Investigating White-Collar Crime : Embezzlement and Financial Fraud

by Williams, Howard E.

• ISBN13: 9780398076498
• ISBN10: 0398076499
• eBook ISBN(s): 9780398076481
• Edition: 2nd
• Format: Paperback
• Copyright: 2006-08-01
• Publisher: Charles C Thomas Pub Ltd

Table of Contents

Preface	v
White-Collar Crime	3	(26)
Defining White-Collar Crime	7	(3)
Types of White-Collar Crime	10	(8)
Crimes by Individuals	14	(1)
Crimes in Furtherance of Legitimate Business	15	(2)
Criminal Activity Disguised as Legitimate Business	17	(1)
International Scope of White-Collar Crime	18	(2)
Enforcement of White-Collar Crime	20	(1)
Summary	21	(5)
Key Terms	26	(3)
Embezzlement	29	(23)
Defining Embezzlement	31	(3)
Problems in Investigating Embezzlement	34	(1)
Embezzlers	35	(3)
Elements of Embezzlement	38	(8)
A Person	39	(1)
Fraudulently Appropriates	40	(2)
To One's Own Use or Benefit	42	(1)
Money or Property	43	(2)
Entrusted to Him by Another	45	(1)
Without the Effective Consent of the Owner	46	(1)
Summary	46	(3)
Key Terms	49	(3)
Fraud	52	(25)
Examples of Fraud Cases	53	(4)
Forms of Fraud	57	(4)
Abuse of Trust	57	(1)
Business Fraud	58	(2)
Government Fraud	60	(1)
Investment Fraud	60	(1)
Problems in Investigating Fraud	61	(1)
Defining Fraud	62	(2)
Elements of Fraud	64	(8)
A Person	66	(1)
Obtains the Property of Another by Deception	67	(1)
Representations Were Made	68	(1)
Representations Were Knowingly and Designedly False	69	(1)
Representations Were Made with Intent to Defraud	69	(1)
Representations Did Defraud	70	(1)
Representations Related to Existing Fact or Past Events	71	(1)
Party to Whom the Representations Were Made, Relying on Their Truth, Was Thereby Induced to Part with His Property	71	(1)
Summary	72	(2)
Key Terms	74	(3)
Identity Theft	77	(14)
The Incidence and Costs of Identity Theft	78	(3)
The Javelin Identity Fraud Survey	81	(1)
Identity Theft and Assumption Deterrence Act of 1998	82	(3)
The Financial Modernization Act of 1999	85	(1)
The Internet False Identification Prevention Act of 2000	85	(1)
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act	86	(1)
Fair and Accurate Credit Transactions Act of 2003	86	(1)
The Identity Theft Penalty Enhancement Act	87	(1)
Summary	88	(1)
Key Terms	89	(2)
Accounting Theory for Investigators	91	(31)
Accounting Personnel	92	(1)
Forms of Business Organizations	93	(2)
Accounting Systems	95	(1)
Accounting Methods	96	(2)
The Balance Sheet	98	(4)
What the Balance Sheet Shows	102	(2)
Income Statement	104	(2)
What the Income Statement Shows	106	(2)
Statement of Source and Application of Funds	108	(1)
Journals and Ledgers	109	(4)
Source Documents	113	(4)
Summary	117	(2)
Key Terms	119	(3)
Auditing Theory for Investigators	122	(20)
Financial Statement Analysis	123	(1)
Ratio Analysis	124	(3)
Vertical Analysis	127	(1)
Horizontal Analysis	128	(1)
Statement of Cash Flow	129	(1)
Comparisons with Other Companies or Industry Statistics	130	(1)
Comparisons with Non-financial Data	131	(1)
Statistical Sampling	131	(5)
Statistical Versus Non-Statistical Sampling	132	(1)
Sample Selection	132	(2)
Sample Evaluation	134	(2)
Benford's Law	136	(2)
Summary	138	(2)
Key Terms	140	(2)
Financial Interviewing and Interrogation	142	(36)
Interview versus Interrogation	143	(1)
Interviewing Victims and Cooperative Witnesses	143	(1)
Planning the Interview	144	(4)
Arranging the Interview	148	(3)
Investigator's Demeanor	151	(1)
Conducting an Interview	152	(2)
Note Taking	154	(1)
Special Considerations	155	(1)
Obstacles to Successful Interviewing	156	(1)
Overcoming Obstacles to Interviewing	157	(2)
Statements	159	(1)
Interrogating Suspects	159	(1)
Whether to Interrogate	160	(2)
Planning the Interrogation	162	(2)
Setting for the Interrogation	164	(1)
Introduction to an Interrogation	164	(2)
Interrogation Technique	166	(2)
Conducting an Interrogation	168	(3)
Interrogator's Demeanor	171	(1)
Psychology of Confessions	172	(1)
Legal Aspects of an Interrogation	173	(1)
Summary	174	(3)
Key Terms	177	(1)
Public Information, Subpoenas, and Search Warrants	178	(29)
Privacy/Freedom of Information Act	179	(1)
Fair Credit Reporting Act	180	(2)
Right to Financial Privacy Act	182	(3)
Obtaining Documentary Evidence	185	(1)
Subpoenas	186	(6)
Search Warrants	192	(1)
Exceptions to the Search Warrant Requirement	193	(1)
Preparing the Financial Search Warrant Affidavit	194	(7)
Detailed Description of the Places or Things To be Searched	194	(3)
A Detailed Description of the Property to Be Seized	197	(2)
Accusation and Charge	199	(1)
Probable Cause Narrative	200	(1)
Executing the Financial Search Warrant	201	(3)
Timeliness	201	(1)
Presence of the Search Warrant at the Scene	202	(1)
Items Located in Plain View	202	(1)
Personal Papers and Fifth Amendment Considerations	202	(1)
Computer Records	203	(1)
Attorney-Client Privilege and Law Office Searches	203	(1)
Summary	204	(1)
Key Terms	204	(3)
Evidence and Documentation	207	(30)
Evidence	208	(2)
Admissibility of Evidence	210	(1)
Hearsay	211	(2)
Exceptions to the Hearsay Rule	213	(3)
Documentary Evidence	216	(3)
Admissibility of Specific Forms of Documentary Evidence	219	(2)
Authentication of Copies, Reproductions, and Transcripts	221	(2)
Chain of Custody	223	(1)
Privileged Communications	224	(2)
Questioned Documents	226	(1)
Exemplars	227	(2)
Identifying, Proving, or Disproving Questioned Documents	229	(1)
Electronic Documents	230	(2)
Summary	232	(2)
Key Terms	234	(3)
Proving Illicit Transactions	237	(39)
Making Illegal Payments and Transfers	239	(3)
On-Book Schemes	242	(2)
Off-Book Schemes	244	(1)
The Business Profile	245	(2)
Proving On-Book Payments	247	(6)
Fictitious Payables Schemes	247	(4)
Ghost Employee Schemes	251	(1)
Overbilling Schemes	252	(1)
Proving Off Book Payments	253	(1)
Proving Payments in Cash	254	(1)
Examination from the Point of Receipt	254	(19)
Net Worth Analysis	255	(7)
Source and Application of Funds Analysis	262	(3)
Bank Deposits Analysis	265	(6)
Percentage Analysis	271	(1)
Unit and Volume Analysis	272	(1)
Summary	273	(1)
Key Terms	274	(2)
Case Preparation and the Investigative Report	276	(43)
Characteristics of Report Writing	277	(2)
The Written Report	279	(7)
Mistakes in Report Writing	286	(1)
Discovery	287	(1)
Case Preparation	287	(3)
Summary	290	(1)
Key Terms	291	(4)
Appendices
The Numerical System of the American Bankers Association	295	(2)
Affidavit of Financial Information	297	(10)
Area Assignments of Social Security Numbers	307	(2)
Guide to Sources of Financial Information	309	(5)
Consent to Search	314	(2)
Customer Consent and Authorization for Access to Financial Records	316	(1)
Statement of Rights	317	(2)
Glossary	319	(16)
Bibliography	335	(6)
Index	341