White Collar Crime

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Chapter 20
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Menu
Definition of White Collar Crime
Categories of White Collar Crime
Types of White Collar Crime
Investigating White Collar Crime
Scenario- Early Retirement
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White-Collar
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White-Collar
Crime
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White-Collar
Crime
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White- Collar Crime
A business related crime
Q 1
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White- Collar Crime
A nonviolent crime
A breach of trust, confidence or duty
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White- Collar Crime
A nonviolent crime
Committed by

• An individual
• A corporation

Q 23, 24
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Identifying White- Collar Crime
Categories

• Occupational Crime
• Corporate Crime

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Occupational Crime
The use of ones occupation to illegally obtain
personal gain
Q 2
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Corporate Crime
Any activity that is undertaken by a corporation
for its benefit, but violates the law
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Corporate Crime
Any activity that is undertaken by a corporation
for its benefit, but violates the law
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Corporate Crime
Any activity that is undertaken by a corporation
for its benefit, but violates the law
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Corporate Crime
Any activity that is undertaken by a corporation
for its benefit, but violates the law
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Corporate Crime
Any activity that is undertaken by a corporation
for its benefit, but violates the law
Q 26, 28
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Menu
Definition of White Collar Crime
Categories of White Collar Crime
Types of White Collar Crime
Investigating White Collar Crime
Scenario- Early Retirement
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Categories of White-Collar Crime

• Ad-Hoc Violations
• Collateral Business Crimes

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Categories of White-Collar Crime

• Ad-Hoc Violations
• Collateral Business Crimes

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Categories of White-Collar Crime

• Abuses of Trust
• Con Games

Q 27
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Ad-Hoc Violations
Illegal activities committed by individuals for
personal gain or profit
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Ad-Hoc Violations
Illegal activities committed by individuals for
personal gain or profit
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Collateral Business Crimes
Activities by which organizations further their
business interests by violating the law
Q 8
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Abuses of Trust
Any misuse of authority or malfeasance or public
corruption
Q 3
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Con Games
Confidence or con games involve activities
designed...
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Con Games
Confidence or con games involve activities
designed...
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Con Games
To swindle people out of money or
property
100 Guarantee
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Con Games
To swindle people out of money or
property
Maybe
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Five Basic Elements

• Intent
• Disguise of Purpose
• Reliance on Victims Ignorance

Q 9, 10
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Five Basic Elements

• Voluntary Assistance from Victim
• Concealment

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Menu
Definition of White Collar Crime
Categories of White Collar Crime
Types of White Collar Crime
Investigating White Collar Crime
Scenario- Early Retirement
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Types of White- Collar Crimes

• Embezzlement and employee thefts
• Industrial Espionage

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Types of White- Collar Crimes

• Insider Trading
• Bribery, Kickbacks, Payola

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Types of White- Collar Crimes

• Tax Evasion
• Corporate Crimes

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Embezzlement
Misappropriation or Misapplication of money,
property entrusted to ones care, custody or
control
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Embezzlement
Misappropriation or Misapplication of money,
property entrusted to ones care, custody or
control
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Embezzlement
Misappropriation or Misapplication of money,
property entrusted to ones care, custody or
control
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Embezzlement
Misappropriation or Misapplication of money,
property entrusted to ones care, custody or
control
Q 11
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Industrial Espionage
Espionage work undertaken in corporate and
industrial areas to keep up with or surpass
competitors
Q 25
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Industrial Espionage
Espionage work undertaken in corporate and
industrial areas to keep up with or surpass
competitors
Q 12, 32
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Insider Trading
Employees or managers use of information gained
on the job, not generally available to the
public.
Q 29
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Insider Trading
to benefit from fluctuations in the stock market
.
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Bribe
The payment of cash, goods or services to someone
in exchange for some special service, product or
behavior
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Bribe
The payment of cash, goods or services to someone
in exchange for some special service, product or
behavior
Q 4
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Kickback
Return of a portion of the purchase price to the
buyer or a public official by the seller.
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Kickback
Return of a portion of the purchase price to the
buyer or a public official by the seller.
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Kickback
to induce a purchase or improperly influence
future purchases
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Kickback
to induce a purchase or improperly influence
future purchases
Q 13
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Payola
The offering or receiving of compensation from
one individual to another in exchange for some
favor
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Payola
The offering or receiving of compensation from
one individual to another in exchange for some
favor
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Tax Evasion

• A common form of white- collar crime
• Many Americans cheat on their tax returns by...

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Tax Evasion

• A common form of white- collar crime
• Many Americans cheat on their tax returns by...

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Tax Evasion

• Underreporting their income
• Claiming false deductions

APR15
Q 14
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Tax Evasion

• Inflating amounts of charitable deductions

APR15
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Tax Evasion
Some dishonest business people maintain multiple
bookkeeping records to cheat on their taxes
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Tax Evasion
Some dishonest business people maintain multiple
bookkeeping records to cheat on their taxes
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Tax Evasion
The tax evasion must be shown to have been
intentional
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Tax Evasion
The tax evasion must be shown to have been
intentional
Q 30
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Tax Evasion
Key Concept
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Tax Evasion
Key Concept
Willfulness
Q 5
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Corporate Crime

• Price Fixing
• Bribery, Kickbacks
• Tax evasion, Tax violations

Q 7
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Corporate Crime

• Assorted frauds
• Environmental crimes

Q 6
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Menu
Definition of White Collar Crime
Categories of White Collar Crime
Types of White Collar Crime
Investigating White Collar Crime
Scenario- Early Retirement
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Investigating White-Collar Crimes

• Difficult to prevent
• Difficult to detect
• When detected, may not be reported to police

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Investigating White-Collar Crimes

• Private sector - often handled unofficially by
  corporate whim
• Public sector - detection left to administrative
  or regulatory agency

Q 31
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Investigating White-Collar Crimes
FBI is called in when Department of Justice
receives evidence of criminal activity
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Computer Crime
Increasing because of

• Availability of computers
• Improved technological knowledge

Q 39, 40, 45
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Computer Crime
Many corporate and governmental computers have
been infiltrated by hackers
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Computer Crime
Many corporate and governmental computers have
been infiltrated by hackers
Intruder detected...
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Computer Crime
Many corporate and governmental computers have
been infiltrated by hackers
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Computer Crime
Many corporate and governmental computers have
been infiltrated by hackers
Intruder detected...
Q 33, 34, 42
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Computer Crime
1979 - U.S. Department of Justice defined
computer crime as..
Q 38
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Computer Crime
Any illegal act for which knowledge of computer
technology is essential for its perpetration,
investigation, or prosecution
Q 17
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Types of Computer Crime

• Internal computer crimes
• Telecommunications crimes
• Computer manipulation crimes

Q 41
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Types of Computer Crime

• Support of criminal enterprises
• Hardware or software theft

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Internal Computer Crimes
Any alteration to an existing computer program
that causes it to operate in a manner other that
that for which it was designed
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Internal Computer Crimes
Any alteration to an existing computer program
that causes it to operate in a manner other that
that for which it was designed
Q 15
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Computer Virus
A computer program (hidden within another
computer program) that inserts itself into
programs and applications...
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Computer Virus
A computer program (hidden within another
computer program) that inserts itself into
programs and applications...
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Computer Virus
and destroys data or halts execution of programs
Q 44
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Computer Virus
and destroys data or halts execution of programs
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Telecommunication Crimes
Involve the illegal access to or use of computer
systems over telephone lines
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Telecommunication Crimes
Involve the illegal access to or use of computer
systems over telephone lines
Q 43
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Telecommunication Crimes
Involve the use of random digit programs to
access codes for a computer system
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Telecommunication Crimes
Involve the use of random digit programs to
access codes for a computer system
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Telecommunication Crimes
Involve the use of random digit programs to
access codes for a computer system
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Telecommunication Crimes
Involve the use of random digit programs to
access codes for a computer system
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Telecommunication Crimes
Involve the use of random digit programs to
access codes for a computer system
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Telecommunication Crimes
Involve the use of random digit programs to
access codes for a computer system
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Telecommunication Crimes
Involve the use of random digit programs to
access codes for a computer system
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Telecommunication Crimes
Involve the misuse of toll-free numbers, calling
card numbers and voice mail systems
Q 35
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Telecommunication Crimes
Involve the misuse of toll-free numbers, calling
card numbers and voice mail systems
Q 16
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Telecommunication Crimes
Involve the Internet or telephone and wire lines
of financial institutions
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Telecommunication Crimes
Involve the Internet or telephone and wire lines
of financial institutions
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Telecommunication Crimes
Involve the Internet or telephone and wire lines
of financial institutions
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Telecommunication Crimes
Involve the Internet or telephone and wire lines
of financial institutions
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Computer Manipulation Crimes
Involve changing data or creating records in a
system to advance some other crime
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Computer Manipulation Crimes
Involve changing data or creating records in a
system to advance some other crime
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Computer Manipulation Crimes
Involve changing data or creating records in a
system to advance some other crime
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Computer Manipulation Crimes
Involve changing data or creating records in a
system to advance some other crime
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Computer Manipulation Crimes
Involve changing data or creating records in a
system to advance some other crime
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Support of Criminal Enterprises
Computers aid legal and illegal businesses
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Support of Criminal Enterprises
Criminals use computerized ledgers for business
dealings
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Hardware and Software Thefts
Hardware thefts of computers, monitors, scanners,
etc- fairly common
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Hardware and Software Thefts
Hardware thefts of computers, monitors, scanners,
etc- fairly common
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Hardware and Software Thefts
Hardware thefts of computers, monitors, scanners,
etc- fairly common
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Hardware and Software Thefts
Hardware thefts of computers, monitors, scanners,
etc- fairly common
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Hardware and Software Thefts
Easy to accomplish and common among people who
make software copies for friends
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Hardware and Software Thefts
Easy to accomplish and common among people who
make software copies for friends
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Hardware and Software Thefts
Easy to accomplish and common among people who
make software copies for friends
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Hardware and Software Thefts
Easy to accomplish and common among people who
make software copies for friends
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Hardware and Software Thefts
Easy to accomplish and common among people who
make software copies for friends
Q 18
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Hardware and Software Thefts
although doing so is a crime!
Q 36
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Hardware and Software Thefts
although doing so is a crime!
Q 37
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Pick Program
A computer program designed to bypass security
measures against duplication of electronic files
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Pick Program
A computer program designed to bypass security
measures against duplication of electronic files
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Investigating Computer Crimes

• Evidence can be easily lost or destroyed
• Investigators must move cautiously

Q 19
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Investigating Computer Crimes

• Need formal department guidelines for
  investigation

Q 20
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Investigating Computer Crimes

• Use extreme caution when seizing computers or
  computer equipment

Q 21, 22
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Menu
Definition of White Collar Crime
Categories of White Collar Crime
Types of White Collar Crime
Investigating White Collar Crime
Scenario- Early Retirement
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Lets Discuss...
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Early Retirement
Crystal Sparks supervisor was quite surprised at
her sudden decision to leave Sagittarius Systems
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Early Retirement
Crystals team had recently developed a software
program which allows satellites to track stolen
vehicles
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Early Retirement
Crystals team had recently developed a software
program which allows satellites to track stolen
vehicles
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Early Retirement
Crystals team had recently developed a software
program which allows satellites to track stolen
vehicles
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Early Retirement
Crystals team had recently developed a software
program which allows satellites to track stolen
vehicles
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Early Retirement
A month later, a rival, Scorpio Industries,
announced the same breakthrough
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Early Retirement
A month later, a rival, Scorpio Industries,
announced the same breakthrough
Scorpios Sky Spy
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Early Retirement
The announcement was made by Scorpios new design
chief, Crystal Sparks
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Early Retirement
The announcement was made by Scorpios new design
chief, Crystal Sparks
Crystal Does It!
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Early Retirement
Three months later, Crystal left Scorpio for an
indefinite vacation to the British Virgin Islands
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Early Retirement
...a vacation funded by profits from Crystals
investments in Scorpio stock, just before it
skyrocketed in value
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Early Retirement
The CEO of Sagittarius has publicly demanded an
investigation of Scorpios activities
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Early Retirement
The CEO of Sagittarius has publicly demanded an
investigation of Scorpios activities
CEO Cries Foul
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Early Retirement
You are the chief security officer for
Sagittarius Systems
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Early Retirement
You have contacted the local police to assist you
in investigating Scorpios involvement in this
matter
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Early Retirement
Whats Your Next Move?

• What crime or crimes, if any, have been
  committed?
• What evidence is needed to support a criminal
  charge?

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Early Retirement
Whats Your Next Move?

• What agencies, if any, would you contact for
  assistance?

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