Criminology

The Pacific Development Society, a registered financial and tax company aims to further develop the economic, social and cultural situation of the South Pacific. The company is headed by Peter Lewi and Terri Vincent. The Pacific Development Society, with its accountant, Arthur Angleton, funds small - scale businesses at low rates for its operation and function.

The viability of the Pacific Development Society is assessed by the Australian Aid Bank (AAD). In July 2009, the company applied for a loan of AUD 5,000,000. The Australian Aid Bank is a private financial institution which operates with the Australian Government to validate the financial position of a company applying for loan.

The Australian Aid Bank investigated the Pacific Development Society regarding the reports about the true nature of the society. Reports show that the society is a ground for financial crimes such as fraud and corruption. The investigation required the company to provide a financial statement regarding the taxation and banking of the company. The bank worked with the Australian Government to seek for legal assistance.

This paper is a case study dealing with transnational financial crimes. The study will discuss the financial situation of the Pacific Development Society. An Investigation Management Plan is required to examine the scenario of the company. Financial statements will be assessed and reformulated in order to develop a plan on the investigation.

The statement of financial position provided an assessment of the current and non - current assets and liabilities of the company. The balance sheet provided the financial investigator with enough evidence to show the total assets and liabilities of the company.

A special initial inquiry was conducted to find out the current financial status of the company. The company has a mutual agreement with the government of Vaniji called as the Mutual Legal Assistance Agreement (MLA). A comprehensive evaluation of this agreement showed that the Pacific Development Society is a registered financial company under the Vaniji Companies and Investments Commission (MCIC). It was later found out that the Society is not a charitable organization but rather an organization listed as finance brokers and business advisors.

Furthermore, it was discovered that the company had an outstanding loan of 300,000 with the Australian Aid Bank though it was proved that the company has a balance of 75,000. The Society did not have any financial transactions with other banks or institution.

An inspection of the properties of the Society was also done. The inspection showed that the Pacific Development Societys office is vacant. Office equipments were not found in the office. It was also found out that mail transactions to the company were redirected to a location. Office expenses such as rent, water and electricity were paid using electronic funds transfer. However, this information is not helpful in the investigation.

The financial investigation was unable to locate its clients or suppliers. This implies that the Society is not famous in Vaniji or other locations in Pacific. The investigator was able to ask the banks and institutions whom the Society transacted business. It was found out that the directors of the Society, Peter Lewi and Terri Vincent, did not have a good reputation.

The investigation was a proactive type of inquiry since it requires evidences to gather information. Resources were used to obtain a logical and valid conclusion in every aspect of the case.

The objective of the investigation is to develop a plan that will analyze the financial situation of the Society. Evidences such as financial statements and inquiries were used to gather information in understanding the case.

The people involved in the investigation are the directors and the accountants of the Pacific Development Society. The issues involved in the Society are related to transnational financial crimes such as fraud and financial corruption.

Investigation will be executed overtly and covertly.  It will involve legal arrangements with some of the banks and financial institutions where the company has transacted business with. Furthermore, the companys resources will also undergo special investigation to determine the validity of the financial statements of the company. Lastly, the procedure for the investigation will be done independently since it does not require a sequential analysis.

As part of the investigation, a review of the financial position of the company is required. The Financial Investigation Team (FIT) came up with results regarding the current state of the company. Results show that the Pacific Development Society is a profitable organization which is linked to financial crimes and is considered to finance brokers.

The FIT performed inquiries on the Bank of Vaniji. This procedure is relevant for assessing the current liabilities of the company. On the other hand, the current assets of the company were also checked through a lifestyle check. The properties of the company were verified based on their financial statements.

Transactions with other banks and financial institutions were done to check if the company has direct link to illegal and unlawful sources. This procedure was also done to know if the Society has a trading record with other companies. A conclusion regarding the popularity of the Society can be drawn based from this inquiry.

This case study will require a new Statement of Financial Position bases on the results of the financial investigation. Assumptions will be made in order to validate the statements.

Based on the Statement of the Financial Position, it can be inferred that the Pacific Development Society still has an outstanding loan to the Bank of Vaniji amounting to 40,000. The company has unpaid rent and wages. This may be a result of the funds transfer which the company does since it was found out that the company has moved to a different location. Prior to the declared assets, the Society has other undeclared properties such as offices since the company was unable to be traced in its stated address.

It can also be concluded that the Society made small  scale investments since its amount ranges from 20,000 to 25,000. Thus, it can be drawn from that statement that the Pacific Development Society is not a wellknown financial institution in Vaniji and the rest of Pacific.

Irregularities in the financial statement of the company show that it is involved in financial crimes such as fraud and corruption. Legal actions should be taken as a result the findings of the Financial Investigation Team. The Pacific Development Society should be charged with fraud and other related financial crimes.

It should be as well restricted of transactions with other banks and financial institutions. Since then, transnational companies have established wide connections with different banks and financial institutions. This can be threatening to the financial situation of a bank or institution since wide and illegal acts can be made to them. Transnational companies also threaten individuals particularly women and children, for slavery. They pollute the minds of these people to commit financial crimes such as fraud and corruption.

The company should also be required to pay its loan to the Bank of Vaniji and Australian Aid Bank in any way possible upon a mutual agreement. Lastly, it will be appropriate if the Australian Aid Bank removes its recognition to the Pacific Development Society.

Effective measures in combating transnational financial crimes should be done. This can be possible by regulating the license and recognition given to financial institutions. Investigation should be open and bank secrecy should be prevented. Financial investigation units should be strengthened in order to form an effective legal institution.