Company Deception Flashcards
Category A Offending
Large-scale thefts and other dishonesty offences against employers by employees - usually people such as accountants and managers who use their position to manipulate the company’s financial systems.
Category B Offending
Dishonesty offences committed against financial institutions by people outside the institution obtaining money from it through deception. Category B also includes GST deception against the Inland Revenue Department by businesses that make false GST returns. In the latter case, the offender may be:
•an employee who covers misappropriation of money from their employer by obtaining fraudulent GST refunds to ‘replace’ the money the employee has stolen, or
•the operator of the business.
Category C Offending
Commercial deception committed against the public by people who, either as individuals or through the guise of a company, entice people to invest money.
Category D Offending
Dishonesty offences committed by professional people in a position of trust, such as solicitors and accountants, against their clients.
Category A Offences
The Crimes Act offences are usually:
- dishonestly taking or using documents
- theft by person in special relationship
- altering, concealing, destroying, or reproducing documents
- using altered or reproduced documents
- accessing a computer for dishonest purposes
- forgery
- false accounting
- obtaining ownership, possession or control by deception.
Category B Offences
The Crimes Act offences are usually:
- False statement by promoter.
- Dishonestly taking or using documents.
- Accessing a computer for dishonest purposes.
- Forgery.
- False accounting.
Category C Offences
The Crimes Act offences are usually:
- False statement by promoter.
- Obtaining ownership, possession or control by deception.
- Obtaining credit by deception.
Category D Offences
The Crimes Act offences are usually:
- Theft by person in special relationship.
- Dishonestly taking or using documents.
- Using forged documents.
Investigating Category A and B Offending
In these cases, the identity of the suspect is usually known and the purpose of the investigation is to prove the offending by:
- obtaining documentary evidence of offending from complainant
- tracing the suspect’s actions
- establishing where the money went
- executing production orders or search warrants on the suspect’s bank accounts and home to seize evidence
- interviewing the suspect.
Investigating Category C Offending
The identity of the suspect company and its principals is often known and the purpose of the investigation is to prove the offending by:
- confirming company officer details through a company search
- interviewing victims to determine the false representations and inducements made to them
- identifying, through the victims’ transactions, the details of the suspect company’s bank
- executing production orders or search warrants on the suspect’s bank accounts and premises to have evidential material produced or seized
- interviewing the suspect.
Investigating Category D Offending
In these cases, the identity of the suspect is known and a professional body may already have carried out an enquiry. There will usually be a paper trail to follow, although it may be complex. The purpose of the investigation is to prove the offending by:
- putting together the paper trail
- gathering documentary exhibits
- interviewing appropriate clients
- preparing and executing production orders or search warrants
- interviewing the suspect
- preparing the case in such a way that it can be understood by counsel and juries.
Company Deception Resources
- Police accountants and legal officers
Police forensic accountants at Auckland, Wellington and Christchurch are available to give you advice and, if necessary, to assist personally. Legal Section can be of particular help in preparing production orders, search warrants and charges.
- Ministry of Business, Innovation and Employment
- Registrar of Companies.
- Companies Office.
- Official assignee.
- Insolvency Services.
- Commerce Commission
The Commerce Commission can assist in matters relating to the Fair Trading Act 1986 and pyramid selling.
- Financial Markets Authority
The Financial Markets Authority can assist in matters relating to the Financial Markets Authority Act 2011 and the issuing of prospectuses.
- NZ Customs
Customs can assist in matters involving international travel and CAPPS alerts.
- Liquidators and receivers
These administer companies that are in liquidation or receivership. They are usually accountants.
