Forensics Journal - Stevenson University 2013 | Page 16

FORENSICS JOURNAL

What is meant by “financial forensic investigations”? Merriam-Webster’s on-line Dictionary defines the word “forensic” as, “belonging to,
used in, or suitable to courts of judicature or to public discussion and
debate” (“Definition: Forensic”). Financial investigations deal with
investigations concerning the monetary aspects of criminal activity. The U.S. Federal Law Enforcement Training Center’s (FLETC)
Financial Fraud Institute teaches a series of thirteen courses for federal
law enforcement agencies. These courses cover the full spectrum of
financial investigations: money-laundering, asset forfeiture, blackmarket money exchanges, and various fraud investigative techniques
(“Financial Fraud Institute”). The focus of these investigations is to
understand the financial components involved in these crimes and
identify what violations might be prosecutable. As an example, a law
enforcement agent conducting a money-laundering investigation has
to understand both the mechanics of the transactions in question
and how each transaction satisfies the elements of statutory criminal
violations. Once discovered, such violations could be used to take
action against the perpetrators. Using the money-laundering example,
once evidence is discovered that federal laws were violated, the agent
proceeds towards prosecution. The charges filed could include
asset forfeiture counts to seize ill-gotten gains from bank accounts
or property purchased by manipulating counterfeit monies. If the
scheme involved a regulated industry, such as investments or insurance, regulatory code could be used to file cease and desist actions
against the entity, block the principles from engaging in that industry
again, and/or take the business into government receivership. The use
of financial forensic investigations to identify criminal or regulatory
violations in furtherance of prosecutions is a powerful weapon against
crime. According to the “Financial [