Master Licensing Investigations Dec 2020

Licensing & Investigations

Virtual Training December 7 - 9 , 20 20

Commissioner Certification Training MASTER'SAGENDA December 7 - 9, 2020 ZOOM VIRTUAL TRAINING Training on PST Time

Monday, December 7

Vetting Your Vendors Best Practices: What You Should Know, How to Find the Most Current Info and New Tools for Vetting Vendors. Presenter: Julie Hakman, President & CEO American Checked

9:00 AM 10:15 AM

10:15 AM 10:30 AM Break

Internal Best Practices: Myths and Misconceptions, what can I count on and GDPR-What it means to you. Presenter: Julie Hakman, FCRA-Certified AmericanChecked Background Screening Solutions

10:30 AM 12:00 PM

12:00 PM 1:00 PM Lunch Break

Due Diligence for Casino Licensing Best Practices: What can you really get, where should you go and What do you need to know. Presenter: Julie Hakman, FCRA - Certified AmericanChecked Background Screening Solutions

1:00 PM 2:30 PM

2:30 PM 2:45 PM Break

Understanding Vendor Financials: What you really need to know and understand. Presenter: Ryan Burns, Bluebird CPAs

2:45 PM 4:15 PM

Tuesday, December 8

9:00 AM 10:30 AM Understanding Casino Financials: Presenter: Ryan Burns, Bluebird CPAs

10:30 AM 10:45 AM Break

Steps In Assuring Licensees Due Process Rights Are Adhered To: Understanding Sovereignty Immunity, Scope of Authority and Administrative Enforcement will be discussed. Presenters Bill Cornelius JD, Tribal Attorney, Billy David Bo-Co-Pa & Associates

10:45 AM 12:15 PM

12:15 PM 1:15 PM Lunch Break

1:15 PM 2:45 PM Group Assignments: Licensing Hearings: Protocols and Processes Presenters Bill Cornelius JD, Tribal Attorney,Billy David Bo-Co-Pa & Associates

2:45 PM 3:00 PM Break

3:00 PM 4:30 PM Hearing Preparation for You and Your Team: Presenters Bill Cornelius JD, Tribal Attorney, Billy David Bo-Co-Pa & Associates Wednesday, December 9

9:00 AM 9:30 AM Questions and one more practice before Mock Hearings

9:30 AM 12:00 PM MOCK HEARINGS

Please plan to stay for the entire class on each day to get your certificate of completion. Please be on time for sessions

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Master Certification Series

Julie Hakman, President AmericanChecked Inc. www.americanchecked.com

AGENDA

• Welcome • Vetting Your Vendor – Best Practices BREAK • International Screening and GDPR LUNCH • Due Diligence – Screening Best Practices • Test Screens – Wrap Up BREAK • Understanding Vendor Financials

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Vetting Your Vendor

Scope of Screen

Screening Subjects • Company • Principals • Employees

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Screening the Company

• 5

Secretary of State Search

http :// www.coordinatedlegal.com/SecretaryOfState.html

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SOS Business Entity Search

Dunn & Bradstreet (D & B Search)

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Viability 1 Score

Viability 2 Score

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PAYDEX Scores

Screening the Company

• Credit Bureaus • Hybrid Reports

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Screening the Company

• Business Credit Reports – Trans Union

• Based in Chicago, founded in 1968. Collects and reports information on 200M US consumers and a billion worldwide. Business reports are available. – Experian • Based in Dublin, Ireland, its US headquarters is in Costa Mesa, California in 1996 (used to be part of TRW founded in 1968). Collects and reports information on 235M US consumers, and a 1 billion worldwide, with operations in 37 countries. Business reports are available. – Equifax • Based in Atlanta, Georgia, founded in 1899. Collects and reports information on 800M US consumers and 90M businesses, with operations in 24 countries.

Screening the Company

• Hybrid Reports

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Screening the Company

Additional Resources • http://www.coordinatedlegal.com/ • https://www.corporationwiki.com/ • https://en.wikipedia.org/wiki/List_of_company_registers

• http://www.tribaltrac.com/ • https://www.innovalinq.com/

Screening the Principals

• See Due Diligence Best Practices • Internal Investigations

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Screening the Principals

• Internal Investigations

Screening the Principals

• Internal Investigations

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Screening the Principals

• Experian Business Principal Report

Screening the Principals

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Screening the Principals

International Screening and GDPR

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International Screening is Growing • According to recent data from the Bureau of Labor Statistics, 15.9% of the total U.S. workforce were foreign-born • Risks associated with not screening are too high • Heightened awareness of global security risks • Costs are coming down – Competitive Marketplace – Recognized Means of Economic Development • Increased M & A Activity • Myths are becoming less relevant

International Screening FAQ & Myths MYTH # 1 • International Screening is too difficult and complicated. • The basic concepts we apply in the U.S. for acquiring information such as Criminal, Credit, Education and Employment apply Internationally. • While there are over 200 countries and territories, only 20 countries are frequently ordered.

• Requirements and Descriptions for searches from various countries are readily available. • More and more standardized information and resources are available.

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International screening faq & myths

International Screening FAQ & Myths

MYTH # 2 • International Screening is unreliable .

• All countries maintain some form of criminal records. • Countries continue to improve record-keeping. • Information is obtainable by utilizing the appropriate resource for a particular country. • The number of professional researchers is growing rapidly, competition is driving quality. Accuracy is paramount. • Country-specific customs and social norms will determine the types and comprehensiveness of information that can be obtained. 25

International Screening FAQ & Myths

• An increased trend to automate International records management in various countries continues to drive down costs. • There has been an increase in the number of local researchers worldwide resulting in lower fees and overall costs. • Recognized as a means of economic development, as demand increases, economies of scale tend to reduce costs.

MYTH # 3 • International Screening is too expensive .

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International Screening FAQ & Myths

• Turn Around Time for criminal searches currently averages 6 - 7 days for the 20 most commonly requested countries. Credit and MVR up to 10 days. • Automation allows for 24/7 data collection worldwide in partnership with many global researcher networks. • Processes to accommodate individual country information retrieval requirements has been streamlined. Information and pricing is readily available. • Many countries have converted from paper records to electronic systems making access faster and easier.

MYTH # 4 • International Screening takes too long .

International Screening FAQ & Myths

MYTH # 5 • “I Never Get a ‘Hit’”! Records always come back clear.

• Historically, the hit rate for International Searches is extremely low versus domestic: 1 - 2% v. 10%. • In many instances, a person cannot leave their country for the U.S. if they have a criminal record, thus resulting in lower hit rates. • “Hits” vary dramatically by country: in some countries criminal records can be “Spent” (i.e., Australia). • “Hits” can be more prevalent in some countries (i.e., Philippines and Canada vs. India).

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International Screening Products

Selecting A Provider • PBSA (formerly NAPBS) Member • Accredited • Price and Turnaround • Reports are in English • Beware of Online Resources • Beware of Instant Records

Available Searches

Criminal

Civil Litigation

Credit

Education

Professional License

Employment

References

Bankruptcy

Sanctions Media Financial Regulatory Driving Abstracts

International Criminal Records

General Requirements • First Name and Last Name • Date of Birth • Full Address while in Country Additional Requirements • Mother’s Maiden Name (Mexico) • Father Full Name (India) • Social Insurance Number (Canada) • Place of Birth (Japan), Name in Kanji • Any Government Issued ID • Country-Specific Authorization Forms (UK, PHIL, CHINA, AUST)

• Available in 200 Countries, 20 are most common. • Include repository searches and direct searches of law enforcement agencies, government offices and courts. • Professional searches are conducted legally. • TAT averages 6-7 days, but can take up to 10.

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Top 20 Countries Criminal Records

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How to Validate Canadian SIN

• Multiply the SIN by: 121 212 121 (if you get a 2 digit #, add the digits). • Add total digits together. • Must be divisible by 10. • First digit indicates Province of registration.

How to Validate Canadian SIN

• Multiply the SIN by: • 121 212 121 (if you get a 2 digit #, add the digits). • Add total digits together. • Must be divisible by 10. • First digit indicates Province of registration.

Test: 130 692 544 121 212 121

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Test: 130 692 544 121 212 121 160 394 584 How to Validate Canadian SIN = 40 VALID

Other searches

• Civil Search: Available in 150 countries. • Motor Vehicle / Driving Abstracts: Available in 50 countries. All countries require clear copy of front and back of license. Many also require additional authorization. • ID Check: Available in 200 countries. Includes Identifications, Voter Registration and Passport Validation Searches. • Credit: Available in 160 countries. – Sometimes requires multiple searches from several sources.

Verification / References • TAT: 3-10 Days. • Education: Usually have additional fees. • Professional License • References Media • NOT limited to Google or Social Media • Local Language Searches which include: – News Agency Information containing negative press,

derogatory information, political affiliation, business associations, etc.

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Screening in China and Japan • CHINA does not have a criminal search per se, because those are only conducted by the Government. What is available is an “irregularity search” through the Ministry of Public Security. They house everyone’s criminal and credit information. • JAPAN is similar to China in terms of disallowing a criminal search. However, an “Illicit Activity Database Search” can be conducted that includes criminal records. • Court records are not available to the public • Many records obtained are stored in a proprietary database and it is a manual process and includes names, case reference, and offense • Limited in nature, only contains offenses in Tokyo and Osaka, the two main urban areas accounting for 20% of Japan’s population • Supplemented with a media press search. A low crime rate makes detection of offenses easier in that minor crimes are even reported and documented in the press. Other offenses such as DUI, theft, assault, and minor drug charges are listed

Screening in Mexico

National • A search conducted through the State Superior Tribunal of Justice Courts and Courts of First Instance. This search does not contain information from the Mexican Supreme Court of Justice. Local - Recommended • A local criminal search conducted through the state attorney general's office based on the candidate's residential address. Certificates of criminal records are available in most states. (Certificates results cannot be obtained in Baja California (North), Tabasco, Veracruz and Zacatecas as they contain biographical data specific to the candidate; the authorities will not provide that information other than the results of the search. • For these jurisdictions, the search is conducted through the Secretary of Public Security (SSP). Full conviction data is provided. Data is updated monthly.) • As in the United States, the scope of the Local search does not include Federal crimes (large narcotics cases, weapons violations, money laundering, kidnapping, and some financial crimes). • Requirements : Full name, mother’s full maiden name, date of birth, complete address for the search, Mexico ID number (CURP or RFC preferred; IFE or passport number can be accepted). For searches in Baja, a copy of the ID will be required.

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Screening in India

• ID Check • Criminal Records – Local magistrate court searched in-person by an attorney and the national JUDIS database (not obtained by police as some public officials can be corrupt and demand money and/or be bribed in return for a cleared report. • Must have Father’s Full Name and Complete Residential In-Country Address (Door Number, Street Name, Area Name, City Name, State – India is searched and categorized by blocks more than by districts or states like most other Countries. • Tribunal, District, High Court Searches • Serious Offenders and Most Wanted • Civil – High Court Searches • Motor Vehicle Records • Employment Verification - Additional documents may be requested (Experience Letter, Service Certificate, Pay Slips, Etc.) • Education Verification - Additional documentation may be requested (legible copy of Degree, Diploma, Certificate, etc.). • Article 21 http://www.legalserviceindia.com/articles/art222.htm • Credit Information Companies Regulations Act (2005) http://rbidocs.rbi.org.in/rdocs/Content/PDFs/69700.pdf

Screening in Canada

•

National Criminal Record – Obtained from the Canadian Police Information Center (CPIC) and generally covers all provinces and territories within Canada. CPIC does not cover all levels of convictions. – Special disclosure and authorization form required and must be notarized along with copies of two IDs – Report shows Incomplete or Match of Information Provided based on what the applicant

self discloses on their declaration of criminal record. – Criminal records are not returned with this search. – Fingerprints may need to be submitted, which may delay the turnaround time. • Provincial Search—when searched with a CPIC, is the most accurate nationwide search. – Address based search covering a province. The Provincial sources do cover all levels of convictions, but some courts or dispositions may not be included. – Recommended with the CPIC for a true nationwide search – Usually comes back the same day • ID Check thru Credit Bureau • Credit Reports • Motor Vehicle Records • Civil – Provincial Court Searches • Employment and Education Verification

Personal Information Protection and Electronic Documents Act (PIPEDA) www.priv.gc.ca

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International Screening in Gaming

TOP FIVE COUNTRIES SEARCHED • Australia • Canada • United Kingdom • New Zealand • Japan

International Screening Delays

• ITALY is one of the biggest countries where whole companies close down and everyone leaves for almost the entire month of August • POLAND can have delays in the month of July • JAPAN many workers get about a week off around the end of April and beginning of May for Golden Week

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International Screening Concerns • Some countries suspicious of the process (i.e., Germany) • Some countries slow to embrace screening as a valid business process (i.e., Chile). • Some countries have very strict data protection laws (i.e., Japan) • EXPAT versus Nationals • No recognition of Sovereignty, FCRA, State or Federal Laws • Country Specific Requirements – Authorizations – UK, PHIL, CHINA, AUST, ITALY • Language Barriers – Translation Issues – Japan requires name in Kanji • Navigating Unchartered or Changing Climate • GDPR

GDPR

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GDPR

European Union

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What is GDPR • The General Data Protection Regulations (GDPR) is new EU legislation that comes into effect on May 25 th 2018. • It very clearly sets out the ways in which the privacy rights of every EU citizen must be protected and the ways in which a person’s ‘Personal Data’ can and can’t be used. • It places the onus on any person or entity involved in the processing of a person’s information (Data Controller/Data Processor) to comply with the legislation and to demonstrate compliance • It carries significant penalties for non-compliance

GDPR

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GDPR

GDPR Key Principles

The key objectives of Data Protection can be summarised as follows: 1. Lawfulness, Fairness, Transparency 2. Purpose Limitation (Use only for one or more specified purposes) 3. Data Minimisation (Collect only the amount of data required for the specified purpose(s)) 4. Accuracy (Ensure data is kept up to date, accurate and complete) 5. Storage Limitation (Kept for no longer than necessary for the specified purpose(s)) 6. Integrity and Confidentiality (Processed ensuring appropriate security of data) 7. Accountability (Essential not only to be compliant, but to be able to demonstrate compliance)

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How to Comply

1. Becoming Aware 2. Becoming Accountable 3. Communication with members 4. Personal Privacy Rights 5. Subject Access Requests 6. Legal Basis 7. Consent 8. Children’s Data 9. Reporting Breaches 10.Impact Assessments 11.Data Protection Officers 12.International Organisations

Personal Privacy Rights

These rights include: • Subject Access • To have inaccuracies corrected

• To have information erased • To object to direct marketing • To restrict processing of their information including automated decision making • Data portability - Ability to receive all of their information in a standard format to move to another provider

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Subject Access Request • Under Data Protection, a person has always had the right to request access to all of the information held about them • This is called a Subject Access Request (SAR) • Subject Access Requests must be completed within one month free of charge • Holding an accurate inventory of information will be a key enabler for completing SAR efficiently • Data has to be provided in a standard format • The person must also be informed of further information, including the relevant Retention Periods for the data held and their right to have inaccuracies corrected

Legal Basis • Processing of Personal Information can only occur when there is a legal basis for carrying it out. • Legal Basis can be established where one of the following applies: – The person has given explicit consent – Necessary for performance of a contract – Compliance with a Legal Obligation – To protect the vital interests of the person – A task carried out in the public interest – For the legitimate interests of the data controller

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Consent • Individuals must be informed of what their data is going to be used for, who will have access to it, where it will be stored and how long it will be held for • They must give their consent for their data to be used • Consent must be ‘ freely given, specific, informed and unambiguous ’ • Members cannot be forced into consent or unaware that they are giving consent • Obtaining consent requires a positive indication of agreement – it cannot be inferred through silence (not objecting), pre-ticked boxes or inactivity • Consent must be ‘ refreshed ’ – It cannot be deemed as indefinite • Consent must also be verifiable – Data Controllers must be able to demonstrate that consent was given and an audit trail should be maintained • ‘Legal Basis’ can be used to process information in the absence of consent in certain, very specific, circumstances • It must be easily possible for a person to withdraw their consent

GDPR Resources

• https://iapp.org • https://privacyinternational.org • https://ico.org.uk • https://thepbsa.org • https://gdpr-info.eu • https://www.itgovernanceusa.com

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Due Diligence – Screening Best Practices

Due Diligence

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Professional Screening Agency

Accredited versus Non-accredited Consumer Reporting Agency (CRA) https://thepbsa.org • Heavily Regulated • Subject to oversight by FTC and CFPB • Fully Compliant with FCRA • Maintains Standards of Accuracy, Verified Sources • Provides Consumer (Applicant) Protections • Obligation of Client Education • Maintains Research and Data Product Standards • Mandated Service Standards • Ensures Data Security • Legal Compliance with State and Federal Laws

Selecting a Provider Checklist

q Are you a member of PBSA? q Are you an Accredited Consumer Reporting Agency? q Are you FCRA Certified? q What is your turnaround time, by product? q How long is your agreement for? q Can I use other providers? q Can I get a copy of an invoice? q What fees are not included on my proposal? q Do you Offshore or have staff outside the US? q May I contact a former Customer? q When checking references: q Howmany attempts do you make? q Over what period of time? q During what hours of the day? q What is your success rate?

q Do you conduct “live” criminal searches? q Do you conduct additional research on “hits” with no disposition? q Do you charge for additional research? q What products offered have additional fees? q What are those fees? q Does a “Packaged Price” include fees? q Do you use data extraction technology? q If yes, what is your search criteria? q How is a Federal Criminal Search conducted? q Please provide a list of comparable references. q Do you provide Pre and Post-Adverse Action letters? q Do you provide a Disclosure and Authorization? q Do you provide a copy of the Summary of Rights? q What happens if an applicant disputes a report finding? q How do you stay on top of the changing legislative climate?

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Deceptive Marketing

XXXXX has invested heavily in the development of our Affiliate Partnerships. We believe in building a team. And we value the power of relationships. We interface with some of the most popular Applicant Tracking Systems in the business today. These software service providers can integrate with our system and can be customized to integrate directly with your systems as well.

Offshoring

• Personal Identifying Information (PII) should always be protected. • CA passed SB 909 in 2012 requiring the disclosure of all offshoring. • Privacy Policy must disclose information regarding offshoring. • Privacy Policy must be conspicuously posted.

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Latest Trends & Technology

• Monitoring Programs – Criminal – MVR • Social Media • References • IRS Tax and Earnings • ATS / Paperless Processes

Social Media • 40% of employers use social media to screen candidates, looking to: – Evaluate professionalism and social conduct – Evaluate fit for company culture – Evaluate qualifications

• 51% of employers report finding content that

caused them

not to hire a candidate

• Can’t UNSEE it

• Sources: http://www.careerbuilder.com/share/aboutus/pressreleasesdetail.aspx?sd=6%2F26%2F201 4&id=pr829&ed=12%2F31%2F2014; http://www.go-gulf.com/blog/social-media-pre- employment-screening/

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IRS Tax & Earnings Report

• 1040 series, 1120 and

other Income Tax Forms : last filing year and prior 3 years (4-year total) W-2, 1099 and other Wage & Income Documents : last year and prior 9 years (10 year total) Verify employment income

SSN

EMPLOYER

OMITTED PAST

EMPLOYEE

EARNINGS

Social Media

Race

Color

Age

Sex

National Origin

Veteran Status

Religion

Disability

Genetic Information

Jurisdictional Information

Sexual Orientation

Gender Identity

Excluded Federal Protections

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Social Media

Potentially illegal activity

Potentially violent conduct

Sexually explicit material

Demonstrations of racism/intolerance

Social Media

• Avoid Risks

Experience Years in social media High profile clients

Trust FTC Approved Market validated

Consistency Reliable report types Clear picture of behavior

Protection Actionable reports Avoid lawsuits & negligence

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References & Verifications

Personal References • Born Again Believer – Candid Response

– Detect Omitted Employers – Identify Job Responsibilities – Uncover Gaps • Personal References before Employment • Collect cell and email addresses • Collect more than you need (i.e. 3 of 5 or 5 of 7) • When conducted by Screening Company, carefully review: – # of Attempts – Interview Questions – Success Rate

References & Verifications

• Employment Verification versus Professional Reference • Use Employment Credit Report to determine omitted past employers • Using the “Work Number” • TribalTRAC • Liars for Hire - Paladin • Collect cell and email addresses • When conducted by Screening Company, carefully review: – # of Attempts – Interview Questions – Success Rate

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Due Diligence

Best Practices Checklist

q SSN/CBSV/Address Locator Products q Employment / License Verification / References q Social Media q Fingerprint Based Criminal Search q Criminal Search based on Address Locator (not past addresses listed on application) q Multiple Sources, including county level searches q National Criminal Search (900MM +/Multi-State Sex and Violent Offenders Search) q Federal Criminal q Civil Search

q International Search (if applicable) q Job Related a-la-carte searches: q Motor Vehicle Record q Employment Credit Report q Professional License Verification q MISC.

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SSN Verification

SSN Verification / Trace reports

- SSN is in a valid range - Search of Deceased file - Year and State of Issuance

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SSN Verification Lesson

Applicant: Cruella DeVille from Nob Hill Applicant Supplied Info: Name, DOB, SSN, Address Searches Conducted: SSN Search

County Criminal Federal Criminal Sex Offender Nationwide Database

Reported Results:

SSN Search:

Valid. Issued in Illinois in Year 1985 – 1987. Deceased 9-15-85 Age 7

County Criminal: Federal Criminal: Sex Offender:

No Record Found No Record Found No Record Found No Record Found

Nationwide Database:

SSN Trace Vendor 1

Applicant: Shaggy Romero from Mescalero, NM Applicant Supplied Info: Name, DOB, SSN, Address Search Conducted: 10 yr. County Criminal Search, SSN Trace,

Federal Criminal, Multi-State Jurisdictional/Sex Offender Nationwide Database

Reported Results:

NO RECORDS FOUND

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SSN Trace Vendor 2

Applicant: Shaggy “Shawn” Romero from Mescalero, NM Applicant Supplied Info: Name, DOB, SSN, Address Search Conducted: 10 yr. County Criminal Search, SSN Trace,

Federal Criminal, Multi-State Jurisdictional/Sex Offender Nationwide Database

Reported Results:

Prior TX Addresses

Address Locator: TX County Criminal:

Case: Felony 02-02-20011 Offense: Assault/Bodily Injury Plea: Guilty

SSN Trace Lesson

Searches Conducted:

10 yr. County Criminal Search, SSN Trace, Federal Criminal, Multi-State Jurisdictional/Sex Offender, Nationwide Database

Reported Results:

TX County Criminal:

Case: Felony 02-02-20011 Offense: Assault/Bodily Injury Plea: Guilty

Reason for Missed Record: Vendor 1:

only reported 7 yrs. Address History only searched counties based on exact name entered only reports 7 yrs. Criminal history

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Criminal Records 2.0

• No single tool can be relied on but need series of overlapping tools • Criminal records sources – 10,000 + courts – FBI – Nationwide – County, Town and Municipal Courts – State Courts – Online AOC / State / County – Civil Courts – Federal Courts – Tribal Courts – Other Record Sources • Prison Systems • Sexual Predator Lists • Federal Sanction and Watch lists • Vendor Databases • Police

Criminal Searches

Nationwide Database Online County AOC Federal Civil NO RECORD FOUND

FBI Fingerprint State Repository County Search RECORD FOUND NO DISPOSITION

Additional Research conducted with court clerk

Name: Applicant, Johnny Sex: M Race: W DOB: 01/12/1971

Height: 511 Weight: 180 Eyes: Blue Hair: Brown SSN: 444-XX-XXXX DOC NO: 247359Date Arrested or Received: 01/22/1998

Disposition: Felony Conviction, Sentence 10 yrs

Prison 10 yrs Jail 49 days,

Grant County Jefferson, OK Charge: Burglary, Felony

Received: 01/22/1998 Paroled: 04/23/2001

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Criminal Record Risks – Online v. County

Product Offense Product

Offense

Classification

CT1 RAPE, FIRST DEGREE, CT2 RAPE, FIRST DEGREE, CT3 LEWD MOLESTATION, CT4 KIDNAPPING, CT5 ROBBERY, FIRST DEGREE, CT6 ELUDING A POLICE OFFICER CT1 POSSESSION OF CONTROLLED SUBSTANCE EXCEPT 35 GRAMS OR LESS OF MARIJUANA;CT2 UNLAWFUL USE OF DRUG PARAPHERNALIA;CT3 POSSESSION OF UP TO 35 GRAMS MARIJUANA

Online County Clear Disposed: Conviction 04/19/2010, CT1 FELONY, CT2 FELONY, CT3 FELONY, CT4 FELONY, CT5 FELONY, CT6 FELONY

Online County Clear State

Live County

Driving on Suspended License Class A(2010), Driving on Suspended License Class A(2011)

Live County

Active Warrant

Online County Clear

Live County

Online County Clear CT1 Felony;CT2 Misdemeanor;CT3 Misdemeanor Pending Next Court Date 02/21/2017

Live County

Active Warrant

MALICIOUS INJURY OR DESTRUCTION OF PROPERTY LESS THAN $1000

Online County Clear

Live County CT1 THEFT/STEALING (VALUE OF

Online County Clear

Live County

Felony

Misdemeanor

PROPERTY OR SERVICES IS $500 OR MORE BUT LESS THAN $25,000)

OBSTRUCTION OF OFFICERS

Online County Clear

Live County

Online County Clear

Live County

CT1 Felony; CT2 Misdemenaor

Misdemeanor

CT1POSSESSION OF DRUGS, CT2 DUI,

VIOLATION OF CONTROLLED SUBSTANCE ACT

Online County Clear

Live County

Nationwide

Misdemeanor

MARIJUANA POSSESSION UNDER 1 OUNCE

FBI – NCIC Fingerprint

• Though perceived as all encompassing, the FBI database is not considered reliable as a single source for background screening purposes - it is recommended that other sources be used to supplement the FBI search • Fingerprint matching – prints must be on file • Significant time lags from reporting states • Inconsistent reporting requirements from state to state • Limited reporting of case dispositions (45 – 50 %) • Serious issues in depository data linking • Return delays

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FBI Lesson

Applicant: Dylann Roof Applicant Supplied Info:

Name, DOB, SSN, Address

Searches Conducted:

FBI / Fingerprint

Reported Results:

No Record Found

FBI Lesson

Applicant: Dylann Roof Applicant Supplied Info:

Name, DOB, SSN, Address

Searches Conducted:

FBI / Fingerprint

Reported Results:

County Criminal

Case: 3/16/2015 Offense: Poss of Controlled Substance Plea: Pending

County Criminal

Case: 4/27/2015 Offense: Trespassing Plea: Guilty Bench Trial Verified and 12 Days in Jail

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National Commercial Databases

• “National” is a misnomer: – While current multi-jurisdictional databases contain millions of records (often 900-million or more), there exists no single, national database that contains all criminal records in the US • These databases include only those records from various government and law enforcement entities, counties, sex and violent offender registries and other sources that have been made available for purchase • Data cannot be 100 percent accurate, complete or up- to-date • “Clear” product is not Compliant with Licensing or Hiring

Databases - continued

• Data structures are not always reliable: – When combining several different databases into one, the methods used to structure the data will impact search results – For example, when a query is done using “ROBERT SMITH,” results returned may or may not include ROBERT A, BOB, BOBBY, and ROBERTO … whether separate queries must be made for each name varies from one database to another • Extraction Technology often applied • Ensure identifiers • Avoid duplicated records • Use as pointer only, “Hits” must be verified

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Databases - Continued

Applicant: Wayne Brandon Brixley Applicant Supplied Info: Name, DOB, SSN, Address Searches Conducted: Online OK Court Network Nationwide Database Reported Results: NO RECORD FOUND

Databases - Continued

Applicant: “Brandon” Brixley Applicant Supplied Info:

Name, DOB, SSN, Address

Searches Conducted:

Online OK Court Network Police and Nationwide Database

Reported Results:

Online Network , Police and Nationwide Database: Records Found for 6 cases of violent behavior

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Databases - Continued

Applicant: “Brandon” Brixley Reported Results:

Online Network , Police and Nationwide Database: Records Found for 6 cases of violent behavior

Reason for Missed Record:

- Both searches relied on exact name only, SSN trace revealed alias and middle name.

- Not all counties were contributing to the online court network at that time.

Online County Records

• Automated searches: Extraction • Search criteria NOT flexible • Name match only • Not available in all counties (approx. 1/3 of 3144) • Often no disposition • Require additional research • Subject to change

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Online County Records

• Online searches have limited search criteria and most often are “name match only” • When using an online source, always use an address locator and other sources to find aliases and other identifiers • While many online court networks actually search court dockets, most networks do not include all jurisdictions • All online searches should still be verified at the county level

Online Lesson Applicant: Louis Francisco Mojica SEARCHED LOUIS FRANCISCOMOJICA Searches Conducted: SSN Search Police OK Online County Criminal Federal Criminal Sex Offender Nationwide Database Reported Results: Valid SSN Search: SSN Valid. Issued in CA in Year 1968 – 1972. Police: No Records Found OK Online County Criminal: No Records Found Federal Criminal: No Record Found Nationwide Database: No Records Found Sex Offender: No Records Found

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Online Lesson Applicant: Louis Francisco Mojica SEARCHED FRANK MOJICA Searches Conducted: SSN Search Police OK Online County Criminal Federal Criminal Sex Offender Nationwide Database Reported Results: Valid SSN Search:

SSN Valid. Issued in CA in Year 1968 – 1972.

Police:

No Records Found

Case: Felony. 09/25/1984 Offense: Rape by Force Plea: Guilty

OK Online County Criminal:

Federal Criminal: Nationwide Database:

No Record Found

NOT REPORTABLE no identifiers NV: NOT REPORTABLE

Sex Offender:

• A county criminal search is a deep search, usually conducted in person, for a particular county • Latest and most complete information available, revealing the greatest level of detail • Most common for employers and regulators • Misdemeanor and felony • Co-located records – What most people don’t know … • Limited in scope • Fees should NOT vary County Criminal Records

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County Lessons

• Searches must be conducted using alias and other name variations. • Sex offender registrations move to state of residence. • Old county records are rarely available. • Many states restrict reporting beyond seven (7) yrs. • Most background screening companies are not versed on NIGC requirements and will only provide seven (7) year searches. • Background screening companies most often require two (2) matching identifiers. If name match only, it will be reported as a “NO Record Found.” • Additional research is usually necessary on all criminal “hits.”

Reporting Restrictions

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State Repositories

• Limited access • Not available in all states • Often require additional release • Often lack disposition • Six (6) have closed records • Not all counties contribute • Fees

State Repository Delays

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State Reporting Lesson

Applicant: Jeffrey L. Thompson Applicant Supplied Info:

Name, DOB, SSN, Address

Searches Conducted:

Valid SSN Search Police KS State Criminal Federal Criminal Sex Offender Nationwide Database

Reported Results:

Valid SSN Search:

SSN Valid. Issued in KS in Year 1968 – 1972.

Police:

No Records Found No Record Found No Record Found No Record Found No Record Found

State Criminal: Federal Criminal: Sex Offender:

Nationwide Database:

State Reporting Lesson

Applicant: Jeffrey L. Thompson Applicant Supplied Info:

Name, DOB, SSN, Address

Searches Conducted:

Valid SSN Search Police State Criminal Federal Criminal Sex Offender Nationwide Database

Reported Results:

Valid SSN Search:

SSN Valid. Issued in KS in Year 1968 – 1972.

Police:

No Records Found

Verified, NOT REPORTABLE Case: 01/14/2002 Offense: Murder Plea: Guilty

State Criminal:

Federal Criminal: Sex Offender:

No Record Found No Record Found No Record Found

Nationwide Database:

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State Repository Lesson

• States with reporting restrictions include: CA NV KS NH MD NM MN NY MT WA • Tribes are limited to 10 years or less in restricted states for conviction reporting • Tribes are limited to seven (7) years or less in all states for non-conviction reporting, except NM where non-convictions are never reportable • Convictions are indefinitely reportable in all other states

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Federal Records

• 96 Districts • 500 Courts • Civil

• Criminal • Bankruptcy • 13 Appellate Courts

• Records include federal crimes such as hijacking, kidnapping and drug trafficking, interstate commerce and constitutional law • PACER • Name match only

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Federal Lesson

Applicant: Johnny Bravo from Chicago Applicant Supplied Info: Name, DOB, SSN, Address Searches Conducted: SSN Search

County Criminal Federal Criminal Sex Offender Nationwide Database

Reported Results:

Valid SSN Search: County Criminal: Federal Criminal: Sex Offender:

SSN Valid. Issued in Illinois in Year 1960.

No Record Found No Record Found No Record Found No Record Found

Nationwide Database:

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Federal Lesson

Searches Conducted:

Valid SSN Search County Criminal Federal Criminal Sex Offender Nationwide Database

Results:

SSN Search: County Criminal: Federal Criminal:

Valid. Issued in Illinois in Year 1960.

No Record Found

Case: Felony. 11/03/2004 Offense: Distribution of Child Pornography Plea: Guilty, Sentenced to 4 yrs. Registered Sex Offender, Sentence: LIFE Registered Sex Offender, Sentence: LIFE

Sex Offender:

Nationwide Database:

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Civil Records

• Non-criminal offenses, brought by individuals, companies or governmental entities seeking monetary damage • Civil records are stored in courts at the county (lower and upper civil levels) and federal levels • The difference between lower and upper civil levels is typically dollar amount • Additional research is typically needed as identifiers are not often available on civil records • At the county level: • Civil records can provide insight into the subject’s participation as a defendant within civil litigation proceedings or disputes • At the federal level: • Civil litigation records can provide insight into the subject’s involvement in alleged violations of federal statutes or constitutional rights

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Civil Record Lesson

Searches Conducted:

Civil Record Search

Results: Count 1: Unlawful Detainer, Residential. Judgement for Possession, $10,000.

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Civil Record Lesson

Searches Conducted: Valid SSN Search County Criminal Federal Criminal Sex Offender

Nationwide Database

Results:

NO RECORD FOUND

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Resources

NIGC Background Requirements – http://www.nigc.gov/Portals/0/NIGC%20Uploads/lawsregulations/co mmissionregulations/regs/25CFRPart556.pdf The Professional Background Screening Association – www.thepbsa.org FCRA Statute – www.ftc.gov/os/statutes/031224fcra.pdf The Criminal Record Handbook – http://www.brbpublications.com/books/details.aspx?ProductID=422 Background Checks, What Employers Need To Know – http://business.ftc.gov/documents/0487-background-checks-what- employers-need-know Association of Certified Fraud Examiners, Annual “Report to the Nations” – www.acfe.com

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Team Challenge

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Thank You

Julie Hakman 918-688-3709 julieh@americanchecked.com www.americanchecked.com

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Vendor Financial Statements

NIGA Commissioner Certification Training Program

Ryan Burns, CPA Partner BlueBird, CPAs

• Business Financial Statements • Income Tax Returns • Credit Reports • Non-Financial Information Quantification Background Due Diligence Vendor Financial Investigations

OMISSIONS, INCONSISTENCIES, RED FLAGS

What are You Getting? Financial Statements

• Internal Financial Statements– Prepared by Management • Compiled Financial Statements– Prepared Externally

• Reviewed Financial Statements • Audited Financial Statements

Opinion Types Audit Engagement

• Unmodified (a clean bill) • Qualified (with some reservation) • Adverse (financials are not presented in accordance with GAAP) • Disclaimer (unable to form an opinion)

Types of Review Reports (Limited Assurance)

• Unmodified • Modified

Compiled Financial Statements

No Assurance That the Financial Statements are Presented in Accordance with GAAP