Fraud Examination, 3E.ppt

Fraud Examination, 3E Chapter 9: Conversion Investigation Methods COPYRIGHT ? 2009 South-Western, a part of Cengage Learning Learning Objectives Explain why finding out how perpetrators convert and spend their stolen funds is important. Understand how federal, state, and local public records can assist in following the financial “tracks” of suspected perpetrators. Access information via the Internet to assist in the investigation of a suspected fraud perpetrator. * Learning Objectives Perform net worth calculations on suspected fraud perpetrators and understand how net worth calculations are effective in court and in obtaining confessions. * Conversion Searches Performed for two reasons: to determine the extent of embezzlement to gather evidence that can be used in interrogations to obtain a confession * Conversion Searches Information can be gleaned from: federal, state, and local agencies and other organizations private sources of information online sources of information using the net worth method of analyzing spending information * Conversion Searches * Public Records Internet Searches Online Databases Private Sources Government Federal State Local Utility Records Previous Acquaintances Trash Cover Credit Agencies Financial Institutions Subscription Per-search Fee Free Google AltaVista Etc. Private Sources of Information Utility records (gas, electric, water, garbage, and sewer Private Acquaintances “Trashing” Shredded documents Original files on computers **Be sure you have the legal rights to gather and use the information * Online Databases Examples: Accurint AutoTrackXP Black Book Online ChoicePoint EBSCO Publishing PublicData Public Record Finder SEC’s EDGAR Database Web Detective * The Net Worth Method Assets – Liabilities = Net Worth Net Worth – Prior Year’s Net Worth = Net Worth Increase Net Worth Increase + Living Expenses = Income Income – Funds from Known Sources = Funds from Unknown Sources * The Net Worth Method Helen