At our Amplify LIVE annual conference, experts from the Indiana State Board of Accounts, Ed Wheele, Director of Special Investigations, and Scotty Stockton, Director of Fraud Examinations, shared invaluable perspectives on fraud investigations in Indiana. Their session delved deep into the processes, challenges, and real-life cases of fraud within local government entities, offering lessons about the integrity of public funds. Below are key takeaways from their insightful discussion. Understanding Types of Fraud: Nonfeasance, Misfeasance, and Malfeasance Ed introduced three critical concepts that frame fraud cases in local government: Nonfeasance. The failure to perform a duty. For example, if a city’s phone bill goes unpaid for months, resulting in unnecessary charges, it's classified as nonfeasance. While it’s typically not pursued unless tied to something more serious, it shows the importance of diligence in public office. Misfeasance. Performing an action incorrectly. A typical example is a town official purchasing a necessary item, like paint, without keeping proper documentation. Although it's an allowable expense, the lack of records can lead to scrutiny. Malfeasance. The ...