DeVry University Fourth Amendment and Fraud Investigation Discussion

Class, for your first post, select one of the first three questions to answer. Then for the second or third post, respond to one of the two cases

Initial Questions

1) Why is it important to conduct activities that do not arouse suspicion first and interview the primary subject near the end of your investigation? What could occur if you fail to do this?

2) Describe a “vulnerability chart” and how it is used in fraud investigations

3) What role does the Fourth Amendment to the Constitution play in cases of fraud investigation?

Cases

a) A man in San Rafael County was discovered committing workers’ compensation fraud. He had been observed working while at the same time receiving disability benefits. Surveillance showed the man working at an automobile auction. The investigator interviewed the owner of the auction and found that the claimant was being paid $200 per week in cash for washing vehicles and performing other shop tasks. Surveillance video showed the man carrying 25-pound bags of pet food, loading boxes, and rummaging through a trash dumpster. Obviously, he was not hurt very badly.

• Was surveillance the proper method to use in this case? Why?
• What are some restrictions to be careful about in conducting surveillance?

b) Discount Plus Company has been concerned for some time about its cash flows. Since the company began five years ago, Discount’s business has increased steadily, yet cash flows have remained virtually the same every year. You have been hired by Discount Plus to detect possible fraud within the company. Discount’s management is almost certain that one of its accountants is embezzling cash and has informed you that it has already begun installing surveillance cameras in possible “problem areas.” In addition, management is considering some form of covert operation to detect the fraud.

• What problems or dilemmas is Discount’s management facing by installing cameras and implementing a covert (undercover) operation?
• What privacy issues are there to consider?