Almost all stories in the news regarding fraud focus on investigations and prosecutions by law enforcement and government attorneys. But there is another force that operates in the private sector to protect businesses, and that is the Association of Certified Fraud Examiners, also known as the ACFE.
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The ACFE is an international organization founded by Joseph T. Wells, a CPA and former FBI Special Agent in 1988. Its purpose is to train accountants and other professionals in fraud detection, analysis and reporting. It accomplishes this by offering training seminars, local and national conferences and by certifying individuals with the prestigious Certified Fraud Examiner (CFE) designation after they have completed a rigorous course of study that includes passing difficult examinations as well as a combination of academic and professional experience.
Most CPAs who specialize in white-collar crime either have a CFE or aspire to earn one. CFE designees often work for the FBI, OIG (Office of the Inspector General), SEC (Securities and Exchange Commission) or other investigative agencies, but many are employed in the private sector by large lending institutions, accounting firms or own their own consulting firms. Other CFE professionals are private investigators, auditors, academics and forensic computer examiners.
Members of the Association of Fraud Examiners often play pivotal roles in the reporting of fraud and other white-collar crimes. Harry Markopolos, a Certified Fraud Examiner and math whiz, began reporting the improbability of the high investment returns of Madoff Securities Investments LLC as early as 1999 to the SEC. Undaunted by the SEC’s apparent lack of concern, Markopolos, in a memo to the SEC in 2005 described 29 red flags that pointed to fraud by Madoff. He fearlessly stated that it was “highly likely” that “Madoff Securities is the world’s largest Ponzi scheme.” How many billions of dollars would have been saved, and financial ruination to families, businesses and charities would have been prevented, if the SEC had a CFE like Markopolos in charge?
The ACFE has chapters in almost every major city. See the links below to the corporate headquarters in Austin, Texas and to my local chapter in Los Angeles.
Comments
if i have an interest in CFE field how can i start my career in it. as i am pursuing my CPA in the near future.
Any help who i can get involved or will i be able to find a CFE who can give an idea or advice
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