One thing fraud has in common with diamonds

Written on May 10, 2018

By Gary Hunt, OSCPA senior content editor

Time and pressure can create a diamond. Sometimes, Reggie Novak has observed, they can also result in fraud.

Novak, a CPA, Certified Fraud Examiner and senior Manager at Ciuni & Panichi, Inc. in Cleveland, has investigated numerous fraud cases over the years and said they often start with a sad story.

“A lot of times they're not setting out to defraud an organization,” Novak said. “A lot of times it's a personal pressure that's causing them to steal from an organization. Whether it’s a drug addiction, gambling problem or a large credit card debt, those types of issues within a person's life can cause them to look to defraud an organization and then in their minds rationalize it.”

Novak is among the speakers at OSCPA’s Not-For-Profit Conference on June 14 in Columbus. Meanwhile, he joined us on the latest episode of OSCPA Spotlight, which you can view above. In it, he explains, in his experience, the business flaw that is usually at the heart of fraud.

Learn about the CFF credential

In response to increased market demand for specialized services and a recognition of the rapidly growing forensic accounting discipline, AICPA created the Certified in Financial Forensics (CFF) credential in 2008. The global demand for qualified forensic specialists continues to grow as courts and other triers of facts not only seek out, but also recognize CFF credential holders as experts in their field. To learn more about the value of AICPA credentials and find out if you qualify, go to www.aicpa.org/credentials.

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  1. Tiffany Crosby | May 11, 2018
    The NFP world is especially ripe for fraud because people believe that commitment to the cause is sufficient to overcome personal pressures, despite what experience continues to show. 

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