• Gifts, travel, and entertainment.
• Cash payments.
• Checks and other financial instruments.
• Hidden interests.
• Other illegal payments.

• Wine and liquor (consumables).
• Clothes and jewelry for the recipient or recipient's spouse.
• Sexual favors.
• Lavish entertainment.
• Paid vacations.
• Free transportation on corporate jets.
• Free use of resort facilities.
• Gifts of the briber's inventory or services, such as construction of home improvements by a contractor.

Checks and other Financial Instruments
As the scheme grows, illicit payments are made by normal business check, cashier's check, or wire transfer. Payments are disguised on the books of the payer as a legitimate business purpose, often as consulting fees. Payments may be made directly, through an intermediary (the well-known "bagman"), or through a series of such persons, entities, or accounts.

Other Illegal Payments
A number of other common methods of making illegal payments include:

• Loans.
• Payment of credit card bills.
• Transfers of assets at other than fair market value.
• Promises of favorable treatment.

1. Build the circumstantial case through interviews of cooperative witnesses and the available documentation. Often there is evidence of undue influence and some indications of unexplained wealth.

2. Use circumstantial evidence to identify and turn an inside witness (perhaps a middleman or the bribe payer) against the suspect who can provide direct evidence of payment.

3. Seal the case, identify and rebut defenses, and prove intent through examination of the suspect. For example, use the suspect's statement that he or she had no outside source of cash income to prevent him or her from contriving defenses when cash deposits are discovered later.

The financial profile will identify most illicit funds that are deposited to accounts or expended in significant amounts. It will not catch relatively small currency transactions, particularly if they were for concealed activities, consumables, or for unusual one-time expenses such as medical bills.

THE FINANCIAL PROFILE
TYPICAL ASSETS	For each significant asset, determine:
Residence Real Estate Bank Accounts Stocks/bonds Automobiles Insurance Cash on hand	Jewelry Clothing Collectibles Pensions Home Furnishings Boats	When was it acquired and from whom? How much did it cost? How was it paid for (currency, check, or cashier's check)? What source of funds was used to acquire it? What documentation exists for the purchase and where is it?
TYPICAL LIABILITIES	For each significant liability, determine:
Mortgage(s) Other loans Lines of credit Credit cards Installment purchases Accounts payable Taxes and other bills Alimony and child support	What was the original amount of the liability? What is the present balance due? When was the liability incurred? What was the purpose for the loan/debt? How were the proceeds used and where were they deposited? What security (collateral), if any, was given for the debt? What documentation exists for the transaction and where is it? Was the debt written off as a bad loan for tax purposes? Who was the creditor or lender?

The Behavioral Profile
The Behavioral Profile may provide evidence of a possible motive of the crime, such as large debts, as well as additional evidence of illicit funds. For example, if the suspect spent significant amounts of cash and had no corresponding cash withdrawals from his or her disclosed bank accounts, or no admitted sources of cash income, he or she must have other undisclosed sources of income.

Using the Financial/Behavioral Profile as a guide, the investigator should request an interview with the suspect to pin down the suspect's income, assets, and accounts. Otherwise, the suspect may invent excuses or prepare false testimony or documentation to account for the alleged unexplained income.

THE BEHAVIORAL PROFILE
TYPICAL SOURCES OF FUNDS	FOR EACH SOURCE OF FUNDS, DETERMINE:
Salary Gifts Rental income Dividends Interest Sale of Assets Insurance proceeds Commissions and fees Awards Inheritances Disability payments	What was the total amount during a given period? What was the source? How was it paid for (currency, check, other means)? When were the funds received? Where was it deposited? How was it spent? What documentation exists (i.e., W-2 or 1099 form) and where is it?
TYPICAL EXPENDITURES	FOR EACH MAJOR EXPENDITURE ITEM, DETERMINE:
Rent and mortgage Health costs Loan interest Credit cards Car payments Travel Clothing Utilities Food Insurance	What was the total amount spent? How was it paid for? Where were the funds obtained to pay the expense? What documentation exists and where is it? When was the payment made?

Gathering Evidence of Income from Illicit Transactions
The net worth method is used to prove illicit income (circumstantially) by showing that the suspect's assets or expenditures for a given period exceed that which can be accounted for from admitted sources of income.

There are two basic methods of employing the net worth method:

• Asset method.
• Expenditures method.

Asset Method
The asset method is advisable when it is suspected that the suspect has purchased assets or otherwise increased his or her net worth. The method may be applied for a period that covers any number of years. Ideally, however, it is best to start with the year before the suspected fraudulent activity began. The formula is:

	Total Assets
minus	Total Liabilities
equals	Net Worth
minus	Prior Year's Net Worth
equals	Net Worth Increase
plus	Known Expenses
equals	Total Net Worth Increase
minus	Funds from Known Sources
equals	Funds from Unknown Sources

Special attention should be paid to the following:

All assets should be valued at cost, not fair market value. Subsequent appreciation or depreciation is ignored.

• Estimate the amount of funds available generously.
• Estimate the amount of living expenses conservatively to give the suspect the benefit of the doubt.

	Base Year	Year 1	Year 2
Assets
Cash on Hand	$1,200
Bank Account Balance	$1,505	$5,520	$6,250
Jewelry	$1,200	$8,500	$16,500
Art	$2,000	$2,800	$3,500
Boat		$27,500	$27,500
Automobile			36,400
Real Estate -- House		190,000	190,000
Total Assets	5,905	234,320	280,150
Liabilities
Loan		2,800	1,000
Mortgage		129,200	114,800
Total Liabilities	0	132,000	115,800
Net Worth	5,905	102,320	164,350
Minus Prior Year's Net Worth		5,905	102,320
Equals Net Worth Increase		96,415	62,030
Plus Known Expenses
Cruise		1,800	4,200
Credit Cards		2,200	7,000
Other Living Expenses		12,250	18,250
Equals Total Net Worth Increase		112,665	91,480
Minus Funds From Known Sources
Cash on Hand		1,200
Interest on Bank Account		185	205
Wages		185	205
Interest on Bank Account		39,500	41,250
Equals Funds From Unknown Sources	$71,780	$50,025

Expenditures Method
The expenditures method is advisable when it is believed that an individual spends illicit income on consumables (e.g., travel and entertainment) that would not cause an increase in net worth. The formula is:

	Known Expenditures
minus	Known Sources of Funds
equals	Funds from Unknown Sources

An example of the expenditures method follows:

	Year 1	Year 2
Expenditures
Increase in Bank Balance	$4,015	$730
Purchase of Jewelry	$7,300	$8,000
Purchase of Art Work	$800	$700
Purchase of Boat	$27,500
Purchase of Automobile		$36,400
Down Payment on House	$50,000
Yearly Mortgage Payments	10,800	14,400
Payment for Cruises	1,800	4,200
Credit Card Payment	$2,200	$7,000
Loan Repayment	$1,200	$1,800
Other Personal Living Expenses	$12,250	$18,250
Total Expenditures	$117,865	$91,480
Minus Known Sources of Funds:
Cash	$1,200
Interest in Bank Account	$1,200
Cash	185	205
Loan	4,000
Wages	39,500	41,250
Total Known Sources of Funds	44,885	41,455
Equals Funds from Unknown Sources	72,980	50,025