FRAUD EXAMINATION
ALBRECHT, ALBRECHT, & ALBRECHT
Legal Follow-Up
Chapter 18
Learning Objectives
1. Identify aspects of the
court system.
2. Understand the civil
litigation process.
3. Understand the
criminal litigation
process.
4. Describe the nature of
an expert witness.
Outline Typical State Court
Organization – Explain.
Appeal
Lower
Court
Decisions
Highest Level Appellate Court
5-9 Judges
Intermediate Appellate or Reviewing
Court - 3 Judges per Panel
Felonies & Cases
Involving More
Than $10,000
Misdemeanors &
Pre-trial issues < $10,000
Higher Trial Courts - Circuit
Courts or Superior Courts
Lower Trial Court
Outline Typical State Court
Organization - Explain.
Housing
Court
Small
Claims
Court
These
Courts All
Deal With
Special
Issues
Probate
Court
County or
Municipal
Court
Criminal
Courts
Traffic
Courts
Juvenile
Court
Domestic
Relations
Court
Review Organization of
Federal Courts.
Appeal
Lower
Court
Rulings
Supreme Court - 7 Justices
U.S. Court of Appeals
U.S. Court of
International
Trade
U.S.
Claims
Court
Criminal & Civil Cases
Non-Bankruptcy &
Non-Tax Frauds
U.S. Court of Appeals
12 Circuits
U.S.
Administrative
Agency
U.S.
District
Court
U.S.
Bankruptcy
Court
U.S.
Tax
Court
U.S.
Magistrates
Special Issues
What Legal Action Can be
Taken for Fraud?
Why Don’t Organizations
Take Legal Action?
Too
Expensive
Too
Embarrassing
Too
Time
Consuming
Do All Cases Go to Trial?
Criminal
NO!
Civil
Out of Court Settlements
Plea Bargains
Discuss Differences
Between the 2 Court.
Criminal
Violate Laws
Guilty “Beyond
Reasonable Doubt”
Jail &/or Fines
Pay Restitution
Unanimous Jury
Decision
Civil
 Violate Private
Rights
 Complaint Filed
 Seeks Restitution
 “Preponderance
of Evidence”
 Doesn’t Have to
Be Unanimous
Describe the Civil Litigation
Process.
Investigation & Pleadings
Discovery
Motion Practice &
Negotiations
Trial & Appeal
Describe the Investigation
& Pleadings Process.
Investigation gets the facts of fraud &
amount of damages
Filing complaint with information from
above
The court’s response = motion or answer,
motion is objection – points to case’s
weaknesses
Possible counter suit with counter claims
Define Discovery &
Discuss.
Attorneys try to find all the
information they can about the
other side’s case
Time Consuming
Expensive
Comment on:
Production Requests
Interrogatories
Requests for Admission
Subpoenas
Depositions
Motion Practice & Negotiation
What Happens During Trial
& Appeal?
1. Judge & attorneys
agree on ground
rules
2. Decide if it will be a
jury trial
3. During testimony
judge determines
issues of the law
4. Judge charges jury
5. Jury decides
verdict
6. Motions
7. Judgment
Which Constitutional Relate to
Criminal Trials?
4th
5th
6th
Unreasonable
Search &
Seizures
Due Process
Jury Trial
Double
Jeopardy
Protection
Public
Defender
Requires
Probable
Cause
Protection
from Self
Incrimination
Confront
Witnesses
Call Witnesses
Speedy Trial
How Does the Criminal
Process Work?
1. Investigate – gather evidence
2. Decide to prosecute – contact DA
3. Arrest warrant or summons issued
4. Preliminary hearing or Grand Jury
arraignment
5. Discovery
6. Pretrial Motions
7. Trial & Appeal
Comment on & Discuss the
Grand Jury.
● 16- 23 People
● Has right to Subpoena
● Defendants don't have to be notified
● Defense Attorneys can't be present in court
● Indictment does not convict
What May a Defendant
Request & Obtain?
Copies of relevant statements by
defenders in government possession
Copy of defendant’s prior record
Copies of documents, tests, expert
witness’ reports or other evidence that
will be used – If requested must do
similar for prosecution
Copies of witnesses prior statements
How Do Expert Witnesses
Differ from Fact or Character
Witnesses?
What Do Expert Witnesses
Do?
1. Study the facts
2. Prepare report of
opinion
3. Be deposed by
opposition attorney
4. Work with attorney
to prepare for trail
5. Sit for direct
examination
Don’t
Bluff, Say “I
don’t Know”
Answer
Questions
Only
Appear
Authoritative,
credible
Review Dos
& Don’ts at
The Trial
Listen &
Concentrate
On
Questions
Speak Loud Enough & Fast
Enough To Be Comfortably
Heard By The Jury,
Don’t Get Too Technical
Don’t
Argue or
Quibble
Don’t
List Dos &
Don’t
Become Don’ts Of Cross Answer
Yes or No
Hostile
Examination
Don’t Lose
Your
Temper
Terms Match
Lower
Trial
Court
Enforces federal law,
established by federal
government
Federal
Court
State courts that try
misdemeanors & pretrial
issues
Bankruptcy
Court
Appellate
Court
Federal court that only
hears bankruptcy cases
Reviews lower court cases
Terms Match
Subpoena
Attorneys try to find out
information about other
side’s case
Discovery
Hearing where defendant
has charges read
Preliminary
Hearing
Court order requiring
testimony or deposition
Arraignment
Pretrial hearing to decide
if “probable cause” exists
to charge defendant with
a crime
Terms Match
Motion
Sworn testimony before
a trial
Motion for
Dismissal
Written statement given
under oath
Affidavit
Request the judge to
dismiss claim
Deposition
Response to a complaint
or pleading, or a request
made to the judge
Terms Match
Nolo
Contendere
Plea does not contest
charges or admit guilt
Voir Dire
Legal process to qualify
as expert witness
Settlement
Remedy
Negotiated pretrial
agreement to resolve
a legal dispute
Judgments asked
for in a civil case