Hoffmann Column: Viterbo summit tackles economic crimes

Billions of dollars are stolen or embezzled each year from the world’s leading companies due to what now is termed economic crime.

Small businesses and the general public also can be hurt by identification theft, embezzlement, fraud and other crimes. Western Wisconsin isn’t immune to the problem.

Small business owners and the general public can learn how to protect themselves from financial misconduct at an Economic Crimes Summit from 8 a.m. to 4:30 p.m. Sept. 18 at the Reinhart Center at Viterbo University in La Crosse.

The university’s Dahl School of Business organized the event, which will feature national presenters, each discussing different aspects of fraud and tools for prevention.

Speakers include:

** Elizabeth Hiday, an ex-felon who specialized in passing bad checks at upscale stores.

** Tom Ezdon, a human engineering expert from LOCKNET Inc.

** April Riel, a forensic accountant who testifies regularly in high-profile fraud cases in southern California.

** Joan Knothe Stein and Joe Cargel, both of the San Diego Regional Fraud Task Force.

The presenters will share their experiences related to fighting fraud, embezzlement, identity theft and breach of information security.

Event organizers say the summit will provide area business owners, managers, accountants and others with information and tools needed to combat fraud. Business officials will learn to spot fraud indicators and how to put processes into place to prevent fraud, embezzlement and identity theft.

Economic crimes, often also called “white collar” crimes, are on the rise in the U.S. and around the globe. Identification theft has become a major problem — for victims and the businesses that become involved in their transactions.

This writer and his wife were victims of ID theft a number of years ago when living in the Milwaukee area. It involved telephone service at the time and took weeks to clear up. At the time, jurisdiction over such crimes was a question mark, and procedures to follow for individuals and businesses were unclear.

It happened to us again a year later, and we were struck by how much better those jurisdiction and procedures had gotten.

Law enforcement and other agencies have become even better at going after economic crime since we experienced the problems. Wisconsin police, state investigators, and federal investigators commonly pursue and investigate people for fraud in insurance, mail, prescription drugs , securities, credit cards, banking, as well as the passing of bad checks, embezzlement and other crimes.

The FBI, Secret Service, Federal Trade Commission and other federal agencies often get involved in investigations. Economic crimes happening right in western Wisconsin often can be parts of larger crime rings that have international roots.

In the early 1990s, the Secret Service’s investigative mission expanded to include concurrent jurisdiction with the United States Department of Justice regarding Financial Institution Fraud.

Also during this time, the Internet and use of personal computers became commonplace and expanded worldwide. The combination of the information revolution and the effects of globalization caused the investigative mission of the Secret Service to expand dramatically.

One of the more common Internet fraud schemes in recent years allegedly involved Nigerians who ask local people to help with depositing money in U.S. financial institutions. The perpetrators of advance fee fraud, known internationally as “4-1-9 fraud” (after the section of the Nigerian penal code which addresses these schemes), are often very creative and innovative.

A large number of victims are enticed into believing they have been singled out from the masses to share in multi-million dollar windfall profits for no apparent reason.

Prevention of economic crimes starts with business people and individuals recognizing when something doesn’t seem right. That’s what the Viterbo summit will deal with.

The La Crosse Tribune and WKBT-TV are collaborating with Viterbo to sponsor the event. Cost of the symposium is $99, which includes lunch.

To register, visit www.viterbo. edu/summit.aspx or call the Dahl School of Business at (608) 796-3360.