Part 1

1.Explain the difference between situational fraudsters and predator fraudsters.

2. Explain why complex fraudulent schemes involve multiple individuals, organizations and jurisdictions.

3. Explain how asset forfeiture and seizure is used to combat complex financial crimes.

4. Explain the interaction of the U.S. banking system and movement of money through the traditional monetary system.

Part 2

Your text considers asset forfeiture as one method to dismantle a fraudulent organization. Asset forfeitureis a process in which law enforcement officers take assets( including property and money) from people who are suspected of involvement with crime or illegal activity without necessarily charging the owners with wrongdoing. Many asset forfeiture laws allow law enforcement agencies to keep the confiscated property and money to use in running the agency including paying the salaries of employees. Property can be seized in most cases any time it can be shown that the property was obtained with funds from criminal enterprises ( such as a ponzi scheme) or was used to operate the criminal enterprise.

In one case a 17-year-old high school student was selling small amounts of marijuana to his friends. Police had a tip from an ex-girlfriend about this activity and followed the student. They first observed him drive his mother's car to a friend's house where he sold some to his friend. Later that week another friend came to his parent's house, where the student lived , and another sale took place. Police arrested the student. He later pled guilty to a reduced charge and was given probation. The prosecutor in the case then filed an asset forfeiture petition with the court seeking to confiscate the parent's house and the mother's car claiming that this property was used in the operation of the drug sale activity. The parents were unaware of their son's actions .

Question 1. Is the action of the prosecutor ethical ?

Question 2. Are there any situations where seizing the property of a third person would be appropriate ?

Question 3. Do you feel that it is appropriate for law enforcement officials to decide to file a forfeiture petition knowing that their agency will receive the property?

Question 4. What are your general thoughts on asset forfeiture ?