2 Fraudsters LIE What is Fraud? Fraud is a lie or misrepresentation that is committed with the purpose of depriving you of something of valueFraudsters LIE
3 Fraud and Scams in the news Vancouver Chinese seniors targeted in scamStealing from mom and dad: Why power-of-attorney abuse against seniors is soaring—and so easy to get away with (July, Maclean’s)Elderly BC fraudster sentenced to 8 years (April, CBC News. Fraudster Judith Lynn Slobbe)VISA scam – Prince George (Video)
4 The Fraud Triangle Opportunity Pressure RationalizationOffenders are motivated and able to commit fraud when these three elements are present…
5 The Fraud TriangleOPPORTUNITYRed 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?)RATIONALIZATIONA 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.
6 Case – Judith SlobbeRichmond 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 News Parole Board, Judith Slobbe Parole Hearing.Predators have no need for rationalization – all they need is opportunity
7 I Trusted Her … I trusted Him This is one of the most common comments made by victims of fraud. Judith Slobbe’s 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 rightTrust is not a control
8 Telephone Fraud – CaseA True Story – ScamThe Scam - GenisisDreams Beyond Thirty presents "SCAM", a film about telephone fraud.
9 Lotteries, sweepstakes and contests Source – The Little Black Book of Scams, Competition Bureau CanadaSource – The Little Black Book of Scams, Competition Bureau Canada
10 Case –Ponzi SchemeRashida 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)Coast Capital Named in Ponzi Suit – Civil Suit. (Nov 15, 2013 – CBC News Video)BackgroundVancouver Ponzi Scheme: Rashida Samji Arrested (Huffington Post, updated Nov 13. Samji released on bail)Prominent Vancouver businesswoman charged for alleged $17M Ponzi scheme (Nov 13, 2013, Financial Post. Fraud stretches back to Links to two other Ponzi schemes)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.
11 Ponzi SchemeS – Red Flags Common Elements of a Ponzi or Investment ScamHigh Rates of ReturnNo RiskAct Now!Insider InformationTax FreeBBBVancouverIsland ScamWATCH Episode 10: Ponzi & Pyramid Schemes (Video)
12 Ponzi Scheme – Vancouver Island Nanaimo 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)
13 Ponzis and Pyramid Schemes Source – The Little Black Book of Scams, Competition Bureau CanadaSource – The Little Black Book of Scams, Competition Bureau Canada
14 Money Transfer Schemes Nigerian Scam (419 fraud) AKA Advance Fee Fraud“Help me transfer this money out of the country and I’ll give you a share.”“Just send me your bank details and I’ll transfer the money to you …”A few days later (you’re 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, I’ll pay the fee and they’ll release the money to your account.”… and so it goes on.Overpayment scamsFraudster makes a purchase and prepays by check (often from out of Canada).The check arrives, but it’s an overpayment.Fraudster says, “Keep the check, just send me the overpayment.”Some weeks later, the bank advises victim that the check has bounced.
15 Money Transfer Schemes Source – The Little Black Book of Scams, Competition Bureau Canada
16 Grandparent Scam/ Emergency Scams Canadian Bankers Association –Grandparent Scam advice (Video)Canadian Bankers Association – Fraud Resources
18 Other Kinds of Fraud Internet Scams Health and Medical scams Dating and romance scamsCharity scamsJob and employment scamsService scams
19 ResourcesBBBVancouverIsland ScamWATCH Listings of BBB YouTube Videos, Alerts, and ResourcesFINANCIAL ABUSE: Protecting British Columbia’s Seniors. SeniorsBC. Linked Document Includes Listings of BC resources includingPublic Guardian and Trustee of BCBC Centre for Ender Advocacy & Support – Seniors Abuse & Information Line (SAIL)VictimLinkBCBC Securities CommissionThe Canadian Anti-Fraud CentreCompetition BureauThe Little Black Book of SCAMS (some excerpts from this book have been reproduced under the terms of Industry Canada’s Permission to Reproduce)V. G. Oltmann, MBA, CPA, CGA, CFIWeb: TheFraudChronicles.com