Public Self-Insured Losses Increase Despite Declining Claim Volume in California
January 18, 2025 | JacobiJournal.com — Public Self-Insured Losses: A new report reveals that, despite a decrease in the number of claims, public self-insureds in California saw a rise in total paid losses last year. This increase was driven by higher average medical and indemnity payments. Rising Losses in California’s Public Self-Insured Sector The California Workers’ Compensation Institute (CWCI) reviewed the fiscal year 2023/24 report on public self-insured data. They found that average medical payments surged by 18.7%, while average indemnity payments rose by 5.3%. These increases contributed to a nearly $42.6 million rise in total self-insured losses, which reached $552.9 million last year. Meanwhile, the number of claims declined by 1.8%. Despite this, total incurred self-insured losses, including both paid and reserved future payments, increased by nearly $150 million, reaching a record $1.69 billion. This rise was driven by a 14.8% increase in average incurred medical costs and a 9.4% jump in average incurred indemnity costs. Growth in the Public Self-Insured Workforce The summary, released on January 8 by the Office of Self-Insurance Plans, offers insight into the workers’ comp experience of cities, counties, and other public self-insured entities for the 12 months ending June 30, 2023. The report shows that, compared to the previous year, California’s public self-insured workforce grew by 4.5%, totaling 2.18 million workers. Additionally, wages and salaries for these workers reached nearly $174.2 billion. The report revealed that public self-insured employers reported 118,114 claims last year. This marks a decrease of 2,214 claims (1.8%) from the previous year’s initial report. Despite this drop, both paid and incurred losses increased. Distribution of Paid Losses In FY 2023/24, indemnity payments accounted for $327.9 million of the $552.9 million in paid losses, marking a 3.1% increase from the prior year. Medical payments reached $225.0 million, reflecting a significant 16.5% increase. As a result, the average benefits paid per claim rose to $4,681, a 10.4% increase from the previous year’s claims. Specifically, indemnity payments averaged $2,776, up by 5.3%, while medical payments averaged $1,905, marking an 18.7% increase. Access Additional Data For more details on California self-insured losses, CWCI members and subscribers can access the full bulletin, which includes additional exhibits and comparisons with data from the past decade. The bulletin provides a detailed breakdown of trends in claim types, payment patterns, and demographic shifts among public self-insured entities. It also highlights key factors driving increases in self-insured losses, such as rising medical costs, higher indemnity payouts, and changes in workforce composition. Analysts and public employers can use this information to benchmark performance, plan budgets, and implement risk management strategies tailored to the evolving landscape of California’s public-sector workers’ compensation system. For full data and exhibits, visit the California Workers’ Compensation Institute (CWCI) bulletin. FAQs: California Public Self-Insured Losses What are California public self-insured losses? They represent total paid and incurred workers’ compensation costs for public entities like cities, counties, and state agencies. Why did public self-insured losses rise despite fewer claims? Higher average medical payments (+18.7%) and indemnity payments (+5.3%) led to a nearly $42.6 million increase in total paid losses. How many claims were reported by California public self-insured employers? Public self-insured employers reported 118,114 claims in FY 2023/24, a decrease of 1.8% compared to the previous year. What impact does this data have for public employers? Rising losses indicate increased financial exposure, influencing budgeting, insurance planning, and risk management strategies. What does it mean to be self-insured in California? In California, a self-insured public entity pays its own workers’ compensation costs instead of purchasing coverage from an insurance carrier. Cities, counties, school districts, and state agencies set aside funds to cover medical treatment, indemnity benefits, and long-term claim obligations. Their annual reports—like the one reviewed by CWCI—show how much they actually paid out and how much future liability they’re reserving. What are the rules for total loss in California? For public self-insureds, “total loss” isn’t about damaged property—it refers to the total amount of paid and incurred workers’ compensation losses. These figures include medical payments, indemnity benefits, and projected future costs. California requires public self-insureds to report these totals every year through the Office of Self-Insurance Plans, which tracks trends and financial exposure across the state. Stay informed on workers’ compensation trends and public-sector insurance data. Subscribe to JacobiJournal.com for expert analysis of self-insured losses, claims trends, and regulatory updates. 🔎 Read More from JacobiJournal.com:
U.S. Chamber and Oil Firms Sue Vermont Over Climate Damage Law
January 6, 2025 | JacobiJournal.com — The climate damage lawsuit involves the U.S. Chamber of Commerce and the American Petroleum Institute (API) filing a federal case against Vermont, challenging the state’s groundbreaking law that requires fossil fuel companies to contribute financially to the damage caused by climate change over the past several decades. The climate damage lawsuit highlights a growing tension between state-level climate accountability initiatives and corporate interests. Vermont’s law, which is among the first of its kind, seeks to hold fossil fuel companies financially responsible for decades of greenhouse gas emissions that have contributed to extreme weather, flooding, and infrastructure damage. Legal experts note that the case could set a precedent for other states considering similar legislation, while economists warn that the outcome may influence investment strategies and regulatory compliance across the energy sector. Meanwhile, environmental advocacy groups are closely watching the proceedings, emphasizing the potential implications for climate policy enforcement nationwide. Legal Battle Over Vermont’s Groundbreaking Law The lawsuit, filed Monday, seeks to block Vermont from enforcing its new law passed in 2024. This law makes Vermont the first state to hold fossil fuel companies accountable for climate-related damages. It follows devastating summer floods and other extreme weather events linked to climate change. Vermont is currently assessing the cost of climate change impacts starting from January 1, 1995. The plaintiffs argue that the law infringes upon the U.S. Constitution. They claim that the federal Clean Air Act already regulates greenhouse gases. Additionally, they assert that the state law violates commerce clauses by targeting large energy companies outside Vermont. They believe it is unrealistic to measure the specific impact of emissions from individual companies over time, given the global nature of greenhouse gas emissions. Tara Morrissey, senior vice president of the U.S. Chamber’s litigation center, criticized the law. She stated, “Vermont wants to impose massive retroactive penalties going back 30 years for lawful, out-of-state conduct that was regulated by Congress under the Clean Air Act.” Morrissey warned that the penalties would increase costs for consumers in Vermont and across the country. Vermont Defends Its Position Although the climate damage lawsuit has been filed, Vermont’s Agency of Natural Resources has not yet been formally served. Anthony Iarrapino, a Vermont-based lobbyist with the Conservation Law Foundation, defended the law. He said the lawsuit represents the fossil fuel industry’s attempt to evade accountability for the damage their products caused. “More states are following Vermont’s lead in holding Big Oil accountable for disaster recovery and cleanup costs,” Iarrapino said. The U.S. Chamber of Commerce, along with the American Petroleum Institute (API), has filed a federal climate damage lawsuit against Vermont. They are challenging the state’s groundbreaking law that requires fossil fuel companies to contribute financially to the damage caused by climate change over the past several decades. Under Vermont’s law, the state treasurer, in consultation with the Agency of Natural Resources, will release a report by January 15, 2026. The report will assess the total costs to Vermont from greenhouse gas emissions between 1995 and 2024. It will cover impacts on public health, agriculture, natural resources, and infrastructure. The law adopts a polluter-pays approach. It targets companies involved in the extraction or refining of fossil fuels responsible for over 1 billion metric tons of greenhouse gas emissions. Funds collected from these companies will be used to improve infrastructure and climate resilience, such as upgrading stormwater drainage, retrofitting buildings, and enhancing roads and bridges. A Growing Trend Among States Vermont’s law has inspired other states, including New York. Governor Kathy Hochul recently signed a similar bill into law. The New York law requires major greenhouse gas emitters to contribute to a state fund aimed at repairing and preventing future climate damage. This trend shows a growing movement among states to hold fossil fuel companies accountable for the financial costs of climate change. To read further details, check out the original article from Bloomberg. FAQs: Vermont Climate Damage Lawsuit What is the Vermont climate damage lawsuit about? The Vermont climate damage lawsuit challenges a 2024 state law requiring fossil fuel companies to pay for damages caused by greenhouse gas emissions. The U.S. Chamber and API argue it conflicts with federal law and commerce clauses. Which companies are targeted by the Vermont climate damage lawsuit? The law focuses on companies involved in the extraction or refining of fossil fuels responsible for over 1 billion metric tons of greenhouse gas emissions from 1995 to 2024. What penalties or costs are at stake in the Vermont climate damage lawsuit? Funds collected under the law would finance infrastructure upgrades, climate resilience projects, and public health protections. Companies face potential retroactive financial obligations spanning decades. How could the Vermont climate damage lawsuit influence other states? Legal experts say the case may serve as a blueprint for other states, like New York, to implement similar climate accountability laws, creating a growing trend of state-level corporate responsibility. What is the Vermont climate Superfund lawsuit? The Vermont climate Superfund lawsuit is another way to describe the legal challenge against Vermont’s polluter-pays law, which establishes a state-managed fund to finance infrastructure upgrades, climate resilience projects, and public health protections using contributions from major greenhouse gas emitters. Stay informed on climate policy and corporate accountability. For more on Vermont’s legal battle and the broader impact of state climate policies, visit JacobiJournal.com. 🔎 Read More from JacobiJournal.com:
Faith-Based Fund with $24 Billion in Assets Influences Corporate Policies in America
Jim Lake (Photo by Margaret Albaugh/Bloomberg) January 5, 2025 | JacobiJournal.com — Faith-Based Fund. Jim Lake, a devout Christian from Washington state, recently redefined his investment strategy. Guided by a financial adviser, he moved his portfolio into faith-oriented funds, including those managed by GuideStone Funds. This Texas-based firm, founded over 100 years ago, manages about $24 billion in assets and serves primarily Southern Baptist retirees. It has also gained traction among new faith-driven investors like Lake and his wife. The Rise of Faith-Based Investment Coalitions GuideStone is part of a growing coalition of conservative Christian investors. These investors are using their shareholder influence to challenge corporate practices, such as supporting Pride events or reimbursing employees for abortion-related travel. They are also confronting banks accused of closing accounts based on political or religious views. Will Lofland, who leads shareholder advocacy at GuideStone, estimates that half a trillion dollars are invested in conservative faith-based funds. This influence extends across private funds, state pension funds, and more. Key players in this coalition include Inspire Investing, the leading faith-based ETF manager, as well as Republican state treasurers and organizations like Alliance Defending Freedom. Faith-Based Fund The Growth of Faith-Based Funds While faith-driven investing has been around for decades, conservative faith-based funds are gaining momentum. This trend has been fueled by the rightward shift in U.S. politics and a growing resistance to diversity, equity, and inclusion (DEI) programs. More everyday investors are showing interest in faith-based funds. Tim Macready of Brightlight, an advisory firm, notes that assets in these funds surpassed $100 billion last year. Over three years, net inflows grew by 12%. Inspire Investing alone saw a net gain of $334 million in assets last year. GuideStone’s Advocacy and Future Plans GuideStone has expanded its role beyond managing Baptist church pensions. The firm is now actively engaging in shareholder advocacy. As progressive groups have ramped up shareholder proposals, GuideStone has voted its shares to reflect its values. In late 2023, GuideStone supported a proposal asking Microsoft to report on compensation gaps related to reproductive and gender dysphoria care. Although the proposal received only 1% of votes, Lofland stressed the importance of building a larger coalition to increase their influence. Looking ahead, GuideStone plans to focus on the issue of “debanking” in 2025. This refers to the practice of financial institutions closing customer accounts based on perceived risks related to legal or reputational concerns. GuideStone intends to press financial institutions on this issue to protect religious freedoms in the financial sector. Additional information on this topic can be found in the original report by Bloomberg. FAQs: Faith-Based Fund What is a faith-based fund and how does it work? A faith-based fund is an investment vehicle that aligns portfolios with religious principles, often excluding companies or practices that contradict specific moral or ethical beliefs. GuideStone Funds, for example, uses shareholder influence to promote policies consistent with Christian values. How does a faith-based fund influence corporate policies? Faith-based funds engage in shareholder advocacy, voting on proposals, and coordinating with other investors to influence company decisions on issues like reproductive care, DEI programs, or “debanking” practices. Who invests in faith-based funds? Faith-based funds attract religious individuals, church pension plans, and conservative coalitions. Investors like Jim Lake and Southern Baptist retirees use these funds to integrate faith with financial goals. What are the future trends for faith-based funds? The trend is growing, with assets surpassing $100 billion in recent years. Future focus areas include increasing shareholder influence, addressing perceived debanking, and expanding faith-aligned investing strategies across ETFs and institutional funds. What is the largest faith-based mutual fund? GuideStone Funds, managing approximately $24 billion in assets, is one of the largest faith-based mutual funds in the U.S., primarily serving Southern Baptist retirees while attracting new faith-oriented investors. What are faith-based funds? Faith-based funds are investment vehicles that align portfolios with religious or moral principles. They often avoid companies or practices that contradict the investors’ values and use shareholder advocacy to influence corporate policies, as demonstrated by GuideStone and other conservative Christian funds. What Fortune 500 companies are faith-based? While most Fortune 500 companies are publicly traded and not explicitly faith-based, some are influenced by faith-driven shareholder coalitions that push for policies aligned with religious values, such as GuideStone’s engagement with Microsoft and other large corporations. Which president suggested we rely on faith-based initiatives to help society? President George W. Bush promoted faith-based initiatives, encouraging partnerships between religious organizations and government programs to address social issues. This approach parallels how faith-based investors now use financial influence to support values-driven corporate change. Stay informed on the intersection of faith, finance, and corporate accountability. For more in-depth analysis of faith-based investing and its impact on corporate America, visit JacobiJournal.com. 🔎 Read More from JacobiJournal.com:
Colorado Governor Proposes Privatization of State Workers’ Comp Carrier to Bolster Budget
January 5, 2025 | JacobiJournal.com — Compensation privatization is at the heart of a strategic move to address Colorado’s budget shortfall, as Governor Jared Polis has proposed privatizing Pinnacol Assurance, the state’s workers’ compensation carrier of last resort. By divesting the state’s interest in this quasi-governmental entity, Polis aims to generate additional revenue and ease fiscal pressure on Colorado’s general fund. This proposal is designed to modernize the state’s approach to workers’ compensation while potentially unlocking new revenue streams. By transitioning Pinnacol Assurance from a state-run entity to a privatized model, the plan could allow for expanded services, greater operational flexibility, and improved competitiveness within the insurance market. Stakeholders, including employers, employees, and policymakers, are closely monitoring the proposal, as its implementation could reshape Colorado’s workers’ compensation landscape and set a precedent for other states considering similar privatization efforts. Privatization as a Financial Strategy Governor Polis’s proposal comes as Colorado faces significant budget challenges. According to a report by Colorado Politics, the plan could reduce the state’s general fund by approximately $630 million. This reduction is critical as Colorado confronts a projected budget gap of $672 million. If lawmakers allocate the mandated $350 million to a new law enforcement fund, the gap could exceed $1 billion. Privatizing Pinnacol Assurance could help the state bridge this gap. Polis believes the move will reclaim the state’s investment and redirect funds to cover pressing financial needs, as reported by the Denver Post. Historical Context and Legislative Considerations Privatizing Pinnacol Assurance is not a new idea. Over the past decade, similar proposals have surfaced, but lawmakers have not reached consensus. Current discussions indicate that legislators may require more detailed information to assess the plan’s feasibility and benefits. Pinnacol Assurance, established in 1915, provides workers’ compensation coverage to over 50,000 businesses in Colorado. However, its structure limits the company to selling policies only within the state and solely for workers’ compensation. This restriction has hindered Pinnacol’s growth and competitiveness, as noted by Colorado’s Sum & Substance publication. Future-Proofing Pinnacol Assurance Governor Polis believes that privatizing Pinnacol could allow the company to expand beyond state lines and diversify its services. This strategy could enhance Pinnacol’s financial stability and adaptability in a changing business environment. The governor’s plan includes drawing $100 million annually from Pinnacol for five years to support the transition and reform efforts. Polis emphasizes the importance of modernizing Pinnacol to better serve Colorado’s employers and employees. Additional details about Governor Polis’s proposal and its implications can be found in the original reporting by Colorado Politics. FAQs: Colorado Workers’ Compensation Privatization What is Colorado workers’ compensation privatization? Colorado workers’ compensation privatization refers to Governor Polis’s plan to divest state ownership of Pinnacol Assurance to generate revenue and modernize the carrier’s services. How could compensation privatization impact employers? Privatizing Pinnacol Assurance could expand offerings beyond state lines, potentially increasing competition and service options for Colorado employers. What financial benefits does Colorado workers’ compensation privatization provide? The plan could generate $630 million for the general fund and help bridge Colorado’s projected budget gap while supporting ongoing reform and transition efforts. Are there risks associated with workers’ compensation privatization? Potential risks include legislative delays, uncertainty around Pinnacol’s expansion, and ensuring that privatization does not disrupt coverage for existing policyholders. What is the maximum payout for workers’ compensation in Colorado? The maximum payout depends on the type of injury and the employee’s average weekly wage. For permanent total disability, benefits may be paid for life, while temporary disability payments are capped according to the state’s wage formula. These limits are updated annually by the Colorado Division of Workers’ Compensation and remain unaffected by the proposed compensation privatization of Pinnacol Assurance. Is workers’ compensation mandatory in Colorado? Yes. All Colorado employers with one or more employees must carry workers’ compensation insurance to cover medical expenses and lost wages for workplace injuries. Even with compensation privatization, employers are legally required to maintain coverage, and failure to do so can result in fines, penalties, and legal liability. Subscribe to JacobiJournal.com for expert insights on Colorado’s policy shifts, workers’ comp reforms, and budget strategies impacting employers and employees. 🔎 Read More from JacobiJournal.com:
Key Insights from the 2024 Bank Tax Institute: Tax Policy, Strategies, and the Election’s Impact
January 2, 2025 | JacobiJournal.com — The 2024 Bank Tax Institute took place in Orlando during election week. Tax professionals, financial institutions, and experts gathered to discuss the future of tax policy. This year, the discussions focused on the election results, ongoing tax issues, and strategies for managing tax liabilities. This article covers the key takeaways, including the election’s impact, tax planning, and upcoming regulatory challenges. The Election’s Impact on Bank Tax Planning Much of the conference focused on the 2024 election results and the implications of the 2017 Tax Cuts and Jobs Act (TCJA). The quick election outcome shifted attention to the TCJA’s expiring provisions and their potential impact on tax planning for financial institutions. 2024 Bank Tax Institute If the TCJA is not extended, banks can expect several key changes: Though financial services transactions are not yet subject to tariffs, lobbyists continue to push against unfair targeting of banks. Many institutions argue that their already high effective tax rates make additional burdens difficult to bear. Tax Planning Strategies for Banks Tax-saving strategies were a major focus at the conference. Energy credits emerged as a key area where banks can take advantage of growing opportunities. As more energy producers come online, smaller banks gain access to tax-saving benefits. Another major topic was Bank-Owned Life Insurance. Section 1035 tax-free policy exchanges offer banks a chance to replace policies acquired under less-than-ideal market conditions. Politics, Pending Legislation, and Regulatory Changes With a business-focused administration in power, many attendees hope for reduced regulatory burdens. The current regulatory environment causes delays in mergers and acquisitions. These delays lead to higher administrative costs and the loss of valuable resources. IRS Tax Enforcement and State-Level Scrutiny A session featured Holly Paz, Deputy Commissioner of the IRS’s Large Corporation division. She discussed the agency’s enhanced enforcement efforts, fueled by additional funds from Congress. These measures will likely lead to more audits for banks in the near future. At the state and local levels, more states are ramping up their examination of banks. This growing scrutiny is adding to the tax burden for both financial institutions and individual shareholders.contributing to a higher tax burden for both financial institutions and individual shareholders. Read the full article and learn more from the source here. Stay tuned as we continue to monitor these changes and provide you with timely updates on tax policies that affect the banking sector. FAQs: Bank Tax Institute 2024 What were the main topics at the Bank Tax Institute 2024? The Bank Tax Institute 2024 focused on the election’s impact, TCJA expiring provisions, tax planning strategies, and regulatory changes. How does the Bank Tax Institute 2024 address tax policy shifts? Speakers discussed how the expiration of TCJA provisions, such as Section 199A and bonus depreciation, could reshape bank tax planning. Why are energy credits important in the Bank Tax Institute 2024 discussions? Energy credits were highlighted as new opportunities for banks to reduce tax burdens, especially for smaller institutions. What role does the IRS play in the Bank Tax Institute 2024 updates? The IRS, represented by Holly Paz, emphasized increased audits and enforcement actions that will directly impact banks. What are the 4 R’s of taxation? The 4 R’s of taxation are Revenue, Redistribution, Repricing, and Regulation. They represent the key purposes of tax policy: generating government revenue, redistributing wealth, influencing economic behavior, and regulating specific activities or sectors. What are test bank questions and how are they used? Test bank questions are practice questions derived from educational materials or courses that help professionals prepare for exams, such as CPA or tax certification tests. They allow participants to evaluate their understanding of tax policies, regulations, and planning strategies. Stay ahead of tax policy changes shaping the financial sector. Subscribe to JacobiJournal.com today for expert analysis, legal insights, and timely updates. 🔎 Read More from JacobiJournal.com:
Investigations: Leveraging Experience, Relationships, and Technological Expertise
Insurance fraud investigations at NICB recognize that while the shortest distance between two points is often a straight line, investigations into insurance crimes rarely follow such a clear path. Instead, they are filled with twists, turns, and unexpected obstacles that can derail progress. This is where our 100+ years of relationship-building experience come into play. Our deep connections with member insurance companies, law enforcement agencies, and public organizations are crucial in navigating these complexities, helping us detect, deter, and prevent insurance crimes. Leveraging Experience: Our Investigative Approach NICB’s investigations focus on multi-claim, multi-carrier efforts to address major criminal activities, working closely with both our members and law enforcement agencies nationwide. We are the only private organization in the country that takes a multi-carrier approach to combat fraud and theft. Leveraging Experience NICB Agents: A Force Multiplier in Fighting Fraud NICB agents play a pivotal role in our investigations, serving our members and collaborating with law enforcement agencies across eight regional field offices. Through our electronic claim referral process, NICB agents partner with representatives from member company claims and special investigation units, as well as law enforcement professionals, to investigate suspicious insurance claims and support the civil and criminal prosecution of vehicle theft and insurance fraud. Our investigators are also key players in numerous insurance crime task forces across the country. Investigative Assistance (IA) Group The IA Group handles phone and email inquiries from law enforcement and NICB members. With their in-depth knowledge and access to vast data resources, they provide crucial information that leads to thousands of vehicle recoveries and investigative leads each year. Read more here: NICB. FAQs: Insurance Fraud Investigations What is the role of NICB in insurance fraud investigations? The National Insurance Crime Bureau (NICB) plays a pivotal role in insurance fraud investigations by collaborating with insurance companies, law enforcement agencies, and public organizations. Their extensive network and experience enable them to detect, deter, and prevent insurance crimes effectively. How does NICB utilize technology in fraud investigations? NICB employs advanced technological tools and data analytics to identify patterns and anomalies in insurance claims. This technological prowess enhances the efficiency and accuracy of their investigations. Why are partnerships crucial in insurance fraud investigations? Partnerships with insurance companies and law enforcement agencies are essential for sharing information, resources, and expertise. These collaborations strengthen the overall efforts to combat insurance fraud. How can organizations benefit from NICB’s services? Organizations can benefit from NICB’s services by gaining access to a vast database of information, expert investigative support, and training resources. These services aid in identifying and mitigating fraudulent activities within the insurance sector. What is the role of digital evidence in insurance fraud investigations? Digital evidence—such as emails, metadata, financial records, and GPS data—plays a critical role in insurance fraud investigations. It helps establish timelines, verify claim authenticity, and connect individuals to suspicious or fraudulent activity. Through digital forensics, investigators can determine whether a claim was legitimately filed or intentionally falsified. What technology allows investigators to identify patterns of fraud within a given area? In modern insurance fraud investigations, analysts use Geographic Information Systems (GIS) and predictive analytics software to detect patterns and regional trends in fraudulent claims. These tools allow investigators to pinpoint coordinated fraud networks or recurring high-risk claim areas. What types of technology are used to solve cases in insurance fraud investigations? AI-driven data analytics, blockchain tracing, digital forensics, and surveillance systems are among the leading technologies supporting insurance fraud investigations. They enhance accuracy, reduce manual review time, and help investigators uncover organized or repeat offenses within the insurance sector. Stay informed on the latest in legal actions and regulatory news. Subscribe to JacobiJournal.com for timely updates and expert insights. 🔎 Read More from JacobiJournal.com:
Fraud Examiners: United in the Fight for Truth
Fraud examiners and investigative journalists share a core mission: uncovering the truth. Both professions rely on interviewing, data analysis, and research tools to gather evidence, often collaborating to expose fraud. At the heart of their work is a commitment to seeking the facts and presenting them objectively. Why the Guardian Award Matters This shared mission inspired the creation of the Guardian Award, which is given annually to a journalist who has made a significant contribution to the fight against fraud. Nominees are selected based on their efforts to expose fraud and white-collar crime or raise awareness about fraud prevention and detection. The award celebrates qualities like determination, perseverance, and an unwavering commitment to truth—values that fraud examiners also hold dear. The 2016 Guardian Award Winner: David Barboza The recipient of the 2016 Guardian Award was David Barboza, a business correspondent for The New York Times. Barboza earned recognition for his groundbreaking investigative work exposing corruption within the Chinese government. His reporting revealed billions of dollars in hidden wealth controlled by the family of then-Prime Minister Wen Jiabao, earning him the 2013 Pulitzer Prize for International Reporting. Barboza’s Investigation In a detailed cover article, Barboza recounts how his investigation began by focusing on “state capitalism” and the business dealings of China’s political elite, often called “princelings.” He gained access to corporate records and shareholder information, leading him to uncover startling evidence. His investigation linked Wen Jiabao’s family to Ping An, one of China’s largest insurance companies. Initially, he discovered hundreds of millions of dollars tied to the family. However, further investigation revealed a total of $2.7 billion, which Barboza suggests may only represent a fraction of their true wealth. A Keynote Address at the ACFE Global Fraud Conference David Barboza will deliver a keynote address and receive the Guardian Award at the 27th Annual ACFE Global Fraud Conference. This event will take place from June 12-17 in Las Vegas. According to a report from ACFE For more information on David Barboza’s investigative work and the Guardian Award, visit the Association of Certified Fraud Examiners’ official article: ACFE. FAQs: Fraud Examiners and the Guardian Award What role do fraud examiners play in uncovering financial crimes? Fraud examiners investigate and analyze financial records to detect and prevent fraudulent activities, ensuring transparency and accountability in organizations. How does the Guardian Award recognize contributions to fraud prevention? The Guardian Award honors journalists who demonstrate exceptional dedication and perseverance in exposing fraud and white-collar crimes, highlighting the importance of investigative reporting in the fight against fraud. Can you provide an example of a significant fraud investigation? David Barboza’s investigation into the hidden wealth of China’s political elite uncovered over $2.7 billion in assets, showcasing the critical role of investigative journalism in exposing corruption. How do fraud examiners collaborate with journalists? Fraud examiners and journalists often work together, combining their expertise in data analysis and investigative reporting to uncover complex fraud schemes and bring them to public attention. What are the 4 P’s of fraud? The 4 P’s of fraud—Pressure, Perceived Opportunity, Rationalization, and Capability—represent the key elements that can lead to fraudulent acts. Fraud examiners use this framework to identify vulnerabilities and strengthen anti-fraud measures. Which of the following best explains the role of a Certified Fraud Examiner? A Certified Fraud Examiner (CFE) is a credentialed professional who specializes in detecting, investigating, and preventing financial misconduct. CFEs work with organizations to ensure integrity in operations and compliance with legal standards. What are the three major drivers of fraud according to the fraud triangle? The three major drivers—pressure, opportunity, and rationalization—explain why individuals commit fraud. Fraud examiners apply this model to assess organizational risk and prevent unethical behavior. Stay informed about the latest developments in fraud prevention and investigative journalism. Subscribe to JacobiJournal.com for expert insights and updates.