Anatomy of a Fraud Investigation: From Detection to Prosecution

The crime of embezzlement has fascinated me for years, but there seem to be very few books that explain for non-specialists exactly how embezzlement schemes work and are detected. "Anatomy of a Fraud Investigation" fills that gap. While it is intended to be an instructional work for finance professionals (and is priced accordingly), it will be readily understandable by most readers and fascinating for anyone who, like me, wants an accurate understanding of one type of white-collar crime. The book covers the investigation of embezzlement perpetrated by "James Smith," the controller of a division of a large non-profit entity. It begins with the initial engagement of the author to investigate suspected embezzlement and proceeds step-by-step through the case, to its ultimate resolution. The author describes his standard practices and includes numerous sidebars explaining why he does what he does. The presentation is a bit dry, but Pedneault's writing is more than satisfactory. And there is a certain amount of excitement as Smith's scheme is slowly uncovered. The Kindle edition has no major problems. Footnotes (of which there are few) are linked.

This book exceeded my expectations in terms of the information shared about the mechanics of fraud investigation and the manner in which it was presented. The fraud example itself was pretty pedestrian, and there was no blockbuster ending. Don't expect to see "Anatomy of a Fraud Investigation" at a theater near you any time soon. However, the example provided a valuable timeline and frame of reference for describing an investigation, and it gave relevance to the procedures being described. I am a CPA currently studying to become a CFE. The book was rich with valuable information, and it was enjoyable to read as well. I would highly recommend this book without reservation - an easy 5 star rating.

The good - the book presents some useful knowledge and insight into the techniques used by forensic investigators, although it does not dive too deep into the detailed analyses that might be performed by an investigator. The case itself seems very basic, and the perpetrators did not exercise any overly complicated schemes in their fraud. As a matter of fact, it would appear that the branch where the activities were carried out had a serious lack of basic internal controls - such as allowing the branch staff to open/close bank accounts without the approval of head office. The author mentioned that he had performed some work for the entity before - so I would hope that his scope of work did not extend to the review of such controls! Also, it was particularly concerning for me, as a reader - to read that the 'target' was allowed to simply clear his own workspace unsupervised (when informed that he was placed on administrative leave) - and no one checked what documents he had removed. I find it rather surprising that despite the involvement of an experienced investigator - this could have occured. Notwithstanding that the author was not responsible for the escorting the 'target' at this stage - I would have expected that the risk of the removal of pertinent documents should have been a specific concern raised by the author at the earlier planning meeting. This was a serious lapse that might have undermined the subsequent investigations - had it not been for more contributions by the informants to get things back on track. The case did not go to litigation, which was another disappointment, as the reader could not get a sense of the forensic investigator's contribution as an expert witness - or the other workings of such a case. Despite these, the book was still fairly interesting to get some insights over the important aspects of conducting a fraud investigation. The author could, however, have avoided a significant level of brain-numbing repetition (I reckon the process of placing evidence tape, and removing this must have been described in detail for a dozen times!).

Had to read this for my Fraud Examination class, and I would say that it has been a good read. The examiner goes through a real life case he investigated, from start to finish, and he was very thorough in describing the processes involved. Sure, some of the facts are pretty logical if not obvious, but the principles of fraud examination are not rocket science. As a learning tool, I would highly recommend this book. Sure, this examiner does make a few mistakes when handling the case, but for us, those mistakes become valuable lessons that we can carry to the profession should we become fraud examiners. One thing that was slightly annoying, however, was the way the author described his interviews and other encounters with characters. His sentences kept starting as “She said…I replied…She asked….I told her…” It was slightly monotonous to read that. But, it doesn’t take away too much from an otherwise good read.

I purchased this book to gain and idea and perspective on what goes into a fraud investigation. I have been a Police Ofiicer for 5 years and am enroled in a Masters program in fraud and forensics. I purchased this book for a little motivation before begining my program. Pedneault shares a lot of the same training and ideas that I have used in criminal investigations. I enjoyed seeing how both professions compliment each other. Having an understanding of investigations, interviews, and prosecution, I could see anyone picking this book up and being able to grasp how his fraud investigation was conducted. The author does a great job of keeping the read simple for anyone interested to understand. I am waiting for his earlier book fraud 101 in the mail. I am looking forward to reading it as well.

My husband, Robert, purchased this book for me because he thought I would find it interesting as I recently became a Certified Fraud Examiner. He was right! This book takes the reader through a fraud investigation from beginning to end with many details and lots of explanations, etc. I am very analytical and detail-oriented, and this book was perfect for me. The author even points out some of his own mistakes and suggestions of what should have been done differently in this case. Loved it!

This entertaining book teaches the best practices of fraud investigation. I've been an investigator, so I feel I can say this: the book gets it right!

If you are at all interested in forensic accounting, this book takes you from the moment a fraud is suspected, through collecting evidence, sorting and reporting the evidence up to prosecution of the perpetrator.

I found the book very informative and well written. I enjoyed the way the author described his personal feelings throughout. It would have been helpful had the author provided examples of his notes (redacted or made up), evidence forms (redacted or made up) and reports (redacted or made up). It would have been helpful if the author had included a case in which he had to testify either in civil or criminal court and his tips on court preparation and testimony. I realize most cases are resolved prior to court however I would think (or hope) that the author has some experiences he could share with new fraud investigators with relation to fraud court experience. Maybe the next book...