Investigator and Fraud Fighter Guidebook

Operation War Stories

Charles E. Piper

• Publisher: Wiley
• Year: 2014
• ISBN:
  9781118878507
• Edition: 1
• Topic: Business
• Subtopic: Accounting
• Index: Business

Get federal investigative insight and guidance on conducting thorough investigations and case-building

The ability to conduct thorough and effective investigations is a skill that has become increasingly in-demand across many industries. At the same time, investigative resources are dwindling as markets recede. Regulation and financial hurdles impede traditional investigation processes. Even seasoned professionals are finding themselves overtasked or lacking the experience to pursue the types of cases that are accumulating.

In Investigator and Fraud Fighter Guidebook: Operation War Stories, author Charles E. Piper, CFE provides insight and guidance on how to conduct thorough and complete investigations while juggling a caseload. Piper served over 30 years in law enforcement-including 20 as an award-winning Federal Special Agent-Criminal Investigator. His wide array of experience allows him to lend a high-level perspective to the art and science of professional investigations of criminal, civil, and administrative cases. In the book, Piper provides guidance on conducting thorough and complete investigations (even with fewer resources) and spotting red flags that often indicate big-picture problems. Piper also shows how to:

• Identify the suspect's other wrongful acts (similar and otherwise)
• Identify similar wrongful acts committed by others, and predict future occurrences
• Identify systemic weaknesses, waste, and abuse
• Identify changes and corrections necessary to prevent future occurrences

The book includes Piper's real-life investigative examples to illustrate important concepts. Whether the matter is public, private, or military, the same basic investigative principles apply. Things that may seem totally unrelated may hold the keys that crack the cases. The Investigator and Fraud Fighter Guidebook: Operation War Stories provides the acumen and judgment required to pick up on these clues and successfully conclude investigations.

Chapter 1
The Successful Investigator

“Some investigators have 20 years of experience; others have one year of experience 20 times.”

–Senior federal agent

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War Story 1.1

During the later years of my federal law enforcement career (2006–2008), I was investigating several high-ranking U.S. military generals and other military officers for allegedly applying undue influence on lower-ranking government contracting officials to circumvent the contract award process. As a result of their influence, many government contracts worth several millions of dollars were awarded to favored contractors (including retired military officers’ companies) sometimes at highly inflated prices, and often they were awarded without required competition.

The assigned federal prosecutor was also an officer in the military reserves. During the investigation, the prosecutor surprisingly ordered me to stop conducting interviews, stop writing reports, and stop analyzing other improperly awarded government contracts. My own supervisor, who was also an officer in the military reserves, took things a step further and ordered me to completely close the investigation!

As implied in the preface of this book, I’m a bit of a maverick—especially when it allows for the opportunity for good to triumph over evil. So despite my instructions, I just kept right on investigating, conducting interviews, writing reports, and examining other government contracts. In the end, I obtained evidence indicating that some of the highest-ranking U.S. military generals and other high-profile officers should have been considered for courts martial (military criminal trials). My final draft investigative report, approximately 275 pages, provided clear and detailed descriptions of the investigative results including a required evidence section.

So what happened? My final draft report was altered. (Some might call it “edited,” but there’s a big difference.) Before my report was finalized, critical information was completely removed, including the entire evidence section. The final version of my report was reduced to approximately 250 pages and made to look as if the highest senior military officers (four-star generals) had done nothing that warranted consideration for criminal prosecution. That was in complete contrast to what the evidence indicated and in complete contrast to what I wrote in my draft report!

In addition, in my final draft report I stated that the investigation was not yet complete because more interviews and re-interviews needed to be conducted. That statement was completely removed before the report was finalized. Consequently, the final “approved” report gave the false impression that the investigation was 100 percent complete.

NOTE: Yes, I did notify senior government officials about what transpired, but they failed or refused to respond. As a result, I learned firsthand the meaning of the term “good ole boys’ network.”

The moral of the story is that even the best investigators in the world cannot control the outcome of every investigation. In all probability, most other investigators will never encounter the obstacles, hindrances, and roadblocks imposed on my efforts during and after that investigation. But if conducting investigations is your chosen profession, you’d better be prepared for some occasional shenanigans by others (including the “good guys”) that you will not be able to control. What others do before, during, and after you complete your investigation may very well affect the outcome of the investigation.

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The Basics

Before embarking on this unique voyage to learn how to become a more successful investigator, it is important to have a basic understanding of the meaning of those two words and how they relate to each other. Sounds pretty simple, right? I can just about guarantee you that many investigators who have received less-than-perfect scores on their annual job performance ratings would opine that their own definitions of the word “success” often differs greatly from their superiors’ definitions. This chapter elaborates on the meanings of these words: investigator, investigation, and success.

Investigators

Investigators, like other professionals, must have certain characteristics, traits, and skills to be successful at their chosen profession. An investigator must:

• Possess integrity (be honest).
• Have certain job skills (acquired through training and/or experience).
• Have knowledge of many aspects of law (e.g., knowledge of others’ right to privacy, the rules of evidence, and the elements of criminal offenses, etc.).
• Be dedicated to the job (willing to go beyond the call of duty).
• Be persistent (not willing to give up just because the going gets tough).
• Be self-motivated (don’t need someone else telling them what to do or when to do it).
• Be resourceful (maximize the use of resources and be cost conscious where possible).

Investigators should also have other skills, including good planning, organizational, and communications skills (oral and written). It also helps to be creative and clever. Many of the skill sets needed to be an effective investigator are obtainable in a classroom or in the field; however, a few of these characteristics (e.g., integrity, dedication, and persistence) often are instilled in some people early in their lives; in others, never at all. I don’t mind saying that the U.S. Army taught me the importance of persistence. The military teaches troops to never give up, no matter what. A persistent investigator is a very valuable commodity.

Having passion for your work is critical to enjoying the job. No matter what your profession, if you enjoy your work, the job really isn’t about the paycheck; it’s about the pursuit and accomplishment of the goal(s). Having passion for catching bad guys, righting wrongs, pursuing justice, and helping others can make it fun to go to work every day. That’s why I say I’ve been lucky; I’ve always gotten to do what I wanted.

I once asked a professional baseball scout what he looked for when evaluating young prospects to be considered for baseball contracts. He replied, “What we look for is speed. We can teach players everything else, but we can’t teach them speed.”

If You Have the PIG, You Have It Made

Along the baseball scout’s lines, in my opinion the three most important characteristics, skills, attributes, or traits that a good investigator (or any other professional) can have include: passion, integrity, and grit (PIG). Grit might be described as the willingness to persevere while pursuing long-term goals despite unfavorable odds, despite the naysayers, and despite obstacles and hindrances. “Passion, integrity, and grit—if you have the PIG, you have it made.”

Obviously a listing of useful characteristics, skills, or traits of a good investigator (especially a fraud investigator) could take several pages to complete. “Street smarts” are invaluable in the investigative field but not usually a requirement to become an investigator (sometimes I think they should be). A fraud investigator’s skill sets should also include being computer literate, logical, and analytical. He or she also needs to be pretty good at math. Perhaps every investigator should possess a strong sense of curiosity. But an investigator does not necessarily have to be good at everything to be effective. Knowing your own limitations as well as having a willingness to learn and improve makes all the difference.

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War Story 1.2

When I was a rookie federal agent, my agency required that a few other agents and I take aptitude tests to determine if we would be good candidates to become technical equipment agents for our offices. The tech equipment we’d use would include hidden electronic audio recorders and cameras and other covert and overt gadgets. One of the questions on the examination was: “Are you the type who likes to disassemble a watch to determine how it works?” I truthfully answered, “No!” because I knew I’d never get the watch put back together if I did take it apart. Most of the other questions on the test were similar in nature, and it became obvious to me that I had no business trying to become a tech agent.

I later learned that my answers to the exam questions were irrelevant because the federal investigative agency that I worked for was going to force me to attend the four-week tech training regardless of my final score.

During the first week of tech training at the Federal Academy in Brunswick, Georgia, the instructor explained to our class how electricity worked (think of a scientist wearing a long white coat.) Perhaps some of the other agents in the classroom actually comprehended the material, but I sure didn’t. Later the instructor brought us to a laboratory and instructed us to assemble our own tiny covert microphones using a solder gun and other tiny pieces of electronic stuff. All I made was a mess!

However, I later learned quite a bit in the field when we used brand-new already assembled equipment. As part of our training, we went into a hotel room, installed pinhole cameras, and wired up the room and then monitored everything from the adjacent room. (Yes, we rented the two rooms for training purposes, and no, there were no unsuspecting people in the room we wired up and monitored.) Understanding how the equipment worked or why it worked was beyond my comprehension. (The same is true with the remote control for my television.)

After completing the training and receiving my diploma, I returned to my home office in Memphis and practiced on the job with the available tech equipment. I continued my self-­training and use of such equipment in my next office assignments in Orlando and later in Las Vegas. With the additional hands-on experience, I was able to utilize the tech equipment in the field during several undercover operations. That knowledge and expanded use assists me today as a private investigator.

In short, everyone can learn new skills. But there are some jobs that are better suited for others. Once you have a basic understanding of what other professionals in your field do and have done to accomplish their professional objectives, you can become more effective (assuming the others are willing to assist and share information).

I’ve worked with certified public accountants, auditors, and analysts who’ve provided invaluable assistance during fraud investigations. Forensic computer experts and fingerprint and handwriting experts have also made huge contributions in my investigations. Quite honestly, I could never do what those professionals do (and wouldn’t want to if I could). To be a successful investigator, you often will need assistance and/or input from other professionals to help you do your job—or to do your job more efficiently.

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Another characteristic needed to become an effective inve...

Table of contents

• Cover
• Epigraph
• Titlepage
• Copyright
• Contents
• Preface
• Acknowledgments
• Chapter 1 The Successful Investigator
• Chapter 2 Case Initiation
• Chapter 3 Conducting Thorough Investigations
• Chapter 4 Expanding Investigative Efforts
• Chapter 5 Fraud, Waste, Abuse, and Systemic Weaknesses
• Chapter 6 Summary Reports
• Chapter 7 The Investigator’s Toolbox: Resources, Tools, and Techniques
• Chapter 8 Interviewing
• Chapter 9 Case Planning
• Chapter 10 Large-Scale Investigations
• Chapter 11 Making Presentations
• Chapter 12 Providing Testimony
• Chapter 13 Closing the Case
• Chapter 14 Personal and Professional Growth
• Conclusion
• Appendix Samples of Case Presentation Visual Aids
• About the Author
• Index