Value      Integrity      Professionalism

           

 

 
In this issue:

July, 2010    


Coming Events

  • September 21-25, 2010
    American College of Forensic Examiners conference in Orlando, FL. Ted Phelps and Dan Jones of PCG Consultants will be exhibiting.

  • September 22-26, 2010
    World Association of Detectives 85th Annual Conference in the Republic of Malta.

  • September 23-25, 2010
    California Association of Licensed Investigators Annual Conference in Costa Mesa, CA

  • September 29- Oct. 1, 2010
    AICPA Forensic conference in Boston, MA. Ted Phelps attending.

  • October 12-15, 2010
    ASIS (American Society of Industrial Security) International's 56th Annual Seminar and Exhibits in Dallas, TX. Dan Jones attending.

  • October 19 -22, 2010
    Commercial Finance Association Annual Conference in Chicago, IL

  • November 5-9, 2010
    AICPA Bankruptcy Valuation Conference in Washington , DC. Ted Phelps attending

Member

  • California Receivers Forum

  • Association of Insolvency & Restructuring Advisors

  • Turnaround Management Association

  • California Bankruptcy Forum

  • International Association for Asset Recovery

  • American College of Forensic Examiners

  • National Association of Certified Valuation Analyst

  • Institute of Business Appraisers

  • Association of Certified Fraud Examiners

  • ASIS International

  • World Association of Detectives

  • National Council of Investigative and Security Services

  • California Association of Licensed Investigators

  • International Association of Law Enforcement Intellignece Analysts

Interviewing The Suspect Employee
By D. Y. Jones

 From choosing the proper setting, selecting the introduction and deciding who should be involved, interviewing employees is more than a series of questions and answers.

Interviews of employees suspected of wrongdoing are far more likely to yield meaningful results when conducted by a trained and experienced investigator. Far more goes into a successful interview than simply sitting across a desk and asking questions. The experienced professional knows how to orchestrate the proper interview. The professional knows the best location for the interview, who should be present, exactly how to phrase the introduction, what information to use and what to hold back, the proper demeanor and how to develop a theme. All of which are designed to achieve maximum results.

One issue that seems to surface more frequently of late is the client's request to participate in the interview. Too often supervisors will ask "is it ok if I sit in on the interview?" That is usually followed by, "I won't say anything; I'll just listen. I usually respond with an explanation of why the client's presence will inhibit the free and truthful flow of information.

Most employees know things that they will not disclose to their superiors or co-workers. They may withhold information do to a fear of retaliation or a feeling that they will not be taken seriously. Some employees withhold critical information not realizing its importance. Some will not voice a concern believing that nothing will be changed, even if they mention it. Whatever their reasons, employees are less likely to provide valuable information when another employee is present. Those guilty of some crime or serious violation will certainly be reluctant to confess when a co-worker or supervisor is present.

Earlier this month, while confessing a crime against the company, a financial institution employee told me how much he regretted his actions because his boss would be disappointed in him. The boss had interviewed him a month earlier regarding the same issue and the employee steadfastly denied all involvement. That employee was never going to confess to his supervisor. Getting him to admit his misdeeds required a third party interviewer.

So, if the supervisor should not be present, who should be? It can rightfully be argued that the most productive interviews are often conducted one on one; just the interviewer and the subject. However, since the interviewer must not be distracted and audio/video recordings of interviews present their own set of issues, I often have another investigator assist me.

Interviewing a suspected employee requires the complete attention of the interviewer. The interviewer must listen to every word and utterance. He must observe every movement and gesture right down to shifting feet and eyes. This extreme concentration means note taking is out. The second investigator is present for the sole purpose of taking notes of what is said and what is observed. Since the notes will reflect the subject's actions as well as their words, it is important that the second investigator also be trained in proper interview techniques and be familiar with the indicators of deception.
To maximize the results, the second person must be positioned so as not to create even a minimal distraction. After introductions, the subject rarely even sees that person. The subject and the interviewer are completely focused on the conversation. This situation works so well that in a case last month, the interview notes reflected the subject's tell-tale gestures the moment before she admitted her involvement in a scheme to defraud her employer.

Getting the most from the interview of an employee suspected of a serious breach requires the right interviewer and the proper setting. The interviewer should be independent, not an employee of the company. The interview must be conducted in the appropriate location, a private setting with no distractions or barriers to impede communication. The initial introduction is scripted in a way that provides limited information and insists on complete co-operation. Lastly, when the employee admits to a serious violation or criminal act, the admission should be reduced to a written signed statement before the interview is concluded.

D. Y. "Dan" Jones is the Director of Corporate Investigations and a State Court Appointed Receiver at PCG Consultants. As a Certified Fraud Examiner and a Professional Certified Investigator, Dan has conducted thousands of interviews during his career. Dan has received extensive training in interview techniques, statements analysis and deception detection and often instructs others in the proper methods for successful interviews. Prior to joining PCG, Dan was the president of D. Y. Jones & Associates, Inc. a large business to business investigation agency. He is former president of California Association of Licensed Investigators, Chairman of the CALIPAC, board member and officer of national and international professional associations. Dan can be reached at djones@pcgci.com or (213) 629-9211.


 Grace Fei

PCG Consultants is pleased to announce that Grace Fei has joined the firm as a Senior Consultant. Prior to joining PCG, Ms. Fei was Senior Consultant at FTI Consulting and a Financial Analyst for the state of Tennessee. Previously, she was a Senior Auditor at PriceWaterhouseCoopers in Shanghai, China.

Grace enjoys reading, shopping and hiking in the hills around Southern California. She has lived in Los Angeles for 1 1/2 years and she loves the weather. She also appreciates the large Chinese community in Southern California. "Much better Chinese food here than Chicago or Georgia" she says.

Grace is fluent in Mandarin. She received a Bachelor of Law from Fudan University in Shanghai, China and an MBA from the University of Georgia.
 


 PCG Active at Association Conferences
 


Ted Phelps (L) and Byron Mauss
 

 PCG Consultants was pleased to be a sponsor at the Special Asset Mangers Association's first annual conference held at the the fabulous Four Season in Oceanside, CA. In addition to exhibiting, Ted Phelps was a seminar panelist. Attorney Byron Mauss, partner at Assayag  Mauss was the lucky winner of netbook computer from PCG Consultants.

The Hyatt Regency in Monterey, CA was the site of this year's California Bankruptcy Forum's Insolvency Conference. PCG Consultants, represented by Ted Phelps, Max Liphart and Dan Jones was one of the exhibitors. The conference featured a number of seminars dealing with bankruptcy issues and a full afternoon session on receivership law. Doyna Dardon, attorney at McCarthy & Holthus in San Diego was the raffle winner of a netbook computer from PCG.


Judge Ryan draws the winning card in Monterey

Class at CAL State University Featured in the Receivership News
 
PCG staff members were instrumental in helping to create a new forensic accounting class being taught at California State University, Los Angeles. Download the article Receivership News.