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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 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 you need to beware of caregivers and how to protect your client from engaging in hard money lending.
We want to write about topics
will assist you in prevailing with criminal IRS cases
. Please e-mail us your topics of interest to
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)
Beware of Caregivers
A study published in Public Policy & Aging Report (1) finds, "financial exploitation of older adults and diminished financial capacity results from age-related cognitive impairments-both pose major economic threats. " The author continues,
"The problem is complex, but it is also a problem that unquestionably exists and is assuming remarkably large personal, monetary, and social dimensions. Elder financial abuse involves millions of individuals and billions of dollars. It damages health, harms wellbeing, and arguably costs lives."
In 2009, U.S. household wealth was estimated to be $53.1 trillion. Older adults held approximately $18.1 trillion of it. The MetLife Study of Elder Financial Abuse estimates elder abuse cost older Americans at least $2.9 billion in 2010.
Financial abuse of the elderly in the Enhancing Workforce Capacity in the Detection and Prevention of Elderly Financial Abuse (2) states "It can take a wide range of forms including scams, overcharging, and theft;" older adults are the most vulnerable age group to this type of abuse, particularly if they are lonely,
isolated, or have health issues that cause them to be dependent on others (
National Committee for the Prevention of Elder Abuse, 2015
) (3). The detrimental effects of financial abuse can include loss of financial security and deterioration in mental and physical health (
Social Care Institute for Excellence, 2011
Daily, elderly individuals are taken advantage of by Caregivers who provide in home or institutional health assistance. Caregivers
Protect Your Client from Engaging in Hard Money Lending
The definition of Hard Money Lending is fairly simple:
a Hard Money Loan is a loan of "last resort" or a short-term "
bridge loan." Bridge Loans are loans of short-term duration that are typically a temporary solution to longer term financing from more customary or traditional lending sources, such as a bank. Hard moneyloans are backed only by the value of the property, most often real estate, not by the "credit worthiness
of the borrower. Since the property itself is used as the only collateral against default of the loan by the borrower, hard money loans have lower loan-to-value (LTV) ratios than traditional loans.
Loan-to-Value (LTV) is the amount of money borrowed as a percentage of the property's value.
Hard Money has several defining characteristics:
Today, investors are looking at alternative investments to the stock market that generate income from interest, particularly when savings accounts offer less than 1% return on your savings. These investors may become a part of an investment pool for a borrower that is developing or... Read More
- Based on the value of the property
- Short Term (6 - 12 months)
- High Interest (8 - 17%)
- High loan "points" (cost to get the loan)
- Often do not require income verification
- Often do not require credit references
- Quick ability to fund
- O.K. with property in poor condition
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...
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