Intelligence Analysis - Concealed Income Analysis

Concealed Income Analysis

What you'll learn

To provide basic theoretical skills and practical knowledge required to undertake a Conceal Income Analysis.

State the purpose of Concealed income analysis.

Describe what Assets and Liabilities are.

Describe what Expenses and Income are.

Explain the term Net Worth.

Calculate Net Worth and Changes in Net Worth.

Calculate an Individual’s Total Outlay.

Describe how to calculate an Individuals Concealed Income.

Calculate an individuals Conceal Income.

Requirements

Students should have basic spreadsheet skills

Description

The aim of this curse is to provide the student with the basic theoretical skills and practical knowledge required to undertake Conceal Income Analysis. A tool used by intelligence and "crime analysts when looking for discrepancies between legal income and expenditures as a potential indicator of illegal income produced from organised crime activity" (Manning, 2011; U.S. Department of Treasury). The method analyses a person's net financial worth over time and examines all sources of known income, bank accounts, and other assets (UNODC).The most famous example of the value of this technique is the prosecution of the infamous prohibition gangster Al Capone. It’s generally agreed that Al Capone’s net worth was about $100 million, or equivalent to about $1.5 billion today. Traditional methods having failed his downfall came when the US Treasury Department tried a different tack and looked at his finances.Fortunately, Capone had a weakness; like many of us he was fond of the finer things in life and liked to flaunt his wealth foolishly he made little effort to conceal it. The Treasury Department examined his bank accounts and invoices in Miami and Chicago covering a period of several years and found, among other expenditure, that he spent $7000 on clothing, $1500 per week on hotel bills, $40,000 for his home on Palm Island, $39,000 on telephone calls, and $20,000 on household silver. They were able to identify approximately $165,000 of taxable income during the period examined, the source of which he could not document (Albanese, 2014). On the 18th October 1931, Capone was convicted of tax evasion and failure to file a tax return and was subsequently sentenced to 11 years imprisonment, a record for such offences.Whilst this example is perhaps an extreme example of the techniques its value in an investigation is as great today as it was then.

Overview

Section 1: Introduction

Lecture 1 Introduction

Lecture 2 Assets

Lecture 3 Liabilities

Lecture 4 Net Worth

Lecture 5 Income & Expenses

Lecture 6 Calculating Concealed Income

This course is suitable for individuals with a law enforcement or investigative background usually working in an intelligence or financial investigation role.,Investigators who wish to make an initial assessment of the financial benefits enjoyed by an individual, group, or organisation involved in criminal activity.