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FRAUD / PERSONAL FINANCIAL PLANNING

Sue had met with a financial planner to evaluate FORENSIC INVESTIGATION, DOCUMENTS,
the couple’s income and assets. Mary and Sue also AND DATA
had several care facility interviews for George. All Jack obtained from Sue the asset planning docu-
of these meetings had excluded Jack, even though ment prepared as a result of Sue and Mary’s meeting
he had made it clear to Mary and Sue that he held with the financial planner. That document delin-
George’s power of attorney and that he wanted to eated the assets of George and Mary individually
be included in any and all care facility interviews and their monthly income sources, $3,800 and
and meetings regarding finances. $3,300, respectively.
As a married couple, George and Mary’s Jack then acquired bank statements and access
combined income did not allow George to qualify to George’s online bank account by going to the
for Veterans Administration (VA) benefits. The bank with George and being added as a signatory
financial planner Sue and Mary visited suggested to the account. Jack also had George remove Mary
that a divorce would separate George and Mary’s as a signatory on George’s bank accounts. Jack
incomes so that George could qualify. Although reviewed transactions from January 2017 through
Mary was reluctant to part with George’s income, March 2020. He found that Mary had been added
she was adamant that he be placed in a long-term- as a signatory on the account in June 2018. At
care facility, something she believed would be that time an additional debit card number with
impossible without the VA benefits. Mary told Jack withdrawals and payments to vendors appeared
she would petition for a divorce from George. on the bank statements. To establish benchmarks
Jack wondered what else he did not know about as to income, sources of income, expense amounts,
his father’s finances and decided to analyze details. and expense purposes in George’s account prior to
Jack determined the following questions would Mary being added to the account, Jack examined
guide his forensic analysis: bank transactions prior to June 2018. He also looked
■ If Mary wanted George placed into a care at the recorded checks written and found a few
facility, why would she use the needed funds for checks written to Sue before Mary was added to
other purposes? the account.
■ Where did all of George’s savings go? Jack then analyzed 778 bank transactions
■ How much money came in monthly to George’s between June 2018, after Mary was added as a
bank accounts? signatory to George’s account, and April 2020. Jack
■ How much money was spent monthly from calculated that over the 20-month period, about
George’s bank accounts and for what purposes? $76,000 of income was deposited into George’s
■ Who had access to George’s bank accounts and bank account and a little over $77,000 was paid out.
how and when did they gain access? By sorting the transactions several ways, Jack was
■ Who, other than George, actually spent money able to focus on transactions that seemed irregular
from George’s bank accounts? as compared to benchmark transactions before Mary
Jack’s initial forensic accounting of George’s was added to the account.
accounts went back a little more than three years. Jack found payments to credit card numbers
As Jack answered his guiding questions, the that he did not recognize. Further, the credit card
evidence and analysis completed a picture that payments found on George’s bank account were not
astonished him. to credit card accounts listed on his credit report.

IN BRIEF ■ CPAs can urge their elderly clients to ■ When prevention fails, the elderly
establish policies and procedures as person or family member should
■ CPAs who work with the elderly see “internal controls” to detect and prevent contact adult protective services in
multiple forms of financial exploitation. irregular transactions. their state or local law enforcement.
■ The elderly are most susceptible to ■ CPAs can suggest additional policies Resources are available to help elderly
exploitation perpetrated by family and procedures that better protect their people avoid becoming a victim or to
members or trusted individuals. elderly clients from exploitation. report abuse to authorities.
To comment on this article or to suggest an idea for another article, contact Courtney Vien at Courtney.Vien@aicpa-cima.com.

14 | Journal of Accountancy November 2022