Criminal Financial Investigations: The Use of Forensic Accounting Techniques and Indirect Methods of Proof »

Despite the fact that most crimes are committed for financial gain, little attention is given in forensic literature to the financial motivations behind this criminal behavior. Particularly with white collar crime, understanding these motivations is often the key to the apprehension and successful prosecution of these individuals. Criminal Financial Investigations: The Use of Forensic Accounting Techniques and Indirect Methods of Proof provides direct instruction on the "how to" aspects of criminal financial investigations, taking readers through the different approaches used in gathering evidence, and demonstrating how to prepare and present circumstantial evidence to a judge or jury in a simple and convincing manner.

Proceeding step-by-step through the investigative process, from case initiation to presentation in court, this text presents the relevant legal requirements to successfully establish a case. The author presents a historical overview and examines the different forms of financial fraud and misappropriation of assets, including money laundering and transnational financial transactions. The book defines how the legally accepted indirect methods of proof are constructed and explains how they can establish proof beyond a reasonable doubt. It also outlines the use of search warrants, including the construction of the warrant to ensure that all necessary documentary evidence is collected and corroborated for judicial presentation.

Written by a former Special Agent with the Criminal Investigation Division of the IRS, this volume uses case studies to clarify the material, eschewing a theoretical review in favor of a more "hands on" approach. The book sets out a methodology that provides the foundation for readers to understand what is necessary to identify, pursue, and successfully prosecute financial white collar crime.

1 Introduction 1

2 The Financial Disciplines 9

3 Characteristics of Financial Crimes 19

4 Categories of Theft 29

5 The Paper Trail 45

6 Collecting and Preserving Evidence 57

7 Gathering Documentary Evidence 63

8 Gathering Evidence through Observation 85

9 What Is a Financial Investigation? 103

10 Requirements for Indirect Methods of Proof 111

11 The Standard Methods of Proof 129

12 What Processes Are Common to All Indirect Methods of Proof? 147

13 The Specific Items Case 161

14 The Bank Deposits and Cash Expenditures Case 175

15 The Net Worth and Personal Expenditures Case 195

16 The Case Report 209

17 Preparation for Trial 221

References 227

Index 229