Flashcards Forensic Exam

Drug Title

21

Tax Title

26

Fraud/Money Laundering

18

Bank Secrecy

31

Bulk Cash Smuggling (cross US border)

31 USC 5332

>10,000 in/out the country file a ___

CMIR (currency and monetary instrument report)

Structuring

31 USC 5324

>10,000 file a ___

CTR (currency transaction report)

Money Laundering

18 USC 1956

What is Money Laundering

knowingly conducting or attempting to conduct a financial transaction involving the proceeds of SUA, with specific illicit intent

Illegal/Unregistered Money Service Business

18 USC 1960 (w/out registering w/ FinCEN)

False/Misstatement to Bank for loan/credit

18 USC 1014 (knew it was false)

Monetary Transaction >10,000 w/ SUA funds

18 USC 1957

Conspiracy to Commit a 1956/1957 Money Laundering Offense

18 USC 1956(h) (between >1 conspirator, w/ intent conspiracy succeed)

What Are Overt Acts

something a conspirator does to further the conspiracy

Tax Evasion

26 USC 7201 (willful; hide/underreport income)

"Willfully attempting to evade or defeat either the assessment or payment of tax through an affirmative act"

Employment Tax Crime

27 USC 7202 (will failure to collect or pay over payroll/employment tax)

Failure to File

26 USC 7203 (willfull; not filing a return/not paying tax due)

Subscription to False Return

26 USC 7206 (1) (willingly and knowingly; overstate expense/false deductions/ktl.)

Aiding in Preperation of False Return

26 USC 7206 (2) (willfully aiding/assisting/preparing materially false/fraudulent return/document)

(even if taxpayer NOT KNOW about the fraud)

Obstruction of IRS

26 USC 7212 (corruptly/forcibly impeding official investigation)

(in practice, the threshhold is very high)

False Claims to Defraud US

18 USC 287 (knowingly make or present a false/fraudulent claim against the US)

Conspiracy to Defraud US

18 USC 286 (agree/conspire with others to defraud US by obtaining or helping obtain payment of a false/fraudulent claim)

General Conspiracy

18 USC 371 (agreement by 2> to commit federal offense OR defraud US; + 1 overt act to further conspiracy)

Identity Theft

18 USC 1028 (using personal identity info of another person to commit a crime)

False Statements

18 USC 1001 (knowingly make false statemnts to person/on document; lie to grand jury/lie to fed agent/make false report)

Fictitious Obligations

18 USC 514 (making/possessing/using a fictitious financial instrument with intent to defraud)

(checks, money orders, bonds, stock certs, ktl.)

Mail Fraud

18 USC 1341 (scheme using the mail to defraud another person of money/property; intent and mail usage)

Wire Fraud

18 USC 1343 (scheme using interstate wire communications to defraud another person of money/property)

(the wire communication must be in furtherance of scheme to defraud)

Bank Fraud

18 USC 1344 (knowingly execute scheme to defraud financial institution by false pretenses/representations; financial institution at risk of CIVIL LIABILITY or financial loss)

(30 years max)

Misstatement

18 USC 1014 (false statement to bank often for purpose of convincing bank for loan/credit)

Bankruptcy Fraud

18 USC 157 (use bankruptcy filing/document/representation to defraud/make false report about bankruptcy or further scheme using bankruptcy)

(or pretend to be in bankruptcy)

Concealment of Assets/False Claim/Bribery (Bankruptcy Related)

18 USC 152 (Knowingly/fraudulently hiding assets, making false claims, or committing other fraud in bankruptcy)

Chapter 7 Bankruptcy

liquidate (sell nonexempt assets & discharge eligible debts)

Chapter 11 Bankruptcy

business reorganize (restructure debts and keep operating)

Chapter 12 Bankruptcy

family farmer

Chapter 13 Bankruptcy

personal (3-5 year) repayment plan

Fraud Cases usually Require a ___ ___

second step

Ponzi Scheme

New investor money used to pay supposed "returns" to earlier investors, while falsely claiming returns came from legitimate investments

(investors fund earlier investors)

Pyramid Scheme

Participants make money primarily recruiting new participants, whose payments flow upward through the structure

(recruits recruit more recruits; w/ or w/out product)

False records Scheme

create/alter/use fake business/accounting records to conceal fraud or make transactions appear legitimate