Asheville – On Wednesday, November 15, the Asheville Leadership Forum offered their final Critical Issues Forum of 2023 at the Country Club of Asheville. Approximately 50 people gathered to hear guest speaker Eric Pelletier discuss fraud schemes he encounters as a Supervisory Special Agent with the Federal Bureau of Investigations (FBI).
Supervisory Special Agent Pelletier has worked for the FBI for nearly 15 years and splits his time between Boston, Massachusetts, and Charlotte, NC. He currently serves as the NC Program Coordinator for financial crimes, money laundering and intellectual property rights, as well as a special weapons and tactics supervisor.
Prior to joining the FBI, Pelletier worked in financial markets, helping large banks and hedge funds diversify their portfolios with collateralized debt, much of it in the subprime-mortgage market. “We all know how well that went in 2008 and 2009,” Pelletier joked.
Throughout the presentation, Pelletier offered careful explanations and humor to make the complex and intimidating topic of fraud accessible to the audience. Pelletier noted repeatedly that the information he shared represented his personal views rather than the official stance of the FBI.
The presentation focused on the most common crimes Pelletier sees in North Carolina, with the hope that raising awareness will keep listeners from becoming victims of potential fraud.
Financial Crimes: Investigating Complexity
Within the realm of financial crimes, Ponzi schemes reign as the most prevalent issue in North Carolina. Pelletier, an FBI agent, described them as cases where individuals overextend themselves by using investors’ money to bridge the gap, effectively “robbing Peter to pay Paul.” Pelletier emphasized the need for skepticism when encountering investment opportunities that guarantee returns, remarking, “A truly guaranteed investment really doesn’t exist.”
The scope of Pelletier’s work extends well beyond Ponzi schemes, encompassing identity theft, tech support fraud, insider trading, market manipulation, and the widespread occurrence of online scams. Tackling financial crimes also involves combating money laundering, a process that often demands substantial evidence to prove illicit proceeds.
Intellectual property rights, while touching on counterfeit goods and piracy, primarily concern larger criminal motives and foreign governments seeking military technologies. Throughout these diverse areas, money remains the common thread. Pelletier relies on a team of adept forensic accountants to propel investigations, reinforcing the notion that “you can’t out-complicate the FBI.”
In the intricate world of financial crimes, Pelletier and his team navigate the complexities, unraveled Ponzi schemes, and combat illicit activities. Vigilance and skepticism must prevail as individuals navigate investment opportunities while ensuring the integrity of their financial transactions.
Internet Scams
In 2000, the FBI started the Internet Crime and Complaint Center as a way to easily interface with the public. The digital tool allows people to submit a complaint directly to the FBI and is a step towards combating the FBI’s reputation of being hard to communicate with.
Pelletier noted that the amount of information the FBI takes in continues to grow year over year. He looks for common themes or subjects among the cases to help address the volume of complaints.
For the month of July 2023, his office saw 900 complaints submitted through the Internet Crime and Complaint Center. On average, 800 to 1200 complaints per month are received in Charlotte for the state of NC. The average economic crimes case takes 18 months to investigate, though some can take years.
“When we break down the cases we can look at, it becomes a numbers and a resources game,” said Pelletier. “I have to allocate resources to where we can get the biggest bang for the buck, if you will.”
For comparison, Pelletier pointed out that New York City employs approximately 35,000 police officers. The FBI has 16,000 agents across the world.
Take-Aways for Attendees
Fraudsters prey on the vulnerable, and those aged 60-80 are prime targets due to their financial resources and willingness to part with money quickly. According to Pelletier, fraudsters are clever and exploit social media and technology to gather personal data and appear as familiar contacts. Attendees were urged to exercise caution when approached randomly online or pressured for money.
Business and community leaders, such as those at the Asheville Leadership Forum, are often singled out by fraudsters seeking access to personal accounts. Pelletier emphasized the importance of verifying online transactions through phone calls or in-person interactions. In response to the rising threat of fraud, Pelletier heads the financial fraud “kill chain” in North Carolina—a collaboration between the FBI and local financial institutions. Prompt action is crucial as there is a 73% recovery rate for funds within 48-72 hours after fraud occurs.
Pelletier stressed the significance of reporting suspicions or faulty wire transfers immediately, as time is of the essence. Waiting past the crucial 72-hour mark may result in irreversible loss, leaving victims with a costly life lesson. Stay vigilant, verify transactions, and act swiftly to protect yourself from falling victim to financial fraud.
Upcoming Events
Save the date for the upcoming Critical Issues Luncheon on January 24, 2024, at the prestigious Asheville Country Club. This highly anticipated event will focus on the recent changes in North Carolina politics, providing a platform for informed discussion. In February, an expert panel will convene to delve into the complex relationship between HCA Health and Mission Hospital.
President Waldrop emphasized the organization’s dedication to addressing current community concerns and the inclusive nature of the forums, which welcome attendees from all backgrounds, regardless of their completion of the Leadership Asheville program. Join the vibrant Asheville Leadership Forum community and be part of the impactful discussions shaping the community.
Editor’s Note: Additional details and registration for the Critical Issues Luncheons are available at leadershipashevilleforum.com.