Financial Fraud Exposed: Lessons from a Former IRS Special Agent on Forensic Accounting

This session defines forensic accounting and distinguishes it from traditional accounting, emphasizing the investigative approach forensic accountants bring to legal cases. Attendees will learn about the range of services forensic accountants provide, including organizing financial records, identifying missing documents, preparing expert reports, and providing courtroom testimony.

This session covers the critical documents forensic accountants analyze, including tax returns, bank statements, financial statements, and peer-to-peer payment platforms like Venmo. Participants will understand why third-party records like bank statements are invaluable and learn techniques for comparing tax returns against actual financial activity.

Attorneys will learn to recognize warning signs of financial misconduct, including small business involvement, missing documents, single-person financial control, and lifestyle-income discrepancies. The session also introduces the fraud triangle framework of pressure, rationalization, and opportunity that explains how fraud develops.

This session presents detailed real-world case studies demonstrating forensic accounting techniques in action, including a divorce case where income was adjusted from $4,200 to $11,800 monthly. The major charity fraud investigation of former NBA player Kermit Washington illustrates embezzlement, tax fraud, and falsification of records schemes.