External Organisations and Company Fraud

Question 1

Outline Category A - Company Deception

Answer 1

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.

Question 2

Outline Category B - Company Deception

Answer 2

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

Also includes GST deception against the Inland Revenue Department by businesses that make false GST returns.

Question 3

Outline Category C - Company Deception

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

Outline Category D - Company Deception

Answer 4

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

Question 5

Outline External Resources Available to assist PMCCFR

Answer 5

• Police accountants and legal officers
• Ministry of Business, Innovation and Employment
• Commerce Commission
• Financial Markets Authority
• NZ Customs
• Liquidators and receivers

Question 6

The Serious Fraud Office (SFO) investigates serious or complex fraud. It must be notified of:

Answer 6

All fraud complaints with an actual or potential loss in excess of $2,000,000. The actual or potential loss must result from the fraud under investigation.

‐ All fraud complaints where the facts, law or evidence is of great complexity. Such complaints could include those involving international financial transactions, computer manipulations or other complex methods of commission.

‐ Any fraud complaint of great interest or concern; for example, fraud involving a public figure.

Question 7

SFO Notification procedure

Answer 7

Notifications must be made by Police employees who have been authorised to notify the SFO by the District Commander.

make the initial notification by telephone, send file if required.

SFO will respond in 5 days

Question 8

Arrests on behalf of the SFO

Answer 8

Serious Fraud Office investigators do not have the power of arrest. Consequently, there are occasions when Police will be asked to arrest a suspect.

Before making the arrest, the SFO must provide a written report that outlines the sufficient level of evidence necessary.

Police must not in any circumstances represent the SFO in Court.

Question 9

Bank records

Answer 9

Business records are confidential to the bank and the account holder.

Records available on the execution of a search warrant or pursuant to a production order include:
‐ details of customer cheque and EFTPOS transactions or bank statements
‐ diary notes
‐ copies of letters to a customer
‐ the cheques register which may be computerised
‐ stop payment notices
‐ cheques.

Question 10

Debt

Liability

Credit

Answer 10

A debt is money owed by one person to another.

A liability is a legally enforceable financial obligation to pay.

Credit refers to the debtor’s obligation to pay within allocated time