Uncover the shocking truth behind a $12.5 million lottery fraud, exposing how systemic vulnerabilities can be exploited and the ethical dilemmas that arise when integrity is compromised.
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.
Founder of Sheriff Consulting
I am the founder of Sheriff Consulting which specializes in the development and delivery of accounting, auditing and foundational skill courses and workshops. Teaching and working with professionals in diverse and dynamic learning environments has been my passion and experience for over 10 years. As a qualified Canadian Chartered Professional Accountant (CPA, CA) and U.S. Certified Public Accountant (CPA), I work with finance and accounting professionals in both the U.S. and Canada to meet their training and development needs. My goal has always been to create an engaging and interactive learning environment. To help my own path of continual improvement in achieving this goal, I have also received training and worked as a professional actor. I am a member of ACTRA (the Alliance of Canadian Cinema, Television and Radio Artists) and a graduate in improvisation from the Second City Training Centre. http://sheriffconsulting.com/
Co-host of The Fraud Complex Podcast
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.
Provincial regulators of CPAs in Canada do not require that independent providers of CPD be approved to offer courses. Instead, individual CPAs are responsible for assessing whether a CPD activity meets their requirements, and may take activities from any source provided those requirements are met.
Every course offered on LearnFormula is delivered by a qualified subject matter expert or learning organization, and advances learning objectives that are relevant to the responsibilities or professional competencies of Canadian CPAs. All activities on LearnFormula are quantifiable in terms of hours, and are also verifiable, in that users receive documented evidence of their attendance via a certificate of completion after finishing a course (and this certificate is stored by LearnFormula indefinitely). Nearly 100,000 Canadian CPAs successfully satisfy their CPD requirements via LearnFormula on an annual basis.
