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The International Councilor
March 2014
In this issue
President’s Message 1
AGM News 1,6,7
From the Editor 2
In Memoriam 3
Member News 3,4,5
Marines Call on CII 5
Regional Meeting 8,9
Featured Articles
Investigation Companies
making money from brib-
ery 10,11
Case Study—The
Importance of
Pre-employment
screening 12-15
2013 AGM Wrap-up 17
Bert Falbaum interview 18
From around the world 19-20
The International
Councilor
Lois Colley—Editor
All Rights Reserved
March 2014
President’s Message
John Sexton, CII
Greetings Fellow Members,
It is hard to believe, but
it has been nearly six months
since the 2013 AGM, which
puts us about halfway to the
2014 AGM in San Francisco! I
encourage all those planning to
attend to register early as we
are expecting another large
turnout this year. San Francis-
co was mentioned countless
times in the past as a desirable
AGM location, but hotel costs
have always proven to be pro-
hibitive. That is not the case
this year however, and we have
our own Bob Fenech to thank
for securing first class accom-
modations at an amazing 50%
discount.
I trust everyone remem-
bered to renew his or her CII
membership by the 28th of Feb-
ruary. If by chance you were
unable to meet that deadline,
(Continued on page 16)
60th AGM
September 2—6
San Francisco CA
Mark your calendars for the 2014 AGM in San Francisco, Cali-fornia, USA beginning Tuesday September 2nd and ending with the optional wine country tour on Saturday, September 6th. The venue will be the Hilton Ho-tel in the financial district on 750 Kearney Street. To look up the Hil-ton Hotel in the Financial District go to www.sanfranciscohiltonhotel.com. The location is near and within walking distance of North Beach, financial district, Chinatown, the Embarcadero, Union Square, Mar-ket Street and Fisherman’s Wharf. (Continued on page 6)
2
Editor’s Message by Lois Colley
***
Ruth Hoffman, Assistant Editor
Ryan Colley, Editorial Staff
Things You Want to Know
Members, we are pushing for early registrations for the 2014 AGM in San Francisco. Don’t
forget Galen’s generous offer to pay the AGM registration fees for the member who recruits
the most applicants prior to July 2014. Don't be left out. Start recruiting now!
We need sponsors for the AGM. Any donation is welcome and you will be recognized. Your
thoughts and suggestions are appreciated. Thank you for your consideration.
Worried about your SMS and text messaging being read by unwelcomed eyes? Check out end
to end encryption services like TextSecure, a free Android based application, completely open
source and easy to use.
2014 Regional Meeting -Europe—May 2-4, 2014
The 2014 European Regional meeting is in Bratislava, SLOVAKIA 2-4 May 2014. Twenty six
participants have already registered representing the countries of Austria, Czech Republic,
France, Germany, India, Israel, Romania, Slovakia, Slovenia, Sweden, UK and USA. It is not too
late for all the others to join. The venue hotel is fully booked, but there are alternative sites
for those who have yet to register. Co-hosts, Bernhard Maier and Alan Marr recommend the
following two hotels, which are next door to the venue-hotel: http://www.parkinn.com/hotel
-bratislava or http://www.radissonblu.com/hotel-bratislava.
Read all about it in this newsletter (Pages 8 & 9)
Email Bernhard Maier at [email protected] or
Alan Marr at [email protected] to let him know you are coming.
2014 AGM in San Francisco from September 2-6, 2014
The AGM is fast approaching and will be held in the exciting city of San Francisco, California.
Access Tony Bennett’s famous song “I Left My Heart in San Francisco” on ITUNES and memo-
rize the song as we will be giving an award to the best Tony Bennett impersonator. All the
details concerning this exciting city are included in this newsletter so read on….
3
Health and Welfare Two time CII President and
Chairman Brian King of Toron-
to, Canada had total knee re-
placement in February. Fol-
lowing surgery, Brian returned
home to recuperate under the
loving care of his wife aka
Nurse Joanne.
Emery Reistetter and Joan
Beach Reistetter announced
the arrival of their second
great granddaughter, Susan-
Jean Nicole Burt, born January
24, 2014 in the Army hospital
in Missouri. The proud parents
are Joan’s grandson Leo Nicho-
las “Nick” Burt and his wife
Beth Burt. Many of us remem-
ber Nick from his high school
days when Joan conned him
into helping out at the CII’s
50th AGM in Alexandria Virgin-
ia. These days, Nick is all
grown up and serving as an MP
in the Army. Susan-Jean
weighed in at a healthy 8
pounds and from all accounts
is adorable. The first words
she spoke were “I want to be a
private investigator like my
great grandmother Joan”.
Taking the Plunge You know the term “down
under” usually pertains to our
Australian members’ home-
land. However, recently Mi-
chael Bennett, one of our
Honorary Members from Ire-
land, went “down under” while
vacationing on St. Thomas
USVI. Michael took the plunge
and went SCUBA diving for the
first time. Word is he came
face to face with a five foot bar-
racuda but, with the strength
and courage of a dozen Irish-
men, held his own and didn’t
flinch. Michael says if you buy
him a Jamison’s he will be
more than willing to regale you
with his triumph in the deep.
Authors in our midst Many of our members are
aspiring authors but only a
chosen few have the discipline
to write the book and see it
through to being published. It
is with great pleasure that we
announce that CII Member
David G. Duchesneau, of
STANDA, Inc. has published his
first novel UNIFORMS.. The
book is the first of a three part
trilogy encompassing his ad-
venturous life. UNIFORMS is
available on www.Xlibris.com,
Amazon.com & bn.com. There
is also a web site
www.uniformsthebook.com.
David can be reached at
CII Superstar Member Jack
Devine’s soon to be released
book Good Hunting: An Ameri-
can Spymaster’s Story is des-
tined to be a best seller. Many
of us who sat through Jack’s
spellbinding presentation at
the 2013 AGM will be anxious
to purchase the book which
becomes available on Amazon
June 3, 2014.
In Memoriam
It is with great sadness that report
that CII member James Cole died
on January 29 2014 after a long
illness. Jim was, for many years, a
member of the ABI, the CII and is
more remembered as a former
principal of the IPI and long-
serving Secretary-General of the
IPI. CII members John and Sheila
Grant travelled to Preston AZ to
visit Jim in the hospice in mid-
January. Jim is survived by his son,
Hamish, daughter-in-law, Lorraine,
and grandchildren, James and Dan-
ielle. Our sympathies are with his
family.
Member News
Michael Bennett chasing barracudas
Jack Devine
4
More Member News
CII members to sit on board of newly formed Alliance Against Cybercrime
CII member Galen R. Clements has been in-vited to sit on the execu-tive board and Sheila Ponnosamy has been invited to represent CII on the advisory board of
the newly formed entity known as The Alliance Against Cybercrime (www.victimsnomore.org), a nonprofit entity originating in the State of California. Principals include Leandra Ramm, AJ Fardella, Lisa Della Roca and Matthew Miller. AAC was formed to address CyberStalking after the first international case involving victim Ms. Leandra Ramm came to resolutions in December 2013 when a Singapo-rean man was charged and convicted of Cyber-stalking. The conviction followed seven years of torment for the victim, an opera star. CII Member Galen Clemens was involved in the case at the onset in 2005 and took the lead in identifying the stalker as Colin Mak of Singa-pore. After identifying Mr. Mak as the perpetra-tor, Galen enlisted the help of CII members Sheila and Ponno Kalastree (Mainguard) . To-gether they synthesized more than 5,000 threatening emails from Colin Mak directed at Ms. Ramm along with telephone voice record-ings that made it clear to everyone that Mr. Mak was out to destroy the career and life of Ms. Ramm. A newly published book entitled "Stalking a Diva" is currently available in bookstores and on Amazon.com. The AAC aspires to fight cybercrime through action, research, education and vigilance.
Last Call For 2014 Dues Payment
While membership renewal is approaching
90% there are still about 40 of you who have
not paid your 2014 dues. If you are not sure
if you are current, contact Steve Kirby by
email or phone. The Executive Board has ex-
tended the deadline to March 31. If you have
not paid by that time your membership will
go into suspension. So please make sure to
visit our website and pay your dues for 2014
before March 31. The web address is
www.cii2.org. If you need your login name or
password, or have any trouble renewing
your membership, please contact Steve Kirby
at [email protected] or [email protected]. If you
prefer, you can pay your dues by check and
mail to Steve Kirby c/o PO Box 565 Elmhurst
IL 60126. The renewal rate is $195 USD for
Certified, Qualified, & Affiliate; $100 USD for
Associate and Senior.
Public Relations Committee
Hard at Work for the Council
Better late than never CII is joining the so-
cial media set. Sheila Ponnosamy and her
PR crew are working to establish a Face-
book presence.
Anne Styren and her team are just about
done compiling the results of the extensive
survey they undertook. Look for their re-
port in the next Councilor. The Executive
Board is planning to move the Council in
the direction the members are asking.
5
The US Marine Corps’ Defence Services Organi-
zation invited CII Member George Michael
Newman, of Tactical Investigative Services
(San Diego), and his son Jose (Fulcrum Investi-
gations, Chula Vista) to make a presentation at
the United States Marine Corps’ Defence Ser-
vices Organization’s first annual training con-
ference held at the Marine Corps Recruiting
Depot in San Diego. The men attended the
week-long conference along with military law-
yers and support staff from around the world.
Newman had been approached months earlier
to assist in building a database of professional
investigators throughout the world. The
presentations were on open source assets,
which was presented largely by Jose, and miti-
gation issues, which Newman used as a vehicle
to acquaint attendees with the looming wave
of issues accompanying veterans.
No doubt as a result of Mr Newman’s network-
ing, in March 2014, the CII office received a
request from a USMC attorney, stationed in
Camp Lejeune for an investigator to assist in a
homicide case in the Caribbean involving a Ma-
rine. Within just a few hours we were able to
refer four CII members who were interested
and qualified to handle the assignment.
For more information on this project, George
Michael Newman can be reached at
NEW AFFILIATE MEMBER
Larry Gurwin, Milan, Italy
Euro Investigations
39-02-480-024440
Pending applicants
Dorian Boyd— USA
Dinonath Malick—India
Serge Fernandes—Luxembourg
Jerry McClam—USA
Anthony Rogers—USA
Mario Perumal—Sri Lanka
Kenny Mackenzie—Scotland
Stephen Levine—USA
Hoi Yi Chu—Hong Kong
Scott Herring—USA
Sandra Stibbards—USA
Anyone with knowledge of these appli-
cant’s qualifications can contact Galen
Clements at [email protected]
(remember no posting about applicants on
the listserv)
The Marines Want You!
Current Membership Numbers
Certified 264 Affiliate 12
Qualified 14 Honorary 6
Associate 4 TOTAL 316
Senior 16 Applicants 11
Still even more Member News
6
CII Members Kick Off
Sponsorship Drive
2014 AGM SPONSORSHIPS AVAILABLE
PLATINUM— Exhibit booth (if desired); Conference fees for 4; Delegate bag advertising; Full banner recog-
nition; Cover ad in conference brochure; website acknowledgement—$10,000
GOLD— Exhibit booth (if desired); Conference fees for 2; Delegate bag advertising; Full banner recognition;
Inside cover ad in conference brochure; website acknowledgement—$5,000
SILVER—— Exhibit booth (if desired); Conference fees for 1; Delegate bag advertising; Signage recognition;
Full page add in conference brochure; website acknowledgement—$2,500
BRONZE— Exhibit booth (if desired); Delegate bag advertising; Signage recognition; 1/2 page ad in confer-
ence brochure; website acknowledgement—$1,000
PATRON—— Delegate bag advertising; Shared signage recognition; 1/4 page ad in conference brochure;
website acknowledgement—$500
FRIEND—Business card ad in conference brochure; website acknowledgement—$100
One of the reasons our AGMs are such a great
time, full of fun outings, great meals, a well
stocked hospitality suite, and other outstanding
benefits is due to the generous sponsorships of
our members and friends. This year is no differ-
ent, as we have already received pledges from the
following members:
Bob Fenech $5,000
Sachit Kumar $5,000
Galen Clements $5,000
Steven Kirby $500
James Loh $175
Your donations to the cause will be greatly appre-
ciated and duly noted in the Councilor and on ad-
vertising at the conference. Below are the spon-
sorship options, although any amount is wel-
come. Thank you.
60th Annual AGM Details (from page 1) The Hotel is a 20-30 minute ride from the San Francisco Airport and 30 minute ride from the Oakland airport. A cab will cost $60.00 USD. The hotel recommends Super Shuttle which is $18.00. You can also take the Bay Area Rapid Transit (BART) from the airport . It is by far the least ex-pensive and most environmentally friendly. Rooms are reserved for $169 USD per night, plus taxes. The conference will include, seminars, gala banquet, continental breakfasts, awards luncheon, dinner and a show at Beach Blanket Babylon, a trip to Alcatraz, a trip to the Napa Sonoma wine coun-try, a golf outing, and spousal tours. (Golf & wine tour are in addition to the regular fee). September is historically the best weather for San Francisco. Temperatures average from 64*F to 71F (18-22C). You might want to bring a coat because the nights can get windy and cool. If you wish to stay longer in San Francisco the Hil-ton Hotel will honor the same rate of $169.00 per night three days before the conference as well as three days after the conference. Looking forward to seeing everyone in San Fran-cisco, September 2 -7 Respectfully submitted—Bob Fenech
7
Tentative Schedule
Tuesday, September 2 Pre Conference Seminar by Michelle Stuart
on Internet Investigations Board Meeting Golf Outing Welcome Reception Hospitality Suite
Wednesday, September 3 Opening ceremonies Guest delegate tour Morning seminar Afternoon seminar Evening outing to dinner and Beach Blanket Babylon show Hospitality Suite
Thursday, September 4 Annual General Meeting Awards Luncheon Alcatraz Tour Hospitality Suite
Friday, September 5 Morning seminars Free afternoon to tour SF New Board Meeting Gala Banquet Hospitality Suite
Saturday, September 6 Tour of the wine country (optional) Hospitality Suite
2014 AGM—San Francisco California
September 2—6, 2014
San Francisco Hilton Hotel
Mark and
save the
dates
9/2 to 9/6
Alcatraz Island
2014 AGM coming at you
San Francisco Bay
8
2014 European Regional Meeting
May 2-4 - Bratislava, Slovakia
General Information
Accommodation in Bratislava
The Hotel Devin (www.hoteldevin.sk) is now fully booked. The following two hotels are recom-mended. http://www.parkinn.com/hotel-bratislava or http://www.radissonblu.com/hotel-bratislava.
Arrival by plane in Bratislava
Hotel Devin provides airport-pick-up from Bratislava-airport for € 20. Please, book in time.
Arrival by plane in Vienna
Bratislava is not covered by many airlines. Alternatively you can arrive at Vienna-airport and use the shuttle-service from Hotel Devin (€ 60 per shuttle). Furthermore there are hourly buses go-ing from Vienna-airport to Bratislava. The fee is € 7,20 one-way per person. The ride takes ap-proximately 1 hour. For tickets and timetable see www.eurolines.at. Hotel Devin is in walking dis-tance to station ‘Novy most’.
Parking in Bratislava
Hotel Devin is located in the centre of Bratislava in a short-term parking zone. As a result of long-
term parking your car might be towed away or blocked with a wheel clamp. Hotel Devin provides
parking lots (€ 20 / 24 hours). Please, advise the hotel in advance that you require parking ac-
commodations.
Registration for the trip to the Volkswagen plant
For security reasons the group is limited to 15 persons. First come, first serve. Register by email-ing Bernhard Maier [email protected]). It is strictly forbidden to take pictures or vide-os within the plant. All participants are required to sign a non-disclosure-declaration.
Registration for the excursion to Castle Devín
The Sunday morning boat-trip to the castle might be fully booked. Please reserve a ticket before Friday May 3rd by emailing our host Bernhard Maier [email protected])
9
2014 EUROPEAN MEETING Provisional Schedule (updated Feb 18th)
Friday, May 2nd 2014
1415 H – Tour at the plant of Volkswagen
Departure from Hotel Devin for a tour at the plant of Volkswagen Slovakia in Deví nska Nova Ves (slightly outside Bratislava). Cars of the brands Volkswagen, Audi, S koda, Seat and Porsche are man-ufactured there. The tour starts at 1500H and takes 90 minutes. Safety-rules require that you wear proper shoes (no flip-flops or other light shoes). Early registration required due to limited number of participants.
1830 H – Dinner at Kamzí k television tower
Departure from Hotel Devin for dinner at restaurant Altitude located at the top of Slovakia’s highest building Kamzí k television tower (Cesta na Kamzí k 14, 831 01 Bratislava), www.altitude.sk. Our ta-ble is booked for 1900H.
Saturday, May 3rd 2014
1000 H – Walking Tour
Guided walking tour through Bratislava. The guide will pick us up from Hotel Devin. The tour takes
3 hours and is followed by a stop at a pub for a snack. Thereafter enjoy your free after-noon in Brati-
slava.
1700 H – CII Business Meeting
The meeting will be held at Hotel Devin (room “Konzul”) and will allow us to discuss current issues
of investigation-industry in Europe as well as CII-matters.
Participants are encouraged to prepare a brief 2-minute-presentation covering his/her company
(country of origin, professional background, years in business, size of company/staff and profes-
sional focus).
1915 H – Dinner in a traditional Pub
We leave for dinner from Hotel Devin. We will have food at the local beer brewery Bratislavsky Mes tiansky Pivovar (www.mestianskypivovar.sk) located at Drevena 8, 811 06 Bratislava (10 minutes walk from the hotel).
Sunday, May 4th 2014
0945 H – Excursion to Castle Deví n
Meeting at the lobby of Hotel Devin for a boat trip to Castle Deví n (national heritage site) on river
Danube. The port is located at Fajnorovo na brez ie 2, 811 02 Bratislava (3 minutes walk from the ho-
tel). The boat leaves at 1000 H and the ride takes 1,5 hours (upstream). There will be a 1 hour stay
at Deví n Castle including a guided tour. The trip back to Bratislava takes 30 minutes (downstream).
Arrival is scheduled for 1300 H. Registration for the trip until Friday May 3rd is recommended.
10
Since the introduction of the US Foreign Corrupt Practices Act (FCPA) and the UK’s Bribery Act (BA),
investigation companies have been cashing in.
Companies and individuals making corrupt accusations has become an effective way of neutralizing
business rivals. Making bribery claims against competitors who are tendering for the contracts is a
simple way of pushing them out of the process. Obviously, this only works if an official investigation is
launched. Even if there is no evidence found to support such a claim, untold damage can be done to
the accused party, causing parties to abandon the tendering process. Examples of this can be seen in
the recent ExxonMobil bid to buy Kosmos Energy, where other interested parties claimed that Exx-
onMobil had breached the FCPA and the BA in their buy out procedure. However, after an investiga-
tion that exonerated them, ExxonMobil pulled out of the purchase process. The investigation compa-
ny, the Risk Advisory Group, was commissioned to evaluate the role played by Kosmos’ local partners.
Two British Banks: HSBC and Standard Charted knew that they were the target of an investigation by
the Financial Services Department of New York State, and thus called in Deloitte Financial Advisory Ser-
vices to carry out an internal investigation. Both banks have agreed to pay heavy fines and submit
themselves to corporate monitoring, after being accused of violating US sanctions. These corporate
monitors’ contracts are likely to be very lucrative; it is anticipated that companies will be queuing up
to undertake this task. The job will be to ensure that the banks conform to US sanctions and anti mon-
ey laundering laws.
Former FBI Director, Louis Freeh, was called in to investigate the alleged expense paid holidays to Pili-
pino gaming officials by a casino company that was wishing to build a casino in the Philippines. His
investigation centered solely on the FCPA.
The FCPA & the BA are also being used as a weapon against companies and individuals in financial
conflicts. Even if the accuser does not have any evidence it could be difficult and time consuming for
the accused to prove otherwise. Possibly putting them out of the picture or bidding process they may
be party to. (Throw enough mud and some will stick)
A number of city corporate intelligence firms are bidding to work with lawyer Neil Gerrard from the
firm Dechert, who is investigating the corruption charges against the Eurasian Natural Resources Cor-
poration. He intends to use investigation firms that specialize in Equatorial Africa and Central Asia.
The findings of his investigation will be handed over to the UK’s Serious Fraud Office.
In the US and now France (since 2012) companies that are guilty of breaches of the Acts, have, at the insistence of the respective justice departments, employed Corporate Monitoring firms, to ensure that they comply with the legislation. These firms and professionals have to be recognized by the legal au-thorities. Continued next page
Featured Articles
INVESTIGATION COMPANIES MAKING MONEY FROM BRIBERY.
Roy Whitehouse. CFE. CII
11
This requirement is causing many companies, who have not been suspected of such offences, to now look at using the services of corporate monitoring professionals, either full time or part time, to ensure that they are not in breach of the FCPA & the BA. Using independent experts gives these
companies an edge when bidding for contracts, as they have a clean bill of health prior to the
process.
The tougher legislation by the FCPA against illegal kickbacks to foreign officials, and the much
tougher UK’s BA of giving kick backs to almost anyone involved in business negotiations or
transactions, are creating new opportunities for law firms and private investigation firms alike.
All private investigators can benefit from the BA & FCPA in many ways. They can undertake
monitoring of smaller companies to ensure that they have adequate procedures in place to
counter any infringements of the law. They can lecture clients and their workforce about the Act
and what they can and cannot do. They can investigate client’s competitors to ascertain if they
have complied with the Act when tendering for contracts.
Most investigators have clients who have sales forces, tender for contracts and have competi-
tors who will try to use underhand methods to gain an advantage. Many small and medium
companies have the attitude that this legislation does not cover them and believe that it is only
for the “big boys”. If one of their competitors uses this law to put them out of the picture in a
biding process, they will be forced to take it seriously.
I would suggest that you all read up on the Act and see how you can use it to enhance your turn-
over and offer new services. What on the face of it first appeared to be a negative legislation
can be used to your advantage.
(Roy Whitehouse is a Certified Fraud Examiner, past President of CII and longstanding member of
ABI. His company has offices in London and Portugal, which undertake business intelligence).
12
Case Study: The Importance of Pre-Employment Screening Rogue Assistant Manager with Unknown Criminal Past
Bilks Company for More Than $50,000
By Zafar I. Anjum, CFE, CIS, MICA, Int. Dip. (Fin. Crime) CII
MBCI Group Chief Executive Officer
Corporate Research and Investigations LLC
EXECUTIVE SUMMARY
A rogue employee working in the finance department of a multinational corporation steals more
than $50,000 before being discovered by the company.
PERSONS OF INTEREST
The individual in question had a notable criminal record, which should have raised red flags prior
to his hire. Unfortunately, the corporation did not conduct a pre-employment background check
prior to hiring the employee, so the individual's criminal history was never discovered.
BREACHES IN SECURITY
Failure to conduct a pre-employment background check to vet the individual. Lack of regular employee background investigation procedures for individuals in key financial positions. Weaknesses in departmental systems and internal controls which allowed the employee to
easily execute the crime.
IMPACT OF BREACH
Aside from the notable financial loss that the business will seek to recoup, the company is forced
to spend time, energy and resources building a solid case to proceed with charges against the em-
ployee.
CRI SOLUTIONS
Perform pre-employment background checks on all job candidates, or at very least on those candidates seeking positions at sensitive departmental levels. Conduct regular background investigations on current employees to expose any recent convic-tions or irregular behavior. Initiate an Employee Integrity Program that instils honesty among employees and encourages strong internal controls. Execute periodic internal audits of the finance department. Ensure that the post-crime investigative process is adequate and thorough for gathering evi-dence to build an effective case for rectifying the situation.
13
It's a fact that some of the most talented and
promising job candidates possess the most dis-
turbing pasts, which can oftentimes lead to peri-
lous futures for the employer. This is the primary
reason businesses are strongly advised to conduct
pre-employment screening investigations before
hiring seemingly well-qualified managerial candi-
dates.
Recently, CRI Group was engaged by a large
multinational corporation to conduct a back-
ground investigation on an assistant manager in
the company's finance department. The individu-
al was accused of questionable behavior related to
a large amount of missing company funds.
After an extensive investigation, CRI Group re-
ported that, prior to working for the company; the
subject in question had spent more than two
years in prison having been convicted of using a
phony passport and engaging in immigration vio-
lations in the Middle East.
Because the company neglected to conduct an
initial pre-employment background investigation
prior to hiring the assistant manager, the individ-
ual's criminal history and prior incarceration
were never revealed. Subsequently, while in the
company's employ, the individual devised a sys-
tem of writing corporate checks to himself and
forging the signature of the department's author-
ized director. In the end the employee managed
to bilk the company out of $55,000.
Who's At Fault?
While enough evidence has surfaced in this
case to effectively prosecute the employee, one
prevailing question keeps surfacing: Why wasn't
the individual properly vetted before being hired
to run such a vital and sensitive operation?
Many companies, faced with "quick-hire" needs
to keep departments running smoothly, will admit
that they oftentimes expedite the hiring process in
order to avoid any potential disruptions in
operations. In doing so, the company will often
forgo the pre-employment vetting process, typi-
cally one of the first verification cogs in any se-
cure hiring process.
In this case, the company's failure to conduct
such an investigation opened the doors (and the
corporate check book) to the risk of criminal
activity.
Know the Facts
It's a well-known fact that nine-out-of-ten
security problems in any corporate setting are
generally caused by individuals within that or-
ganization.
The most effective way to deter this activity
in a business is to institute an effective vetting
process that identifies and weeds out those in-
dividuals whose histories could potentially
cause irreparable harm to the organiza-
tion. That initiative begins with a pre-
employment screening process which goes well
beyond the "facts" provided on a candidate's
resume and uncovers any inconsistencies or ir-
regularities in that individual's history.
While an effective screening process will dig
deep to uncover past transgressions, it should
be streamlined so as to not become a hindrance
to the Human Resources department, which is
constantly under pressure to turn around the
vetting and interviewing process to quickly fill
needed vacancies within the organization.
An effective pre-employment screening pro-
cess will involve several layers of investigation
(based on the level of the employee within the
organization), all focused on revealing im-
portant information either hidden or simply not
being furnished by the candidate. In employing
such a process, the business will avert the many
risks of hiring rogue individuals while protect-
ing its assets (the most valuable being its own
employees).
14
An Effective Pre-Employment Screening Pro-
cess
Companies that conduct thorough back-
ground checks on candidates before hiring often
discover information that tells them where,
when and why the candidate left a previous
job. Many times, this offers an investigative
goldmine to a background screening investiga-
tor, and can identify a wealth of potential issues
(both personal and work-related) that might set
off alarms about the candidate's future job per-
formance.
An effective pre-employment screening pro-
cess will eliminate the uncertainty of a job candi-
date truly possessing the skills, credentials,
knowledge and experience that they claim on
their resumes and in the interview process,
while verifying the individual's integrity, back-
ground and personal history.
Such a screening process will involve the fol-
lowing investigations:
Previous job verification
Verification of highest degree obtained
Address verification
Criminal history investigation
Verify national id number
Research into past financial behaviour
Verify past 10 years of employment Discreet, in-depth reputation interviews
Conduct litigation checks
Investigate prior businesses owned, licenses held, legal/disciplinary actions
Conduct media research
Conduct property asset research
Research liens & bankruptcy records
Proper screening provides the assurance needed
to fully scrutinize job candidates and reduce the
risks associated with hiring rogue employees.
Taking It A Step Further
This case study also exemplifies the need
for companies to conduct regular background
checks on existing employees, particularly
those staff members in executive, managerial
and financial roles.
Ongoing employee background checks
work as a deterrent against "inside jobs" and
other criminal activity which could occur in
the workplace. These investigations delve
into an employee’s recent criminal and finan-
cial history to uncover irregularities that
might lead that employee to commit a finan-
cial, or even a violent crime.
In this case, an employee background
check could have revealed significant chang-
es in the assistant manager's lifestyle that
would have raised red flags, signalling un-
warranted financial gains resulting from his
check writing scheme. (Fortunately, a check
uncovered his past criminal history, which
subsequently broke open the case.)
Further, the development of an internal
Employee Integrity Program may have pre-
vented this scenario from taking place. An
Employee Integrity Program (EIP) is a highly
promoted company initiative that helps to
instil honesty within the ranks while encour-
aging strong internal controls and ultimately
protecting corporate resources and enhanc-
ing the company's reputation.
Through an EIP, the company can mini-
mize losses due to internal fraud and theft, as
each employee acts as a "checks and balanc-
es" component that supports the entire pro-
gram.
15
An EIP is comprised of several facets, each designed as a separate level of security. These facets in-
clude:
Background checks on senior or security-sensitive employees; Professional pre-employment screening monitoring and surveillance; Spot checks on ethics compliance for key positions; Substance abuse testing (where appropriate); Risk analysis of the organization; Whistle-blowing and employee complaint mechanisms; Structured exit interview processes; and
Strict standard operational procedures to maintain control over the organization's many functions. Strict standard operational procedures to maintain control over the organization's many func-tions. An EIP is a vital part of an ongoing human resources risk mitigation program, and would have been
instrumental in preventing or detecting the criminal activity in this case before it got too far out of
hand.
Getting Help from Outside
Companies often admit that the security measures mentioned above would be beneficial in safe-
guarding their operations, but rarely do they have the time, personnel or resources to maintain such
programs. That's where utilizing an experienced outside professional organization can be extremely
beneficial.
Let Your Light Shine Bright
Advertise in the Councilor
Contact Lois Colley or Steve Kirby for
more information and great rates
2013—14 Officers
John Sexton, CII—President
Galen Clements, CII—VP
Eddy Sigrist, CII—Treasurer
Debbra Macdonald, CII—Secretary
Directors
Sheila Ponnosamy, CII
Sachit Kumar, CII
Anne Styren, CII
Jack Chu, CII
Brett Mikkelson, CII
Bert Falbaum, CII
16
Looking for Regional Meeting Venues
As mentioned in our President’s message above, a great number of the survey respondents are interest-
ed in attending Regional Meetings. If you feel that you would like to host a regional meeting in your neck
of the woods, be it Singapore, The Middle East, India, South America, Canada, the good old USA or China,
just contact the office and we can help make it happen. If you have a suggestion for a good location, send
it to skirby@[email protected] and we will see if it can be done. The choice is yours—after all, this is your Council!
then you are in luck! We have extended the deadline to March 31st, allowing you one last chance to get
your dues paid. It is now more important than ever to remain a member, as you will see many changes
moving forward.
Another event taking place in the very near future (and no, I don’t mean St. Patrick’s Day, even
though I do take the day off each year and spend most of the day and half of the night attempting to
“Drown the Shamrock” - very difficult little things to drown, as it so happens), is the 2014 European
Meeting in Bratislava Slovakia from May 2 – 4. Alan Marr has been the driving force behind all of the
Euro Meets, which have proven to be very popular and successful. I will attend in Bratislava myself
and I am really looking forward to reconnecting with colleagues, friends and potential new members.
If you know of any investigative business owner – especially those with a unique niche/skill set, men-
tion the meeting, as you never know who would be interested. I did this recently and as a result, there
is at least one prospective member going over from the U.S. The Hotel Devin is booked, but our host;
Bernard Maier located two neighbouring hotels for those who have yet to book. You can read all the
details and itinerary for the weekend in this newsletter or on our CII website.
I would like to take this opportunity to thank everyone who took the time to complete our
most recent survey. The response was incredible – the best we have ever seen and far higher than typ-
ical survey results. The feedback was extremely helpful for the Board, as it will help steer future
Boards to deliver upon members’ expectations. Of those who responded, one outcome was the fact
that most members show a preference for more Regional Meetings. Based on these findings, it would
appear as if future Regional Meetings will be well supported. Unfortunately, the current Board is al-
ready half-way through the year and there is just not enough space on the calendar to try and organize
another meeting before the AGM. Perhaps a winter gathering in a more summer-like location could be
a possibility….any takers willing to help “organize”. Speaking of winter, the Sochi Olympics may have
drawn to a close, but winter and dangerous conditions are still very much a reality for many of us. To
those of you who are still experiencing snow and freezing conditions (except for the skiers – who must
be in love with the weather!) – be careful in your travels and I look forward to seeing many of you in
Slovakia and San Francisco, where I am hopeful that warmer conditions will prevail.
Cheers,
John Sexton , CII President
President’s Message—John Sexton (continued from page 1)
17
CII Makes Mark on Ireland
Irish Show Gratitude for CII Generosity
With the fond memories of Irish Hospitality still
well remembered by those who attended the
59th AGM in Enniscorthy Ireland last Septem-
ber, CII make an impression on the Irish as well.
Past President and Conference Host, Derek Nal-
ly was presented with a Certificate of Apprecia-
tion to the Council for being a valuable contrib-
utor to The Gathering Ireland 2013, a year long
celebration of Irish coming home (or in a num-
ber of our members’ cases Irish by proclamation
coming home. ) Either way we were welcomed
with open arms and truly appreciated.
CII Donates $10,000 to Local Hospital
Thanks to the generosity of those members and
friends of CII who both donated gifts for auction
and bid on those items, Derek Nally and the
PODs presented a $10,000 check to The Wexford
County Hospital
PODs (Pals of Derek) at the 2013 AGM
18
PAST PRESIDENT SURVEY by Bert Falbaum
How did you come to become an investigator?
I was a US Federal Investigator and it was a natural transition.
Was there any licensing in place, and if so, was any testing required?
There was licensing but no testing. I was required to complete 20 hours of classes and a greater re-
quirement for individuals with less investigative experience.
When you first started your investigator’s career, what, if any privacy concerns were a parameter of the profes-
sion, and what were the parameters?
There were no privacy concerns. Privacy was not an issue
How has privacy issues emerged, or change since you started your career?
Privacy has emerged for that faction of society worldwide, who view it as an inherent right. I don’t
happen to agree. I believe the concept of privacy per se, to be a myth, harboured by those who ad-
vocate for it. Privacy is the application of secrecy. A secret is something that one person alone
knows; once a second person knows it, it is no longer a secret.
How has the privacy issue impacted your business?
Only to the extent that it creates an opportunity to charge more for investigative services.
What, if any reasons did you have for joining an international organization? Networking and the opportunity for foreign travel.
When did you first join CII and who mentored you into the organization?
1988. Nick Beltrante.
When did you serve as president and what were the most challenging issues facing the profession?
2006 – 2007. Society’s recognition of investigations as a profession.
What were the most challenging issues facing your presidency? Attracting membership from the Far East, Africa and South America.
Where do you see the future of organizations, such as CII, in light of the Internet and other technological chang-es, in the next ten years?
A greater opportunity for collegiality among practitioners. There is no more or less information avail-
able now nor will there be in the future than there has ever been. It’s just easier and faster. Do you see a role for continuing education as part of that strategic planning?
Absolutely.
Do you see a role for CII in responding to privacy issues, and if so, what?
Only to the extent that the paranoia attendant to the issue be curtailed
19
Zambian Private Investigator cleared in connection with Irish boy's rescue 29 January 2014 A private investigator from Zambia, who helped an Irish father locate and rescue his son in Zam-bia ,was vindicated after being charged with assisting a child abduction. Cork father Richard Quarry undertook an epic seven-week trip to rescue his son Ethan (7) earlier this month, and tri-umphantly brought him home on Saturday, all thanks to the handy work of a private investigator.
Canadian Private Eyes Jailed in US Two Canadian private eyes have been jailed in the United States for bilking clients in an interna-
tional scheme that involved bogus promises of offshore millions.
Cullen Johnson, 65, and Elaine White, 70, were first exposed in a Star investigation five years ago.
Both have now pleaded guilty to money laundering. They were sentenced Thursday to five years
and six months in federal penitentiary.
They face fraud charges in Ontario, which will be dealt with after their release from U.S. custody.
The investigation by U.S. authorities also snared a popular television anchor whose bank account
was used as a conduit for more than $500,000 in funds from the Canadian couple. Juliet Bickford,
who, until this week, worked for a Virginia CBS affiliate, pleaded guilty Wednesday to filing a false
tax return and has been cooperating with investigators. A fourth person in the scheme, Bickford’s
boyfriend, is believed to be hiding out in Greece.
Ten years ago, Johnson and White were flying high in Ontario. He was a former Toronto police de-
tective; she an investigator for a downtown accounting firm.
They formed a partnership in a strange endeavour the Star, in its 2009 investigation, called a
“financial striptease.” Their companies were Internal Affairs and Global Solutions, which special-
ized in “financial asset investigations,” according to a company website.
Johnson and White sought out clients involved in messy legal cases such as an acrimonious di-
vorce. They concocted bogus and stunningly realistic international banking information that
would lead one party to believe the other had millions of dollars in assets offshore in places like
the Channel Islands or the Cayman Islands. Over a period of time, the detectives would charge in-
creasingly higher fees in return for more “banking information.” Often that information was pre-
sented in court as real and it took lawyers and judges years to understand it was false.
One non-divorce case involved a group of school board employees who had unknowingly pur-
chased a winning lottery ticket. Through a series of maneuvers and false documents, the lottery
winners were led to believe that one member of their group had stolen and cashed in the ticket.
Investigators in the U.S. allege at least $1 million in fees were paid to Johnson and White over the
life of the scheme. Victims of the scheme lived in Ontario, Alberta, and throughout the U.S.
PI News From Around the World
20
From Around the World (continued from page 19)
NEW HAMPSHIRE PRIVATE INVESTIGATOR PLEADS GUILTY HOLDING HERSELF
OUT AS A CERTIFIED COMPUTER FORENSIC EXPERT
A New Hampshire private investigator who received $23,000 from the state since 2006 to conduct
computer forensic investigations for indigent defendants pleaded guilty last week to misrepresenting
some of her investigative certifications on her company’s website. Judith Gosselin, owner and sole em-
ployee of J.A.G. & Co. in Hampton, NH claimed to be a “certified computer examiner” and to be trained
as an ethical hacking forensic investigator when she wasn’t, according to court records.
Gosselin, who has worked for the state, federal public defender offices, and civil and criminal de-
fense attorneys in New Hampshire and outside the state, avoided jail time in exchange for her guilty
plea to a misdemeanor charge of unfair and deceptive business practices. She received a 12-month sus-
pended jail sentence, was fined $2,000, ordered to reimburse the state’s indigent defense fund $3,500
for her work on a recent case and to ordered “not ever accept any criminal case in the State of New
Hampshire in any capacity.” Full Concord Monitor article at: http://www.concordmonitor.com/
home/10505029-95/computer-investigator-pleads-guilty-to-misrepresenting-credentials
Source: Bruce Hulme ISPLA Director of Government Affairs
Save the Date
September 2—6. 2014
60th Annual General Meeting
San Francisco California
Leave your heart in San Francisco
