Cases of financial fraud often focus on the core issue of where the money went. Successfully carrying out a fraud scheme involves not only taking the money, but covering up the fraud and hiding the money trail. But skilled financial investigators know there is always a trail, and while the money may or may not be recovered, it can be located.
Cases involving allegations of security fraud, money laundering, misappropriation of assets, income tax fraud, and Foreign Corrupt Practices Act (FCPA) violations require investigators to follow a money trail. However, sometimes it is difficult to know where to start, or where to continue when you’ve come to an apparent dead end.
Third Party Records
Regardless of the type of case for which there is a need to trace the flow of funds, the most reliable source of information is third party records. The records of an alleged fraudster are always suspect. How are we to know if the accounting records have been manipulated?
In contrast, records from a disinterested third party are much more likely to be authentic and to tell the truth about the money. The most common and reliable sources of third party records are banks, brokerage houses, and credit card companies. Except in rare cases in which a secret relationship facilitates the manipulation of these records, they will tell us exactly where money came from and where it went.Continue reading
And apparently Terrence Howard is awfully far behind in his payments to Ghent. Their agreement called for support of $5,800 per month plus additional amounts (up to $4 million per year!) depending on his earnings. Ghent is going to court to ask for $909,418 in back support. She says he hasn’t paid what he owes since she won the appeal, and that he’s hiding his income from the Empire series. She says he’s made $9.7 million from the show over the last 5 years.Continue reading
In many divorces, women are at a significant disadvantage, especially when it comes to money. In many marriages, the husband has been the main breadwinner. He often controls the purse strings, and often knows much more about where money has been spent and what assets are owned.
In contrast, the wife has often had lower earnings, and has had little to no control over the money. She may have been free to spend money as she saw fit, but she did not see the bills, pay the bills, or maintain control over bank and brokerage accounts. At divorce time, she has no idea where the money is, where is may have (improperly) gone, and may have no access to it.Continue reading
It is not unusual for the “out” spouse (the one who is not the major breadwinner in the family and who does not have control over the family’s finances) to suspect that income and assets are being hidden during a divorce. When one party is accused of hiding income, how can a forensic accountant find it?
This book focuses solely on the lifestyle analysis in the family law case, although other services from a financial professional may also be needed in a case. The lifestyle analysis is the process of tabulating and analyzing the income and expenses of the parties. The lifestyle analysis is then used to determine the standard of living of the parties, which will influence support calculations, and possibly property division.Continue reading
If you think your spouse may be attempting to hide income or assets during your divorce proceeding, your first step should be to tell your divorce attorney. Your attorney should know how to handle situations such as this, and the sooner he or she can act, the more likely you are to see results.
You should also quickly gather and secure any documentation that might prove your allegations. Financial documents that you can legally access should be copied and turned over to your attorney. This might include tax returns, pay stubs, credit card statements, bank statements, brokerage statements, contracts, or any other documents which might prove the existence of assets or streams of income.
Once upon a time, there was a popular mommy blogger named Jennifer McKinney. She called herself MckMama, and had a blog called My Charming Kids. She was not noteworthy in any way – – until her fourth pregnancy took a turn for the worse. Her unborn son Stellan was determined to have a heart condition, and with pleas for prayer, Jennifer’s popularity skyrocketed.
The My Charming Kids blog (with McKinney’s “MSC” or “Many Small Children” as the focus) became so popular that at its height, Jennifer was grossing at least $150,000 to $175,000 per year from advertising and money-making gimmicks.
Not content to post pictures of her kids and stories about everyday life, Jennifer McKinney was determined to live the high life, and pimp out herself, her family, and her blog to maximize her earnings. She appeared to have it all: great kids, a happy marriage, a beautiful house, a luxury vehicle, media opportunities, trips, and much more.Continue reading
The Forensic Accounting Deskbook by Memphis divorce attorney Miles Mason is billed as a guide to financial investigations for family lawyers. This designation sells the book short. The book is an outstanding guide to financial analysis and forensic accounting not only for attorneys, but also for accountants and fraud investigators. Professionals at any level – – from beginner to seasoned expert witness – – can learn much from this book.
The book is exceptionally well organized, with numerous guides and examples that can be used as templates or guides for your current cases. The Forensic Accounting Deskbook begins with an introduction to forensic accounting and engaging the right CPA for your case. It then moves into accounting for lawyers, which is an excellent overview. Many of the common accounting buzzwords and catch phrases are defined, and knowing what these mean will be invaluable to the attorney. The more you know about the financial issues, the better you can advocate for your client.Continue reading
There are laws in place to protect your financial privacy. So if a private investigator, forensic accountant, or other professional tells you that they can find hidden bank accounts, you can be assured that they are using dishonest and illegal means to do so. Continue reading
It is simple to find forms to use in your divorce, but some attorneys say that this is a problem because divorcing couples don’t use the right forms, become a burden on the courts when they require hand-holding, and can make uninformed decisions during the process of the divorce.Continue reading