WHITE COLLAR CRIMES IN THE U.S.

The FBI says that white collar crime costs the United States more than $300 billion annually. Because white collar crime covers such a wide range of business activities, it is now described as the “illegal activities of people and organizations whose acknowledged purpose is to profit through legitimate business enterprise".

TV news and the newspapers report on an almost daily basis, the latest corporate white collar crime. Most of this crime involves financial matters, thereby involving accounting firms as well as law firms in the litigation process. However, very few law or accounting firms have the depth of staff in this specialized area to compete with the vast staffs of government personnel. Nor do these firms have the experience to mount defense strategies to successfully counter government allegations.

The major problem faced by both the accounting and legal profession is that few of these firms have forensic accounting specialists whose capabilities include the intimate knowledge of both accounting and the law, and even more important, how the two relate to each other in white collar crime legal proceedings.

William H. Frank’s practice is devoted to white collar crime and working with law firms providing wide-ranging services.

THE ACCOUNTANT'S ROLE IN THE DEVELOPMENT OF DEFENSE THEORY AND REBUTTAL IN ECONOMIC CRIMES

Federal indictments of corporation executives and professionals are structured around business transactions and the weaving of a conspiracy. The exceptional complexity of the issues is generally downplayed making it easier to propel the charges through a Grand Jury of laypeople. However, if the defendant can prepare a coherent, articulate, plausible theory of defense and properly present it to a jury during a trial, a strong position can be gained which may lead to a possible acquittal.

The utilization of a C.P.A. experienced in trial preparation can provide the attorney with an excellent tool with which he can structure and develop the case. This experienced C.P.A., with his organized presentation of the evidence, renders valuable insight in the evolution of the case as it moves towards trial.

This specialized accountant is able to analyze transactions from the overt acts claimed in an indictment and develop strategies for the defense to be incorporated by the attorney and negate allegations in the indictment. Jury comprehension of the alleged acts is usually mastered through demonstrative evidence presented and whereby an appeal is made to their logic and consideration. It is this understanding of the alleged acts that instills them with the confidence that they are reaching the correct conclusions.

When all the elements of the defense preparation are placed into a trial memorandum, the valuable components of the defense theory can be orchestrated into the opening and closing statements of the attorney. It is of great importance that the presentation is properly sequenced.

The presentation of the Theory of Defense at the level of jury comprehension is imperative. The accountant’s specific training of analyzing and explaining transactions to the public and other recipients provides him with the experience of reducing complex allegations to simplified coherent explanations for the layperson.

In order for the battle to be won, a sound strategic plan has to be effectively implemented. By combining the discipline of the C.PA. and the ability of the attorney, a dynamic defense can be structured.

Mr. Frank has personally represented defendants and worked closely with attorneys to achieve vibrant, effective defense teams.

© 2005 William H. Frank C.P.A.