Guest Author: Laurie M. East, CPA Theft and embezzlement are widespread in healthcare, and according to the Association of Certified Examiners, approximately $25 billion annually is lost in medical practice offices from theft and embezzlement by employees. According...
How to handle theft by employees and what to do to prevent theft in a small business setting. President Ronald Reagan advised Soviet President Mikhail Gorbachev at the arms control agreement that he would “trust but verify;” so should a small business owner do. As a...
Every day brings a new story about the IRS seizing bank accounts of American citizens. From grocery stores to dairy farms, from construction companies to other small businesses; if cash comes in, so does the IRS. In days past the IRS Criminal Investigations (CI)...
By Fraud Expert, Ed Martin
Preparation for hiring a PI to locate a person or conduct surveillance.
1. Determine who, what, when, why and your budget
2. Seek a cost estimate.
3. Secure a written contract from the PI
4. Your attorney in the matter should hire the PI.
Scenario: A number of years ago a dominant sibling took over the operation of a business from the elderly founder of a company. This sibling has made some poor decisions and has allowed greed to enter his heart. What should the other siblings do to attempt to save the...
Top 10 reasons why Professional Private Investigators pursuing fraudulent activities should use the services of Cynic Inc www.cynic.com
1. An opportunity to expand your fraud investigation business by allowing us to take care of your back office services, such as, the input of bank, brokerage and credit card data.
2. Our fraud support services are better, cheaper, and faster than spreadsheet input.
3. We use high speed scanners, Optical Character Recognition, templates, sophisticated software and all done with the skill, knowledge, education, experienced and training that was gained as a Special Agent working financial crime cases.
4. We leverage proprietary database technology developed over the past seven years and proven through investigations.
by Ed Martin, CFE, Tax Fraud Expert
The Internal Revenue Service sets the bar high for individuals to meet the Innocent Spouse guidelines.
Important: Form 8857 Summary of Instructions:
The IRS says must complete your paper work, Form 8857, attachments, and exhibits “as soon as you become aware of a tax liability for which you believe only your spouse should be held responsible.” You must be brave in this process because the IRS will contact your spouse and inform him/her of the filing to allow him/her to participate and will advise him/her of their determination.
by Fraud Expert, Ed Martin
With continuous construction in Austin, Texas you may be hired to investigate the misappropriation of construction funds by their contractor. The investigator will ask himself / herself, where do I start? The following will act as a checklist of things to do if faced with this type of investigation.
Meet with the Client:
Remember to take care of yourself by securing a signed contract with the client defining the scope of your investigation and secure a retainer. Thoroughly interview the client and any secretary or bookkeeper about what they suspect and why.
Records are everything:
Obtain the contract between the partners and the contractor to determine the terms and conditions, including the required periodic financial reporting
by Jason Slick, President, Cynic Inc.
In today’s global economy the importance of data organization and classification has become the cornerstone on which a financial investigation relies.Everything from converting to digital data to searching information for classification has become an arduous task as fraud cases have become more and more complicated. To address this increase in data complexity, a few standardizations of technique and technology can make a huge difference in the number of hours needed to take a fraud investigation from start to finish. In this article I will discuss the various techniques and processes for building financial fraud cases using computer technology. From data entry and conversion to advanced search algorithms that aid in classification, managing a financial fraud case has never been easier, if you know the right techniques and tools to use.
By Fraud Expert, Ed Martin
I. The Voluntary Nature of the Federal Income Tax System
A. Contention: The filing of a tax return is voluntary
B. Contention: Payment of tax is voluntary
C. Contention: The IRS must prepare federal tax returns for a person who fails to file