In pursuit of justice

In the Justice for Fraud Victims Project, college students obtain valuable real-world experience in the field of forensic accounting while aiding victims of fraud. Members of law enforcement and academia collaborate with Certified Fraud Examiners to get justice for victims of suspected financial fraud. In this article, the authors provide a real-world example of how the project has helped fraud victims while detailing the benefits and challenges associated with adopting the JFVP at U.S. colleges and universities.

In 2011, two Spokane, Washington, charities became the victims of a volunteer tax accountant and bookkeeper who swindled the groups out of $24,000 while serving as treasurer. He volunteered his professional accounting services with a Catholic charity that helps the sick, injured and disabled in the U.S. and around the world, and with a nonprofit that assists those with vision or hearing impairments. Members of each group served for many years with little rotation of duties or positions and few internal controls in place. Over time the accountant earned the trust of the members of each nonprofit while leading a double life.

Seen as a kind, soft-spoken, but stalwart community member, he’d been married for more than 27 years, had three children and ran a small accounting practice as a sole proprietor. As other practitioners retired, he acquired their accounting practices and seemed to have a steady stream of clients. Those who volunteered with him didn’t notice any significant behavioral red flags, with the exception of the occasional complaint about being overworked.

One day in April 2009, the Catholic charity learned that the group’s bank account was overdrawn. The group intended to have the books audited two months before, but the accountant was too busy with tax season, so they let it go. At the same time, the president of the nonprofit discovered that a donation check given to a student had bounced. Each victim organization received copies of their respective bank records and quickly realized that the accountant had withdrawn funds and written checks to the U.S. Postal Service and to unknown people.