Richard Chan is an associate director in the Global Investigations & Compliance practice. He has experience providing forensic accounting, investigative and litigation support services for attorneys, corporate managers and government officials on a variety of matters involving accounting irregularities, business disputes and fraudulent actions.
Richard conducts internal and financial fraud investigations, as well as provides anti-money investigative due diligence and transaction look-back review services. Richard is a Certified Public Accountant (CPA) and is also Certified in Financial Forensics (CFF). He has 20 years of accounting, auditing and forensic accounting investigative experience. Additionally, he speaks the Cantonese dialect.
Richard’s forensic accounting and investigative experience includes conducting interviews of program managers and business unit owners to obtain an understanding of financial and operational processes and the nature and extent of their oversight and the existing controls. He has also identified areas and incidents of weaknesses in internal controls, and policies and procedures that have allowed fraud, waste, mismanagement and abuse to occur. From the interviews conducted and analyses performed, Richard prepares recommendations to assist clients to mitigate future fraud risks.
He has worked on numerous large-scale external Integrity Oversight monitorship engagements on behalf of State and City agencies to assist them to deter and identify fraud, waste and abuse including on Federally funded programs involving reconstruction work in the aftermath of natural disasters. On these engagements, Richard has provided investigative due diligence services for clients’ onboarding of vendors by identifying contractors and subcontractors with disqualifying integrity issues and fraud risk factors. Furthermore, his strong analytical and investigative skillsets have enabled him to identify suspected fraud, misconduct and irregularities, including overbilling and false billing schemes, the cause of cost overruns and to determine the timing, nature and extent of these improprieties.
Richard was an integral member of the team engaged by a City investigative agency to conduct a forensic investigation of a large information technology project that the City outsourced to consultants in which the project cost increased over 10 times the original budget. He analyzed consultant invoices and timesheets to identify the timing, nature and extent of the cost overruns. He also interviewed the consultants to assess their roles and whether they have the appropriate background for the project, and to identify additional potential allegations of fraud, abuse and embezzlement in connection with the project. His contributions to the Guidehouse team’s investigation helped the City agency to recover an unprecedented amount related to overpayments that City made to the consulting firm based on fraudulent timesheets and invoices.
He is also involved with anti-money laundering (AML) compliance and investigatory engagements for large global banks. Specifically, he has reviewed wire data and suspicious activity reports (SARs) and conducted investigative due diligence to detect suspected violations of federal law or transactions relating to money laundering.
Prior to his forensic accounting and investigative experience, Richard managed and performed independent financial statement audits of privately held companies for a Big Four accounting firm. As an auditor, he evaluated and tested the effectiveness of controls and monitoring programs related to the detection and prevention of fraudulent financial reporting.