Background Checks Down Under

Australia has a lot of great things going for it: Untamed wilderness, Vegemite, Crocodile Dundee, and of course the (often shirtless) Hugh Jackman. But when it comes to doing background checks down under – as I had to do for a recent case involving a lawyer who had some questions about her new boyfriend – I found that criminal records in Australia are much more closely guarded than they are here in the U.S.

This wasn’t the first time that I had to tackle foreign red tape: I often take for granted the access that private investigators, journalists and all other citizens have to information in the United States via private databases, public record and the Freedom of Information Act.

It is possible to do a long-distance criminal records check – but it takes substantially longer. There is a procedure to request a police check, but you have to fill out forms and register for access.

Figuring out marital status is harder: The records are arranged by territory, and requests can be made over the counter, but only the people who got married (or those with their consent) can order certificates online. A number of commercial websites claiming to provide marriage records for a fee have sprung up, but the government warns that these are scams.

Bankruptcy was easier: The Australian Financial Security Authority has a National Personal Insolvency Index, and according to the website it provides the following information:

An ‘extract’ of the NPII shows name and other personal information that identifies a debtor, the type of insolvency proceeding, the date it started, the administration number and the name and contact details of the trustee or administrator of the proceeding, as well as:

  • creditors’ petitions
  • debt agreements
  • personal insolvency agreements
  • bankruptcies
  • insolvent deceased estates
  • control orders and authorities.

According to the website, personal information is also included, such as:

  • the name, date of birth (if known), residential address and occupation of the person as disclosed on documents accepted by the Official Receiver
  • the person’s previous names and aliases, if known
  • the type of proceeding, the date it started and the administration number
  • the name and contact details of the trustee or administrator of the proceeding
  • the current status of the person and/or the proceeding (eg whether a person is discharged from bankruptcy or whether a creditor’s petition for a person’s bankruptcy is in progress).

Information on a company including business names, financial status and audits can be found at the Australian Securities and Investments Commission.

Information on military records and many different types of historical documents are maintained in the National Archives – and if you can’t visit in person, they take requests via email and give price quotes related to the specific information provided.

Why fraud investigations are ‘always business; never personal’

Whether a fraud investigation involves a complex Ponzi scheme or a crack supplier, fraud investigators would do well to remember Wesley Snipes’ famous quote in the movie New Jack City: ‘It’s always business; never personal.’ Think about it: The first thing that fraud investigators learn is the Fraud Triangle made up of Motivation, Opportunity and Rationalization.

A fraudster’s family life comes into play in at least two of these elements, and sometimes all three:  The #1 listed IRS example of corporate fraud investigations for the year 2013 involved a husband and wife team. Indeed, a suspected fraudster’s personal life is just as important to my investigation as his or her professional life.

Recently, a client came to me because she wanted to know if ‘Bob’, a high-flying tech executive whom she had loaned a large amount of money to, could afford to pay back a judgment.

Bob was the single member of an LLC and kept his own books, so she hit a brick will there. But even before pulling UCC filings and doing the rest of the asset search, a quick look at Bob’s social media told me a lot about his character. In order to understand the perpetrator, I had to go way beyond how he behaved at work and take a long, hard look at his personal life and habits.

His Instagram page featured a constant stream of Bob partying around the world on yachts, flying helicopters and chilling out in massive hotel suites. But when I checked his Facebook page, I noticed something odd: Bob had used exactly the same pictures for both, probably because Facebook stripped out the EXIF data, making his location impossible to verify.

Offline, the picture was scarier. Though Bob’s attempted to keep business and personal funds separate, he had three tax liens and an impending foreclosure on his personal property. Bob is a classic case of what I call ‘The Instagram Illusion’ : He spread disinformation to make everyone believe that he was a high roller, then convinced himself that the fraud was only temporary–until he could pay everyone back.

As for Bob – In the end, my client settled with him partly by using his own instinct for self-preservation against him – he did not want his case to go viral, where it could be spread among friends and clients.

What Chaos Theory can teach a PI

Two people meet. Sparks fly. A butterfly flaps its wings in Japan; a bored housewife makes out with her gardener in Beverly Hills. Chaos ensues. Anyone who has experienced love at first sight – or betrayal –  knows that seemingly insignificant movements can have seismic consequences in relationships.

And understanding chaos theory can definitely help detective work.

Think about it: Relationships evolve in a non-linear fashion. People get together, break up, reunite and do it all over again with different partners.

This is why a single act – (downing that fourth margarita on a third date )

can lead to a consequence (vomiting out a window)

that equals =  the relationship self-destructing.

Even the most solid couples can’t predict the strange twists of fate  – like sickness, accidents, or running into an Angelina Jolie look-alike – that can cause two people to spin off in completely different directions.

Let’s face it: As someone who takes several minutes to figure out a dinner tip, I’m not crunching numbers to find answers: Instead I turn to fictional dinosaurs for answers. In the book Jurassic Park, mathematician/rock star Dr. Ian Malcolm explains that chaos theory popped up back in the 1960s, when scientists were trying to build models to predict the weather.

But they found that, unlike the rotation of the planets, weather systems are super sensitive to changes in initial conditions. They have tons of variables, and a single element can turn sunshine into thunderstorms.

After a certain amount of time, the scientists said, the systems could no longer be predictable. Sound familiar?

Wikipedia also actually has a pretty good definition:

Chaos theory is a field of study in mathematics, with applications in several disciplines including meteorology, sociology, physics, engineering, economics, biology, and philosophy. Chaos theory studies the behavior of dynamical systems that are highly sensitive to initial conditions—a paradigm popularly referred to as the butterfly effect. Small differences in initial conditions (such as those due to rounding errors in numerical computation) yield widely diverging outcomes for such dynamical systems, rendering long-term prediction impossible in general. This happens even though these systems are deterministic, meaning that their future behavior is fully determined by their initial conditions, with no random elements involved. In other words, the deterministic nature of these systems does not make them predictable.

As an investigator, I always try to keep the following points in mind:

1) The systems have underlying order.images

Scientists say that there are actually complex patterns underneath the chaos, which is why the theory is now being used to study everything from brain waves to stock markets. Some scientists are even suggesting that extreme catastrophic events like the global financial market crashing – known as dragon king events – can be predicted and prevented.

Wired quotes physicist Daniel Gauthier as saying: “A chaotic system may be in flux, and look like random behavior. But maybe there’s some internal structure we can identify that leads to destabilizing events.”

Gauthier believes that the models could even be used to predict extreme human behavior. This could be why so many friends and family members are blindsided by so many crimes of passion, while detectives understand that once some suspects reach the tipping point, it’s only a matter of time.

2) Conversely, even simple systems can quickly become complex.

I never thought that I would cite as Ashton Kutcher movie as an illustration to unlock the universe’s mysteries – but The Butterfly Effect does a pretty good job. In the movie, his character can travel through time – so he keeps going back to try and change the disastrous effects of his past – but of course everything he does has consequences of its own, and he keeps making things worse.

Remember, relationships are non-linear by nature. Some people are destined to keep making the mistakes over and over again – and until they are ready to try and understand the patterns, it’s impossible to help them.

3) Chaos is everywhere – and everything is connected.

Sherlock Holmes is constantly using esoteric knowledge that seems to have nothing to do with the case to solve master schemes.

I have lost count of the number of times that a seemingly totally random fact has helped me crack a case. So I never feel guilty for chasing down knowledge, whether I’m reading about physics, hedge funds, Japanese table manners, or the international drug trade.

Because in a world where everything is connected, everything matters – and the depth of an investigator’s knowledge can make or break a case.

THE shoe detective

039152730003-027_1An occupational hazard of being an investigator is constantly changing my look. Possibly the biggest challenge? Finding footwear that can go from digging through garbage to an A-list party.

Since my Alaia six-inch python stilettos aren’t exactly practical on duty, I’ve turned into The Shoe Detective.

As a Twin Peaks freak, my favorite shoe right now is the Nicholas Kirkwood zig-zag leather pump (available at Net-a-Porter and Neiman Marcus for $750).

They have a rose-gold heel, and the height is a manageable 3 1/2 inches. These would be perfect to rock in court, or wear to a client meeting.

But what if I need to make a fast getaway?

36840.1.detailHigh-end designers are offering some amazing snakeskin print slip-on sneakers – but instead of dropping $750 on the Lanvin version from Barneys or almost $2k for the Rick Owens version, I picked up a pair of knock-offs by Report at Macys for $30 (they are currently on NastyGal for $48).

These are definitely my new ‘go-to’ everyday shoe: Smart enough to pair with trousers, while at the same time flat enough to break into a run.

Bonus: If my travels take me through mud, bushes or a crime scene, faux-leather is much easier to clean.

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