Emerald | Journal of Financial Crime | Table of Contents

Reaching the parts other investigations cannot reach: securing convictions for organised crime through financial investigation

literatinetwork@emeraldinsight.com (Rick Brown) — Fri, 12 Jul 2013 00:00:00 +0100

Abstract

Purpose - This paper examines 12 cases in which financial investigation was used in the UK to secure a conviction of an organised crime group. Importantly, no conviction would have been achieved in these cases without the use of financial investigation.Design/methodology/approach - Qualitative interviews were undertaken with investigating officers / financial investigators / prosecutors associated with 60 cases in which a conviction and subsequent confiscation order were achieved. Of these 60 cases, a conviction would not have been achieved without the use of financial investigation in 12 cases. In other cases (not examined here) financial investigation played a supporting role for other methods of investigation to achieve a conviction. This paper provides a reanalysis of the 12 cases concerned.Findings - The study shows that financial investigation was often introduced at the pre arrest stage in an investigation, although there were still opportunities to introduce financial investigation earlier in the case in some instances. While a range of different types of criminality were investigated, all 12 were eventually convicted of financial crime.Research limitations/implications - The research was limited by the small number of cases examined and by the fact that it relied on the recollections of those involved in the cases, rather than analysis of case files. Further research should examine a wider range of cases in which a conviction was secured solely through financial investigation.Originality/value - This paper is the first to analyse cases in which convictions for organised crime would not have been achieved without financial investigation.

Analysis on the New Types and Countermeasures of Credit Card Fraud in Mainland China

literatinetwork@emeraldinsight.com (Feng Bai, Xiangmin Chen) — Fri, 12 Jul 2013 00:00:00 +0100

Abstract

Purpose - The research on analysis on the new type and countermeasures of credit card fraud in mainland China mainly aims to take a comprehensive approach to fight against fraud and place a strong emphasis on fraud prevention conducted in the best interests of financial institutions, card holders, merchants and law enforcement authorities to keep fraud from happening in the first place and to give more information on anti- credit card fraud best practices.Design/methodology/approach - In this paper, we analyzed the relevant definitions in Chinese statutes and ordinances, the new types of credit card fraud occurred in China in recent years and what would be the effective countermeasures to fight against and prevent them. It was completed based on many references and extensive survey in police organs in China.Findings - With the credit card more and more widely used in mainland China as a most prevalent means of payment and settlement, the credit card crime has been rapidly increasing in accompany, with more fraudulent and disguised feature which adds to the complexity and difficulties of the work on its combating and prevention. Originality/value - Hopefully, it explores for the best to detect and combat credit card fraud crimes and can contribute to the healthy growth of bankcard industries, meanwhile calling for the involvement of the concerted efforts of the banks, merchants, the public and the law enforcement personnel.

In-House Counsel Claims Against a Cororate Employer and Access to Privileged Corporate Communications: An Analysis and A Proposal

literatinetwork@emeraldinsight.com (John William Gergacz) — Fri, 12 Jul 2013 00:00:00 +0100

Abstract

Purpose - Evaluate in-house counsel's dual role in the context of an wrongful discharge claim against his corporate employer and its effect on privileged corporate communications. Design/methodology/approach - legal research and analysisFindings - multipart factors test proposed focusing on three areas: first, rationale for discharge; second, in-house counsel's claim; and third, risks to privileged corporate information. Originality/value - Create new means to evaluate corporate privilege and in-house counsel access

External reactive detection v Internal proactive prevention. The holistic approach to integrate change

literatinetwork@emeraldinsight.com (Robin Dyer) — Fri, 12 Jul 2013 00:00:00 +0100

Abstract

Purpose - All members of staff up to the Chairman of the Board now get daily briefings of the serious issues within the financial sector. Headlines are commonly quoting regulatory fines, once in the thousands and now in the millions. Errors or poor working practice have resulted in fundamental issues which need to be addressed, however pressure often results in immediate solutions being required to address those visible problems without setting in place necessary changes to business developments and working practice. This paper suggest that through excessive external pressure the solutions are less effective if not integrated with existing procedures and therefore fails to embracing the whole business model and its operations. Design/methodology/approach - Case analysis and field work.Findings - Internal business controls are fundamentally important to the process of risk mitigation and established over many years. Any changes made to address deficiencies must be integral to both existing policies and procedures and IT systems to ensure permanent and positive improvement rather than potential ebb and flow associated with isolated reactive solutions. Research limitations/implications - Information regarding the case study information comes only from public sources mainly written media reports and is not confirmed by any confidential data known to the author. Originality/value - This study provides insights into true progress of regulatory control and the ability to address exposure and risk at the business level

Intelligent Investigations – the use and misuse of intelligence – a personal perspective

literatinetwork@emeraldinsight.com (Barry Rider) — Fri, 12 Jul 2013 00:00:00 +0100

Abstract

Purpose - This paper addresses in a comparative context the role of intelligence in law enforcement and in particular the significance of intelligence led policing. Design/methodology/approach - The discussion is based on the experience of the author over the last forty years in working in and with law enforcement authorities in a number of countries in establishing specialised agencies and units to address serious and complex criminal activity. The paper was presented as a key note address at a inter-governmental meeting in Buenos Aires in July 2012 of prosecutor generals and senior prosecutorial officials in South America.Findings - The role of intelligence is seen as of critical importance to the efficacy of such initiatives. Drawing on his experience the author poses some serious questions as to whether what is normally understood by the concept of intelligence led policing is correct. Research limitations/implications - The personal observations of the author will hopefully contribute to the discussion of an important aspect of law enforcement upon which very little has been written from the perspective of the intelligence communityPractical implications - The author looks in particular at the difficulties that have arisen as a result of the inter-action of different aspects of the legal system, for the flow and reliability of financial information. In particular he addresses a number of recent cases before the English courts on the liability of those who handle other people’s wealth.Originality/value - The author looks in particular at the difficulties that have arisen as a result of the inter-action of different aspects of the legal system, for the flow and reliability of financial information. In particular he addresses a number of recent cases before the English courts on the liability of those who handle other people’s wealth.

"But We Had Obtained Professional / Legal Advice!" - The Disclosure Conundrum And Directors’ Dilemma.

literatinetwork@emeraldinsight.com (Aiman Nariman Mohd. Sulaiman) — Fri, 12 Jul 2013 00:00:00 +0100

Abstract

Purpose - In recent enforcement actions by several capital market regulators in some common law jurisdictions, the issue of directors’ reliance on legal advice in relation to compliance with their statutory duties have been raised. This paper discusses the dilemma faced by directors and regulators in assessing the extent to which reliance on legal advice can provide sufficient protection against allegation of breach of directors’ duties and the disclosure obligation.Design/methodology/approach - This paper discusses recent case studies that highlights the often conflicting regulatory stance.Findings - These cases indicate that the disclosure conundrum is a real challenge to regulators and directors alike. These enforcement activities have resulted in mixed views as to whether these decisions have rightly upheld the standard of care expected to be exercised by directors’ or are unduly burdensome and not pragmatic for honest and well-meaning directors. Research limitations/implications - The legal position is still evolving in view of the numerous regulatory action in various jurisdictions regarding financial reporting and disclosure obligation of directors and corporationsOriginality/value - Given the numerous disclosure and reporting obligations that a listed company must comply with and the regulatory enforcement actions that may be taken against the directors, it is important for directors to understand the implication of this case and similar enforcement activities on directors’ oversight duty.

Shopping fraud victimization among the elderly

literatinetwork@emeraldinsight.com (Michael D Reisig, Kristy Holtfreter) — Fri, 12 Jul 2013 00:00:00 +0100

Abstract

Purpose - This study investigates whether low self-control and routine activity theories explain fraud outcomes among the elderly. Specifically, the effects of low self-control and remote purchasing behaviors on shopping fraud targeting and victimization are empirically assessed.Design/methodology/approach - Cross-sectional survey data from telephone interviews conducted in Arizona and Florida are used. A total of 2,000 adults aged 60 and over were surveyed. Because selection bias was observed, a two-stage probit regression model was estimated to assess theoretical hypotheses in a multivariate context.Findings - The results demonstrate that two forms of remote purchasing—telemarketing purchase and mail-order purchase—increase the probability of shopping fraud targeting. Infomericial purchase and mail-order purchase are significant correlates of shopping fraud victimization. The probability of becoming a target and victim is affected positively by reduced levels of self-control. The effects of demographic characteristics on fraud outcomes are null.Research limitations/implications - This research lends support to the argument that low self-control and routine activity theories shed light on fraud victimization among elderly consumers. Future research should examine the influence of low self-control, individual routines and lifestyles on other forms of victimization that the elderly experience.Practical implications - The findings underscore the need for fraud prevention and increasing public awareness among elderly consumers.Originality/value - This is the first study to examine shopping fraud targeting and victimization of the elderly in a broad theoretical context.

Arab fraud and corruption professionals’ views in the Arabian Gulf

literatinetwork@emeraldinsight.com (Khalid Farooq, Graham Edward Brooks) — Fri, 12 Jul 2013 00:00:00 +0100

Abstract

Purpose - Purpose – Highlight Arab counter fraud and anti-corruption professionals’ attitude towards fraud in the Arabian Gulf Design/methodology/approach - Design/methodological approach – 5 semi-structured interviews with counter fraud anti-corruption employees in the public sector in the Arabian Gulf Findings - Findings – This paper shows that Arab counter fraud and corruption employees are critical of present strategies in the Gulf region Research limitations/implications - Research limitation/implications – Limited number of people interviewed Originality/value - Originality – Interviews with key counter fraud and anti-corruption personnel of Arab origin in Gulf region