JANUARY 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 how to beware of journal entries that create income and how to make complex cases simpler and more cost effective.   

  

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)

Beware of Journal Entries that Create Income

When reviewing transactions in an accounting system it is important to pay particular attention to journal entries. Journal entries are used to adjust accounting records for activities that are not cash in nature. When dealing with an accrual accounting system, journal entries can be used to create income, which impacts financial statements. If company profits are used as a basis for commissions or shareholder distributions, a controlling person within the company can use journal entries to manipulate company profits and commissions.

Case Study:
A state-regulated small business corporation receives funds from customers for payment of a customer mortgage liability to assist the client with reducing their liability more rapidly. The corporation earns a small fee on each transaction as well as a small semi-annual audit fee. A knowledgeable CFO with no criminal background works in the accounting system on a daily basis and perceives a need for money to develop a nest egg for his family's future. The CFO realizes that he has access to the cash reserve built up in the bank account from customer payments, and decides to...
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Complex Cases Made Simpler

With advances in technology and the growing complexity of global banking and business, numerous new avenues of deceit have been created for swindlers to mask illegal and fraudulent activity. In this digital age, the movement of money between companies, governments and persons has become easier to do and harder to follow for those responsible for the financial accountability of their corporations and businesses. While advances in technology and the world monetary system have been quick, application development for complex financial investigations has been slow to grow. The time has come for the announcement of DIO (short for Diogenes), a database technology.

 

Sage Investigations, LLC offers the legal profession, fraud examiners, and financial investigators Diogenes - software and services for data organization, case management, and reporting. Sage's proprietary software decreases the time on cases from preparation to reporting, while increasing the accuracy of data and scope of any complex financial investigations where following money is important, including embezzlement, bankruptcy, divorce asset tracing, and white collar fraud.


Case Study:
Investigations by Sage generally involve boxes of records including bank, brokerage and credit card statements, and other records of assets and liabilities which are digitized, organized and categorized into actionable information usable by DIO. Recently, Sage was retained to help develop evidence to defend a client whose assets, in excess of $2,000,000, were seized for Civil Forfeiture by...
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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

 

 

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