Deck 18: Legal Follow-Up

Question 1

Most fraud cases are tried in federal courts.

Answer 1

The given statement is .
Explanation:
The statement is incorrect as the state and local courts do take care of fraud cases as well. Federal Courts are instituted in order to deal with cases that are subjected to Federal laws or US Constitution. Hence the fraud cases which are only associated with federal laws are dealt in federal courts.

Question 2

What is an interrogatory

Answer 2

Interrogatory:
• An interrogatory is a set of relevant queries arranged sequentially asked to the rival party for which the answers are drafted from their responses to the respective questions.
• The fraud investigators prepare the interrogatory that are to be asked and also validate the answers responded and finally present during the trial.
• The interrogatories along with the answers are needed to be submitted at the court in a time period of 30 days otherwise would result in compensation or penalties for the party who has been non-compliant.
• Interrogatories are asked to gather data or facts about an individual or an organization.

Question 3

Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raiding of Slatkin's office marked the beginning of the government's investigation of Slatkin's financial activities. In fact, Slatkin was under investigation for at least four years prior to the raid, and nearly a year and half previous to it, the SEC had already conducted a series of depositions featuring, among others, Reed Slatkin as a witness. Transcripts of two of these frauds are available online: Open http://slatkinfraud.com/depo_jan.htm (Depo 1) and http://slatkinfraud.com/depo_feb.htm (Depo 2). All page numbers refer to Depo 1 except as individually noted.
Page 3. According to Mr. Dunbar, what is the purpose of this deposition, or "investigation"

Answer 3

NO ANSWER

Question 4

In a civil trial, settlements may be negotiated: a. At any time during the litigation.
B) After arraignment.
C) At no time once negotiation begins.
D) Only after the judge orders negotiation between parties.

Question 5

The defendant can choose to have his or her case tried in either a state lower court or a state higher court.

Question 6

How are federal courts organized

Question 7

Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raiding of Slatkin's office marked the beginning of the government's investigation of Slatkin's financial activities. In fact, Slatkin was under investigation for at least four years prior to the raid, and nearly a year and half previous to it, the SEC had already conducted a series of depositions featuring, among others, Reed Slatkin as a witness. Transcripts of two of these frauds are available online: Open http://slatkinfraud.com/depo_jan.htm (Depo 1) and http://slatkinfraud.com/depo_feb.htm (Depo 2). All page numbers refer to Depo 1 except as individually noted.
Page 2. Another vital aspect of deposition is subpoena duces tecum, a written order that commands an individual or organization to produce case-related documents, which will often be used as evidence in the deposition or trial and are usually called exhibits. What two exhibits are presented in this deposition

Question 8

When deposing an expert witness, the opposing attorneys try to achieve all of the following goals except: a. Understanding the expert's opinion.
B) Understanding the expert's credentials.
C) Seeking admission of guilt.
D) Obtaining an assessment of how difficult the expert will be in the case.

Question 9

The FBI is on the trail of a drug supplier in Pineville, USA. The Feds believe that the supplier works at OHS Manufacturing, the employer of 75 percent of Pineville's citizens. The FBI asks OHS Manufacturing to assist in the investigation of one of its employees. Specifically, the FBI asks one of OHS's managers to search the employee's locker and give the FBI any illegal drugs found. OHS does not have a written policy allowing these searches or a history of performing these searches. Do you believe this action could be a possible violation of the Fourth Amendment Why or why not

Question 10

An individual committing fraud can be prosecuted either criminally or civilly, but not both.

Question 11

Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raiding of Slatkin's office marked the beginning of the government's investigation of Slatkin's financial activities. In fact, Slatkin was under investigation for at least four years prior to the raid, and nearly a year and half previous to it, the SEC had already conducted a series of depositions featuring, among others, Reed Slatkin as a witness. Transcripts of two of these frauds are available online: Open http://slatkinfraud.com/depo_jan.htm (Depo 1) and http://slatkinfraud.com/depo_feb.htm (Depo 2). All page numbers refer to Depo 1 except as individually noted.
Page 1. Name the three individuals representing the SEC.

Question 12

During a trial or deposition, expert witnesses should: a. Respond aggressively.
B) Bring notes and work papers to cite.
C) Answer questions convincingly, without hedging their answers.
D) Memorize well-crafted responses to say what they think sounds effective.

Question 13

You are involved as an expert witness in a case of alleged fraud by top management against the corporation. Supposedly, working in collusion, top management defrauded the company of $5 million over two years. The allegations suggest that the fraud involved stealing $5 million and then concealing the fraud by overstating expense accounts and manipulating balance sheet accounts.
Following the initial discovery of this alleged fraud, shareholders of the company brought a lawsuit against top management. The prosecuting attorney for the shareholders has retained you to assist as an expert witness in this case. The case has already moved into the discovery phase.
1. What will your role likely be as an expert witness At what point in the process will you be most involved What might you do to assist the prosecution as much as possible

Question 14

A request for confession asks the opposing party to admit designated facts relevant to litigation.

Question 15

A deposition is a testimony taken before the trial begins in a situation that is usually less formal than a courtroom, but in which the court rules and regulations still apply.

Question 16

Most court cases are decided in state courts, except when: a. Federal laws are in question.
B) The case involves several states.
C) The amount exceeds $100,000.
D) Both a and b are correct.

Question 17

When O. J. Simpson was tried for the murder of his wife, Nicole Simpson, he was ruled not guilty in the criminal court hearings. However, when Nicole Simpson's family sued Simpson civilly, he was ordered to compensate Nicole's family several millions of dollars. How could that be

Question 18

Investigation is the legal process by which each party's attorneys try to find all information about the other side's case before the trial begins.

Question 19

What is the purpose of having a fraud investigator or another expert witness provide testimony in a trial

Question 20

A Wall Street bond trader turned on the television one day and saw a news report accusing him of committing a large securities scam. This trader learned that his employer had accused him of creating $300 million of phony profits and, as a result, getting bogus bonuses of $8 million. He claimed he was innocent, and it took about three years for him to prove his innocence. In the months that followed the accusations, he was investigated by the SEC, the National Association of Securities Dealers, and the Justice Department. Three years later, the bond trader was cleared of all major charges brought against him.
1. Assume that you are the employer. What type of legal action would you seek against this bond trader Why
2. To what type of court would your case most likely be assigned Why

Question 21

If, during a preliminary hearing, sufficient evidence is not available to show probable cause, the defendant can still be prosecuted at a later time when more evidence is available.

Question 22

What steps are involved in the criminal litigation process

Question 23

Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raiding of Slatkin's office marked the beginning of the government's investigation of Slatkin's financial activities. In fact, Slatkin was under investigation for at least four years prior to the raid, and nearly a year and half previous to it, the SEC had already conducted a series of depositions featuring, among others, Reed Slatkin as a witness. Transcripts of two of these frauds are available online: Open http://slatkinfraud.com/depo_jan.htm (Depo 1) and http://slatkinfraud.com/depo_feb.htm (Depo 2). All page numbers refer to Depo 1 except as individually noted.
Now go to www.sec.gov/litigation/litreleases/ lr17796.htm. This SEC litigation release identifies Daniel Jacobs as a co-conspirator in Slatkin's effort to deceive the SEC. Pay close attention to the bulleted section. a. What do you learn about NAA Financial b. Who is Michel (Mitchell) Axiall

Question 24

State courts hear bankruptcy cases.

Question 25

What is a deposition

Question 26

Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raiding of Slatkin's office marked the beginning of the government's investigation of Slatkin's financial activities. In fact, Slatkin was under investigation for at least four years prior to the raid, and nearly a year and half previous to it, the SEC had already conducted a series of depositions featuring, among others, Reed Slatkin as a witness. Transcripts of two of these frauds are available online: Open http://slatkinfraud.com/depo_jan.htm (Depo 1) and http://slatkinfraud.com/depo_feb.htm (Depo 2). All page numbers refer to Depo 1 except as individually noted.
Depo 1, Pages 52-16 to 55-14; Depo 2, Pages 214-3 to 215-4. Quickly read over these discussions. Referring also to the chapter, describe briefly the role of Mr. Boltz, Mr. Slatkin's attorney.

Question 27

Which of the following actions can fraud victims pursue after sufficient evidence is obtained a. Prosecute in a criminal court.
B) Pursue civil litigation.
C) Take no action at all.
D) Two of the above.

Question 28

What is the difference between civil and criminal fraud trials

Question 29

Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raiding of Slatkin's office marked the beginning of the government's investigation of Slatkin's financial activities. In fact, Slatkin was under investigation for at least four years prior to the raid, and nearly a year and half previous to it, the SEC had already conducted a series of depositions featuring, among others, Reed Slatkin as a witness. Transcripts of two of these frauds are available online: Open http://slatkinfraud.com/depo_jan.htm (Depo 1) and http://slatkinfraud.com/depo_feb.htm (Depo 2). All page numbers refer to Depo 1 except as individually noted.
Depo 2, Page 2. Compare the number of exhibits used in Depo 1 to the number used in Depo 2. By the nature of the exhibits listed for Depo 2, why do you think the SEC employed so many more exhibits in the second part of the deposition than the first

Question 30

Having a civil trial before a criminal trial has which of the following benefits a. Defendant may make admissions during civil trial that can be used in criminal trial.
B) Greater access to documents of the defendant.
C) Defendant is not guaranteed the right to an attorney.
D) Both a and b.

Question 31

Mr. Oaks has worked as the CEO of Turley Bank for the last three years. This past year, the outside auditor discovered some fraudulent loan activity in which Mr. Oaks was circumventing internal controls to lend money to friends and family. After a thorough investigation, the board of trustees concluded that Mr. Oaks had committed more than $10 million in loan fraud. Mr. Oaks denied any wrongdoing. Now, the board is contemplating pursuing a civil case against Mr. Oaks, seeking repayment of the $10 million.
1. What are some reasons why Turley Bank would not pursue a civil case against Mr. Oaks
2. If Turley Bank decides to pursue a civil case against Mr. Oaks, what are some reasons why the bank would settle out of court before the actual trial
3. If Turley Bank decides to pursue a civil case against Mr. Oaks, what are some reasons why Mr. Oaks would settle out of court before the actual trial

Question 32

Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raiding of Slatkin's office marked the beginning of the government's investigation of Slatkin's financial activities. In fact, Slatkin was under investigation for at least four years prior to the raid, and nearly a year and half previous to it, the SEC had already conducted a series of depositions featuring, among others, Reed Slatkin as a witness. Transcripts of two of these frauds are available online: Open http://slatkinfraud.com/depo_jan.htm (Depo 1) and http://slatkinfraud.com/depo_feb.htm (Depo 2). All page numbers refer to Depo 1 except as individually noted.
Based on the chapter's explanation of depositions, do you think these three are lawyers or SEC investigators (fraud examiners)

Question 33

During cross-examination, expert witnesses should: a. Address areas outside of their areas of expertise.
B) Appreciate opposing council when they act very friendly.
C) Respond evasively and ambiguously to tough questions.
D) Maintain the same positions taken during direct testimony.

Question 34

Bobby Jones, an accountant for ABC Corporation, has been suspected of committing fraud. Some information already gathered about the fraud points to Bobby Jones as the most likely perpetrator. In his scheme, Bobby supposedly stole more than $5 million over the past three years. Due to the magnitude of the fraud and to set an example in the company, ABC decides to prosecute Bobby both civilly and criminally.
Describe what will happen to Bobby Jones during the civil litigation, including the stages of civil litigation that he and ABC will go through.

Question 35

The parties in a civil case may negotiate a settlement during any stage of litigation.

Question 36

What is/are the distinguishing factor(s) between the lower and higher state trial courts a. Amount of monetary damage.
B) Seriousness of the crime.
C) Availability of the court.
D) Both a and b.
E) All of the above.

Question 37

You are a manager for a large department store. It has recently come to light that a receiving clerk has been stealing merchandise. About $5,000 has been stolen. The clerk has stopped stealing, and the faulty internal control weaknesses that were determined to have allowed the fraud have been fixed. No action has been taken yet to punish the perpetrator, who still works at his same job. The clerk happens to be the nephew of one of the other managers, who, while he understands that his nephew's behavior was unacceptable, would like to keep the theft relatively quiet.
1. What action, if any, should be taken against the receiving clerk in this situation What consequences will probably result from that action

Question 38

An initial pleading or complaint generally includes an explanation of the alleged violation and the monetary expenses or damages sought.

Question 39

What are some of the dos and don'ts of being an expert witness

Question 40

In June 2000, the SEC brought civil charges against seven top executives of Cendant Company. The SEC alleged that these officials had, among other things, inflated income by more than $100 million through improper use of company reserves. These proceedings were a result of a longstanding investigation by the SEC of financial fraud that started back in the 1980s. In your opinion, in which stage of the criminal litigation process is this case Why

Question 41

The burden of proof necessary to prove a defendant is guilty in a criminal trial is significantly greater than that in a civil trial.

Question 42

What is discovery

Question 43

The Fourth Amendment requires that probable cause exist before a defendant is arrested or searched. Which of the following levels of evidence is necessary to show probable cause a. Less than certainty, but more than speculation or suspicion.
B) Speculation or suspicion.
C) Beyond a reasonable doubt.
D) Preponderance of the evidence.

Question 44

Civil cases must consist of a jury of at least six jurors.

Question 45

Why are depositions a powerful tool in obtaining information

Question 46

Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raiding of Slatkin's office marked the beginning of the government's investigation of Slatkin's financial activities. In fact, Slatkin was under investigation for at least four years prior to the raid, and nearly a year and half previous to it, the SEC had already conducted a series of depositions featuring, among others, Reed Slatkin as a witness. Transcripts of two of these frauds are available online: Open http://slatkinfraud.com/depo_jan.htm (Depo 1) and http://slatkinfraud.com/depo_feb.htm (Depo 2). All page numbers refer to Depo 1 except as individually noted.
Pages 134-14 to 137-17. Quickly read over this discussion. Keeping in mind that Mr. Slatkin handled investments for hundreds of "friends" but was not a registered investment advisor, and paying particular attention to Mr. Boltz's "promptings" in this section, for what reason does Mr. Boltz apparently believe his client is under investigation

Question 47

Your friend recently attended a local mail fraud trial. In your conversation about the case, she described the cross-examination of the expert witness as follows:
After his counsel's questioning was done, expert witness Matthew Little was composed and gave off a confident impression. However, when the defendant's counsel questioned him regarding a comment he made earlier, he began to argue with the questioning attorney. The attorney continued to reiterate that the testimony that he gave contradicted the events of the fraud; Matthew seemed to lose his temper. It was then that Matthew seemed exhausted and asked the judge for a quick recess.
After the quick break, Matthew regained his composure and did not seem affected by the opposing counsel's efforts to discredit his testimony. I was a little surprised that he refused to answer some questions, but he said something about it not being his area of expertise. I was impressed with his detailed explanations of the intricacies of mail fraud-he would never answer a question with a simple "yes" or "no." Other than the brief moment before the break, I thought he did a great job as an expert witness.
Having read this chapter's "dos and don'ts" of an expert witness and listening to your friend's description, answer the following questions:
1. What did the expert witness do well
2. What did the expert witness not do so well

Question 48

John Rigas (founder and CEO of Adelphia Communications Corporation) was an extraordinary man. Throughout his professional career, he was honored for his entrepreneurial achievements and his humanitarian service. Among other awards, he received three honorable doctorate degrees from distinguished universities, was named Entrepreneur of the Year by Rensselaer Polytechnic Institute (his college alma mater) and was inducted into the Cable Television Hall of Fame by Broadcasting and Cable magazine. He worked hard to acquire wealth and status. But a $2.3 billion financial fraud eventually cost Rigas everything.
Rigas and his company, Adelphia Communications, started out small. With $72,000 of borrowed money, he began his business career in 1950 by purchasing a movie theater in Coudersport, Pennsylvania. Two years later, he overdrew his bank account to buy the town cable franchise with $300 of his own money. Through risky debt-financing, Rigas continued to acquire assets until, in 1972, he and his brother created Adelphia Communications Corporation. The company grew quickly, eventually becoming the sixth largest cable company in the world with over 5.6 million subscribers.
From its inception, Adelphia had always been a family business, owned and operated by the Rigas clan. During the 1990s, the company was run by John Rigas, his three sons, and his son-in-law. Altogether, members of the Rigas family occupied a majority five of the nine seats on Adelphia's board of directors and held the following positions:
John Rigas, CEO and chairman of the board (father); Tim Rigas, CFO and board member (son); Michael Rigas, executive vice president and board member (son); James Rigas, executive vice president and board member (son); Peter Venetis, board member (son-in-law).
This family dominance in the company was maintained through stock voting manipulation. The company issued two types of stock: Class A stock, which held one vote each, and Class B stock, which held 10 votes each. When shares of stock were issued, however, the Rigas family kept all Class B shares to themselves, giving them a majority ruling when company voting occurred.
With a majority presence on the board of directors and an effectual influence among voting shareholders, the Rigas family was able to control virtually every financial decision made by the company. However, exclusive power led to corruption and fraud. The family established a cash management system, an enormous account of commingled revenues from Adelphia, other Rigas entities, and loan proceeds. Although funds from this account were used throughout all the separate entities, none of their financial statements were ever consolidated.
The family members began to dip into the cash management account, using these funds to finance their extravagant lifestyle and to hide their crimes. The company paid $4 million to buy personal shares of Adelphia stock for the family. It paid for Tim Rigas's $700,000 membership at the Golf Club at Briar's Creek in South Carolina. With company funds, the family bought three private jets, maintained several vacation homes (in Cancun, Beaver Creek, Hilton Head, and Manhattan), and began construction of a private world-class golf course. In addition, Adelphia financed, with $3 million, the production of Ellen Rigas's (John Rigas's daughter) movie Song Catcher. John Rigas was honored for his large charitable contributions. But these contributions also likely came from company proceeds.
In the end, the family had racked up approximately $2.3 billion in fraudulent off-balance-sheet loans. The company manipulated its financial statements to conceal the amount of debt it was accumulating. False transactions and phony companies were created to inflate Adelphia's earnings and to hide its debt. When the family fraud was eventually caught, it resulted in an SEC investigation, a Chapter 11 bankruptcy filing, and multiple indictments and heavy sentences. The perpetrators (namely, John Rigas and his sons) were charged with the following counts:
Violation of the RICO Act
Breach of fiduciary duties
Waste of corporate assets
Abuse of control
Breach of contract
Unjust enrichment
Fraudulent conveyance
Conversion of corporate assets
Until he was convicted of serious fraud, everybody loved John Rigas. He was trusted and respected in the small town of Coudersport and famous for his charitable contributions and ability to make friends. He had become a role model for others to follow. With a movie theater and a $300 cable tower, he had built one of the biggest empires in the history of cable television. From small beginnings, he became a multimillion-dollar family man who stressed good American values. But his goodness only masked the real John Rigas, and in the end, it was his greed and deceit that ultimately cost him and his family everything.
Questions
1. The fraud triangle consists of perceived pressure, perceived opportunity, and rationalization. How do you think John Rigas rationalized his dishonest use of company assets
2. What are other ways people rationalize fraudulent behavior
3. How would owning and operating a family business create temptations and opportunities to commit fraud
4. Based on the facts of the case, do you think this case has led to civil litigation, criminal prosecution, or both Explain your answer.
5. Suppose you were an expert witness in this case. What would be some of the facts to which you would pay special attention

Question 49

What steps are involved in the civil litigation process

Question 50

Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raiding of Slatkin's office marked the beginning of the government's investigation of Slatkin's financial activities. In fact, Slatkin was under investigation for at least four years prior to the raid, and nearly a year and half previous to it, the SEC had already conducted a series of depositions featuring, among others, Reed Slatkin as a witness. Transcripts of two of these frauds are available online: Open http://slatkinfraud.com/depo_jan.htm (Depo 1) and http://slatkinfraud.com/depo_feb.htm (Depo 2). All page numbers refer to Depo 1 except as individually noted.
Pages 7-9 to 10-13. Quickly read over this discussion. Using the explanation of subpoenas in the chapter, why are the examiners so particular in their questions regarding the subpoenaed documents

Question 51

Which of the following is not one of the common stages of a criminal case a. Filing a criminal charge.
B) Filing a complaint.
C) Discovery.
D) Trial and appeal.

Question 52

If responses to interrogatories are not given in a timely fashion, the court may charge fees and costs to a noncomplying party and issue an order demanding that all questions be answered.

Question 53

How are state courts organized

Question 54

Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raiding of Slatkin's office marked the beginning of the government's investigation of Slatkin's financial activities. In fact, Slatkin was under investigation for at least four years prior to the raid, and nearly a year and half previous to it, the SEC had already conducted a series of depositions featuring, among others, Reed Slatkin as a witness. Transcripts of two of these frauds are available online: Open http://slatkinfraud.com/depo_jan.htm (Depo 1) and http://slatkinfraud.com/depo_feb.htm (Depo 2). All page numbers refer to Depo 1 except as individually noted.
Page 1-11. Using the explanation of discovery in the chapter, what is meant by "The aboveentitled matter came on for hearing at 10:12 a.m., pursuant to notice" (italics added) (Also, see page 6-23 to page 7-7.)

Question 55

Fraud investigators can assist in a case in which of the following ways a. By preparing questions to ask opposing witnesses during depositions.
B) By evaluating whether documents produced by the opposing side satisfy a production request.
C) By assisting in the preparation of a production request because of their knowledge of a case.
D) By a and b.
E) By a, b, and c.

Question 56

John was recently convicted by a jury of committing fraud against his employer. After the trial, it was revealed that some key evidence against John used in trial was obtained through his employer's records and John's workstation computer. Before searching John's computer, the investigators did not have any evidence or idea that John was involved in the fraud. In fact, they stumbled on the fraud by accident. John is convinced that he has grounds for appeal. He believes the evidence found on his work computer is inadmissible because the investigators did not have probable cause to search his computer. 1. Is John right that he could appeal the guilty verdict
2. Were his rights violated

Question 57

What types of fraud-related things can an expert witness testify about

Question 58

Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raiding of Slatkin's office marked the beginning of the government's investigation of Slatkin's financial activities. In fact, Slatkin was under investigation for at least four years prior to the raid, and nearly a year and half previous to it, the SEC had already conducted a series of depositions featuring, among others, Reed Slatkin as a witness. Transcripts of two of these frauds are available online: Open http://slatkinfraud.com/depo_jan.htm (Depo 1) and http://slatkinfraud.com/depo_feb.htm (Depo 2). All page numbers refer to Depo 1 except as individually noted.
1. Page 1. Where was this deposition conducted

Question 59

Which of the following rights is not provided by the Fifth Amendment a. Individuals are protected from double jeopardy (being tried twice for the same crime).
B) States cannot seize private property without just compensation.
C) Individuals have the right to refuse to incriminate themselves.
D) Miranda rights must be read upon arrest.

Question 60

Answer the following two questions:
1. After being named as a defendant in a corporate fraud case, the XYZ accounting firm was found guilty of negligence and fined $25 billion. As a partner for the firm, what would you recommend as the next course of action
2. As part of the preparations for a large financial statement fraud case, you issue a production request to see the other party's bank statements. When the statements are provided to you, some of them are only photocopies. The opposing party claims that the originals were accidentally destroyed. What could you do in this situation

Question 61

An interrogatory is a series of written questions that specifically identifies information needed from the opposing party.

Question 62

To help you understand the material discussed in the chapter, do the following:
1. Give at least three characteristics of a grand jury.
2. Without looking at the list in the chapter, list at least three dos and don'ts that an expert witness should keep in mind during cross-examination.
3. During the discovery stage of a civil litigation process, several methods of obtaining information may be used. One of these methods is by taking depositions.
a. What are depositions
b. Why are depositions a powerful tool in obtaining evidence
c. What are the other three stages of civil litigation that cases usually go through in addition to discovery

Question 63

To be convicted in a criminal case, the standard of evidence is: a. Beyond a shadow of a doubt.
B) Beyond a reasonable doubt.
C) Preponderance of evidence.
D) All of the above.

Question 64

Briefly research a recent publicized fraud to become familiar with the major facts involved. Identify ways that a fraud investigator could add value in the (1) investigation, (2) legal follow-up, and (3) implementation of controls to prevent similar problems from happening in the future.

Question 65

To be successful, the plaintiff in a civil case must prove his or her case beyond a reasonable doubt.

Question 66

How are fraud examiners used as expert witnesses

Question 67

The federal courts will only hear cases that involve federal law, more than one state, or a federal statute.

Question 68

Mr. Bill is the sole proprietor of a small play-dough production company. Over the last few months, he noticed revenues dropping and started wondering what is going on. After giving it much thought, he realizes that his accountant, Mr. Pringles, has been cooking the books and stealing money from him-at least that seems to be the case. Mr. Bill is pretty upset and immediately runs down to the local courthouse and files a complaint against his accountant. Too anxious to wait for the legal process to continue, Mr. Bill decides to go to his accountant's personal residence and search for evidence of fraud. To his delight, he finds some papers that document his accountant's illegal activities.
Mr. Bill hurries to the office, where he confronts his accountant and shows him all of the papers he found at his house, informing him that a complaint has been filed. Mr. Pringles, calmly laughs and walks away, apparently not affected at all by what Mr. Bill has told him.
Explain why Mr. Pringles is not worried in the least about Mr. Bill's discovery.

Question 69

The prosecution usually prefers to present evidence at a grand jury because the accused does not have the right to hear the evidence.

Question 70

How might a fraud investigator benefit by attending the deposition of opposing experts

Question 71

Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raiding of Slatkin's office marked the beginning of the government's investigation of Slatkin's financial activities. In fact, Slatkin was under investigation for at least four years prior to the raid, and nearly a year and half previous to it, the SEC had already conducted a series of depositions featuring, among others, Reed Slatkin as a witness. Transcripts of two of these frauds are available online: Open http://slatkinfraud.com/depo_jan.htm (Depo 1) and http://slatkinfraud.com/depo_feb.htm (Depo 2). All page numbers refer to Depo 1 except as individually noted.
Page 142-2 to 144-25. Throughout the deposition, both Mr. Slatkin and his interrogators reference NAA Financial, a Swiss institution housing most of Slatkin's "friends' money." On a scale of 1-10, how confident is Mr. Boltz concerning NAA Financial
a. When asked how he can be certain that NAA Financial is "good for the money," how does he respond
b. Is Mr. Boltz's method of verification legitimate
c. Has he personally made contact
d. Who is Mitchell Axiall

Question 72

During deposition, what posture should an expert witness display