information gathering, synthesizing and analysis necessary to most complex investigations.

Prior to joining Protiviti, Ms. Wendelken was a director with Kroll Inc. in New York where she led the Forensic

Accounting and Investigation Business Intelligence initiative; was in charge of information management for the Money

Laundering practice; tracked clients and industries for the Financial Services Group, and assisted with lead generation

via litigation related sales calls and media leads..

Prior to joining Kroll, Karen was a manager at Arthur Andersen in New York in their Business Fraud Investigation

Service, where she served in a similar role in which she was in charge of research, knowledge management,

information dissemination, corporate profiling and internal information gathering for the practice. Responsibilities

included information management of client, firm, industry, marketing targets, business development and competitive

intelligence. Frequent tasks included conducting and supervising in-depth industry and company research projects.

Research also included, intelligence gathering, due diligence and background investigations for risk management.

Responsibilities also extended to monitoring global client activity, internal marketing and knowledge sharing, which

includes compiling, filtering and synthesizing vital data as well as following the business of principal global consulting

clients.

Karen is an attorney admitted to practice in the State of New York.



Ryan P. McHugh

68

Manager,

New York

Direct: +1 646.428.8233

Mobile: +1 917.284.2158

Fax: +1 212.399.8726


Areas of Expertise


• Investigations

• M&A Due Diligence

• Monitoring

• Pre-Investment Due Diligence

Industry Expertise

• Construction


• Professional Sports Industry

• Regulatory Compliance

Education

• Fordham University

• B.A. Communications and Media Studies


Ryan P. McHugh received a B.A. in Communications and Media Studies from Fordham University and he is a Certified

Fraud Examiner. He joined the Protiviti Forensic in the New York office in 2013.

Major Projects

• Performed in depth due diligence for hedge funds, fund of funds and private equity firms on behalf of investors, in

addition to acting as the client relationship manager and source of new business development in the industry.

• Provided research and detailed reporting to financial services firms engaged in complex business transactions,

mergers and acquisitions relating to U.S. Securities and Exchange Commission violations as well as

governmental and regulatory violations.

• In conjunction with outside counsel, led an investigative team in the reconstruction of historical trading data and

the release of sensitive marketing materials for a complex financial instruments firm in response to a U.S.

Securities and Exchange Commission subpoena. Tested the firm’s policies and procedures and documented

results, providing detailed report of findings to counsel.

• Conducted investigations to monitor fraud, waste and abuse within the construction industry public and private

sectors in New York City, to include interviews of contractors, sub-contractors and New York City unions.

• Performed investigations and research to identify risks associated with the disciplinary history of professional

athletes in order for teams to make informed investment decisions for the National Football League. Liaised with

front office personnel to provide detailed reporting associated with disciplinary and criminal actions, litigation and

asset concerns for players.

• Conducted a sensitive investigation, jointly with a computer forensics team, as it related to the sale of prescription

medication on an internet site, which ultimately led to an accidental overdose of an individual. Investigation led to

the identification of the seller and the presentation of findings to the Drug Enforcement Agency, in conjunction

with counsel, resulting in the arrest of the suspect by the agency.



Erwen Yu

69

Manager,

New York

Direct: +1 212.399.8661

Mobile: +1 917.886.9128

Fax: +1 212.399.8668


Areas of Expertise



• Anti-Corruption


• Data Analysis

Industry Expertise


• Insurance

• Manufacturing

• Public Relations

• Career Services

Education

• B.B.A. in Finance & Investment Bernard

Baruch College, CUNY New York

• International Relationship Zhejiang University,

China

Professional Memberships & Certifications


Language

• Fluent in Chinese


Erwen is a Manager in Protiviti Forensic. She is experienced in financial investigations, litigation consulting services

and fraud risk management. Erwen’s experience in conducting financial investigations includes probes which focused

on Foreign Corrupt Practices Act (“FCPA”) violations, misappropriation of funds, and investigation of allegations of

fraudulent financial reporting. Erwen was also an integral member of the litigation support team for a major insurance

company. Erwen is adept at data analysis by utilizing various software applications, gathering evidence and

conducting research to support the clients’ positions in civil disputes and support or refute allegations of fraud.

Major Projects

• Performed a global Anti-Bribery and Corruption Program audit for a multinational banking and financial service

corporation. Conducted interviews with key process owners, reviewed relevant policies, performed testing on

selected samples, identified weakness or issues in the policies & procedures and made recommendations to

improve the Anti-Bribery and Corruption Program.

• Led internal investigations at multinational manufacture companies in China subject to whistleblower allegations

of vendor-related fraud and unethical behavior. Erwen analyzed invoices, purchase orders, contracts and bidding

process to identify anomalies; conducted interviews; performed keyword searches on e-mail acquired from

custodians; summarized findings and made recommendations.

• Assisted in multiple investigation of FCPA violations for multinational companies. In conjunction with those

investigation, Erwen reviewed financial records, identified questionable transactions, analyzed distributors’

agreements with commission payment, identified key information from email, translated the corporate policies

which were used as references by attorneys for interviews with key client personnel. and other business

transactions.

• Conducted an Anti-Corruption Compliance Review for a global money transfer company for its six selected

regions. Analyzed general ledger to identify fraud indicators and other anomalies and unusual patterns to select

testing samples. Reviewed company policies, performed review on selected samples and highlighted notable

transactions for further review with Counsel.

• Assisted a multinational manufacture company in assessing the fraud risk, the related controls in place to mitigate

those risks, and the indicators of fraud at one of the locations. Erwen participated in conducting interviews of

selected personnel, and performed data analysis to identify potential indicators of fraud and misconduct.

• Participated in the investigation involving allegations of fraud and misappropriation of company assets by the

former CEO, CFO, and Controller of a multinational PR company. Erwen reviewed and analyzed financial

statements; vendor disbursements, employee expenses, reviewed emails and business files; and summarized

findings and prepare status updates and work plan. The company was able to reclaim 50% of the losses incurred

under their insurance policy covering fraudulent activities



Adam L. Pardi

70

Senior Consultant,

New York Office

Direct: +1 212.603.8325

Fax: +1 212.708.6463


Areas of Expertise

• Risk Management

• Fraud Risk

• Internal Investigations

• Fraud Detection/ Prevention

• Anti Money Laundering

• Internal Audit

• Sarbanes-Oxley

Industry Expertise

• Insurance

• Asset Management


• Energy

Education

• M.S- Accounting, Binghamton University

• B.S- Management, Binghamton University



(ACFE)

• Association of Certified Anti-Money Laundering

Specialist (ACAMS)

• Institute of Internal Auditors (IIA)


Adam is a Senior Consultant in Protiviti Forensic based in New York. He is a Certified Fraud Examiner and Certified

Anti-Money Laundering Specialist with experience in and specializing in fraud investigations and risk management.

Skilled in analyzing data, examining internal control procedures and performing fraud risk assessments. Developed a

strong focus on the assessment, development, and testing of financial and operational controls as well as business

process improvement functions within the insurance and asset management industries.

Major Projects

• Assisted in an internal investigation to identify potential fraud by a senior level executive of a large energy

company.

– Responsibilities included conducting a thorough email review and character profile of potential suspect,

ongoing information/ documentation meetings, managing multiple deadlines, and documenting end-to-end

processes where fraud could potentially occur. Additional responsibilities included identifying inherent &

residual risks throughout the processes and identifying current gaps as well as areas of improvement.

• Performed a forensic account analysis for a large company concerned with possible vendor fraud.

– Responsibilities included conducting interviews with several key process owners within Accounts Payable,

Purchasing department, and Facilities Management to assess the current process and identify areas of

fraudulent action. Other responsibilities included identifying and mitigating potential risks and evaluating data

quality throughout the Vendor management process.

• Performed multiple Fraud Risk Assessments for global companies in a variety of industries.

– Specific responsibilities included managing multiple deadlines, documenting inherent and residual risk

ratings, mapping Company controls to several fraud risk scenarios, ongoing communication and follow-up

validation with Process Owners and Senior Management, identifying potential issues, updating work papers,

and creating the final deliverables based upon request.

• Assisted in Phase 2 of an Independent Quality Review Function for a global Insurance company. Adam

developed process work flows for several different work streams through working closely with senior level

Management. Additionally, he discovered existing risks and controls and derived new ones for all work streams

while developing maturity rankings.

• Performed a one-year SOX 404 Compliance and Internal Audit testing assignment for a global asset management

firm.

– Specific responsibilities include assisting with documentation of processes, interviewing process owners,

obtaining relevant supporting data/ documentation, testing multiple controls, and updating and developing

RCMs. Business processes worked on include Accounts Payable, Settlements, Corporate Treasury,

Settlements, Human Capital and Investment Management Operations.



Marietta Boniatis

71

Senior Consultant,

Boston OfficeDirect: +1 860.378.4698


Areas of Expertise

• IT Risk Management

• Sarbanes-Oxley

• IT Audit

• IT infrastructure review

• IT Fraud Detection/ Prevention

• IT Controls

• Fraud Risk

• Fraud Detection/ Prevention

Industry Expertise

• Bio-medical

• Healthcare

• Technology

• Manufacturing


Education

• M.S- Accounting/Forensic Accounting, Southern

New Hampshire University

• B.S- Accounting, Bryant University



(ACFE)


Marietta is a Senior Consultant in Protiviti Forensic based in Boston. She is a Certified Fraud Examiner with

experience in and specializing in IT fraud investigations/ SOX compliance audits and risk management. Skilled in

analyzing data, examining internal control procedures and performing fraud risk assessments. Developed a strong

focus on the assessment, development, and testing of financial and operational controls as well as business process

improvement functions within the bio-medical and healthcare industries.

Major Projects

• Assisted in an internal investigation to identify potential corruption/bribery by director level executives of a large

management consulting firm.

– Responsibilities included conducting a thorough review of company expense policies and testing a sample of

billed transactions against acceptable and approved polices while documenting end-to-end processes where

fraud could potentially occur. Additional responsibilities included identifying inherent & residual risks

throughout the processes and identifying current gaps as well as areas of improvement.

• Performed a forensic account analysis for a large company concerned with possible vendor fraud.

– Responsibilities included identifying and mitigating potential risks and evaluating data quality throughout the

Vendor management process.

• Led numerous IT Audit walkthrough meetings was responsible for performing first level review of the testing of the

business processes, application controls, and IT general controls to conclude on the effectiveness of the client’s

control environment for the financial statement audit of her clients.

• Developed and executed IT audit plans for reviews of non-SOX applications which are utilized by the client based

on agreed upon statements of work provided by the company’s Internal IT Audit Management group.

• SAP Implementation Process

– Responsibilities include serving as a process controls work stream leader for a internal SAP

implementation/review and issue resolution. Additionally assisted with a review of financials, company

projects and supply chain modules

– Created templates and process documents to support various client business modules, including a

scheduling system used to govern the client’s internal employee SAP Review process.



Meghan Byrne

72

Consultant,

New York Office

Direct: +1 212.822.4723

Fax: +1 212.862.2357


Education

• Bachelor of Science in Accounting,

Pennsylvania State University

Certifications



Meghan is a Consultant in Protiviti Forensic based in New York. She graduated with a degree in Accountancy from the

Pennsylvania State University in University Park, PA. and is a Certified Fraud Examiner. Her course work included,

financial and managerial accounting, tax-preparation, forensic and fraud-related accounting and international business.

Prior to joining, she completed a summer internship with Protiviti in the Internal Audit and Financial Advisory practice.

Meghan conducted Sarbanes-Oxley testing for key internal controls and documented audit procedures through work

papers. She also performed sales agent audit reviews for employee expenses and invoicing processes for a publicly

traded company

Major Projects

• Assisted in Fraud Risk Assessment for quasi-government agency

– Responsibilities included documenting inherent and residual risk ratings, creating heat maps based on risk

ratings, mapping Company controls to several fraud risk scenarios, and developing the final deliverables

based upon client-request.

• Participated in an internal investigation of whistleblower allegations relating to fraud and corruption

– Responsibilities included conducting an extensive email review of suspected custodians using specific

keyword searches, ongoing information/ documentation meetings, and prepared documentation for

admission of guilt interviews.



Olivia Server

73

Consultant,

New York Office

Direct: +1 212.822.4726

Fax: +1 646.862.2383


Education

• Bachelor of Science in Accounting and Finance,

University of Delaware, Newark, DE


Olivia is a Consultant in Protiviti Forensic based in New York. She graduated with a degree in Accountancy and

Finance from the University of Delaware, Newark, DE, covering relevant courses such as Financial Accounting,

Managerial Accounting and Derivative Securities & Risk Management. Prior to starting full-time, she was an Internal

Audit and Financial Advisory Intern at Protiviti. She developed process work flows for several different work streams

such as Accounts Payable, Procure to Pay, and Fixed Assets to document internal business process controls and

accurately detect related risks. Olivia is also in the process of becoming a Certified Public Accountant.

Major Projects

• Assisted in internal investigation subject to whistleblower allegations of vendor-related fraud and violations of

corporate policies and procedures.

– Responsibilities included performing a thorough email review of suspected custodians, analyzing time cards

associated with payroll fraud, ongoing information/ documentation meetings, participating in admission of

guilt interviews and documenting corroborative findings.

• Participated in the investigation involving allegations of fraud and misappropriation of company assets.

– Responsibilities included conducting a extensive email review of potential suspects with specific keyword

searches and prepared necessary documentation for admission of guilt interviews

© 2016 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed

or registered as a public accounting firm and does not issue opinions on financial statements or

offer attestation services. All registered trademarks are the property of their respective owners.

protiviti forensic soq - november 2016 updated

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