FRAUD EXAMINATION ALBRECHT, ALBRECHT,

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FRAUD EXAMINATION ALBRECHT, ALBRECHT, ALBRECHT

• Bankruptcy, Divorce, and Tax Fraud

Chapter 16
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Learning Objectives

1. Explain why fraud is so prevalent in bankruptcy
   and divorce cases.
2. Describe the nature of bankruptcy and gain a
   familiarity with bankruptcy codes.
3. Understand civil and criminal bankruptcy fraud
   statutes.
4. Identify the participants involved in the
   bankruptcy process.

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Learning Objectives

1. Recognize different bankruptcy and divorce fraud
   schemes.
2. Understand how perpetrators fraudulently conceal
   and transfer assets and income in bankruptcies
   and divorces.
3. Define tax fraud.

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What Roles Do CPAs Fraud Examiners Play in
Bankruptcy Fraud?
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Categorization Match
Fraud Causing Bankruptcy or Divorce
Books or Records Being Destroyed or Inaccurate
During Stay Assets Are Transferred to Hide from
Negotiations
Bankruptcy or Divorce Used to Do Fraud
Bankruptcy or Divorce Used to Conceal Fraud
Too Few Assets to Pay Creditors or Spouse Tries
to Salvage Reputation
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Discuss Bankruptcy.
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Define and Discuss Tax Fraud.
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Discuss Tax Fraud and the Criminal Investigation
Division.
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Discuss Divorce Fraud.
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What Steps are Necessary to Prove Fraud?
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What Causes Most Divorce Fraud Litigation?
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Name 2 Most Common Multiple Bankruptcy Fraud
Schemes.
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What Actions Are Criminal in Bankruptcy?
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Comment on Other Criminal Frauds in Bankruptcy.
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What Actions Are Criminal?
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Review Civil Bankruptcy Statues.

• Section
• 1144
• 1328
• 548

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Who Participates in the Bankruptcy Process?
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How Does a Fraud Examiner Fit into a Bankruptcy
Proceeding?
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List 7 Clues to a Bust Out.
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List 7 Clues to a Bust Out. (contd)
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List Ways Cash is Concealed During A Divorce.
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What Are Some Clues to Concealment?
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Terms Match
Title 11 of U.S. Code - federal law governing
bankruptcy
Bankruptcy
Bankruptcy Code
Legal process to settle debts in an orderly plan
Bankruptcy Court
A person or entity owed money by a debtor
Creditor
The federal court overseeing all bankruptcy
proceedings
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Terms Match
A person or entity declaring bankruptcy
Debtor
Divorce
A planned bankruptcy
Bustout
Legal dissolution of two married partners
Trustee
Individual or firm that collects debtors assets
distributes to creditors