As fraud examiners, we understand that seemingly proper fiduciary accountings may hide significant financial malfeasance. Aho & Associates provides fraud examinations services that can determine whether a fiduciary or executor is acting improperly and, if so, calculate the financial impact of fraudulent acts upon the entrusted assets. We can also create first and final accountings that may be required under the estate instruments or by a court.
The Red Flags that Point to Fiduciary Fraud
Shadow accounts, mischaracterized transactions, cash transactions and patterns of small transactions often lie beneath the surface of accountings by fiduciaries intent on concealing fraudulent actions. Fiduciaries may also hide their actions by purposely maintaining incomplete records or by complicating account activities so that the resulting confusion and complexity will discourage others from delving too deeply.
In probate matters, real estate is often an estate’s single largest asset. The conveyance of a house or a delay in the sale of a property can result in an accusation of mismanagement against the executor. Other potential problems involve incomplete cataloging of assets and debts, incorrect accounting of royalties, disposition of personal property at below market rates, transactions by the executor with related parties, and misappropriation of assets or proceeds.