716 West Ave Austin, TX USA

Transcription

1 MAKING CRIME PAY: HOW TO LOCATE HIDDEN ASSETS GLOBAL Headquarters the gregor building 716 West Ave Austin, TX USA

2 TABLE OF CONTENTS I. INTRODUCTION About This Course... 1 II. HIDDEN ASSETS What Are Assets?... 3 Why People Hide Assets... 3 Divorce... 3 Bankruptcy... 3 Impending Judgment in Litigation... 3 Evade Taxes... 4 Hide the Proceeds from Illicit Activities... 4 What Are Hidden Assets?... 4 What Is the Underground Economy?... 4 Escape Taxation... 6 Escape Regulation... 8 Further Criminal Conduct... 8 Corruption... 8 Video... 2 What Do Asset Hiders Want?... 9 Liquidity... 9 Untraceability... 9 Security... 9 Accessibility Common Vehicles Used by Asset Hiders Domestic Currency Foreign Currency Precious Metals Video Bearer Instruments Cashier s Checks and Traveler s Checks Why Is There a Demand for Hidden Assets? Asset Hiding Versus Money Laundering The Fraud Examiner s Role in Locating and Recovering Assets Video Review Questions III. BEGINNING THE INVESTIGATION General Process for Finding Assets Develop an Investigation Plan Begin Collecting Information Create a Subject Profile for Each Investigation Target Begin Profiling the Subject Analyze the Information Conduct Interviews i

3 III. BEGINNING THE INVESTIGATION (CONT.) Trace the Assets Video Profiling the Subject The Personal Profile Video The Business Profile Review Questions IV. ANALYZING FINANCIAL RECORDS FOR LEADS Introduction Obtaining Access to Financial Records Video Obtain Consent Subpoenas and Other Legal Processes Demand as a Condition of Continued Business Exercise Audit Clause Rights Search Warrants Contact the Subject s Former Spouse Reviewing Financial Records Financial Records to Examine Account-Opening Documents Canceled (Negotiated) Checks Deposit Tickets Wire Transfer Records Intrabank Transfer Records Savings Account Records Certificates of Deposit Bank Statements Exchange Instruments Credit Card Records Prepaid Access Card Records Accounting Records Video Tax Returns and Related Documents Form 5500 Annual Return/Report of Employee Benefit Plan Account Statements (Bank Statements) Stock Brokerage Records Loan Records Mortgage Loan Files Safe Deposit Box Records Financial Intelligence Unit Documents and Reports Video The Currency and Banking Retrieval System Purchase and Sale Documents SEC Filings Types of Financial Records to Request ii

4 IV. ANALYZING FINANCIAL RECORDS FOR LEADS (CONT.) Account Files and Statements Loan or Mortgage Records Certificates of Deposit (Purchased or Redeemed) Records Investment or Security Custodian Account Records Retirement Plan Records Customer Correspondence Files Records of Money Orders and Cashier s, Traveler s, Manager s, and Bank Checks Wire Transfer Records Safe Deposit Box Rental and Entry Records Credit Card Records Currency Transaction Report Records Tracing Financial Transactions Through Financial Institutions Account Transactions Non-Account Transactions Review Questions V. LOCATING ASSETS USING DIRECT AND INDIRECT METHODS Introduction Locating Assets Using Direct Methods Bookkeeping Devices Used to Conceal Illicit Payments Direct Methods of Proof Video Locating Assets Using Indirect Methods Net Worth Analysis Method (Asset Method) Video Sources and Application of Funds Method (Expenditures Method) Bank Deposit Analysis Method Review Questions VI. SOURCES OF INFORMATION Introduction Public Records Versus Nonpublic Records Public Records Video Nonpublic Records Laws Governing Access to Information Freedom of Information Act Fair Credit Reporting Act Gramm-Leach-Bliley Act Telephone Records and Privacy Protection Act Privacy Act of Right to Financial Privacy Act Health Insurance Portability and Accountability Act Internal and External Sources of Information Video Internal (In-House) Sources of Information iii

5 VI. SOURCES OF INFORMATION (CONT.) External Sources of Information Valuable Types of Information Court Records Probate Records Bankruptcy Records Real Property Records Vehicle Records Uniform Commercial Code Filings Tax Liens Banking Records Tax Returns and Related Documents Credit Records Telephone Records Business Records Business Filings (Corporate Filings) Occupation Information Insurance Policies Professional Licensing Organizations Voter Registration Records Passports Common Types of Searches Search for Background Information on an Individual Search for an Individual s Assets Search for a Corporation s Assets Search for Bankruptcies, Liabilities, and Encumbrances Search to Locate an Individual Methods Used to Obtain Information Commercial Database Vendors Surveillance Covert Operations Interviews Online Sources International Sources of Information Legal Avenues Online Sources Commercial Database Providers Local Government Limitations on Obtaining Material Abroad Useful Websites Review Questions VII. COMMON HIDING PLACES How People Hide Assets Video Hiding Assets in a Home or Property Hiding Assets in Someone Else s Name Deposits to Financial Institutions iv

6 VII. COMMON HIDING PLACES (CONT.) Video Transferring Funds Among Bank Accounts Via Wire Transfers Safe Deposit Boxes Negotiable Instruments IRS Overpayment Real Estate Mortgage Paydown Credit Card Paydown Other Assets and Collectibles Video Tax Havens Secrecy Jurisdictions Trusts Securities Video Insurance Products Businesses Video Loans Gifts or Transfers Video Red Flags of Hidden Assets in Investments Review Questions VIII. MONEY LAUNDERING Introduction Video The Scope of Money Laundering The Stages of the Money Laundering Process Placement Layering Integration Video Methods of Money Laundering Schemes Using Cash Deposits to Financial Institutions Video Video Wire Transfers Video Postal Money Orders Investments Insurance Policies Front Businesses (Front Organizations) Video Purchases and Expenditures Financial Statements v

7 VIII. MONEY LAUNDERING (CONT.) Video Fictitious Identities International Transactions Video Trade-Based Money Laundering Prepaid Items Mobile Payments Digital Currencies Video Alternative Remittance Systems The Mechanisms of Money Laundering The Cash Transaction System Business Transaction System Moving Between the Cash and Business Systems Major Players in U.S. Anti-Money Laundering Department of the Treasury Video Federal Banking Authorities State Banking Authorities Department of Justice Securities and Exchange Commission Commodity Futures Trading Commission Financial Regulatory Authority Department of Homeland Security Federal Money Laundering Law in the United States Video Money Laundering Offenses The Bank Secrecy Act USA PATRIOT Act of Video Video Dodd-Frank Act Red Flags Rules State Money Laundering Law in the United States Major Players in International Anti-Money Laundering Financial Action Task Force United Nations European Commission International Criminal Police Organization Law Enforcement Authorities Tax Authorities Financial Intelligence Units Stock Exchanges International Anti-Money Laundering Efforts The UN Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances UN Resolution The UN Convention Against Transnational Organized Crime vi

8 VIII. MONEY LAUNDERING (CONT.) The Financial Action Task Force s Recommendations European Union s Directives Review Questions IX. FINDING AND SEIZING ASSETS LOCATED ABROAD Introduction Video Secrecy Jurisdictions Case Study: Robert L. Vesco Video The Financial Action Task Force Tax Havens Video Four Types of Tax Havens The Role of Tax Havens Case Study: Bank of Credit and Commerce International Moving Funds Abroad Video The Foreign Bank Account Methods of Moving Funds Internationally Moving Funds from Foreign Jurisdictions Recovering Assets Located Abroad Civil Recovery Versus Public Recovery Techniques for Investigating Assets Located Abroad Video Legal Tools Available for Finding and Seizing Assets Held Abroad Approach to Finding Assets Stored Abroad Challenges in Locating and Recovering Assets Located Abroad Video Review Questions X. RECOVERY OF ILL-GOTTEN GAINS Introduction Civil and Criminal Avenues for Recovery Civil Action Criminal Action What Is a Judgment? Recovery Mechanisms Civil Remedies Restitution Asset Forfeiture Recovery for Private Parties Through Civil Litigation Evaluating the Potential for Recovery Ensuring That Proceeds, Property, and Assets Will Be There to Satisfy a Judgment Video Enforcing Legal Judgments Enforcement and Bankruptcy vii

9 X. RECOVERY OF ILL-GOTTEN GAINS (CONT.) Alternative Methods of Recovery Recovery from Third Parties Recovery Under Insurance Policies Review Questions XI. CONCLUSION Video Final Comments XII. Appendix A: Sample Financial Profile Form XIII. Appendix B: Right-to-Audit Clauses XIV. Appendix C: IRS Bank Document Request List XV. Appendix D: Fraud Investigation Checklist XVI. Appendix E: Video Transcripts XVII. SOLUTIONS TO REVIEW QUESTIONS II. Secret Money III. Beginning the Investigation IV. Analyzing Financial Records V. Locating Assets Using Indirect Methods VI. Sources of Information VII. Common Hiding Places VIII. Money Laundering IX. Finding and Seizing Assets Located Abroad X. Recovery of Ill-Gotten Gains XVIII. FINAL EXAMINATION... E-1 XIX. INDEX... I-1 viii