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Asset Search Blog Investigating & Recovering Hidden Money & Other Assets

An Asset Search Via Whistleblowers & Other Tipsters

Posted in Asset Search/Fraud Investigation, Divorce & Child Support, Money Laundering, Securities Fraud, Tax Fraud

Human Intelligence & The SEC’s Whistleblower Program” examines the government’s handling of tips in its search for assets concealed by securities fraudsters.  The IRS Whistleblower Program too seeks tips from informants who help the IRS detect assets concealed in tax frauds.

Besides these whistleblower programs, tips can often be generated in a variety of ways.  “Warsaw Prosecutors Eye Possible Money Laundering At 50 Platowcowa Street” highlights a tip supplied through an anonymous letter.  This tip letter caused Polish prosecutors to launch a money laundering investigation and search for funds connected to a suspected shell company in Delaware.

An Asset Search, Tax Fraud & Divorce” meanwhile, describes how a prospective tipster was interviewed by Brian, an ex-IRS special agent and former high-ranking official at FinCEN.  Brian conducted this interview to locate marital assets believed to have been hidden by a divorcing husband suspected of tax fraud.

Mr. Benjamin’s Divorce & His White-Collar Crimes” gives the related example of a wife searching for marital assets hidden by her husband.  During her divorce, the wife gathered the husband’s business records linking him to a tax fraud.  She then provided these records to the IRS’s Criminal Investigation Division, as a tip.

Courts can also end up tipping domestic tax authorities about suspected crimes.  When the divorcing husband admitted in his affidavit that he had not paid taxes, the Court in Hashimoto v. De La Rosa, 2004 slip op. 51081 (Sup. Ct. N.Y. County, June 23, 2004) reported him to the IRS.

In Beth M. v. Joseph M., 2006 slip op. 51490 (Sup. Ct. Nassau County, July 25, 2006), the Court also tipped the IRS about a divorcing husband who testified he had not filed tax returns for the years 1997 through 2001 and other times.  Under certain circumstances, this kind of testimony could possibly lead to tax evasion charges pursuant to 26 U.S.C. § 7201.