[Music] you know when Chan Kai asked me to join
you know when Chan Kai asked me to join
you know when Chan Kai asked me to join this TEDx program they told me the the
this TEDx program they told me the the
this TEDx program they told me the the topic for this this year is the
topic for this this year is the
topic for this this year is the disruption in paradigms and I thought
disruption in paradigms and I thought
disruption in paradigms and I thought that’s perfect for me I feel I’ve been
that’s perfect for me I feel I’ve been
that’s perfect for me I feel I’ve been disrupting paradigms my entire career so
disrupting paradigms my entire career so
disrupting paradigms my entire career so I’ll tell you a little bit about it I
I’ll tell you a little bit about it I
I’ll tell you a little bit about it I started my career out of college with a
started my career out of college with a
started my career out of college with a bachelor’s in business and I became an
bachelor’s in business and I became an
bachelor’s in business and I became an auditor at Arthur Andersen I did that
auditor at Arthur Andersen I did that
auditor at Arthur Andersen I did that for three years and I thought this is
for three years and I thought this is
for three years and I thought this is great but I think I can help my clients
great but I think I can help my clients
great but I think I can help my clients in a different way not just look at the
in a different way not just look at the
in a different way not just look at the historical information but let’s see if
historical information but let’s see if
historical information but let’s see if we can help them a different way so one
we can help them a different way so one
we can help them a different way so one of my partners and I decided we want to
of my partners and I decided we want to
of my partners and I decided we want to change what we’re doing and I was from a
change what we’re doing and I was from a
change what we’re doing and I was from a small town in Michigan in a small office
small town in Michigan in a small office
small town in Michigan in a small office where we did we had no consulting
where we did we had no consulting
where we did we had no consulting practice so we decided we would start
practice so we decided we would start
practice so we decided we would start our own consulting practice at Arthur
our own consulting practice at Arthur
our own consulting practice at Arthur Andersen there we had clients like Kmart
Andersen there we had clients like Kmart
Andersen there we had clients like Kmart and other large corporations that were
and other large corporations that were
and other large corporations that were interested in doing mergers and
interested in doing mergers and
interested in doing mergers and acquisitions so I redefined my skills I
acquisitions so I redefined my skills I
acquisitions so I redefined my skills I redefined my activities and started
redefined my activities and started
redefined my activities and started servicing clients and mergers and
servicing clients and mergers and
servicing clients and mergers and acquisitions that was another three
acquisitions that was another three
acquisitions that was another three years then I thought I need to change
years then I thought I need to change
years then I thought I need to change again we have to shift the paradigm
again we have to shift the paradigm
again we have to shift the paradigm again so I said what am I going to do I
again so I said what am I going to do I
again so I said what am I going to do I need to leave Michigan I need to move to
need to leave Michigan I need to move to
need to leave Michigan I need to move to a bigger community and I need to do a
a bigger community and I need to do a
a bigger community and I need to do a different things so I left Arthur
different things so I left Arthur
different things so I left Arthur Anderson I went to
Anderson I went to
Anderson I went to PricewaterhouseCoopers and join the
PricewaterhouseCoopers and join the
PricewaterhouseCoopers and join the corporate investigations practice this
corporate investigations practice this
corporate investigations practice this is where I found my true place in
is where I found my true place in
is where I found my true place in corporate investigations at first I was
corporate investigations at first I was
corporate investigations at first I was looking at accounting investigations for
looking at accounting investigations for
looking at accounting investigations for board of directors and audit committees
board of directors and audit committees
board of directors and audit committees and those investigations were heavily
and those investigations were heavily
and those investigations were heavily involved fraud embezzlement managing
involved fraud embezzlement managing
involved fraud embezzlement managing earnings adjusting financial statements
earnings adjusting financial statements
earnings adjusting financial statements all things like that but very quickly
all things like that but very quickly
all things like that but very quickly after two or three years of doing
after two or three years of doing
after two or three years of doing accounting in visit
accounting in visit
accounting in visit Shen’s I realize most of the fraud
Shen’s I realize most of the fraud
Shen’s I realize most of the fraud investigations I was looking at dealt
investigations I was looking at dealt
investigations I was looking at dealt with corruption corruption represented
with corruption corruption represented
with corruption corruption represented nearly half of the investigations that
nearly half of the investigations that
nearly half of the investigations that we were doing starting in the early
we were doing starting in the early
we were doing starting in the early 2000s which this study is from 2016 even
2000s which this study is from 2016 even
2000s which this study is from 2016 even to this day more than half of fraud
to this day more than half of fraud
to this day more than half of fraud schemes involve corruption what is
schemes involve corruption what is
schemes involve corruption what is corruption well it takes place in many
corruption well it takes place in many
corruption well it takes place in many different forms but a couple of the key
different forms but a couple of the key
different forms but a couple of the key ways that most large corporations do
ways that most large corporations do
ways that most large corporations do corrupt activities is they’ll bid rig
corrupt activities is they’ll bid rig
corrupt activities is they’ll bid rig what is a bid rig it’s when one of my
what is a bid rig it’s when one of my
what is a bid rig it’s when one of my clients I’ll give you a perfect example
clients I’ll give you a perfect example
clients I’ll give you a perfect example one of my clients was looking to buy the
one of my clients was looking to buy the
one of my clients was looking to buy the telecom landlines from the government of
telecom landlines from the government of
telecom landlines from the government of an Eastern European country and that
an Eastern European country and that
an Eastern European country and that client of mine put a bid to buy those
client of mine put a bid to buy those
client of mine put a bid to buy those landlines and the bid that they said
landlines and the bid that they said
landlines and the bid that they said that they would pay was the lowest of
that they would pay was the lowest of
that they would pay was the lowest of all of the other companies bids and yet
all of the other companies bids and yet
all of the other companies bids and yet they were the winner how did they win
they were the winner how did they win
they were the winner how did they win why would the government not want to
why would the government not want to
why would the government not want to have more money from another buyer how
have more money from another buyer how
have more money from another buyer how do they win because they paid
do they win because they paid
do they win because they paid consultants who then transferred money
consultants who then transferred money
consultants who then transferred money to government agents and those
to government agents and those
to government agents and those government agents allowed my client to
government agents allowed my client to
government agents allowed my client to win this bid and unfortunately
win this bid and unfortunately
win this bid and unfortunately corruption exists that way there’s other
corruption exists that way there’s other
corruption exists that way there’s other ways you can do it sometimes you can
ways you can do it sometimes you can
ways you can do it sometimes you can overcharge a client sometimes you can
overcharge a client sometimes you can
overcharge a client sometimes you can get a kickback from a distributor or an
get a kickback from a distributor or an
get a kickback from a distributor or an agent but corruption happens in lots of
agent but corruption happens in lots of
agent but corruption happens in lots of different ways and when I was teaching
different ways and when I was teaching
different ways and when I was teaching my staff about corruption and how we can
my staff about corruption and how we can
my staff about corruption and how we can identify it in transactions one of them
identify it in transactions one of them
identify it in transactions one of them said to me you know I get it that we
said to me you know I get it that we
said to me you know I get it that we need to investigate corruption and big
need to investigate corruption and big
need to investigate corruption and big corporations shouldn’t be allowed to
corporations shouldn’t be allowed to
corporations shouldn’t be allowed to move forward and get ahead by using
move forward and get ahead by using
move forward and get ahead by using corruption to do to move forward but how
corruption to do to move forward but how
corruption to do to move forward but how does it affect me well it affects every
does it affect me well it affects every
does it affect me well it affects every one of us in society when large
one of us in society when large
one of us in society when large corporations and even small companies
corporations and even small companies
corporations and even small companies pay bribes to move forward in their
pay bribes to move forward in their
pay bribes to move forward in their business they’re paying bribe
business they’re paying bribe
business they’re paying bribe local agents government agents and what
local agents government agents and what
local agents government agents and what happens you know you have Plus justice
happens you know you have Plus justice
happens you know you have Plus justice justice is delayed health care is weaker
justice is delayed health care is weaker
justice is delayed health care is weaker because more money is being spent on the
because more money is being spent on the
because more money is being spent on the ones paying the bribes obviously the tax
ones paying the bribes obviously the tax
ones paying the bribes obviously the tax rates are going to be higher because the
rates are going to be higher because the
rates are going to be higher because the money’s to cover these bribes are paid
money’s to cover these bribes are paid
money’s to cover these bribes are paid by the others also crime is increased
by the others also crime is increased
by the others also crime is increased because the corrupt politicians and the
because the corrupt politicians and the
because the corrupt politicians and the corrupt police are not going after the
corrupt police are not going after the
corrupt police are not going after the crime the way they should be because
crime the way they should be because
crime the way they should be because they’re busy trying to get bribes and
they’re busy trying to get bribes and
they’re busy trying to get bribes and the most I think significant impact is
the most I think significant impact is
the most I think significant impact is on the infrastructure of the global
on the infrastructure of the global
on the infrastructure of the global economy our roads our water our air all
economy our roads our water our air all
economy our roads our water our air all of the things that government funds
of the things that government funds
of the things that government funds should be spent on get detracted when
should be spent on get detracted when
should be spent on get detracted when corrupt activities occur and so whether
corrupt activities occur and so whether
corrupt activities occur and so whether a large corporation pays bribes to win a
a large corporation pays bribes to win a
a large corporation pays bribes to win a land deal and that actually does have an
land deal and that actually does have an
land deal and that actually does have an impact on every one of us so there’s
impact on every one of us so there’s
impact on every one of us so there’s been a paradigm change in the last 10
been a paradigm change in the last 10
been a paradigm change in the last 10 years in my opinion about how corruption
years in my opinion about how corruption
years in my opinion about how corruption has changed and how the enforcers are
has changed and how the enforcers are
has changed and how the enforcers are making a change how the companies are
making a change how the companies are
making a change how the companies are making a change and how the consultants
making a change and how the consultants
making a change and how the consultants that help investigate these crimes are
that help investigate these crimes are
that help investigate these crimes are making a change so here’s the first
making a change so here’s the first
making a change so here’s the first change in 1977 President Jimmy Carter
change in 1977 President Jimmy Carter
change in 1977 President Jimmy Carter signed the Foreign Corrupt Practices Act
signed the Foreign Corrupt Practices Act
signed the Foreign Corrupt Practices Act that was the very first anti-corruption
that was the very first anti-corruption
that was the very first anti-corruption act of its kind that was in the u.s.
act of its kind that was in the u.s.
act of its kind that was in the u.s. since then there’s corruption acts
since then there’s corruption acts
since then there’s corruption acts exploding all around the world the
exploding all around the world the
exploding all around the world the entire global economy is concerned about
entire global economy is concerned about
entire global economy is concerned about this the enforcers are going after this
this the enforcers are going after this
this the enforcers are going after this globally and they’re cooperating with
globally and they’re cooperating with
globally and they’re cooperating with each other so the Brazilian government
each other so the Brazilian government
each other so the Brazilian government is cooperating with the Department of
is cooperating with the Department of
is cooperating with the Department of Justice the Mexican government is
Justice the Mexican government is
Justice the Mexican government is department is cooperating with the
department is cooperating with the
department is cooperating with the Brazilian government it’s a significant
Brazilian government it’s a significant
Brazilian government it’s a significant change and that’s only been occurring in
change and that’s only been occurring in
change and that’s only been occurring in the last several years the other thing
the last several years the other thing
the last several years the other thing you know I’m sure you all may have heard
you know I’m sure you all may have heard
you know I’m sure you all may have heard about the Petrobras
about the Petrobras
about the Petrobras bribery scheme that was nine point five
bribery scheme that was nine point five
bribery scheme that was nine point five billion dollar
billion dollar
billion dollar of money that affects the entire global
of money that affects the entire global
of money that affects the entire global economy and in particular Brazil it was
economy and in particular Brazil it was
economy and in particular Brazil it was the largest scheme of all time companies
the largest scheme of all time companies
the largest scheme of all time companies are becoming more and more aggressive
are becoming more and more aggressive
are becoming more and more aggressive and the enforcers are becoming more and
and the enforcers are becoming more and
and the enforcers are becoming more and more aggressive here’s how they did it
more aggressive here’s how they did it
more aggressive here’s how they did it Petrobras paid the government they paid
Petrobras paid the government they paid
Petrobras paid the government they paid oil and construction companies and the
oil and construction companies and the
oil and construction companies and the citizens of Brazil suffered and the
citizens of Brazil suffered and the
citizens of Brazil suffered and the citizens of a global economy also suffer
but what are they doing companies are
but what are they doing companies are now getting benefits for cooperating
now getting benefits for cooperating
now getting benefits for cooperating with enforcers you look at the potential
with enforcers you look at the potential
with enforcers you look at the potential fines that Petrobras could have could be
fines that Petrobras could have could be
fines that Petrobras could have could be three billion dollars but look at other
three billion dollars but look at other
three billion dollars but look at other companies that are cooperating with the
companies that are cooperating with the
companies that are cooperating with the government their fines are significantly
government their fines are significantly
government their fines are significantly lower because they’re cooperating and
lower because they’re cooperating and
lower because they’re cooperating and the enforcers are accepting compliance
the enforcers are accepting compliance
the enforcers are accepting compliance plans remediation plans and other
plans remediation plans and other
plans remediation plans and other well-to-do things to help clean up the
well-to-do things to help clean up the
well-to-do things to help clean up the environment so the amount of penalties
environment so the amount of penalties
environment so the amount of penalties for cooperating companies is nearly half
for cooperating companies is nearly half
for cooperating companies is nearly half but here’s where I think there’s the
but here’s where I think there’s the
but here’s where I think there’s the most significant change the companies
most significant change the companies
most significant change the companies the enforcers and their council their
the enforcers and their council their
the enforcers and their council their outside service providers need to
outside service providers need to
outside service providers need to investigate this kind of activity how do
investigate this kind of activity how do
investigate this kind of activity how do you find the corrupt payments it’s very
you find the corrupt payments it’s very
you find the corrupt payments it’s very difficult to find the corrupt payments
difficult to find the corrupt payments
difficult to find the corrupt payments when I started my career many many years
when I started my career many many years
when I started my career many many years ago and I did my first anti-corruption
ago and I did my first anti-corruption
ago and I did my first anti-corruption investigation I was looking at Excel
investigation I was looking at Excel
investigation I was looking at Excel files using my expertise to hone in on
files using my expertise to hone in on
files using my expertise to hone in on certain vendors that I thought hmm why
certain vendors that I thought hmm why
certain vendors that I thought hmm why are they paying this consultant what do
are they paying this consultant what do
are they paying this consultant what do you think that payment is for and I had
you think that payment is for and I had
you think that payment is for and I had to use my own judgment and my own
to use my own judgment and my own
to use my own judgment and my own expertise to sort of weed through
expertise to sort of weed through
expertise to sort of weed through details and details and Excel files
details and details and Excel files
details and details and Excel files well the companies are so large these
well the companies are so large these
well the companies are so large these days and there’s so much massive amounts
days and there’s so much massive amounts
days and there’s so much massive amounts of data available these days that it’s
of data available these days that it’s
of data available these days that it’s not possible for a single human or a
not possible for a single human or a
not possible for a single human or a team of humans to eyeball data of that
team of humans to eyeball data of that
team of humans to eyeball data of that magnitude so we have to rely on
magnitude so we have to rely on
magnitude so we have to rely on technology to assist us and lucky for us
technology to assist us and lucky for us
technology to assist us and lucky for us there’s a lot of amazing technology
there’s a lot of amazing technology
there’s a lot of amazing technology available
available
available that uses artificial intelligence that
that uses artificial intelligence that
that uses artificial intelligence that uses data analytics that uses all kinds
uses data analytics that uses all kinds
uses data analytics that uses all kinds of data processing so that I can take my
of data processing so that I can take my
of data processing so that I can take my expertise program a machine to
expertise program a machine to
expertise program a machine to understand what qualifiers I’m looking
understand what qualifiers I’m looking
understand what qualifiers I’m looking for what kind of vendors do I think make
for what kind of vendors do I think make
for what kind of vendors do I think make bribe payments
bribe payments
bribe payments I think it’s consultants its agents its
I think it’s consultants its agents its
I think it’s consultants its agents its distributors sometimes it’s business
distributors sometimes it’s business
distributors sometimes it’s business development partners I think those are
development partners I think those are
development partners I think those are the ones also if I were to record a
the ones also if I were to record a
the ones also if I were to record a bribe payment how would I record that on
bribe payment how would I record that on
bribe payment how would I record that on my financial statements I would say
my financial statements I would say
my financial statements I would say maybe I would record it as marketing or
maybe I would record it as marketing or
maybe I would record it as marketing or maybe I would record it as operational
maybe I would record it as operational
maybe I would record it as operational expenses other or some other thing I can
expenses other or some other thing I can
expenses other or some other thing I can program program my artificial
program program my artificial
program program my artificial intelligence to identify that kind of
intelligence to identify that kind of
intelligence to identify that kind of activity and I can use my years and
activity and I can use my years and
activity and I can use my years and years of experience and apply that over
years of experience and apply that over
years of experience and apply that over large databases how does the companies
large databases how does the companies
large databases how does the companies benefiting from that well before and I’m
benefiting from that well before and I’m
benefiting from that well before and I’m talking about 15 years ago enforcers
talking about 15 years ago enforcers
talking about 15 years ago enforcers would go to a company and say we want to
would go to a company and say we want to
would go to a company and say we want to investigate you and a company would say
investigate you and a company would say
investigate you and a company would say okay I don’t know what to do
okay I don’t know what to do
okay I don’t know what to do and they would call their outside
and they would call their outside
and they would call their outside counsel and they would call some
counsel and they would call some
counsel and they would call some forensic accountant like myself and we
forensic accountant like myself and we
forensic accountant like myself and we were working in vacuums completely
were working in vacuums completely
were working in vacuums completely separately the regulator’s would talk to
separately the regulator’s would talk to
separately the regulator’s would talk to the corporation’s the corporation’s
the corporation’s the corporation’s
the corporation’s the corporation’s would talk to us now the paradigm has
would talk to us now the paradigm has
would talk to us now the paradigm has changed because more companies are
changed because more companies are
changed because more companies are cooperating with the enforcers and they
cooperating with the enforcers and they
cooperating with the enforcers and they have the luxury of consultants and
have the luxury of consultants and
have the luxury of consultants and lawyers that have tons of experience and
lawyers that have tons of experience and
lawyers that have tons of experience and investigating this kind of behavior and
investigating this kind of behavior and
investigating this kind of behavior and in communicating with the enforcers we
in communicating with the enforcers we
in communicating with the enforcers we have a 3-way channel now and I think
have a 3-way channel now and I think
have a 3-way channel now and I think that’s a significant impact in the fact
that’s a significant impact in the fact
that’s a significant impact in the fact that the enforcers have gotten to know
that the enforcers have gotten to know
that the enforcers have gotten to know the service providers they can rely on
the service providers they can rely on
the service providers they can rely on the work that the service providers are
the work that the service providers are
the work that the service providers are doing and the companies can know that
doing and the companies can know that
doing and the companies can know that they’re being properly defended by
they’re being properly defended by
they’re being properly defended by someone who has diligently reviewed
someone who has diligently reviewed
someone who has diligently reviewed their financial statements so some of
their financial statements so some of
their financial statements so some of the tools have changed we used to use
the tools have changed we used to use
the tools have changed we used to use calculators and Excel files but now
calculators and Excel files but now
calculators and Excel files but now we’ve got the artificial intelligence
we’ve got the artificial intelligence
we’ve got the artificial intelligence and the ways that we do work has changed
and the ways that we do work has changed
and the ways that we do work has changed you know there’s a lot of information
you know there’s a lot of information
you know there’s a lot of information out there that’s in social media that’s
out there that’s in social media that’s
out there that’s in social media that’s on Facebook that’s an email that’s in
on Facebook that’s an email that’s in
on Facebook that’s an email that’s in other communications and it is so
other communications and it is so
other communications and it is so difficult to put those stories together
difficult to put those stories together
difficult to put those stories together like in a case where I had a transaction
like in a case where I had a transaction
like in a case where I had a transaction in a general ledger that was a payment
in a general ledger that was a payment
in a general ledger that was a payment for a million dollars and separately one
for a million dollars and separately one
for a million dollars and separately one of the senior executives of the company
of the senior executives of the company
of the senior executives of the company had written an email saying I’m gonna
had written an email saying I’m gonna
had written an email saying I’m gonna put this expense and I’m gonna I’m gonna
put this expense and I’m gonna I’m gonna
put this expense and I’m gonna I’m gonna stuff it up my sleeve
stuff it up my sleeve
stuff it up my sleeve well to find that email and that expense
well to find that email and that expense
well to find that email and that expense and the contract that goes with it and
and the contract that goes with it and
and the contract that goes with it and the other correspondence that goes with
the other correspondence that goes with
the other correspondence that goes with it it was a manual task historically now
it it was a manual task historically now
it it was a manual task historically now with artificial intelligence and with
with artificial intelligence and with
with artificial intelligence and with the data analytics we can bring those
the data analytics we can bring those
the data analytics we can bring those data points together rapidly and to the
data points together rapidly and to the
data points together rapidly and to the benefit of our clients and put together
benefit of our clients and put together
benefit of our clients and put together a story very quickly and that is how I
a story very quickly and that is how I
a story very quickly and that is how I believe the paradigm of corporate
believe the paradigm of corporate
believe the paradigm of corporate investigations has changed in the last
investigations has changed in the last
investigations has changed in the last 10 to 15 years
10 to 15 years
10 to 15 years [Music]
[Music]
[Music] [Applause]
”
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