Forensics Journal - Stevenson University 2012 | Page 33

FORENSICS JOURNAL

information intensive (Kennedy, 2007, p. 372). Every activity leaves
behind some trace of evidence. In the world of information technology, metadata is defined as information about a particular object. In
forensic accounting, financial information is metadata about a person, a crime, criminal activity, or a criminal organization. Criminals
will go out of their way to conceal the metadata they leave behind.
They will consult with lawyers, accountants, and financial experts to
identify ways to hide their existence and activities (Kennedy, 2007,
p. 396). Law enforcement should have the ability to consult financial
and business experts to reverse the criminals’ efforts at hiding their
metadata. Financial investigators are trained to uncover these trails
and “connect the dots” (Kennedy, 2007, p. 372).

the potential uses of financial information in non-financial investigations. He has used forensic accounting and financial forensics
in property crimes, counter-intelligence, and counter-terrorism
investigations where financial investigators could review the financial
information and provide recommended leads, additional investigative steps, and direction to the case agents. SSA King stated that if
a financial expert can provide “clear, concise, and timely” assistance,
they would be an asset to any investigation (King).
In the non-financial cases SSA King worked, financial records were
rarely considered to support the investigation or develop additional
leads. Bank accounts and insurance records were pulled for questionable deaths only to identify insurance policies as a potential criminal
motive. The detectives did not typically consider the records for
potential leads. As an agent with NCIS in Jacksonville, Florida, SSA
King began working with agents who specialized in financial crimes.
His experiences working with financial investigators caused him to
consider the potential for using financial specialists on non-financial
crimes. He described a brass theft case in Jacksonville, FL involving
more than four people from different companies working aboard
the naval base. To identify the persons and companies involved and
develop the criminal scheme, the investigators reviewed years of scrap
metal sales receipts. None of the agents working the investigation had
financial or business backgrounds. SSA King stated if the investigative
team included a financial forensic specialist, the investigation could
have been completed faster with a higher recovery (King).

Forensic accountants are trained to look for changes in behaviors or
patterns. They are trained to identify “red flags” in financial transactions before fraud occurs. The article, “Holidays See Forensics Teams
at Work,” quotes Randy Shain, a forensic accountant in New York
who conducted background investigations on senior financial managers. Shain stated, “[the] work is not about catching people…Forensic
accounting is trying to put together pieces after something has broken…(He) prefers to avoid a break in the first place. It can be a whole
lot cheaper for everyone involved” (“Holidays See Forensics,” 2007).
Red flags can be the change in a subject’s behavior or an unusual or
suspicious transaction.
Financial investigators can also identify trends and behavioral patterns
in financial transactions. An individual’s weakest character flaws can
be intensified with increased social pressures. By looking for weaknesses in the financial records of a subject, forensic accountants may
identify motives and pressures not known by the other investigators
(“Holidays See Forensics,” 2007, p. 1). Behaviors revealed in financial
transactions can be circumstantial evidence demonstrating the subject
is a pathological liar or has narcissistic tendencies. This information can be used by criminal investigators during interrogation to
develop rapport, confront the subject, and offer rationalization for
their behavior (Perri & Lichtenwald, 2008, p. 78). Financial forensic
investigators can utilize the same information developed for white
collar crimes for any criminal investigation. Knowledge of a subject’s
behaviors, actions, and lies assists an investigator during interviews
and interrogations and may develop previously unknown leads.

Academic experts are also beginning to recognize a need for forensic
accounting in non-financial criminal investigations. In December
2003, at West Virginia University, Max Houck, Bonnie Morris, and
Richard Riley researched the need for a college curriculum focusing
on forensic accounting. In their report, “Forensic Accounting as an
Investigative Tool,” the authors claimed the use of financial techniques to conceal the funding for the September 11, 2001 terrorist
attacks illustrated the need for training in financial forensics (Houck,
Morris, & Riley, 2006, p. 68). Law enforcement investigators need to
be aware of the benefits of financial information and financial exper