Tree Farmer - May/June 2011 - (Page 28)

Red Flags and Warning Signs: toM woodland security By Profiling the Timber Crook kazee I will always be emphatic that almost everyone — from truck drivers to chief executives — is honest. Our big problem is that exceptions will occur and these can be very difficult to detect. We can only operate efficiently by working with people we trust, but there must be checks and balances. If trust, reputation, and feelings are the foundations of your internal controls, you are more vulnerable than you should be. Typically, we enter into transactions with people we feel good about. That would include hiring a new employee, selling timber, and buying a new car. On rare occasions, those good feelings turn sour. That may happen when the U.S. marshals show up and arrest your employee! Or it may happen when your timber sale turns out badly or the buyer is suddenly unavailable and won’t return your calls. If you prevent a problem from happening, good for you. If you catch it in the first week or two, you’ve done well. Sadly, some problems persist for decades before the tip of the iceberg begins to surface. A lifetime of hard work and good decisions can be stolen by “the last person you would ever suspect” (see Bernie Madoff, now permanent guest of the U.S. government). If you are naïve, too busy, uninformed, or otherwise asleep at the wheel, bad things can happen. What does a prudent person look for? I must be emphatic that profiling is risky. Many of us fit the profile for one thing or another, when we are completely innocent. Your contractor, timber buyer, or employee might fit all the criteria for a timber crook and yet be as honest as the day is long. Profiling, in my opinion, indicates where a prudent person will be more careful, will continue to inspect, review, and investigate until concerns are resolved, one way or another. All that being said, I detail here the red flags and warning signs you should watch for. 1. Warning signs can be tangible or intangible. If you are uncomfortable with a transaction, a person, or a circumstance, keep looking and keep asking questions. Don’t expect to find evidence of a problem. A collection of observations (data points) might convince you one way or another. 2. If any person tries to rush you or pressure you into an agreement, I recommend you be very, very careful. Never make any kind of verbal commitment that might be construed as a verbal contract. Legitimate buyers, contractors, and consultants will not rush a prospective client; they should be able to answer questions so that a layperson can understand what is going on. When I talk with a prospective client, I tell them who my competitors are, so they can get a second opinion and price. 3. Sudden, unexpected changes in outcomes should rarely occur. There is a common scheme called bait and switch, where you are enticed into an agreement based on some deception. For example, I can offer you a low price for your pulpwood and a very high price for your logs that might, in total, seem attractive. But if the final settlement includes all pulpwood and no logs, the agreement on price was just a ploy. If I tell you a road project will cost $500, but the final bill is $5,000, Registered forester Tom Kazee helps clients across the Southeast reduce the potential for financial crimes through his firm, Woodland Security, Inc., in Orange Park, Florida. Reach him at (904) 504-9489 or woodlandsecurity@gmail.com. 28 International Year of Forests, 2011 Tree Farmer MAY/JUNE 2011

Table of Contents for the Digital Edition of Tree Farmer - May/June 2011

Tree Farmer - May/June 2011
Contents
Cover Story
Select the Right Tree for Your Site
2011 North Central Regional Tree Farmers of the Year - Sponsored by Stihl, Inc.
Wildlife Matters
Taxing Issues
Woodland Security
Forestry 101: Conduct a Simple Timber Inventory

Tree Farmer - May/June 2011