Diagnostic Fraud Examination
What is a Diagnostic Fraud Examination?
A “Diagnostic Fraud Examination” (also known as a “Forensic Assessment“) is a thorough, comprehensive and off-site examination of a dental practice’s business and computer records to determine whether a former or current employee has performed fraudulent or unethical financial transactions.
Diagnostic Fraud Examinations are performed by Hiltz & Associates; the company behind Dental FraudBusters.
When should a Diagnostic Fraud Examination be performed?
For Diagnostic Purposes
- When the practice owner discovers unethical or illegal financial conduct by an employee or contractor.
- When the practice owner has reasonable or probable grounds to suspect that financial misconduct has occurred.
For Assurance Purposes
- To check the financial integrity of the practice and provide a high level of assurance to the owner that financial misconduct is not present.
- Prior to selling a dental practice:
- to remove uncertainty that the practice owner may have prior to the sale. ,
- to provide prospective buyers with written assurance that the practice’s billing and payment systems are in proper order.
How often do you diagnose embezzlement?
Over 90% of our diagnostic fraud examinations result in confirming employee theft; with the remainder comprised of diagnostic examinations performed for assurance purposes.
We tend to weed out those who contact our firm thinking they have an embezzlement problem, when they do not. In most cases their issues were resolved over the phone.
How is a Diagnostic Fraud Examination performed?
A Diagnostic Fraud Examination is performed off-site, and in secret. No one, except the practice owner, will know that this work is being performed.
All our work is conducted in accordance with lawful fraud examination techniques and can include examining clinical, accounting, electronic records, meta-data plus other evidence-gathering procedures as are necessary.
How long does it take to complete a Diagnostic Fraud Examination?
A Diagnostic Fraud Examination is a “hands-on” and manually intensive process that can take several weeks to a few months to complete; depending on the owner’s situation and existing on-site conditions.
In cases where pre-exisiting* conditions exist to support a high probability that employee theft has occurred; we can often confirm whether financial misconduct has occurred within 24 to 72 hours.
* pre-exisiting conditions are determined by owner interview and are unique to each practice.
What happens when a Diagnostic Fraud Examination confirms employee theft?
When a diagnostic exam confirms that financial misconduct has occurred, we promptly notify the practice owner to provide our recommendations.
We advise the practice owner with an estimate of the total amounts stolen and when the embezzlement first began.
We provide the practice owner with compelling examples of the schemes used to embezzle. (in most cases, more than one embezzlement scheme is uncovered)
We will deliver our guidance and recommendations to the practice owner so the owner can make informed decisions regarding:
- terminating employment of the dishonest employee
- filing a crime insurance claim
- seeking civil recovery or criminal restitution
Client Loyalty and Confidentiality
Some practice owners have expressed concerns to us about their business practices, and that our work may uncover something that will cause their business practices to be questioned.
We want to make this very clear; our loyalty is to you, and our mandate is to protect your interests.
The information shared with us and what we uncover during our work, is confidential and never disclosed to any third party without prior consent.
We do not disclose any information to dental insurers, regulatory bodies, or government agencies unless we are compelled to do so by a court order.
Dental FraudBusters FAQ’s
Dental Embezzlement Do’s and Don’ts
Contact me for confidential consult.
William Hiltz BSc MBA CET