The ACFE is the world's largest anti-fraud organization and premier provider of anti-fraud training and education. Together

with more than 75,000 members, the ACFE is reducing business fraud worldwide and inspiring public confidence in the

integrity and objectivity within the profession. Take advantage of networking and educational opportunities in your own

back yard by joining your local ACFE Chapter.

VICE PRESIDENT’S MESSAGE I would like to thank our September speaker, Rhonda A. Warner CFE, Senior Investigator, Attorney Grievance Commission

for the her presentation “A License to Steal, The Red Flags of Attorney Fraud”. Her presentation was very interesting and

generated a number of interesting questions and comments from the chapter members present.

The implementation of our new meeting policy began with the September 2016 meeting. Our monthly chapter meetings are

open to anyone, who would like to attend. However, after two meetings you will be asked to join our chapter. Dues are

$50.00 per year to continue to pay the member price of $30.00 for the meeting and dinner. If you do not join, you are still

welcome to attend; however, you will be charged a dinner meeting fee of $40.00. Reminder will be noted in the monthly

newsletter.

The Southeast Michigan Chapter of Associated Certified Fraud Examiners is an exciting experience and continues to show-

case knowledgeable speakers. Our group has outstanding people that attend our meetings and conference. Our meeting

and conference provide opportunities to gain relevant knowledge for professional and personal success as well as an op-

portunity to acquire needed hours of continuous education for various certifications.

September starts our year and your dues are due at this time. The dues are an integral part of the finances for the Chapter.

They assist the Chapter in presenting the quality monthly programs and the annual conference.

The Board is already working lining up speaker for the 23rd Annual Fraud Conference which will be held on April 27, 2017

at VisTaTech Center, Schoolcraft College in Livonia.

The Board is always interested in feedback and any ideas on how we can improve the Chapter. Please let us know if you have a topic you would like or a speaker that would be interested in presenting at a monthly meeting. Thank you for your continued support.

Tim Boyle,

Vice President

SEMCACFE Newsletter October 2016

2

2 CHAPTER MEETING

Thursday, October 6, 2016

Join us at

St. John Banquet and Conference Center

22001 Northwestern Highway, Southfield, MI

Speaker: Christine MacDonald,

Investigative Reporter, Detroit News

Presentation Topic:

Investigative Reporting: From Detroit’s Foreclosure Meltdown to Corruption Probes

Christine MacDonald is an investigative reporter recognized for her use of data technology presentation capability to

tell a story. Using Caspio’s online database helped her and colleague, Joel Kurth map out data in a way that spear-

headed scrutiny and action, including attention from government officials. Follow the Money means follow the data,

always asking: What might it mean? Where else should we dig? How does its presentation impact the interpretation

of data?

Along with Detroit News’ Tom Gromak, Director of Digital Innovation, she helped spearhead the application of this

technology to reporting a complex, data-rich challenge involving millions of dollars. “Since 2005, more that 1-in-3 De-

troit properties have been foreclosed because of mortgage defaults or unpaid taxes” beings their award winning re-

port. Related data identifies that top lenders of foreclosed and blighted properties…and some of the sanctions

against their practices (though many have since disappeared as banks or lenders).

Other reporting led to FBI charges, a conviction, deeper digging into tax delinquent companies, and other corruption

and misspending probes.

Before joining the Detroit News in 2003, she was a reporter at Lansing State Journal since 1998. She received a

Bachelor’s degree in Journalism in 1998 from Michigan State University. In 2012 she was a recipient of the 2012

SPJ Detroit Journalist of the year from the Society of Professional Journalists Detroit.

RSVP to Mary Medonis

E-mail: info@semcacfe.org

Dinner prices : Members:$30, Students & Retirees: $25, 3rd time Guests $40

NOTICE: Our monthly meetings are open to anyone who would like to attend. However, after two meetings, you will be asked to

join our chapter. Dues are $50.00 per year in order to continue paying the member price of $30 for the meeting. If you choose not to

join, you are still welcome to attend but will be charged a dinner meeting fee of $40.00.

Reminder: To help minimize costs to our chapter, please notify us of any cancelations, prior to the meeting date.

The Southeast Michigan Chapter is working to increase our outreach and professional networking at colleges and universities as well as in

our community. Join us as we relentlessly strive to promote fraud prevention and detection through educational training programs.

3

3

September 2016 Chapter Meeting

Speaker:

Rhonda A. Warner, CFE

Senior Investigator

Attorney Grievance Commission

Topic:

“A License to Steal”

4

4

September 2016 Chapter Meeting

5

5

September 2016 Chapter Meeting

6

6

Trending Fraud

Unidentified hackers have stolen EUR40m from German supplier Leoni's Romanian

subsidiary using only some cloned email accounts.

Leoni's financial director in Romania apparently wired the money into a bank account provided by the hackers via email as she

thought the emails came from her bosses in Germany, romania-insider.com reported. On 16 August, Leoni announced the loss of

EUR40m following fraudulent activities, which may have involved hackers. The stolen sum represents about half of the German

group's net profit and almost 1% of its turnover in 2015. However, nobody knew at that time that the fraud occurred at the group's

subsidiary in Romania, the report said.

"Leoni AG realized on Friday, 12 August, 2016, that it had become the victim of fraudulent activity with the help of falsified docu-

ments and identities and the use of electronic communication channels. As a result, company funds were transferred to accounts

abroad," the company said in a press release. The company didn't go into details about this massive fraud and said only that its

board had launched an investigation into the events and had also reported the matter to the police criminal investigators.

On the same day that Leoni made this announcement, the prosecutor's office within the Bistrita Court in Romania received a com-

plaint about a EUR37m fraud from Leoni's subsidiary in Bistrita, in central Romania. As the damage was very big, the prosecutors

passed the case to the Directorate for Investigating Organized Crime and Terrorism (DIICOT). According to preliminary infor-

mation, the fraud may have been coordinated by a group of hackers who cloned the email accounts of Leoni directors from Germa-

ny. They used those false email accounts and asked the financial director of the group's Romanian subsidiary to wire almost

EUR40m into a bank account.

According to romania-insider.com, the Leoni financial director in Romania apparently followed the company's internal protocol

and wired the money. The money went to a bank account in the Czech Republic, according to unofficial sources quoted by Ade-

varul.ro.

The hackers apparently knew the company's protocols, including the fact that directors in Germany had asked for money transfers

via email before. However, the investigators haven't yet determined if the Leoni financial director in Romania worked with the

hackers or simply followed what she thought were orders from the management in Germany.

Bistrita-based Leoni Wiring Systems Ro manages Leoni's whole operations in Romania. The German group opened its first factory

there in 2003, producing cables for car makers such as Mercedes and BMW. The group opened another factory in Bistrita last year.

Leoni has two other cable factories in Romania, one in Arad and the other one in Pitesti. Its local factories have over 12,700 em-

ployees and over EUR 530 million yearly revenues, according to official data from the finance ministry.

Leoni had over 74,000 employees in 32 countries and total sales of EUR4.5bn in 2015.

7

7

Subject to Detention

It’s back to school time. Children and people of all ages are headed to learning institutions across the nation to increase their knowledge, some more willingly than others. An article published in The Annandale Patch tells about a man and a woman who were eager for school to start, but for different reasons than you might expect. They posed as students at-tending four different community colleges in order to obtain approximately $67,000 in feder-al student aid.

The story provides details into the fraudulent escapades of two Louisiana residents—a man and a woman—who used the stolen identities of four victims to accomplish their scheme. (At the time their identities were used, three of the victims were in prison and one was recovering from wounds sustained while deployed in Afghanistan.)

The two fraudsters used their victims’ names, dates of birth and Social Security numbers to apply for financial aid at community colleges located in Virginia, Colorado, Oregon and South Dakota. But for communication purposes, the two gave their own addresses, emails and telephone numbers to make sure that inquiries from the Department of Education and any of the four community colleges would be directed to them. (Recorded phone conversa-tions involving the male fraudster revealed that he was impersonating his victims when call-

ing for an update on financial aid from one of the learning institutions.) As a result, the two pretend students were able to receive about $67,000 in federal student aid in the names of their victims.

The 31-year-old man and 34-year-old woman both pleaded guilty to charges involving the use of stolen identities to obtain federal student loans. They both face a minimum of two years in prison for aggravated identity theft and a maximum of five years in prison for con-spiracy when sentenced.

Written by Larry Benson

News and Member

Services

Please visit the chapter web site at www.semcacfe.org for more information

regarding upcoming events.

Publisher’s Statement

The Southeast Michigan Chapter of the Association of

Certified Fraud Examiner’s Examiner is published for

the sole benefit and use of the members of the South-

east Michigan Chapter of the Association of Certified

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regarding content or if you would like to submit an

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Email: fanniemmoore@aol.com

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Photographer: Mike Ross

News Letter Editor: Fannie Moore

2016 Officers & Directors

President Barbara Netter, CFE

Vice President Timothy Boyle, CFE

Secretary Mike Ross, CFE

Treasurer Mike Washenko, CFE

Director Fannie Moore, CFE

Director Jarriel “Jerry” Koplin, CFE

Director Frank St Onge, CFE