(To be formally presented later this year, 2021) Consider the following three situations: 1. In the operations department of an injection molding business, the manager notes a significant uptick in the costs of electricity due to a recent weather event. This pushes the fixed costs for manufacturing up 12%. The plant manager calls the manager […]
Inaugural Education Program for the Behavioral Forensics Group (Daven Morrison with Jack Bigelow, Vic Hartman and Joe Koletar) Last month we spent a weekend with the National Association of Certified Valuators and Analysts (NACVA) in San Diego. In our inaugural Behavioral Forensics Group seminar our team had the delightful opportunity to share our concepts and […]
The“A.B.C.s”: How can we distinguish them? Sniffing out the Bad Apples, Bushels and Crops From the first conversations of a team dedicated to understanding the human side of fraud we collectively came to realize that there were multiple problems in the conceptualization of fraud that needed to be tackled. This team was first assembled at […]
Daven’s 7 Internet Safety Rules 7 Rules to stay safe from predatory tactics and fraud on the internet As a father of social media savvy children and an author on the behavioral forensics of fraud, considering how people harm each other on the internet has been top of mind for me for several years. […]
When Values Rot in the Bad Apple: Understanding the changing of the fraudster’s mind from sweet to sour (by Daven Morrison, with Ken Cramer*) One of the most perplexing questions in fraud prevention is how to halt the theft before it starts. In parallel to the challenge of helping individuals and organizations not fall victim […]
Financial War Profiteering Why you should care when “Rain Man” takes the fall for the Multi-billion dollar LIBOR fraud We live in a society in which the elites have maybe more power than they’ve ever had and a greater share of the wealth than they ever had in a very long time, but its not […]
Banks say “Bring it on”, and US Justice does Two international banks’ role in the financial crisis formally enters the US Judicial System (Daven Morrison) One of the most memorable events of the financial crisis was Rick Santelli’s passionate plea on the floor of the Chicago Mercantile Exchange. Early on in the crisis what came […]
(By Vic Hartman) In a previous post, we considered the recent Standard & Poor’s settlement with the federal government concerning charges the company had knowingly misrepresented the risk level in securities backed by mortgages (RMBs, or Residential Mortgage-Backed Securities and CDOs, or Collateralized Debt Obligations). The Department of Justice accused S&P of illegally putting […]
(By Joe Koletar) In our book, “A.B.C.’s of Behavioral Forensics” (John Wiley & Sons, 2013), we explore three concepts to better understand and address fraud in organizations: A – The sole bad apple. B – The bad group, or bushel. C – The bad crop, or corrupt organization. Is it possible financial regulators may have […]
This is a story about Underinflated Footballs and Angry Capuchin Monkeys. It is for those of you who manage the finances – the purse strings – of an organization. Read on to see if this post goes where you think it might . . . (By Daven Morrison) The New England Patriots are currently awaiting […]