Deception - Police Instructions Manual

Question 1

Company deception - Category A

Answer 1

Large-scale thefts and other dishonesty offences against employers by employees e.g. accountants and managers who use their position to manipulate the company’s financial systems

Question 2

Company deception - Category B

Answer 2

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

Includes GST deception against Inland Revenue by people making false GST returns

Question 3

Company deception - 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.

Question 4

Company deception - Category D

Answer 4

Dishonesty offences committed by professional people in a position of trust, such as solicitors or accountants, against their clients i.e. theft by person in special relationship, using forged documents, dishonestly takes / uses document

Question 5

When must the SFO be notified?

Answer 5

1) All fraud complaints with an actual or potential loss of $2,000,000 (resulting from the fraud)
2) All fraud complaints where the facts, law or evidence is of great complexity
3) Any fraud complaint of great interest or concern i.e. involving a public figure

Question 6

Investigating deception offences - Interviewing

Answer 6

1) Interview informant / complainant (ID / descriptions of offender)
2) Contact accounts manager at bank (account holders full information, date account opened, account history, date cc/cheque reported missing and how reported, serial number / details of dishonoured cheques)
3) When account opened with fictitious details.. (date account opened, details used when acc opened, nature of first deposit, descriptions of suspect, details of employee who opened acc etc)
4) Obtain sample of suspect’s handwriting used from bank
5) When dishonoured cheques, interview acc holder and obtain.. (suspects details, date acc opened, nature/amount of first deposit, banking info - overdraft arrangements, regular deposits and general pattern of banking, whether suspect was aware of the state of the account when cheque dishonoured)
6) Contact other Police / fraud squads to establish if similar complaints
7) CCTV or photographs of suspect

Question 7

Investigating deception offences - Ongoing enquiries

Answer 7

1) Liaise with investigations officer and arrange.. (TBA of any further dishonoured cheques, bank to recover original cheques and forward to you)
2) Ensure documents handled as little as possible, for the benefit of document examiner (place on file in clear plastic bag)
3) Inform colleagues / other fraud squads.

Question 8

Investigating deception offences - Locating offender

Answer 8

1) Check any relevant addresses
2) Follow up any obvious information i.e. car regos, phone numbers
3) Photos of suspects - bulletin board, implement an early warning system if specific premise / property being targeted
4) If no suspects, consider fingerprinting

Question 9

Investigating deception offences - Arrest

Answer 9

1) Recover evidence - cards, EFTPOS terminals, equipment used for altering / interfering with electronic devices, anything capable of storing data
2) Interview suspect - obtain explanation
3) Find out suspects - knowledge of the state of the account, expectation of funds, overdraft arrangements
4) Obtain a statement and handwriting specimen
5) Issue an offender report and conduct enquiries to check suspects explanation

Question 10

Company fraud - further enquiries

Answer 10

1) Police accountants and legal officers
2) Ministry of Business, Innovation and Employment (registrar of companies, companies office, official assignee, insolvency services)
3) Commerce commission (relating to Fair Trading Act and pyramid selling)
4) Financial Markers Authority
5) NZ Customs
6) Liquidators and receivers

Question 11

SFO notification proceedures

Answer 11

• Notifications must be made by Police employees who have been authorised to notify the SFO by the DC
• Make initial notification by telephone where possible and ascertain if necessary to forward the file
• SFO will, within 5 days, consult with Police employee and advise whether the complaint is one of serious or complex fraud and whether office should investigate
• Police and SFO must try to reach agreement over which agency to carry out investigation
• If no agreement, DC must notify the Director of SFO in writing that Police intend to retain file. Director must notify Commissioner that SFO wants to assume responsibility of investigation under s11 of SFO Act. Matter to be resolved under s11.
• When complaint referred to SFO, DC must forward a report summarising the complaint to the Director: CI at PNHQ.

Question 12

Arrests - SFO investigations

Answer 12

• SFO do not have power of arrest. Police asked to make the arrest.
• SFO must provide the CIB officer a written report that outlines sufficient level of evidence to make arrest
• CIB officer must be satisfied that appropriate grounds for arrest, before action is taken
• If SFO seeks to arrest with warrant, SFO is responsible for filing the charging document and seeking warrant
• Unless SFO asks for defendant to be bailed, defendant must be held in custody until next available court hearing
• SFO responsible for filing all charging documents prior to first appearance
• Police must not represent SFO in court