Asset and financial investigation is a search for bank accounts, investments, property and any other financial assets. These searches are essential to depriving serious criminals of the profits of their crimes.
An asset search can also uncover hidden assets that are not disclosed on official records such as properties, vehicles and jewellery. This information is critical in divorce proceedings, settling insurance claims and for law enforcement officials.
Hidden Assets
There are several methods that individuals use to hide assets. In general, these involve converting income, wealth or property into forms that are difficult to discover or have little perceived value. This can include cash, art, jewelry, or small collectibles. It is also possible for people to conceal assets in the form of real estate and rare livestock.
Regardless of the method used to conceal assets, most individuals leave a paper trail. This can make it relatively easy for investigators to track down hidden assets. Typically, this is done by looking at financial documents and patterns of behavior. For example, if a spouse wins the lottery and then immediately files for divorce, this could indicate that they are hiding assets.
When investigating for hidden assets, it is important to work with a professional who can help uncover these secrets. A professional can help you obtain discovery from relevant sources, including tax documents, financial documents, insurance policy information, and retirement plan documentation. This can help you identify hidden assets and ensure that your case receives a fair settlement.
Depending on the circumstances, it may be necessary to employ other professionals, such as a forensic accountant or business valuation expert. These professionals can assist with locating hidden assets and can provide expert testimony in court. This is particularly useful when dealing with cases involving large sums of money.
Employee Theft
Employee theft is a big problem that can cost businesses billions in lost revenue. It’s not just a case of a retail clerk pocketing a few bucks from the register or an office worker rummaging the supply room for sticky notes and pens. The more serious cases involve inventory manipulation, skimming, larceny (a form of theft that involves goods) and Embezzlement (when an employee takes company money and funnels it to their personal account).
Preventing employee theft requires a mix of strategies and preventative measures. Clearly define the consequences of employee theft, and communicate that to all employees. Then set up internal audit controls such as surveillance cameras, tracking systems and credit card limits that can detect suspicious activity. Encourage employees to report theft, fraud or unexplained losses to management. Make sure employees understand that they’ll be protected from retaliation and harassment. Finally, consider adding employment practices liability insurance and commercial crime insurance to your business’s policies.
Employee theft can also be prevented by carefully screening job candidates and conducting background checks. In addition, companies should offer employee assistance programs that can help workers through challenging financial times. Providing mental health resources and making sure that employees are paid fairly reduces the risk of financially-motivated employee theft. It’s also important to check in with your employees often. If an employee shows warning signs such as living beyond their income or being resentful of their work, try to help them find a different solution before the problem escalates into theft.
Fraud
Fraud is a serious criminal act that can result in large financial losses for companies. It involves deception and is defined as “knowingly misrepresenting a fact to cause another person to act to his or her detriment.” It can be committed by individuals, businesses, and even governments. It can be prevented by identifying the underlying issues and implementing preventive measures. These include securing a qualified financial investigator, conducting regular internal audits, and following up on suspicious activity.
Conducting a financial investigation can uncover a number of problems, such as fraudulent transactions, cash flow discrepancies, and sham transactions. It can also help identify domestic and foreign assets, associates, and related businesses. This information can be used to build a subject profile and provide leads, as well as to lay the foundation for search and seizure warrants.
Financial investigations are an important part of money laundering and terrorism financing investigations. They enable investigators to trace the movement of illicit funds and link them to criminal activities. They also provide vital information about the source, beneficiaries, and timing of transactions.
Financial investigations are complex and require a combination of expertise. This includes knowledge of forensic accounting, data analysis, and international law enforcement cooperation. In addition, they must be able to break through the layers of fictitious personas, alternate names and stolen identities that fraudsters use to evade detection and maintain anonymity.
Bankruptcy
While it still has a negative image, bankruptcy is a valuable tool that provides breathing room for businesses that have experienced a serious blip in operations or revenues. It also provides a path to repay debt over time for individuals with overwhelming debt loads.
During the bankruptcy process, it’s important to disclose all assets. Failure to do so can result in fraud charges. Assets include anything you have the right to own, from a stamp collection to your shoes, as well as rights of recovery like property settlements or inheritances.
One way that you can protect assets is by transferring them to close friends and family members before filing for bankruptcy. However, you must make sure that these transactions don’t exceed the value of your debts. This is because transfers made within two to six years of filing are subject to scrutiny by the bankruptcy trustee and judge.
Financial investigations can uncover a wide range of criminal activities, including money laundering and terrorist financing. These investigations are a key part of the fight against serious crime and can provide new prosecutable evidence, map out entire criminal networks including their transnational ramifications and lead to the apprehension and conviction of perpetrators. It’s important that these techniques are integrated with other investigative methods to maximise the effectiveness of anti-money laundering and counter terrorism initiatives.