KRyS Global presents at CIIPA Conference
Earlier this month, experts from KRyS Global’s Global Forensics and Consulting team provided a presentation to local industry accountants in the Cayman Islands with an engaging presentation on how to recognize potential red flags of fraud in the offshore financial services sector.
The presentation focused on the ‘why and who’ associated with financial services frauds, and how it was possible to identify certain characteristics and practices in previous hedge fund frauds that might act as an alert to a potential risk of fraud in an operating hedge fund. Using their extensive experience in the financial services industry, the KRyS Global experts shared with the audience instances where one could trace recent frauds to the conduct of those overseeing or administering hedge funds including track records of previous regulatory breaches, the presence of unqualified or obscure service providers, limited and/or non-independent connected governance structures, a lack of ethical boundaries, undisclosed related party transactions, evasive behaviour, elusive ‘proprietary’ investment strategies, a reliance on internal asset valuations, and an implied promise of continuing returns and/or immediate redemptions. In addition, the presentation focused on the key techniques used to investigate instances of potential fraud including the benefits of utilizing forensic technology when investigating something as data intensive or complicated as a hedge fund.
If you would like our KRyS Global team to provide your team with the above presentation or want to learn more on investigating hedge fund fraud, please contact Kevin Haywood Crouch at Kevin.HaywoodCrouch@KRyS-Global.com or Jacqui Sanaghan at Jacqui.Sanaghan@KRyS-Global.com.