Fraud Policy

Approved March 27, 2008

 

A. Basic Policy

This fraud policy for the Mecklenburg County Bar (MCB) is established to aid in the detection and prevention of fraud against MCB. This policy seeks to define fraud as well as establish a method for handling and reporting acts of fraud. 

 

B. Definition and Examples

Definition: Fraud is defined as the intentional, false representation or concealment of a material fact which is done for the purpose of inducing another to act or rely upon it to his or her detriment.

 

Examples: Fraudulent activity can occur in numerous forms.  The following is a list of some types of fraud, but is not meant to be exhaustive:

  •                Any dishonest act;
  •                Forgery or alteration of any document or account belonging to MCB;
  •                Forgery or alteration of a check, bank draft, or any other financial document;
  •                Misappropriation of funds, supplies, or other assets;
  •                Impropriety in the handling or reporting of money or financial transactions;
  •                Profiteering as a result of insider knowledge of MCB activities;
  •                Disclosing confidential and proprietary information to outside parties;
  •                Accepting or seeking anything of material value from contractors, vendors or persons providing services/materials to the MCB;
  •                Destruction, removal or inappropriate use of records, furniture, fixtures, and equipment; and/or
  •                Any similar or related inappropriate conduct.

 

C. Reporting Fraud 

Each MCB employee has a duty to report any fraud that is detected or suspected immediately to the employees supervisor or to the Executive Director of MCB.   The employee or other complainant may ask to remain anonymous and MCB will, if possible, maintain the anonymity of the reporting employee. All such reports received by a supervisor of an MCB employee must be forwarded by such supervisor to the Executive Director, who coordinates all investigations with the attorneys for MCB and other affected departments or areas, both internal and external.  If the detected or suspected fraud involves the Executive Director it must be reported immediately to any member of the Executive Committee of the Board for MCB.  Any employee who suspects dishonest or fraudulent activity should not attempt to personally conduct investigations or interviews related to any suspected fraudulent activity.

 

When an initial report of suspected fraud is made, the reporting individual should receive the following information and instructions:

  •                Do not contact the suspected individual in an effort to determine facts or demand restitution.
  •                Allow the Executive Director or Executive Committee to conduct the investigation.  Do not further investigate the allegations.
  •                Observe strict confidentiality.  Do not discuss the case, facts, suspicions, or allegations with anyone.  All inquiries concerning the activity under investigation from the suspected individual, his or her attorney or representative, or any other inquirer should be directed to the Executive Director or Executive Committee.
  •                The MCB will not tolerate any form of retaliation against employees who in good faith report fraud or suspected fraud.
  •                The identity of the reporting employee will be protected in accordance with this policy and will not be disclosed unless required by this policy or by applicable law.

 

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