Company Fraud

Question 1

Category A

Answer 1

Long- scale thefts and other dishonesty offences against employers by employees

Eg. Accountants and managers who use their position to manipulate the company’s financial systems

Identity of the suspect is usually known and the purpose of the investigation is to prove the offending by:

• Obtaining documentary evidence from complainant
• Tracing the suspects actions
• Establishing where the money went
• Executing PO or SW on a suspect bank account and home to seize evidence
• Interview suspect

Crimes Act offences include:

• Dishonestly taking all using documents
• Theft by person in special relationship
• Forgery
• A, C, D, R docs
• Using altered or reproduced docs

Question 2

Category B

Answer 2

Dishonesty offences committed against financial institutions by people outside the institution obtaining money from it through deception.

Eg. GST deception against IRD by businesses that make false GST returns

In such case, the offender may be:

• Employee who covers misappropriation of money from their employer by obtaining fraudulent GST refunds to ‘replace’ the money the employee has stolen
• operator of the business

Crimes Act offences include:

• Dishonestly taking or using documents
• Forgery
• Accessing a computer for dishonest purpose
• False accounting
• False statement by promoter

Question 3

Category C

Answer 3

Commercial deception committed against the public by people who, either as individuals or through the guise of a company, entice people to invest money

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 company search
• Interviewing victims to determine the false representations and inducements made to them
• Identifying through the victims’ transactions, details of suspect company’s bank
• executing PO or SW on suspect’s bank account and premises to seize evidence
• interview suspect

Crimes Act offences include:

• false statement by promoter
• obtaining ownership, possession, control by deception
• obtaining credit by deception

Question 4

Category D

Answer 4

Dishonesty offences committed by professional people in a position of trust, such as solicitors and accountants, against their clients

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. Purpose of Investigation is to prove the offending by:

• Putting together the paper trail
• Gathering documentary exhibits
• Interviewing appropriate clients
• Executing PO or SW
• Interview suspect
• prepare case in such a way that it can be understood by counsel and juries

Question 5

Sources of assistance

Answer 5

Police accountants, legal officers

MBIE (Registrar of companies, companies office, official assignee, insolvency services)

Commerce commission (for matters re Fair Trading Act 1986, pyramid selling)

Financial markets authority (for matters re Financial Markets Authority Act 2011)

NZ Customs (matters re international travel, CAPPS alert)

Liquidators and receivers