Several readers have posed questions to me recently about house fires and land contracts, and I will attempt to address them in this article. Remember: I am not an attorney, so the information I am providing here is only a product of my research and my experience as a forensic accountant.

I have been retained by insurance companies in the past to investigate cases of suspected arson. My role was to determine whether there was a financial motive for arson. That is, was the financial condition of the person or business such (high debts, failing business, etc.) that there may have been a motive to commit arson to collect money under an insurance policy?

I receive many requests for information on the field of forensic accounting, including questions on courses of study, certification, job opportunities, and preparing for a career. Over four years ago I wrote this article for students and job seekers, and I thought it was a good time to update the information.

The first three bullet points of the article still hold true. If you want to work in the area of fraud investigation and forensic accounting, make sure all of your education and job choices put you on that path. Even if you can’t get started as a forensic accountant right away, make sure you’re doing everything you can to at least get a little bit of experience in the area. The more experience you have, the more attractive a candidate you will be for future jobs.

Jennifer McKinney – - former mommy blogger nicknamed MckMama – - has good news for the many creditors that she owes hundreds of thousands of dollars…. SHE CAN PAY THEM! This month’s issue of Xyngular’s Momentum magazine featured Jennifer Howe Sauls McKinney on the cover.

Publications like this are purely recruiting tools. While 99% of people participating in multi-level marketing will lose money, there are a few at the top of the pyramid who will make big money (only because many below them are losing money). Companies like Xyngular parade around the big winners, hoping to continuously recruit new victims into their schemes.

Milwaukee Mayor Tom Barrett is somewhat infamous for denying that voter fraud occurs in Milwaukee, telling constituents “give me one name” of a person committing voter fraud. Names have been given over and over and over again.

Now there are ten more people charged with voter fraud in Milwaukee County. Among the fraud allegedly perpetrated are the following acts:

• Felons ineligible to vote casting ballots
• Double voting in the 2012 elections
• Providing false information to an election official

Recently the AICPA published an article on its Journal of Accountancy website regarding private investigator licensing rules across the country. There is a concern that forensic accountants may be subject to private investigator regulations since they are doing investigative work. The AICPA has drafted a grid outlining the regulations by state, but you should do further research on your own because it does not tell the whole story.

The grid provides the following information on private investigators in Wisconsin:

Jon Taylor, PhD has written a thorough and excellent book about multi-level marekting: The Case (For and) Against Multi-Level Marketing: The Complete Guide to Understanding the Flaws – and Proving and Countering the Effects – of Endless Chain “Opportunity” Recruitment, or Product-Based Pyramid Schemes.

If you’re not familiar with MLM, you can see some interesting statistics here. Basically, the odds of a distributor losing money in multi-level marketing are greater than 99%.  Despite the fact that participants are almost guaranteed to lose money in MLM, these scams are marketed as business opportunities with the potential for unlimited earnings.

This article was originally printed in the Family Law Review, a publication of the Family Law Section of the New York State Bar Association, Fall 2012.

Family law cases often focus heavily on financial issues. Whether the parties to a case are of modest means or great wealth, both sides want their own version of what is fair. Unfortunately, this can lead one or both parties to hide income and assets. With the help of a financial expert, counsel can identify income and assets that might otherwise go undiscovered, and hopefully reach an equitable end to a divorce or child support case.

Sources of income and assets owned can be identified with the right documentation. Attorneys need to be familiar with some of the most common financial documents so they know what to request. Attorneys with financial knowledge can also help identify issues that may need further analysis in a family law case.

You’re listening to a national radio show with a popular host. You hear an advertisement for IncomeAtHome. You don’t know what it is, other than you can make an income while working at home. But why on earth would the voices not tell you exactly what this “business opportunity” is?

Because it is Herbalife. If you’ve heard the name, you likely equate the “opportunity” with things Amway and pyramid schemes.

Fortunately, there is a website devoted to unveiling the truth about Herbalife and Income At Home. The site digs into issues such as the secrecy surrounding Income At Home (why are they so desperate to NOT tell you that it is Herbalife???). There is also an excellent blog on the site, which is keeping current on the efforts of Bill Ackman to expose the fraud behind Herbalife and the company’s good fortune in having Carl Icahn volunteer to shill for them.

This article was originally printed in the ABA Section of Family Law eNewsletter, February 2013.

Forensic accountants and Certified Divorce Financial Analysts often use Quicken personal financial software to complete the lifestyle analysis in divorce cases. Unfortunately, Quicken is not the best option for accurately and thoroughly analyzing a couple’s finances before and during divorce.

Why is it used so often? For years, Quicken was one of the better options available for compiling and analyzing personal finances. Also, since a fair number of consumers use Quicken to manage their finances, divorcing spouses sometimes provide a Quicken file to the attorney, which may be used as a starting point for the lifestyle analysis.

One of the common issues raised when an expert calculates damages is “reasonable certainty.” It is not uncommon for opposing counsel to suggest that the expert’s calculated damages are speculative.

The calculation of damages necessarily requires estimates and assumptions. Something has happened, and a company or individual is claiming that there are lost profits because of it. We can never know with complete certainty what revenue or profits would have been if that incident or action had not taken place. Mathematical precision is not possible. Thus, the expert must make certain estimates in order to calculate damages.