Professional Documents
Culture Documents
Bankruptcy, Divorce,
and Tax Fraud
Chapter 16
Learning Objectives
1. Explain why fraud is so prevalent in
bankruptcy and divorce cases.
2. Describe the nature of bankruptcy and
gain a familiarity with bankruptcy
codes.
3. Understand civil and criminal
bankruptcy fraud statutes.
4. Identify the participants involved in the
bankruptcy process.
Learning Objectives
5. Recognize different bankruptcy and
divorce fraud schemes.
6. Understand how perpetrators
fraudulently conceal and transfer
assets and income in bankruptcies and
divorces.
7. Define tax fraud.
What Roles Do CPAs & Fraud
Examiners Play in Bankruptcy
Fraud?
Examiner or trustee
Serve on creditors committees &
prepare investigative reports
Assist government with investigative
report
Assist in recovering assets
Act as private investigators
Categorization Match
Fraud Causing Books or Records Being
Bankruptcy or Destroyed or Inaccurate
Divorce
During Stay Assets Are
Bankruptcy or
Transferred to Hide from
Divorce Used to
Negotiations
Do Fraud
Bankruptcy
Court Adjusters
U.S. Trustee
Debtor
Court Appointed
or Panel Creditors
Trustee Fraud
Examiner
How Does a Fraud Examiner Fit
into a Bankruptcy Proceeding?
List 7 Clues to a Bust Out.
1. Companys address & phone are P.O.
box & answering service
2. New company owned & managed by out-
of-state people or vague about
ownership
3. Sudden management change, NO
Public Notice
4. Cant verify credit references, or
references TOO eager to supply
List 7 Clues to a Bust Out.
Divorce
A planned bankruptcy