The Detection, Investigation and Prosecution of Financial Crimes.This book promotes the net worth analysis technique pioneered by one of the authors, Richard Nossen. A widely acclaimed author and lecturer on the subject of financial crime investigations, Mr. Nossen is particularly adept at developing inferential in·fer·en·tial adj. 1. Of, relating to, or involving inference. 2. Derived or capable of being derived by inference. in , or circumstantial EVIDENCE, CIRCUMSTANTIAL. The proof of facts which usually attend other facts sought to be, proved; that which is not direct evidence. For example, when a witness testifies that a man was stabbed with a knife, and that a piece of the blade was found in the wound, and it is found to fit , proof using financial records. The book has two primary thrusts. First, it advocates a broader use of the net worth analysis technique in financial crime investigations. Second, the authors provide a helpful general review of effective evidence-gathering strategies for these types of cases. The basic premise of the net worth analysis technique calls for proving that subjects acquire assets and make personal expenditures at a rate far in excess of what could be funded by legitimate (declared) income. This, thereby, creates the strong implication--admissible in court as circumstantial evidence--that the incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. "income" is derived from illegal sources. The authors submit that this technique, used successfully in tax evasion The process whereby a person, through commission of Fraud, unlawfully pays less tax than the law mandates. Tax evasion is a criminal offense under federal and state statutes. A person who is convicted is subject to a prison sentence, a fine, or both. investigations, also offers a viable approach in non-tax financial crime investigations. Although the net worth analysis method represents a viable investigative tool in certain circumstances, several limitations to its use exist. First, for the technique to be truly effective, the disparity between reported income and expenditures must be significant. Second, the net worth analysis method is built around the assumption that investigators can identify all applicable financial records that impact on a case. The increasingly multinational nature of white-collar crimes white-collar crime, term coined by Edward Sutherland for nonviolent crimes committed by corporations or individuals such as office workers or sales personnel (see white-collar workers) in the course of their business activities. makes this unlikely in some cases. Finally, the technique presumes that all reported income is legitimate. Illegal proceeds that have been successfully laundered could, in fact, be considered legitimate for purposes of the analysis. These limitations notwithstanding, net worth analysis remains an effective tool--one that should be understood by all investigators of financial crimes. In cases where net worth analysis reveals little during the investigation, it may still prove beneficial for presenting circumstantial evidence circumstantial evidence In law, evidence that is drawn not from direct observation of a fact at issue but from events or circumstances that surround it. If a witness arrives at a crime scene seconds after hearing a gunshot to find someone standing over a corpse and holding a to juries. The book's suggested format for accomplishing this task is excellent. In the broader sense, the authors' treatment of financial evidence presentation in general is also superb. Suggested schedules are clear and can be easily understood by those not trained in accounting. This may be the book's greatest contribution--showing how to synthesize To create a whole or complete unit from parts or components. See synthesis. financial records from a myriad of sources into an easily comprehensible graphic presentation. This second edition of Financial Crimes presents an excellent primer for financial crime investigators. While it hardly represents an "evolution" in the techniques originally presented in Mr. Nossen's previous texts, this book provides readers with a very clear and concise discussion of sound financial record analysis. Reviewed by SA Gregory D. Meacham, CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. Economic Crimes Unit White-Collar Crimes Section Federal Bureau of Investigation Federal Bureau of Investigation (FBI), division of the U.S. Dept. of Justice charged with investigating all violations of federal laws except those assigned to some other federal agency. Washington, D.C. |
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