Examine the following table and respond to the problems according to the instructions at the end:
Assume you are the lead forensic investigator for a potential fraud case at AJB, Inc. After searching public records and other Internet sources, you accumulate the following financial information for the suspected fraud perpetrator, Jaleesa P. Crimin.
YEAR 1
YEAR 2
YEAR 3
Assets:
Residence #1
$243,000
$243,000
$243,000
Residence #2
138,000
Stocks and bonds
15,000
30,000
57,000
Automobiles
27,000
52,500
52,500
Boat
34,500
34,500
CD
12,000
42,000
81,000
Cash
5,670
12,150
29,160
Liabilities:
Mortgage balance #1
136,080
68,040
16,200
Mortgage balance #2
138,000
Auto loans
18,000
57,000
Boat loan
34,500
9,000
Income:
Salary
78,750
82,650
Interest/other
8,730
17,790
Expenses:
Mortgage payments
24,300
42,120
Auto loan payments
9,720
9,720
Boat loan payments
5,670
8,100
Other living expenses
35,640
42,060
Problems:
Determine whether there is a likelihood of fraudulent income based on the review of information you were able to obtain from your Internet search. If there is a likelihood of fraudulent income, calculate the amount. (Hint: calculate potential income from unknown sources based on the unexplained increase/decrease in Jaleesa's assets and liabilities.) You must show how you calculated the amount.
As the lead forensic investigator, discuss the process that you would take during your interview with Jaleesa to get her to confess. Include specific questions that you would ask, considering the order they should be asked.
Sample Solution