Martin Biegelman's article featured in August 2021 issue of the SCCE CEP Magazine!

SunHawk Consulting, LLC is excited to announce that Managing Director, Martin Biegelman's article will be featured in the August 2021 issue of the SCCE Compliance & Ethics Professional (CEP) Magazine! Be sure to pick up your copy of the CEP Magazine to read his article, When Rampant Organizational Fraud Occurs, Where was the Board?

Preview Martin Biegelman's article below, and be sure to visit to read Martin's full article for free!


When rampant organizational fraud occurs, where was the board?

By Martin T. Biegelman, CCEP-F, CFE

The importance of corporate governance and a resilient board of directors is not a new concept. It has long been held that effective board oversight can do much to reduce the risk of management misconduct. In fact, this concept was reinforced many years ago in the October 1987 Report of the National Commission on Fraudulent Financial Reporting. The Report opined on the increased prevalence of fraud with “the absence of a board of directors or audit committee that vigilantly oversees the financial reporting process.”[1] Unfortunately, that premise has not been universally embraced, and fraud and other misconduct persist.

Whether it is the headline-grabbing corporate fraud cases of Enron, WorldCom, Adelphia, and a host of others from 20 years ago or the more recent ones at Volkswagen, Theranos, Luckin Coffee, and Wirecard, we are compelled to ask the provocative questions: Where was the board; what did they know; and when did they know it? Or did they not even know? While we have seen very few cases where the board was complicit in management fraud, in such cases we must ask, why did they not do more in their governance and oversight role to detect and prevent rampant misconduct? Why have the gatekeepers and the guardians of governance let us down in so many instances? At times, boards have failed miserably but faced few consequences.

To reinforce the failure of board governance, I will discuss three organizations from the public, private, and nonprofit sectors that made headlines, and not in a good way, for their misconduct. The common denominator in these case examples is the action, or rather the inaction, of the boards of directors involved. I will then discuss the questions that boards need to ask themselves to ensure they are fulfilling their roles effectively.

Copyright [Publication year] CEP Magazine, a publication of theSociety of Corporate Compliance and Ethics (SCCE).


About Martin Biegelman

Martin Biegelman, CFE, CCEP

Managing Director & Investigations Practice Leader

SunHawk Consulting, LLC

Martin Biegelman has spent a lifetime detecting, investigating, and preventing fraud and corruption in various leadership roles in law enforcement, consulting, and the corporate sector. His work on behalf of corporate management and boards includes conducting internal investigations, including independent investigations, alleging fraud, corruption, Foreign Corrupt Practices Act violations, conflicts of interest, whistleblower retaliation, and other employee and vendor misconduct. Martin’s work also includes developing, assessing, and enhancing corporate compliance and ethics programs including internal investigative and anti-bribery compliance programs, as well as performing fraud risk assessments.

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SunHawk Consulting and its compliance consultants and advisors are highly experienced in conducting independent investigations with outside counsel. Their investigative experience includes financial accounting fraud, conflicts of interest, inappropriate personal relationships, harassment, whistleblower retaliation, and other organizational code of conduct violations. Our subject matter experts can provide insight into your specific risk and other compliance program needs. We are happy to have a discussion with you and determine how we can possibly assist you in responding to and mitigating risk.