These organizations have been able to provide referrals for expert witnesses and other technical assistance regarding accounting and securities issues.
In addition, the Financial Crimes Enforcement Network (Fin CEN) and Dunn & Bradstreet have been able to provide significant background information on subject individuals or subject companies in an investigation.
In addition to significant financial losses to investors, Corporate Fraud has the potential to cause immeasurable damage to the U. Stock options are corporate incentives that allow the holder to purchase stock at a fixed “strike” price sometime in the future, regardless of the prevailing market price.
Generally, the strike price is the cost of the stock on the date the options were granted.
These are the identified priority crime problem areas of the Financial Crimes Section (FCS) of the FBI.
The mission of the FCS is to oversee the investigation of financial fraud and to facilitate the forfeiture of assets from those engaging in federal crimes.
Backdating stock options inflates their value to the holder at the expense of regular shareholders.
Some corporate executives have also changed their stock option exercise date (the date the option can be converted to stock) to avoid paying income tax.
When stock options are backdated, however, the date of the options is set to a time in the past when the price of the stock was lower than on the date the options were actually issued.Although Public Corruption is a national priority within the White Collar Crime Program, it will not be addressed in this report.Each section of this report provides an overview, statistical accomplishments, and case examples of the identified priority crime problems specifically addressed by the Financial Crimes Section.The FCS is divided into four units: the Economic Crimes Unit, Health Care Fraud Unit, Financial Institution Fraud Unit, and the Asset Forfeiture/Money Laundering Unit.The Economic Crimes Unit is responsible for significant frauds targeted against individuals, businesses and industries to include: corporate fraud, insurance fraud (non-health care related), securities and commodities fraud, mass marketing fraud, telemarketing fraud, Ponzi schemes, advance fees schemes, and pyramid schemes.