Fraudulent practices abound today, with many of them remaining undiscovered. The perpetrator thus remains free to continue with illegal activities. Non-violent crimes involving financial discrepancies or deliberate cheating of law-abiding citizens need to be identified and traced by professionals. It becomes necessary for individuals, groups, and business entities to use Ponzi scheme forensics in Seattle, WA, which happens to be a type of forensic accounting.
It is surprising to know that such schemes attract individuals willing to invest their hard-earned money to get better returns. Sadly, such schemes include paying off the investors by using money from the new customers. It is therefore apparent that such schemes fail to continue for a long time, and the investors feel cheated when they lose their money within a short time.
Many individuals and entities feel the need to hire accounting professionals for Ponzi scheme forensics. The professionals undertake the extensive task of detection, investigation, and litigation of the financial crime known as a Ponzi scheme. Additionally, the process may also include the recovery of the money that had been invested in the scheme.
The parties that usually hire financial experts for this specific type of forensic investigation include the following: -
Plaintiff Attorneys- The lawyers are interested in proving the fraud, calculating the damage to the investors, and trace recovery of the assets.
Defense Attorneys- The professionals analyze the financial records, challenge the findings by the prosecution, and use the evidence to build a defense on behalf of their clients.
Trustees/Receivers- These are court-appointed individuals who desire to crack the complex financial records, locate the hidden funds, and go ahead with the liquidation of the assets to repay the investors.
Several Government agencies and organizations also seek the assistance of forensic professionals adept at identifying Ponzi frauds. These include the following: -
· Securities and Exchange Commission (SEC)-Forensics is used to investigate unregistered securities, identify unlicensed sellers, and look into fraudulent investments.
· Federal Bureau of Investigation (FBI)-The high-stakes, white-collar crimes are investigated with the help of Ponzi forensics.
· Department of Justice (DOJ)-Forensics helps in the prosecution of the perpetrators and in the management of the criminal forfeitures
· Internal Revenue Service (IRS)-Investigation of tax evasion without reporting income from fraudulent investments by innocent citizens.
· Financial Crimes Enforcement Network (FinCEN)-For review of anti-money laundering misses by banks and financial institutions.
Moreover, the Ponzi forensics are also engaged by financial institutions such as the following: -
· Banks- The financial institutions may ignore high amount transactions and have to rope in forensic experts to investigate such deposits or payouts regularly.
· Investment Firms- The experts are skilled in finding breaches in fiduciary duty. This applies to independent brokers and dealers who fail to supervise agents promoting Ponzi schemes.
· Auditors- Both accounting firms and auditors also need forensic investigation to defend against negligence claims and to detect fraudulent practices.
Professionals highly acclaimed in forensic accounting Seattle, WA, are hired for various reasons, including conducting financial investigations identification of fraud in the account books. Many business entities also use such professionals before going ahead with merger & acquisitions.
