Fraud Examination- Ch9: Conversion Investigation Methods

Information Sources for Conversion Searches:

• Federal, state, and local agencies

• Private Information sources

• Online information sources

• Net worth method of spending analysis

Department of Defense

Maintains records on all military personnel, both active and inactive, not confindential

Department of Justice

Maintains records related to detection, prosecution, and rehabilitation of offenders

National Crime Information Center (NCIC)

Info on stolen vehicles, license plate, securities, missing firearms, and missing people

Interstate identifcation index (III)

Retains arrest and criminal records on nationwide basis

Federal Bureau of Prisons

Retains records on those who have been detained in various facilities

Internal Revenue Service

Enforces all internal revenue laws excepting those for alcohol, firearms, tobacco, and explosives

Secret Service

Safeguards payment and financial systems in the US by investigating:

• Couterfeiting

• Theft of government checks

• Interstate credit card violations

• Some computer crimes

U.S. Postal Service

Responsible for the U.S. mail and protecting citizens from loss through mail

Postal Inspectors

Handle major fraud cases involving use of mail

State Attorney General

Enforces all state, civil, and criminal laws in cooperation with local law enforcement

State Prisons

Maintains records on all individuals who have been inacrcerated in state prisons, are on probation, or parole

Secretary of State

Maintains records relating to business and uniform commercial code filings

Department of Motor Vehicles

Maintains driver’s license records, which are publicly available in most states

Department of Vital Statistics

Maintains birth records available on a fee basis

Department of Business Regulation

Maintains professional licensing info

County clerks

Maintain local citizen records of marriage licenses and voting records and registration

County Land Office and Tax Assesor’s Office

Real estate records for land located within the county

County Sheriff and Other Officers

Info regarding criminal charges, indictment statements, and pretrial info

Local Courts

Info onpast law violators and bankruptcy info

Permit Departments

Permits identifying nature of businesses and new construction

Fair Credit Reporting Act (FCRA) of 1971

Regulates activities of credit, insurance, and employment investigations

3 Major Credit Reporting Agencies

• Experian

• Equifax

• TransUnion

Gramm-Leach Bliley Act (1999)

investgators prohibited from obtaining info from a financial institution using false pretense

Fair Credit Reporting Act 2003

• info sharing and privacy

• customer rights diclosure

The Net Worth Method

Used to determine the extent of stolen funds based on assets, liabilities, living expenses, and income

The Net Work Calculation

1.) Networth = Assets - Liabilities

2.) Networth Increase = Net Worth - Prior Year’s Net Worth

3.) Income = Net Worth Increase + Living Expenses

4.) Funds from Unknown Sources = Income Funds fron Known Sources