COMMONLY USED PRACTICES TO FACILITATE GOVT FRAUD Falsifying govt documents incurs several felonies and might involve forgery. Govt funds funneled into secret LLC bank accounts.
L/E should employ Bank Secrecy Laws if bank accounts were used fraudulently.
REFERENCE Under the Bank Secrecy Act, banks are required to establish, implement and maintain programs designed to detect and report suspicious activity that might be indicative of govt fraud, money laundering and other financial crimes. The Bank Secrecy Act was enacted to protect the tax-paying public by identifying and detecting money laundering from criminal enterprises, govt fraud, tax evasion, money laudering and other unlawful activities. The investgations are monitored by the Internal Revenue Service’s Criminal Investigation unit.
NEED TO KNOW To cover their tracks, govt fraudsters might have created fake invoices that falsely show that govt money was being used for legitimate purposes, perhaps forged statements to cover the transfer of govt funds into secret bank accounts.
Govt fraud can also be facilitated by bank withdrawals, purchases on bank credits and intrabank transfers from legislative accounts into personal bank accounts.
A huge tipoff is whether bank withdrawals support luxurious lifestyle including payments for real estate, investment and stock holdings, jewelry, luxury vehicles, resort travel and gifts from luxury outlets for wives, mistresses, significant others. And large purchases of untraceable casino chips, and requests to wire transfer
casino funds to bank accounts.
L/E is directed to get ahold of : (1) checks, (2) wire transfers, (3) account statements, (4) invoices, (5) bills, (6) delivery tickets, (7) correspondence including e-mail, contracts, loan agreements, (8) any other books or records, and (9) purchases of card cards witr large balances.
L/E should also explore govt monies paid to (a) stockbrokers, sub-brokers, (b) family members, (c) mortgage brokers, (d) financial managers, and, (e) real estate agents, brokers, and developers.
L/E should scrutinize bank accounts for suspicious activites: (A) large deposits, (B) funds transferred from one account into another, (C) request for withdrawals.
Bank records might also show diversions to secret LLC and other accounts, to operate personal businesses/law firms, and the like.there are bank accounts and checking accounts (also accounts with brokerages) from which deposits and withdrawals could be made.
<><><>WRT credit cards——those are frequently used to facilitate fraud......placing large sums of money on the card ostensibly for large purchases.......that are later turned into cash.
<><><>WRT lines of credit——falsified documents listing fictitious net worth in order to get LOC.
If the fraudsters are gamblers, they could have put stolen govt funds into untraceable casino chips which can be cashed-in anywhere in the world.
Casino bigwigs are happy to comply with L/E-—b/c they fear losing casino licenses. Casinos are wary of fraudulent activities——since it could put them in jeopardy. That’s why they keep meticulous records.
All of a high roller’s gambling wins and losses are recorded on casino books.
Charges might include: (1) criminal tax fraud (2) deliberately misstating income, (3) filing false returns, (4) falsifying official documents, (5) intentionally mislabeling personal expenditures as business expenses, (6) utilizing funds inappropriately, (7) fraudulent use of govt funds for lavish personal expenditures, (8) fraudulently declaring to the IRS personal expenditures as legitimate business expenses.
Several ways to find out chip buys:
(1) casinos have to submit financial records to state casino control commissions-—the info would be there.
(2) L/E could ask how many casino chips were sold compared to how many actually were used for wagers.
Casinos record all their patrons’ betting activities b/c some winners hide waging income from the IRS. Moreover, the casinos are protected if the bettors are crooks.
L/E is directed to investigate casino records for wire transfers, gambling wins (which may have been hidden and not declared to the IRS as income), gamblers’ requesting deposits to secret LLC accounts...and the like.
/////Did the aforementioned make large contributions to religious entities? Did they make deals with religious entities? All “charitable” contributions to religous institutions and non-profit groups need rigorous scrutiny.
Religious and other non-profits are frequently-used vehicles for money laundering and tax evasion..... clergy take a cut then deposits the bulk in an offshore account for donors’ use later...all tax free.
Some Central/South America banks will take large cash deposits and no one asks where it came from or if taxes were paid on it.
REFERENCE Dozens of “investments” were setup for Ponzi King Madoff by self-styled California “philanthropist” Stanley Chais.
Later it was found the “philanthropist Chais” had collected a staggering $270 million between 1995-2008, and had been “donating” large sums to religious groups and other non-profits situated in Israel.
Beneficiaries of Chais’ largess were the prestigious Weizmann Institute of Science-—Technion-Israel Institute of Technology—Hebrew Univ of Jerusalem. (SOURCE The Wizard of Lies—Bernie Madoff and the Death of Trust- book by Diana Henriques.)