FORENSIC ACCOUNTING - BA Slide 18-1 Today’s Topics n Passion n Legal Resolution and Courts Overview n Criminal Litigation Process

FORENSIC ACCOUNTING - BA Slide 18-2 Caveats n I am not an attorney n Always obtain legal advice

FORENSIC ACCOUNTING - BA Slide 18-3 Legal System n State court system n Federal court system n Note the time and cost of using the legal system for resolution n Recall our earlier discussion about the lack of legal resolution

FORENSIC ACCOUNTING - BA Slide 18-4 State Courts: State and Local Laws n Lower trial courts (i.e. Municipal Court) n Superior court n Generally a function of amount of suit n Appellate Court n State Supreme Court

FORENSIC ACCOUNTING - BA Slide 18-5 Federal Courts: Federal Laws n Bankruptcy and Tax Magistrates n Tax Court and U.S. District Court n Circuit Court of Appeals (12 circuits) n 9 th Circuit (our circuit) is extremely liberal n U.S. Supreme Court

FORENSIC ACCOUNTING - BA Slide 18-6 Litigation Process n Criminal, civil or no litigation n Settlement often takes place before trial n Why do you think that is?

FORENSIC ACCOUNTING - BA Slide 18-7 Criminal Trial n Public impact n Jail, fines and restitution n 12 jurors n Unanimous verdict n Beyond a reasonable doubt

FORENSIC ACCOUNTING - BA Slide 18-8 Civil Trial n Violation of private rights n Compensation for damages n jurors n Often judge-only based hearings n Unanimity not required n Preponderance of the evidence

FORENSIC ACCOUNTING - BA Slide 18-9 Criminal Litigation Process n Defendant’s rights strictly protected n 4 th, 5 th and 6 th amendments n Federal rules of evidence and criminal procedures n Process n Filing of charges n Arresting and charging the defendant n Illegal searches preclude the use of the evidence—patience! n Preliminary hearing of Indictment by a Grand Jury n Less public disclosure via a Grand Jury n Arraignment—not guilty, guilty or “nolo contendere” n Discovery and Pre-trial Motions n Trial n Appeal

FORENSIC ACCOUNTING - BA Slide Civil Litigation Process n Investigation and Pleadings n Discovery n Requests, questions and depositions n Subpoenas n Motions n Settlement Negotiations n Trial and Appeal