JULY 2014
In This Issue

"We're all friends here" is a prelude to fraud. "I am sincere" is a prelude to lying."


~ Mason Cooley




The goal of this e-newsletter is to provide you critical, inside information that will help you prevail when defending an IRS criminal case. We will do this by sharing the knowledge we have from our 25+ years of experience as an IRS Special Agent. 


We are grateful to have the opportunity to provide you this valuable information via our monthly e-newsletter and our unparalleled forensic accounting and investigative services.


We take special care to ensure the information we provide you in "The Beacon" is the latest and most current information available. In this edition, we have addressed "Fraud Investigation by the Numbers" and "Interviewing Defendants in Federal Criminal Cases".


We want to write about topics that will assist you in prevailing with criminal IRS cases. Please e-mail us your topics of interest to Thebeacon@sageinvestigations.com. 


We encourage you to share our e-newsletter with others in your sphere of influence.




Edmond J. Martin

Principal, Chief Investigator
Certified Fraud Examiner (CFE)

Texas Certified Investigator (TCI)


Fraud Investigation by the Numbers 
In the midst of continuous construction in Austin, Texas I have been hired to investigate the misappropriation of construction funds by contractors. Where do I start? I start with this checklist of things for investigators and attorneys to consider when investigating fraud.


1. Meet with the client


Your investigation begins with a client meeting. Thoroughly interview the client and any co-workers or support staff with relevant knowledge about the suspected fraud. Clarify exactly what they suspect and why. This is the time to define the scope of the investigation and secure a signed contract and a retainer.


2. Obtain records

Obtain and review the contract made between the client and the contractor to determine the agreed upon terms and conditions, including the required periodic financial reporting and the accessibility of financial records by the client. Determine how many properties are being constructed and the estimated cost of each. This is important because contractors often fail to allocate materials and labor per project, opting instead to take draws, which is a dangerous and nebulous scenario for the client. Secure any reports made by the contractor to the client and if there are none, determine why. Most contractors tell their clients... Read More
Interviewing Defendants in Federal Criminal Cases

Successfully interviewing defendants in Federal criminal cases requires specialized skills and instincts. Sage investigators possess both. We put 26 plus years of experience as an IRS Special Agent work for you and your client to make sure we get what we need to get you what you need.

The Sage investigator will attend the initial interview to begin building rapport, gathering information, taking detailed notes, and assessing the client's truthfulness. At this interview the Sage investigator negotiates a written contract that clarifies the investigation scope, reporting requirements, and details of the attorney work product rule; he will also request a retainer.

Preparation is crucial, and prior to the next interview the Sage investigator will extensively review the notes and outline the important areas to cover. He will review the anticipated criminal charges and analyze the elements of proof. For example: from the "IRS Special Agent's Manual":


Evasion of Tax requires a willful attempt to... Read More




About Us

Serving your needs is our priority.


At Sage Investigations we are dedicated to serving our clients nationally, to help them navigate the difficulties of dealing with the IRS, and other complex (forensic) financial fraud investigations both civil and criminal. By narrowing our focus to our primary strength of following the money, we steer our knowledge, efforts, and experience to financial issues. We help our clients propel their cases forward by assisting in the review, acquisition, and organization of financial records, evaluating the elements of their cases, and helping create winning strategies. Through the use of our proprietary advanced financial investigative technology we analyze complex financial data quickly, easily and efficiently, saving our client's time and money.


Sage handles all cases with altruism, professionalism, honesty, integrity, passion and respect. When you hire Sage, you hire a team of professionals with skill and knowledge that helps you have more effective solutions. We are innovative with our DIO cutting edge technology, and perform every investigation in an orderly and organized manner to develop a clear investigative roadmap and deliver a quality work product. The compass that guides us is strong leadership and accountability. Learn more...


Contact Us


P.O. Box 160161

Austin, TX 78716

Phone: 512-659-3179

Fax: 512-328-6878

Email: info@SageInvestigations.com 


Texas License #A10803



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