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Criminal Financial Investigations

The Use of Forensic Accounting Techniques and Indirect Methods of Proof, Second Edition

By Gregory A. Pasco

CRC Press – 2012 – 295 pages

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  • Add to CartHardback: $104.95
    978-1-46-656262-2
    October 5th 2012

Description

Understanding the financial motivations behind white collar crime is often the key to the apprehension and successful prosecution of these individuals. Now in its second edition, 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 present circumstantial evidence to a judge or jury in a simple and convincing manner. Simplifying how the financial pieces fit together, this text:

  • Presents the logic and reasoning involved in constructing a financial criminal investigation
  • Describes the requirements for legal acceptance of forensic accounting investigations
  • Includes relevant examples of the step-by-step processes involved in financial investigations
  • Explores the pitfalls—and how to avoid them—in financial investigating
  • Contains two investigations with step-by-step procedures from initial inquiry to case completion—for use as term or topical assignments or to promote class discussion

New Chapters in the Second Edition:

  • What Is a Financial Investigation?
  • Indirect Methods in Tax Investigations
  • Unique Aspects of Criminal Tax Investigations
  • Innovative Applications

Written by a former Special Agent with the Criminal Investigation Division of the U.S. Internal Revenue Service, this volume sets out a successful methodology enabling readers to identify, pursue, and successfully prosecute financial white collar crime.

Contents

Introduction

What Is Forensic Accounting?

Criminological Theories

Motive

Opportunity

Financial Crimes

Legal Requirements

The Financial Disciplines

General Business Operations

Providing Goods

Providing Services

Providing Ideas

Record Retention

Basic Accounting

Books and Records

Basic Tax Law

Regulatory Agencies

Characteristics of Financial Crimes

Spending

Saving

The Structure

Conspiracy

Fraud

Categories of Theft

Theft

Burglary

Larceny

Robbery

Embezzlement

Swindle

Schemes

The Paper Trail

What Is the "Paper Trail?"

What Does the Paper Trail Look Like?

Check Registers

Stocks and Bonds

Real Property

Vehicles

Other Assets

Jewelry

Furs and Clothing

Collectibles

Antiques

Philately

Numismatics

Artwork

Liabilities

Collecting and Preserving Evidence

Interviewing

Gathering Documentary Evidence

Documentation

Relevance

Materiality

Competency

Gathering Evidence through Observation

Observation

Surveillance

Moving Surveillance

Electronic Surveillance and Monitoring

Telephonic Intercepts

Undercover Operations and Body Wires

Search and Seizure

Reasonable or Unreasonable

Probable Cause

Oath or Affirmation

Particular Description

Preparing an Affidavit for a Search Warrant

The Affidavit

The Affiant

Probable Cause

Oath or Affirmation

Particular Description

Executing the Warrant

What Is a Financial Investigation?

The Theory behind Indirect Methods of Proof

Requirements for Indirect Methods of Proof

The Standard Methods of Proof

Specific Items

Bank Deposits and Cash Expenditures

Net Worth and Personal Expenditures

Hybrid Methods

Percentage Markup

The Cash-T

What Processes Are Common to All Indirect Methods of Proof?

Starting Point

Likely Source of Income

Identify All of the Players

Following All Available Leads

Mathematical Accuracy

Addressing Potential Defenses

The Cash Hoard

Personal Loans

Denial of True Ownership

The Specific Items Case

Case Summary

Evidence Developed

Other Information

The Bank Deposits and Cash Expenditures Case

Case Summary

The Net Worth and Personal Expenditures Case

Case Summary

Cash on Hand

Cash in Banks

House: Maple Street

New House

Donut Shop

Stocks and Bonds

Ford Taurus

Jeep Cherokee/Lincoln

Colorado Condominium

Indirect Methods in Tax Investigations

Types of Tax Crimes

Understating Income

Overstating Expenses

Other Tax Crimes

Tax-Related Crimes

False Returns

False Preparer Schemes

Tax Shelter Schemes

Unique Aspects of Criminal Tax Investigations

Additional Steps Needed in Tax Cases

The Case Report

Introduction

Recommended Charges

History of Subjects

Business History

Theory

Venue

Starting Point

Likely Source of Income

Evidence of Intent

Evidence

Defense of Subject

Conclusions and Recommendations

Preparation for Trial

Packaging the Evidence

Grand Jury Presentation

Pretrial Conferences

Pretrial Interviews

The Trial

Innovative Applications

Forfeiture

Money Laundering

Financial Investigating and Counterterrorism

Author Bio

Gregory A. Pasco is a professor of criminal justice at Colorado Technical University’s Sioux Falls, South Dakota campus. Pasco spent more than 28 years in federal law enforcement as a special agent with the Criminal Investigation Division of the Internal Revenue Service (IRS). During this time, he conducted more than 100 financial criminal investigations. He worked in the IRS Organized Crime Unit in Detroit, Michigan, and with the Narcotics Task Forces in New Mexico and Ohio, and completed his federal law enforcement career in South Dakota. During his career, Pasco became qualified as an expert witness in criminal tax computations and was accepted as such in federal district court. He was also called upon to provide electronic surveillance and monitoring assistance in other investigations, and was qualified and testified as an expert witness in this area in federal district court. He has also been qualified as an expert witness in the area of money laundering.

Name: Criminal Financial Investigations: The Use of Forensic Accounting Techniques and Indirect Methods of Proof, Second Edition (Hardback)CRC Press 
Description: By Gregory A. Pasco. Understanding the financial motivations behind white collar crime is often the key to the apprehension and successful prosecution of these individuals. Now in its second edition, Criminal Financial Investigations: The Use of Forensic Accounting...
Categories: Financial Statement Analysis, Finance, Police, Policing & Police Law