WHAT IS FRAUD? Fraud is a lie or misrepresentation that is committed with the purpose of depriving you of something of value
FRAUD AND SCAMS IN THE NEWS Vancouver Chinese seniors targeted in scam Stealing from mom and dad: Why power-of-attorney abuse against seniors is soaringand so easy to get away with (July, Macleans) Stealing from mom and dad: Why power-of-attorney abuse against seniors is soaringand so easy to get away with Elderly BC fraudster sentenced to 8 years (April, CBC News. Fraudster Judith Lynn Slobbe) Elderly BC fraudster sentenced to 8 years VISA scam – Prince George (Video) VISA scam – Prince George
THE FRAUD TRIANGLE Offenders are motivated and able to commit fraud when these three elements are present… Pressure Rationalization Opportunity
THE FRAUD TRIANGLE OPPORTUNITY Red Flags: Power of Attorney with no check on spending by the person holding POA, house is mortgage free and does not have title insurance, valuables are accessible in house, house needs repairs, senior has disposable income, senior gives to charity. PERCEIVED NEED / PRESSURE (usually a financial need) Red Flags: shortage of money, living beyond income, substance or gambling addiction, extra-marital affairs, divorce … (can you think of others?) RATIONALIZATION A mental process in which the fraudster justifies his/her actions internally. Red Flags: signs of resentment, evasiveness, failure to be accountable for actions. Red flags are signs that something MAY be wrong. A red flag is not proof, but it is a sign you should take reasonable measures to protect yourself from possible financial abuse.
CASE – JUDITH SLOBBE Richmond News, Mar 17, 2010 Slobbe has a history of fraud going back nearly four decades and spanning two continents. She has prior convictions in Australia, where she once lived. She also has several convictions in Canada. CBC News, April 22, 2010 – Sentencing. Includes VIDEO Judge Ron Fratkin [called Slobbe} a conniving and pathological liar who preyed on the elderly and the sick to support her own lavish lifestyle. Oct 19, CBC NewsOct 19, CBC News Parole Board, Judith Slobbe Parole Hearing. Predators have no need for rationalization – all they need is opportunity
I TRUSTED HER … I TRUSTED HIM This is one of the most common comments made by victims of fraud. Judith Slobbes victims trusted her. Trust is not a control Trust … but verify An honest person should have no reason to refuse to explain or verify that things have been done right
TELEPHONE FRAUD – CASE A True Story – Scam The Scam - Genisis Dreams Beyond Thirty presents "SCAM", a film about telephone fraud. Dreams Beyond Thirty presents "SCAM", a film about telephone fraud.
LOTTERIES, SWEEPSTAKES AND CONTESTS Source – The Little Black Book of Scams, Competition Bureau Canada
CASE –PONZI SCHEME Rashida Samji, Notary Public (Arvindbhai Patel AKA Arvin Patel, Coast Capital) Man says he lost millions of dollars by trusting Rashida Samji – BC Securities Commission Hearing (Nov 15, 2013 – CBC News Video)CBC News Video Coast Capital Named in Ponzi Suit – Civil Suit. (Nov 15, 2013 – CBC News Video)CBC News Video Background Vancouver Ponzi Scheme: Rashida Samji Arrested (Huffington Post, updated Nov 13. Samji released on bail) Vancouver Ponzi Scheme: Rashida Samji Prominent Vancouver businesswoman charged for alleged $17M Ponzi scheme (Nov 13, 2013, Financial Post. Fraud stretches back to Links to two other Ponzi schemes) Prominent Vancouver businesswoman charged for alleged $17M Ponzi scheme B.C. judge certifies class-action lawsuit over alleged Ponzi scheme (Sep 11, The Vancouver Sun. Defendants named include Samji, Patel, RBC, TD, Coast Capital, Vancouver City Savings, Worldsource Financial Management Inc. B.C. judge certifies class-action lawsuit over alleged Ponzi scheme
PONZI SCHEMES – RED FLAGS Common Elements of a Ponzi or Investment Scam High Rates of Return No Risk Act Now! Insider Information Tax Free BBBVancouverIsland ScamWATCH Episode 10: Ponzi & Pyramid Schemes BBBVancouverIsland ScamWATCH Episode 10: Ponzi & Pyramid Schemes (Video)
PONZI SCHEME – VANCOUVER ISLAND Nanaimo man jailed 6 years for Ponzi scheme, victims across IslandNanaimo man jailed 6 years for Ponzi scheme, victims across Island. (Nanaimo Daily News, March 6, Michael David Chodorowski, $2.5M defrauded, sentenced to 6 years)
PONZIS AND PYRAMID SCHEMES Source – The Little Black Book of Scams, Competition Bureau Canada
MONEY TRANSFER SCHEMES Nigerian Scam (419 fraud) AKA Advance Fee Fraud 1.Help me transfer this money out of the country and Ill give you a share. 2.Just send me your bank details and Ill transfer the money to you … 3.A few days later (youre checking your account daily…) your contact calls/ s you … The bank says we have to pay a fee/tax to do the transfer. If you can wire the fee to me, Ill pay the fee and theyll release the money to your account. 4.… and so it goes on. Overpayment scams 1.Fraudster makes a purchase and prepays by check (often from out of Canada). 2.The check arrives, but its an overpayment. 3.Fraudster says, Keep the check, just send me the overpayment. 4.Some weeks later, the bank advises victim that the check has bounced.
MONEY TRANSFER SCHEMES Source – The Little Black Book of Scams, Competition Bureau Canada
GRANDPARENT SCAM/ EMERGENCY SCAMS Canadian Bankers Association –Grandparent Scam advice (Video) Canadian Bankers Association –Grandparent Scam advice Canadian Bankers Association – Fraud Resources
OTHER KINDS OF FRAUD Internet Scams Health and Medical scams Dating and romance scams Charity scams Job and employment scams Service scams
RESOURCES BBBVancouverIsland ScamWATCH Listings of BBB YouTube Videos, Alerts, and Resources BBBVancouverIsland ScamWATCH FINANCIAL ABUSE: Protecting British Columbias Seniors. SeniorsBC. Linked Document Includes Listings of BC resources including FINANCIAL ABUSE: Protecting British Columbias Seniors Public Guardian and Trustee of BC BC Centre for Ender Advocacy & Support – Seniors Abuse & Information Line (SAIL) VictimLinkBC BC Securities Commission The Canadian Anti-Fraud Centre Competition Bureau The Little Black Book of SCAMS (some excerpts from this book have been reproduced under the terms of Industry Canadas Permission to Reproduce) The Little Black Book of SCAMS V. G. Oltmann, MBA, CPA, CGA, CFI Web: TheFraudChronicles.com