JULY 2015
In This Issue

 

 



 

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 asset misappropriation by credit card fraud.

  

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.

 

Sincerely,

 

Edmond J. Martin

 
Principal, Chief Investigator
Certified Fraud Examiner (CFE)

Texas Certified Investigator (TCI)

 

Asset Misappropriation by Credit Card Fraud

The Association of Certified Fraud Examiners recently issued its Report on Fraud to the Nation for 2014. The report cites three major areas of occupation fraud: asset misappropriation, corruption, and financial statement fraud.

 

"Small businesses are both disproportionately victimized by fraud and notably under-protected by anti-fraud controls generally because they lack resources. The most prevalent fraud area is asset misappropriation committed by individuals with access to cash or its equivalent. The perpetrator is generally a male and the longer the fraud lasts the more financial damage is caused."  

 

If you are one of the many business owners that think it can't happen to you, consider this case study:

 

Two businessmen establish a business together and form a partnership. One brings construction ability (Contractor) and the other professional expertise and organizational skills (Professional). Together, they build the business and contribute capital. A few years later, the Contractor wants to have his son (Junior) participate in the business and head up operations. Both original partners agree to sell stock totaling one-third of the business to the junior partner and receive monetary value for their stock. The partners allow Junior to operate the business. Later, Junior obtains an American Express Corporate Card in the name of the company and gives a card to the other partners. Unbeknownst to the Professional, Junior begins using the card to make purchases of a personal nature. (No company policy exists about the personal use of a credit card, so Junior isn't breaking any rules.) The Accounting department questions Junior about his purchases, but he does not respond to them. Over time Junior's expenditures increase significantly. Finally the accounting staff comments to the Professional, in passing, on Junior's activities and his ongoing lack of documentation for expenditures. The Professional is astonished to hear about the monthly expenses Junior is incurring "on behalf of the company." The Professional has a dilemma; does he confront Junior directly, or does he speak with the Contractor about his concerns?

 

What would you do? Would it make a difference if Junior were a family member? Regardless of DNA or professional relationship, the best defense against misappropriation is a good offense.  

 

If you have this problem, or if you want to prevent this problem from developing in your business, obtain...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 

www.sageinvestigations.com

Texas License #A10803

 

 

© 2015 Sage Investigations. All rights reserved.