Richard T. Faughnan is a managing director with Kroll’s Business Intelligence and Investigations practice, based in the New York office. Richard focuses on corporate investigations, monitorships and compliance matters.
Richard joined Kroll from an international consulting company where he was co-leader of that firm’s Public Sector and Monitoring practice. Prior to this, Richard was an Assistant U.S. Attorney for the Eastern District of New York for more than thirteen years, where he served as Chief of the Public Integrity Section. During his time with the Eastern District, he directed numerous investigations and prosecutions into an array of criminal activity committed by corporations and individuals, including bank and securities fraud, mail and wire fraud, money laundering, bribery and federal tax offenses. Richard began his career as an Assistant District Attorney in Kings County, New York, where he served as Deputy Chief of the Appeals Bureau. Richard’s extensive experience as a federal and state prosecutor gives him a thorough understanding of investigations into a wide range of fraudulent conduct across industry sectors.
The following is a brief list of representative consulting engagements:
- Led integrity monitoring engagements overseeing multi-billion dollar government programs and infrastructure projects, as well as corporations in the construction, transportation, stevedoring, information technology and professional services industries.
- Co-led two internal investigations for foreign financial institutions into off-shore tax evasion.
- Led an internal fraud investigation for an international not-for-profit healthcare corporation in Africa.
- Led an internal fraud investigation for an international corporation into violations of the internal revenue code by former management.
- Led the financial investigation on behalf of a bankruptcy trustee of a commercial lending institution that defrauded its investors, as part of a Ponzi scheme, of more than $400 million.
- Led the financial investigation on behalf of a bankruptcy trustee of a commercial mortgage lending institution that defrauded other lenders, title companies and borrowers of more than $80 million.
- Led a construction fraud audit of dozens of construction projects for a major corporation.
- Co-led the team that assisted the New York City Department of Investigation in an investigation into a $500 million fraud scheme perpetrated by consultants working for the City to develop an automated timekeeping system for municipal employees.
- Co-led the team retained by counsel to the Audit Committee of a major public utility to conduct a company-wide review of their anti-fraud and other internal control and compliance functions following the indictment of a managerial-level employee by the Justice Department in a multi-million dollar kickback scheme.
The following is a brief list of representative federal prosecutions:
- Directed the investigation and prosecution of the top executives of Allou Healthcare, Inc., for a $177 million bank fraud, securities fraud and insurance fraud, as well as for bribery, money laundering and obstruction of justice.
- Obtained guilty pleas from the Chief Executive Officer, the Chief Financial Officer, the Vice President and five other co-conspirators to charges ranging from conspiracy to commit bank fraud, securities fraud, honest services mail fraud and obstruction of justice, to securities fraud and money laundering.
- Directed the investigation and prosecution of a member of the New York City Council for demanding a $1.5 million bribe from a developer in exchange for the councilman’s political support for the developer’s multi-million dollar construction project. Obtained guilty pleas from the councilman and his co-conspirator to extortion.
- Directed the bribery investigation and prosecution of a federal contracting officer, and executives of the general contractor, a subcontractor, and the construction quality management firm on a $500 million federal construction project. Obtained guilty pleas from all defendants to bribery.
- Directed the investigation and prosecution of 20 New York City Plumbing and Boiler Inspectors, including the Chief Inspectors for Manhattan, Brooklyn, Queens and the Bronx, for extortion. Obtained guilty pleas from all defendants to extortion.
- Oversaw the investigation of eleven construction supervisors from a major public utility for receiving more than $1 million in bribes from a contractor on utility construction projects throughout New York City.
- Directed a series of investigations and prosecutions of construction companies, accountants and a labor lawyer for systematically evading their obligation to pay the prevailing wage to their workers pursuant to the Federal Davis Bacon Act and New York Labor law section 220.
- Conducted a series of investigations and prosecutions of construction companies for negligently causing the death of workers by willfully violating safety standards established by the
- Occupational Safety and Health Administration. Obtained guilty pleas from all defendants charged.
- Directed the investigation and prosecution of the principals of a foreign currency trading firm for a decade-long Ponzi scheme that defrauded investors of $100 million. Obtained guilty pleas from both principals to conspiracy to commit mail and wire fraud, and recovered nearly $30 million in forfeited assets.
- Participated in the investigations and prosecutions arising out of the assault of Abner Louima by officers of the 70th Police Precinct in Brooklyn.
Education & Certification
- George Washington University, National Law Center, J.D., cum laude
- Rutgers College, B.A., magna cum laude
- Admitted to the Bar in New York and New Jersey
- American Bar Association
- Association of the Bar for the City of New York
- Federal Bar Council