| The investigation of fraud is a logical inquiry which | | | | complex solution to the case. |
| requires some training but is not as difficult as one | | | | 3. If concealment is difficult to unravel, |
| might imagine. Common sense is the most | | | | investigators should "follow the money" - |
| important tool for any investigator. Certain | | | | determine who benefited at the end of the fraud |
| attitudes and approaches on the part of the | | | | and work backwards. |
| investigator are necessary to accomplish a | | | | It is not possible to provide a planned outline |
| professional and thorough investigation. One must | | | | applicable to all investigations of fraud. However, |
| have a focused sense of direction, patience, and | | | | these are the steps that would generally be |
| determination to properly gather all the evidence | | | | followed: |
| needed. | | | | 1. Selection of statutory violations, that is, which |
| Fraud is defined as a false representation or the | | | | laws have been broken. |
| concealment of a material fact with the intent and | | | | 2. Carefully identify the elements of proof for |
| result that it be acted upon by another to his loss | | | | each statute and the method required to obtain |
| or detriment. It is making a false statement of a | | | | the evidence desired; that is, documents, |
| past or existing fact with knowledge of its falsity | | | | witnesses, and so on. |
| or with reckless indifference as to its truth with | | | | 3. Identification of the documentation required to |
| the intent to cause another to rely upon it, | | | | prove fraud. The best evidence rules require that |
| resulting in his injury. | | | | original documents be submitted when available. |
| Three main reasons for fraud investigations are | | | | 4. Identification of witnesses who can authenticate |
| to recover funds, to prevent repetition and deter | | | | records and define actions taken by the suspect |
| others, and to clear innocent people. Three | | | | that constitute fraud. |
| important rules of fraud investigators are: | | | | 5. Identification of the appropriate investigative |
| 1. Whenever possible, inquiries should be | | | | techniques to be used to obtain the desired |
| concentrated around the central issue or hub of | | | | evidence. |
| the fraud. | | | | 6. Determination of the desired outcome for the |
| 2. Investigators should not seek the most | | | | client early in the investigation. |