Case 5
Table 1 – Information for Preparation of Net Worth Analysis
Journal of Legal Issues and Cases in Business, Volume 3 – January, 2015
|
Item |
Year 1 |
Year 2 |
Year 3 |
|
Addition to residence |
$0 |
$0 |
$125,000 |
|
Annual federal tax payments |
$0 |
$6,000 |
$6,000 |
|
Annual life insurance premiums |
$0 |
$4,800 |
$4,800 |
|
Annual living expenses |
$20,000 |
$20,000 |
$22,000 |
|
Annual salary |
$35,000 |
$35,000 |
$35000 |
|
Automobile |
$20,000 |
$20,000 |
$20,000 |
|
Automobile loan payable as of yearend |
$10,000 |
$0 |
$0 |
|
Cash balances as of yearend |
$6,000 |
$12,000 |
$25,000 |
|
Certificates of deposit as of yearend |
$50,000 |
$50,000 |
$50,000 |
|
Diamond ring and other jewelry |
$0 |
$0 |
$30,000 |
|
Investments in stocks and bonds as of yearend |
$30,000 |
$30,000 |
$30,000 |
|
Mortgage balance as of yearend |
$90,000 |
$50,000 |
$0 |
|
Other annual income |
$25,000 |
$5,000 |
$62,000 |
|
Residence |
$100,000 |
$100,000 |
$100,000 |
|
Second automobile |
$0 |
$0 |
$50,000 |
Table 2 – Elements of Fraud Plus Inquiry Method
Theft Investigative Methods
1. Surveillance and covert operations
2. Invigilation
3. Seizing and searching computers
4. Physical evidence
Concealment Investigative Methods
1. Documentation evidence
2. Audits
3. Electronic searches
4. Physical asset counts
Conversion Investigative Methods
1. Searching public records
2. Online resources
3. The net worth method
Plus Inquiry Investigative Methods
1. Interviews and interrogation
2. Honesty testing
(Adapted from Albrecht et al. 2012, 211)