Course Description

This course examines a seven-year lottery fraud scheme in which a Canadian convenience store owner stole a $12.5 million winning ticket from a customer, exposing critical weaknesses in organizational internal controls and fraud prevention systems. Through analysis of the Chung family's theft and the Ontario Lottery and Gaming Corporation's delayed response, participants will learn to identify the three elements of the fraud triangle—incentive, opportunity, and rationalization—and understand how inadequate segregation of duties, lack of customer-facing verification systems, and insufficient insider monitoring create vulnerabilities for occupational fraud. The case demonstrates how system failures enabled the fraud to continue undetected for seven years despite early warning signs, and highlights the internal control improvements ultimately implemented including mandatory ticket signing, customer-facing screens, and stricter insider win policies that CPAs can apply to protect organizational assets and detect fraud indicators in their own professional environments.


Learning Objectives

  1. Analyze the three components of the fraud triangle (incentive, opportunity, and rationalization) to identify fraud risk factors in organizational settings, using the Chung family's withholding and claiming of a stolen $12.5 million lottery ticket.
  2. Evaluate internal control weaknesses that enable occupational fraud, including management's failure to act on identified red flags, lack of mandatory investigation protocols, and inadequate segregation of duties in transaction processing.
  3. Apply fraud prevention strategies and internal control improvements, including customer-facing verification systems, mandatory documentation requirements, and decisive management response protocols, to detect and prevent similar fraud schemes in professional practice.

Instructors

Garth Sheriff, CPA, CA, CPA (Illinois), CIA, CGMA, MAcc, is the founder of Sheriff Consulting. Sheriff Consulting provides continuing professional experience (CPE) courses in leadership, communication, and assurance. Garth has worked as an assurance professional and learning provider for over 20 years. Garth has also acted in various stage and film productions. He is a graduate in improvisation from The Second City and a member of ACTRA (the Alliance of Canadian Cinema, Television and Radio Artists).

Josh Sager is a co-host of The Fraud Complex podcast, bringing engaging storytelling and analysis to complex fraud cases. His background in performance and communication helps make intricate financial crimes accessible and memorable for professional audiences.

Course curriculum

    1. Instructions for Self Study

    2. Course Overview

    1. Systemic Skimming

      FREE PREVIEW

    2. Review Question 1

    1. Search for the Winner

    2. Review Question 2

    1. A Faceless Victim

    2. Review Question 3

    1. A $12.5 Million Lottery Fraud Assessment

About this course

  • $105.00
  • 9 lessons
  • 1 hour of video content

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