Uncovering Fraud: The Case of the Embezzling CFO

A forensic accountant, Chris Ekamov, shares a case in which his firm was contacted by a CEO about the CFO's suspicious activities. The CFO had been found embezzling money from the company by charging personal expenses as travel expenses. However, due to the pandemic, travel expenses were no longer feasible to fake. The CFO then shifted his embezzlement tactic and coded the expenses as an additional payroll expense. During investigations, forensic accountants follow a thorough and robust process of understanding the circumstances, working internally with their team, and gathering financial information. They also conduct admission-seeking interviews, wherein they confront suspects with evidence. While some individuals deny their actions, many confess due to the relief of being caught. Additionally, forensic accountants work alongside civil and criminal law, helping businesses recover stolen funds and advising on legal actions. The prevalence of fraud is estimated to be around 5% of a company's top-line revenue. Trust is often an important factor in fraud cases, as the most trusted individuals can often exploit their position of access and authority. Despite the challenges, forensic accountants like Chris are dedicated to rooting out fraudulent activities and bringing justice to the affected parties.