Financial investigation is a critical tool used to track illicit income generated by criminals. It can also be used to follow paper trails in property loss cases, shareholder disputes, and even business acquisitions.
A basic asset check is simply browsing public records like land titles and credit reports, as well as preparing seizure warrants, civil complaints, and forfeiture counts. More detailed searches include:
Employee Theft
Employee theft is a serious issue for businesses. In fact, the Association of Certified Fraud Examiners estimates that companies lose over $50 billion in losses due to employee theft each year. Even if the amount stolen is minimal, it can impact your company over the long-term by diminishing trust in your workplace culture and increasing your operating costs.
While the most obvious type of employee theft involves taking money (including petty cash and electronic funds), it can also involve inventory or other physical assets. For example, employees may divert or misuse company supplies such as stationery and office equipment, sell or transfer business property to friends or family members or commit other financial misappropriation like check forgery, check washing and cashing.
It’s important to have a solid employee theft policy in place and to ensure that all employees understand it. A clear and concise policy can help prevent employees from committing the offence in the first place, which may be a more effective approach than investigating each and every suspected instance of theft.
If an investigation reveals that an employee has committed an offence, you’ll need to decide what the best course of action is for your company. Depending on the circumstances, it might be necessary to terminate the employee and pursue legal action. It’s essential to carefully document and evaluate all evidence uncovered in the course of an investigation, such as emails, digital records, security camera footage and employee logs.
Money Theft
When an employee steals money from a company, it is known as embezzlement. It is a serious crime that can result in prison time and fines. It is also important for businesses to know the different types of theft and how to prevent them. To help protect against this crime, it is important to use background checks and credit reports when hiring new employees.
Another type of financial investigation is an asset search. These investigations are used to uncover hidden assets of individuals or companies. These assets can be in the form of real estate or financial accounts. Often, people attempt to hide their assets by transferring ownership to a family member or using shell companies. In addition, they may try to conceal the value of their assets by lying on loan applications or manipulating appraisals.
These investigations are a necessary tool to fight organized criminal activity. They can identify the links between the origins of money, its beneficiaries and when it was received. They can also determine how the proceeds from criminal activity were moved. This information can be valuable in developing strategies to combat organised crime networks and dismantle them. Nevertheless, many countries lack the capacity to conduct these investigations. To address this issue, COMESA has commenced trainings on financial investigations and recovery (FIAR) for law enforcement agencies in Ethiopia, Uganda and Zimbabwe. The trainings are aimed at enabling the agencies to enhance their effectiveness in operations, procedures and enforcement of FIAR in line with national laws and international FATF standards.
Asset Forfeiture
The practice of civil asset forfeiture is intended to deprive criminals and criminal organizations of their ill-gotten gains, and is often used in conjunction with criminal prosecution. It is an essential tool in identifying, seizing, and dismantling sophisticated criminal enterprises such as money laundering operations and drug trafficking organizations while protecting due process rights of property owners.
The ability to follow money trails is a core investigative capability for fighting serious crimes like terrorism and its financing, and for mapping out entire criminal networks including their transnational ramifications. Financial investigation can help detect money-laundering activities, identify associates and partners, and lead to the arrest and conviction of individuals for committing serious offenses such as smuggling, fraud, human trafficking, drug smuggling, and cyber crime.
Financial institutions can be key partners in this effort, and are encouraged to support the global fight against terrorism and money laundering by making their financial data available to law enforcement through collaborative networks such as Polaris. This collaboration can enable more rigorous investigations by combining and analyzing the information in a single platform.
If you are suspected of involvement in criminal activity, it is crucial to have legal representation. The prosecutors at CLRP can assist you in mounting a strong defense against criminal charges and preserving your assets. They can also represent you in a civil forfeiture case brought by the federal government or State of New York.
Fraud
Fraud is a serious crime that occurs when an individual deceives another for financial gain. It can take many forms, including embezzlement, money laundering, tax evasion and more. Financial investigations can help uncover illegal activity by tracking down assets and tracing money flows. They can also be used to uncover discrepancies in bank statements, invoices and contracts. This type of investigation is a critical component in fighting against fraud and preserving the integrity of a company’s finances.
One way to prevent fraud is to hire a qualified investigator who has experience in asset search investigations. It’s important to do your research when hiring an investigator; checking credentials, reviews and experiences is key. You can also find an investigator by asking for referrals from trusted business contacts. Another option is to find a member of the Association of Certified Fraud Examiners (ACFE). This will give you access to a network of professionals who adhere to strict standards.
The ACFE’s video provides instruction on investigative techniques that reveal hidden assets and money-laundering networks in drug cases. It also illustrates the need to include investigations into the financing of criminal activities as a priority in anti-drug law enforcement efforts.