Case 2

Christina and Jose Garza are in the process of getting a divorce. Christina suspects that Jose is hiding assets to keep them from being considered in the divorce settlement. She has hired a forensic accountant, Rick Harris, to investigate the possibility of hidden assets.

Christina suspects that Jose owns a property in Mexico that he has kept secret from her. Jose has traveled to Mexico on business for years. Several months ago she received a phone call from a man in Mexico who claimed to be a property manager for a property she and Jose owned in Mexico. The man gave only his first name, Julio. Julio mentioned the location of the property, but it was not a place that was familiar to Christina. She has forgotten what it was. When Julio realized that Christina knew nothing about the property, he hung up.

Christinas divorce attorney deposed Jose and asked detailed questions about the property in Mexico and the property manager, but Jose denied knowing anything about them.

During their marriage of 25 years, Jose has had high-level jobs with a multi-national corporation. Christina knew he made a lot of money, but she never knew exactly how much or about any details of the familys finances. Now she feels unprepared to negotiate in the divorce proceedings because she knows so little about the important financial information.

Write responses to the following:

1. Explain how the forensic accountant should proceed with his investigation for Christina.
2. If Jose owns a property in Mexico that he has kept secret, what do you think is the probability that the forensic accountant can discover it?