Association of Local Government Auditors

Leads to financial frauds have been uncovered by auditors practicing their professional skepticism along with learned fraud detection tools. The case is turned over to law enforcement and the law enforcement officers properly put all the evidence together and refer that matter to the prosecutor.  The prosecutor competently obtains a conviction and the perpetrator is sent to jail by a judge based on sentencing guidelines and salient factors of the case.  Sounds like the case is complete, but wait, what about the money that the perpetrator stole.  Did the perpetrator buy a fancy new car, did he/she deposit into his/her bank account, did he/she purchase stocks/bonds; did he/she pay-off gambling markers?  Well, if the perpetrator did one of these things, then there is a good chance that the money can be seized and returned to the victim.

What if, however, the perpetrator was smart and simply converted the theft proceeds to cash and then made purchases of art or precious metals in nominee names.  What if the perpetrator purchased property through straw-buyers whose source of funds were loans from offshore corporations housed in one of many tax-haven countries.  As the techniques of the fraudster become more complex, that chances of getting these funds returned to their rightful owners diminish.

An organization has been established whose mission is to serve professionals in the public and private sector who work on behalf of fraud victims to recover the ill-gotten gains of fraudsters.  The International Association for Asset Recovery (IAAR) "is a membership organization of professionals who work to recover assets from illegal activity or unjustly withheld from their rightful owner."

By bringing together asset recovery professionals from the public and private sectors, IAAR serves its members as a clearing house/forum on best practices, innovative approaches, and new technologies that increase the chances of returning ill-gotten gains of fraudsters to the victims of fraud.  IAAR offers networking and training opportunities in the form of conferences, seminars, podcasts, and webinars conducted by recognized experts in the field of asset recovery who not only have studied asset recovery techniques but have successfully secured and returned millions of dollars to their rightful owners not only from the fraudsters themselves but from the deep-pockets of persons and entities that can be  considered agents, co-conspirators, partners, aiders and abettors, accountants, and others.  The IAAR website is a virtual library of important news, intelligence and information regarding the very latest developments.

In order for victims of fraud to identify professionals that have the demonstrated knowledge and ability to assist them in recovering assets lost to fraudsters and to assist professionals who have been successful in recovering assets for victims of fraud,  IAAR has created a certification.  The designation of Certified Specialist in Asset Recovery (CSAR) is issued to professionals who pass a rigorous, reliable, and legally defensible certification exam.  A group of dedicated experts worked with IAAR to create the psychometrically sound examination that truly tests the mettle of asset recovery professionals. Victims of fraud will rely on the CSAR certification to provide expert assistance in recovering assets misappropriated through fraud and the holders of the certificate should be individuals with a combination of experience and detailed knowledge of the law, asset freezing, investigative techniques, and legal principles. The beta-exam was given at the annual conference in November 2010 and now is offered at more than 550 IAAR-Kryterion locations worldwide, including hundreds in the United States and Canada.   IAAR has also developed written and online study guides to assist prospective candidates with preparing for the examination.

In February 2011, a government witness in a criminal case in Federal District Court took the stand and delivered his testimony qualified as a CSAR. It marked the first time an asset recovery professional has invoked the CSAR standing in court as evidence of their expertise.  The CSAR who is a retired Federal Law Enforcement Officer testified from his work as an Asset Forfeiture Contractor for a Federal Law Enforcement Agency.  The testimony supported a $2.9 million asset seizure.  A special fact in this case is that there was no cross-examination of the CSAR witness - a testimony, in part, to the strength of the CSAR designation.

The CSAR credential takes its place alongside the respected credentials issued by other professional organizations, such as those of the Association of Certified Fraud Examiners, Association of Certified Anti-Money Laundering Specialists, Institute of Internal Auditors, and National Association of Legal Investigators just to name a few.

To learn more about IAAR and the CSAR certification, visit the IAAR website at http://www.iaaronline.org/.  The information provided by IAAR can assist you as you are following your professional skepticism about a suspected fraud in your organization.  Early leads as to the disposition of the proceeds of fraud can be as critical in the successful recovery of assets as the criminal prosecution itself.