ABSTRACT
In previous chapters, the net worth and expenditure methods have been discussed in detail as to how to prepare and present in a court of law. ‚e forensic accountant should also know when to use them. ‚ese methods are very powerful tools in both civil and criminal cases. ‚ey are most appropriate when the subject’s lifestyle appears to be much higher than known or probable sources of income. An extreme example would be a person who lives in a $100,000 house and drives an expensive automobile but works at a fast-food restaurant making income close to the minimum wage or is not working at all. ‚ese methods are particularly applicable to organized crime šgures, narcotics tra¦ckers, and other racketeering activities. In these cases, most of the witnesses against the leaders are usually convicted criminals. ‚e best defense is to attack the credibility of these witnesses. At times, the defense wins a not guilty verdict when there is not corroboration. ‚e net worth and expenditure methods help corroborate witness’s testimony by showing the income they paid the leaders and how the leaders disposed of the funds.
