Richard H. Girgenti - The New Era of Regulatory Enforcement

Copyright 2016 by Richard H. Girgenti and Timothy P. Hedley. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher.

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ISBN 978-1-259-58459-6
MHID 1-259-58459-3

e-ISBN 978-1-25-958460-2
e-MHID 1-259-58460-7

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, securities trading, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

From a Declaration of Principles Jointly Adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations

Library of Congress Cataloging-in-Publication Data

Names: Girgenti, Richard H., author. | Hedley, Timothy P., author.

Title: The new era of regulatory enforcement : a comprehensive guide for raising the bar to manage risk / Richard H. Girgenti and Timothy P. Hedley.

Description: New York : McGraw-Hill, [2016]

Identifiers: LCCN 2015051014| ISBN 9781259584596 (alk. paper) | ISBN 1259584593 (alk. paper)

Subjects: LCSH: FraudPrevention. | CorporationsCorrupt practicesPrevention. | Trade regulation. | Consumer protection.

Classification: LCC HV6691 .G57 2016 | DDC 363.25/963dc23 LC record available at http://lccn.loc.gov/2015051014

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This book represents the views of the authors only and does not necessarily represent the views or professional advice of KPMG LLP.

Richard H. Girgenti

Richard H. Girgenti

Timothy P. Hedley
Richard H. Girgenti

Pamela J. Parizek

Teresa A. Pesce
John F. Caruso

Charles M. Steele

Richard J. Bergin
Nathan B. Ploener
Timothy P. Hedley

Howard A. Scheck
Timothy P. Hedley

Amy S. Matsuo

Laurence Birnbaum-Sarcy

Glen E. Moyers

Mark C. Scallon
Regina G. Cavaliere
Richard L. Zimmerer

Richard H. Girgenti, Principal, KPMG

Rich Girgenti is the U.S. and Americas leader for KPMG LLPs Forensic Advisory Services and a member of the firms Global Forensic Steering Group. He has more than 40 years of experience, both nationally and globally, conducting investigations; helping clients assess, design, and implement compliance programs; and providing fraud risk management advisory services to public and private corporations, as well as federal and state government entities and not-for-profit organizations.

Rich has served as a member of the board of directors for KPMG LLP and the Americas region. He has chaired the boards Governance Task Force, as well as the Professional Practice, Ethics and Compliance committees.

Prior to joining KPMG, Rich held a number of high-level legal and law enforcement positions. He served as New York State Director of Criminal Justice and Commissioner of the Division of Criminal Justice Services, where he oversaw and coordinated the policies and initiatives of all the states criminal justice agencies and worked closely with all federal and state law enforcement agencies. He is a former veteran state prosecutor in the Office of the Manhattan District Attorney, where he handled investigations, trials, and appeals in both the state and federal courts, including investigations and prosecutions of white-collar, violent, and major narcotics organized crime cases.

Rich holds a bachelors degree from Seton Hall University and a J.D. from Georgetown University Law Center. He is a Certified Fraud Examiner.

Rich publishes extensively on a wide range of criminal justice, white-collar, and fraud-related topics. He lectures frequently and conducts training programs and workshops on all aspects of fraud investigations and on the evaluation, development, and implementation of integrity programs. Along with Tim Hedley, he is the co-author of Managing the Risk of Fraud and Misconduct: Meeting the Challenges of a Global, Regulated, and Digital Environment (The McGraw-Hill Companies, Inc., March 2011).

Timothy P. Hedley, Partner, KPMG

Tim Hedley is a partner in KPMGs Forensic practice where he serves as global lead for the firms Fraud Risk Management network. He provides clients with a wide range of forensic services by assisting with the prevention of, detection of, and response to fraud and misconduct. Tim also directs the development of methodologies and tools to assess the effectiveness of anti-fraud, corporate compliance, and integrity programs for multinational business organizations.

Tim has significant experience working with both public and private companies across a broad range of industries to respond to allegations of fraud or misconduct, including, among others, allegations involving earnings management, counterfeiting, bribery and kickbacks, construction, potential Ponzi schemes, and employee theft. He conducts fraud and compliance risk assessment and designs and conducts fraud awareness and compliance training programs. Tim assists clients with benchmarking their anti-fraud and compliance efforts against recognized industry practices and with designing, implementing, and evaluating corporate fraud investigative units. He also coordinates detailed internal audit testing of identified fraud, compliance, and integrity risk areas, including, among other areas, cash, FCPA, conflicts of interest, equal treatment, and antitrust.

Tim has served on KPMGs Legal and Compliance Committee, chairing the Code of Conduct task force and the Investigative Process Enhancement task force.

Tim is a Certified Public Accountant and a Certified Fraud Examiner and is certified in financial forensics. He holds a bachelors degree from Siena College and a masters degree from the State University of New York at Albany, both in accounting. He completed his Ph.D. in public management (accounting and control) from Rockefeller College, State University of New York at Albany.

Tim is an adjunct associate professor at Fordham University. He publishes and lectures extensively on fraud, misconduct, and compliance-related topics.

The authors would like to thank the following individuals for their invaluable contributions.

Sara Jacobs Beard

Richard J. Bergin

Laurence Birnbaum-Sarcy

John F. Caruso

Regina G. Cavaliere

Ori Ben-Chorin

Joy Cohen

Nicholas DAmbrosio

Kelly A. Dynes

Einar B. Gitterman

Laurie M. Hatten-Boyd

Nigel Holloway

Jack C. Lenzi

Melinda M. Lesko

Karen A. Lynch

Sean P. Macdonald

Mary A. Mallery

Amy S. Matsuo

Brian J. McCann

Jonathan Meyer

Marc L. Miller

Glen E. Moyers

Pamela J. Parizek

Teresa A. Pesce

Nathan B. Ploener

Charles A. Riepenhoff

Michael S. Rudnick

Cliff R. Saffron

Mark C. Scallon

Howard A. Scheck

Jennifer A. Shimek

Joel E. Simkins

Karen S. Staines

Charlie M. Steele