Stefano Demichelis

Kroll

Singapore www.kroll.com

sdemichelis@kroll.com Tel: +65 6645 4942

Biography

Stefano Demichelis is a managing director in Kroll’s Forensic Investigations and Intelligence practice, based in Singapore. Stefano leads the financial investigation team for Southeast Asia. With over 21 years of experience in fraud investigations, he advises government bodies and clients in various industries, such as manufacturing and financial services, on prevention, detection and investigation of frauds. Passionate about data analytics, Stefano has created fraud detection tests to facilitate and conduct fraud investigations at various organisations.

What attracted you to a career in investigations?

Growing up, I saw many people getting away with embezzlement and corruption. Fraud hit home in a family business that resulted in layoffs and bankruptcy, so it seemed only fair that I dedicated my working life to try and make a small difference.

How do you effectively prepare when testifying as an expert?

Report facts, be objective and ensure that everything is supported with evidence. Peer review is critical in identifying potential gaps in the analysis.

What recent trends have you noticed in the investigations field and how have they impacted your practice?

Increased number of frauds arising from financial misrepresentation and poor pre-investment due diligence. A material number of “unicorns” fail because of poor oversight, overreliance on perceived expertise and overly optimistic forecast. Also, the tech-hype of the moment is driving investors into areas that are poorly regulated or understood (i.e., crypto, NFTs, buy-nowpay-later, etc.).

How have you seen companies’ approaches to cybersecurity issues and data breaches evolve over the past few years?

There is a widespread overreliance on IT departments that are often understaffed and overburdened with day-to-day activities to properly assess and monitor cyber risk. Equally, it is not uncommon for IT personnel to overstate their knowledge on cyber risks and for management to blindly rely on assessments made by employees that have little to no expertise on cyberrelated matters.

Also, prevention is often considered an expensive exercise, and risks are perceived to be low to warrant investments. Covid-19 and working from home has further increased the risk for companies, where supervision is affected by the lack of physical presence on site.

What do clients look for in an effective forensic accountant?

Expertise and a reasonable approach combined with the right skillset

In which industries do you anticipate an uptick in work due to the coronavirus pandemic?

Covid-19, inflation and the upcoming recession will likely affect investments (VCs – PEs), banking (NPLs, distressed assets), real estate and manufacturing sectors. We will likely see a diversion of spending on more essential items, which will have a direct impact on individuals more willing to carry out fraud.

What can up-and-coming practitioners be doing to make a name for themselves in the Singapore market?

Focus on current trends and build expertise in the ever-growing data analytics and blockchain space.

What has been your greatest achievement to date?

Assisting a client in the recovery of over 70% of the amount lost due to fraud.

Peers and clients say: “Stefano is a leading individual for investigations” “He is very good for complex, large-scale investigations” “He is particularly excellent at investigations involving financial institutions”