When an IRS auditor or criminal investigator suspects that a taxpayer has unreported sources of income, he or she looks for ways to calculate that unreported income. One way is the net worth method of proof. Forensic accountants and fraud […]

After management becomes aware of a potential fraud and decides that a fraud investigation is necessary, the process of creating a team, mapping the investigation plan, and requesting information begins. An organized approach is the best way to ensure that […]

After a fraud investigator is done with her work and has issued the expert report, company management and retained attorneys must decide what to do with the information presented. If the case is already in litigation, the use of the […]

Most attorneys don’t think about the issue of fraud in companies until a client (or their law firm) is hit by employee theft. It’s simply not one of those issues that is taken too seriously unless huge risks are identified […]

People who steal from their employers often exhibit telltale characteristics that could tip off management that they’re likely to commit fraud. These characteristics include attitudes on the job, daily work habits, and personal lifestyle issues. A few of these traits […]

I love working on divorce cases where one spouse is trying to hide money. When a business owner has a cash business and is getting divorced, sometimes the income coincidentally (or not so coincidentally!) drops dramatically. What can we do […]

Insider fraud is most commonly detected in companies through a tip, either from an employee, a customer, a vendor, or an outside party. Anonymous hotlines are excellent tools for reporting fraud, but management must have a plan for evaluating these […]

How do you investigate fraud in a cash business? It is difficult because cash leaves no paper trail. But Tracy Coenen has some techniques she uses to try to uncover unreported cash sales. She gives examples including restaurants and laundromats. […]

Performing analytical review on the financial statements of a company is an important part in the fraud detection process. It can help detect manipulation of the numbers, as we are looking at account balances and their relationships to one another. […]

A couple of weeks ago I wrote about Julia Haart, the star of the Netflix series My Unorthodox Life, her divorce  from Silvio Scaglia, and the argument over their company Elite World Group. It all started when Haart was fired […]