The million dollar question in many litigation disputes, be it family law, a shareholder divorce, or other corporate wrangling, often centers around unreported income. Are there sales that aren’t being recorded on the books? Is the individual receiving cash for work done? Is revenue hidden to shield it from being considered by the court?
It would be lovely to be able to wave a magic wand and have all the “hidden” income magically appear. Unfortunately, that’s just not going to happen in this lifetime. The search for unreported revenue and earnings is a difficult one.Continue reading
Our opinion has always been that Vemma was likely an illegal structure – it has that endless chain feature where “Affiliates” are incentivized to buy a high-priced starter kit with minimal real value, only to turn around and very quickly find two, three or four others to do the same so that they can reap a quick profit and recoup their initial “investment,” said Ramey.
This is a familiar argument. MLMs left standing after one is shut down claim that THEIR company doesn’t pay for recruiting. And technically it appears that they don’t. Except they do. They may not have a “high priced starter kit” or may not pay a “commission” on the starter kit. Instead, they encourage distributors to buy a bunch of products up front and commission is paid on those. Since those products could theoretically be sold, I suppose that’s not paying for recruiting so much it is paying for getting the recruit to buy some overpriced, hard-to-sell products. MLM attorneys will tell you that you have to make it look like you’re not paying for recruiting or the kit.Continue reading
Multi-level marketing companies – – MLMs for short – – go to great lengths to distance themselves from pyramid schemes. The Direct Selling Association (a lobbying group funded by multi-level marketing companies that helps ensure our government continues to allow MLMs to operate) says that legitimate MLMs have legitimate products or services for sale and base compensation primarily on the sales of projects. In contrast, they say that pyramid schemes focus on recruiting and base compensation on recruiting.
In reality, multi-level marketing companies have products that are simply a “front” for the real business, which is recruiting. They talk about all the riches distributors can earn, knowing that almost everyone who participates will lose money. (And when those losses inevitably occur, the companies say it is the fault of the distributors who must not have worked hard enough.)
Both civil and criminal cases often involve an element of proving or disproving income of an individual or business. It is not unusual for a divorce case to include allegations of hidden income or assets. In contract disputes alleging the loss of sales or profits, an accurate determination of income is critical.
In criminal cases, the issues surrounding the income of an individual or business have even higher stakes. These cases are quite often tax-related matters, but cases involving white collar crimes and drug trafficking usually include questions about income too.Continue reading
Bank statements can be incredibly useful when searching for hidden income during a divorce financial analysis. Both deposits and expenditures should be evaluated, and the process is explained in this video.
And it just so happens that the latest scam involves Xyngular.
On July 30 she announced the giveaway of a “free weekend vacation for two to anywhere in the continental United States.) People could get their names entered multiple times in the drawing… which was supposed to be “randomly” drawn. However, Jennifer McKinney appears to have chosen her winner ahead of time as you will see below. Continue reading
How would you know if your company was being looted by a dishonest employee? Most companies miss all of the warning signs that could help stop a fraud early.
The Association of Certified Fraud Examiners reports that the average fraud scheme within a company lasts 18 months. That’s one year-and-a-half that one or more employees are stealing from the company without being caught. In that period of time, the average internal fraud causes losses of $159,000. Imagine how much damage could be done to your company in that amount of time.Continue reading
When you think of information in an internal fraud investigation, you most likely think of things like a company’s internal records. These include accounting documents, personnel files, payroll records, accounting system information, and internal memos. While these items are key parts of an internal investigation, they are not the only tools a fraud investigator may use.
Most people don’t think about all the other records available to assist in an investigation. There are many public and non-public records that can aid the investigator in determining who was involved, where the money went, and what the motive for the fraud may have been. These records are invaluable to the investigator, and often play a key role in determining the details of a fraud.Continue reading
Many of the cases I work currently focus on the tracing of funds through multiple bank, brokerage, and credit card accounts. I am typically working with tens of thousands of transactions at a time, so the sheer volume of the data could be overwhelming.
I have put together a proprietary software system that enables me to capture manage, and analyze the data. The system eliminates the need for staff assistance (and the dangers that go along with having multiple people touch the database and possibly corrupt the data). How does the system work? Read on.
Getting the Data
The process of discovery can be long and agonizing for everyone. There is often a push and pull between the parties in the discovery process, as opposing counsel rarely wants to voluntarily give up damaging financial data. It often takes several rounds of requests to get the information we seek.Continue reading