1. FRAUD EXAMINATION ALBRECHT, ALBRECHT, & ALBRECHT Bankruptcy, Divorce, and Tax Fraud Chapter 16

2. 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.

3. Learning Objectives 5.Recognize different bankruptcy and divorce fraud schemes. 6.Understand how perpetrators fraudulently conceal and transfer assets and income in bankruptcies and divorces. 7.Define tax fraud.

4. What Roles Do CPAs & Fraud Examiners Play in Bankruptcy Fraud?

5. Categorization Match Fraud Causing Bankruptcy or Divorce Bankruptcy or Divorce Used to Do Fraud Bankruptcy or Divorce Used to Conceal Fraud Books or Records Being Destroyed or Inaccurate During “Stay” Assets Are Transferred to Hide from Negotiations Too Few Assets to Pay Creditors or Spouse Tries to Salvage Reputation

6. Discuss Bankruptcy.

7. Define and Discuss Tax Fraud.

8. Discuss Tax Fraud and the Criminal Investigation Division.

9. Discuss Divorce Fraud.

10. What Steps are Necessary to Prove Fraud?

11. What Causes Most Divorce Fraud Litigation?

12. Name 2 Most Common Multiple Bankruptcy Fraud Schemes.

13. What Actions Are Criminal in Bankruptcy?

14. Comment on Other Criminal Frauds in Bankruptcy.

15. What Actions Are Criminal?

16. Review Civil Bankruptcy Statues. Section 1144 1328 548

17. Who Participates in the Bankruptcy Process?

18. How Does a Fraud Examiner Fit into a Bankruptcy Proceeding?

19. List 7 Clues to a Bust Out.

20. List 7 Clues to a Bust Out. (cont’d)

21. List Ways Cash is Concealed During A Divorce.

22. What Are Some Clues to Concealment?

23. Terms Match Title 11 of U.S. Code - federal law governing bankruptcy Legal process to settle debts in an orderly plan The federal court overseeing all bankruptcy proceedings A person or entity owed money by a debtor Bankruptcy Bankruptcy Code Bankruptcy Court Creditor

24. Terms Match A person or entity declaring bankruptcy Individual or firm that collects debtor’s assets & distributes to creditors Legal dissolution of two married partners Debtor Divorce Bustout Trustee A planned bankruptcy