Module 11: Undermining Stories & Net Worth Method

Question 1

Net worth method

Answer 1

1. Assets - Liabilities = net worth
2. Net worth - prior year net worth = net worth increase / decrease
3. Plus living expenses = expenditure (required income)
4. Minus funds from known sources
   = Funds from unknown sources

Question 2

Expenditures method (Source and Application of
funds)

Answer 2

Focusses on spending rather than assets: spending vs. all known sources of income.
Compliments criminal detection: criminal tend to cash out their takings soon

Question 3

Bank deposit analysis

Answer 3

1. All bank deposits - transfers and re-deposits
2. Plus cash expenditure = total income.
3. Minus funds from known sources
   = funds from unknown sources

Question 4

Unit and Volume analysis

Answer 4

Estimate sales based on known purchases of consumables/other info (towels-brothel)

Question 5

Undermining stories

Answer 5

1. Cash on hand
2. Falso loan (inheritance, gift, windfall story)
3. Holding funds for someone else or as nominee for someone else (“car is insured in my name, but belongs to someone else.” –> Establish who pays for the main costs, who uses it, etc.)
4. Joint held by husband and wife —> trace the funds and examine the documentation

Question 6

Golden rule

Answer 6

Never let your suspect know your are conducting this type of analysis.