1. Mo Money Mo Problems Q3: Document Analysis and Counterfeiting

2. Document Altercations  Counterfeiting: Production of imitation of currency, works of art, documents, and name- brand look alikes for the purpose of deception  What item do you think is the most counterfeited?  Forgery: an item prepared with the intent to deceive or defraud  What is the most common forgery?  Fraudulence: When a financial gain accompanies a forgery

3. Types of Forgery’s 1.Blind: one made without a model of the signature or writing being used 2.Simulated: one made by copying 3.Traced: one made by copying lines thru a transparent surface

4. Types of Forgery’s 1.Which is the easiest to detect?  Blind 2.Which is the hardest to detect?  Simulated  Often the forger becomes very good. They can avoid pen lifts and hesitations 3.Why isn’t traced hardest to detect?  Microscopic examination will show indentations  Tops and bottoms analysis

5. Counterfeiting terms cont…  Exemplar: A standard document of known origin and authorship used in handwriting analysis  Questioned Document: any signature, handwriting, typewriting, or other written mark whose source or authenticity is in dispute or uncertain

7. Obliterations  Definition: removal of writing by physical or chemical means  Erasing with an eraser  Scraping off ink  UV lighting  Papers (checks for example) are coated with UV absorbers. When the surface is removed (scratching) the absorbers are affected and the check will shine

8. Frank Abagnale Jr.  Born April 27, 1948 (New York, NY)  Was am imposter for 5 years in the 1960’s.  Currently runs Abagnale and Associates (a financial fraud consultancy company)  So what did he do?

9.  At the age of 16 his parents divorced, an experience that was so traumatic for him that he ran away.  This would be the last time he ever saw his father  Lived alone in N.Y.C. His mature appearance made people think he was much older than he actually was.  Altered his license to make it appear he was ten years older than he actually was so he could get a job

10. So what did he do at your age?  First Con  Wrote himself checks on his own overdrawn account  Printing out his own checks, deposited them, and persuaded banks to advance him the money  Put his account number on deposit slips of other customers ($40,000 before discovered)

11.  Free Flights  For 2 years he masqueraded as a Pan Am pilot (Frank Williams) to get free rides around the world by dead heading.  Abagnale, M.D.  Impersonated a pediatrician in Georgia and became the resident supervisor  Almost fired after letting a baby die  Faked his way thru most of his duties by letting interns handle them

12.  As an Attorney  Forges a Harvard University Law transcript, passed the Louisiana bar exam, and got a job at the office of the state attorney general  Becoming a Professor  Forged a Columbia University degree and taught Sociology at BYU for a semester.  At the end of the term he moved to California and got engaged to a stewardess

13. “Resume”  Worked under 8 identities (used many more to cash checks)  Passed bad checks worth over $2.5 million dollars in 26 countries  Partied like a rock star

14. Arrest and Imprisonment  Arrested in France in 1969  Air France attendant recognized his face from a wanted poster  All 26 countries in which he had committed crimes wanted him to be extradited  Served 6 months in France where he nearly died  Extradited to Sweden where he served 1 year  Extradited to U.S. where he was sentenced for 12 more years

15. Legitimate Jobs  In 1974 the U.S. released him on the condition that he would help federal authorities against fraud and scams – (without pay)  Found this work unsatisfying  Approached a bank with an offer. He explained to the bank what he had done, and offered to speak to bank’s staff and show various tricks that are used to defraud banks  Word spread and he began his life as a consultant

16. Counterfeit Money

17. One of the Oldest Crimes  Serious problem in the 19 th century. Why?  Banks used their own currency  Original colonies were represented by different countries

18. Timeline  1792  “Mint Act” was passed after Revolutionary War  1 st country to adopt the decimal system for currency  Philadelphia  location where 1 st money was made  1793-1861  Over 7,000 varieties of money were put into circulation  Banks made their own money

19. First Money  1 st paper money was printed in 1861  Made up for shortage of coins during Civil War  People were hoarding them during the war  Value of items were fluctuating. Coins, made of gold and silver, never changed  Safe bet

20. Timeline Cont…  1863  United States adopt a national currency  At this time about 1/3 of the money that was circulating was counterfeit

21. United States Secret Service  1865  U.S.S.S. was established  First responsibility: To suppress currency  Today the U.S.S.S. confiscates about $80 million in phony money each year

22. Lifespan (Present)  Bills get worn out from everyday use and are taken out of circulation and replaced by the banks  $1 bills  1 year or less  48% of all paper money printed  About 16.5 million dollar bills made each day  $5 bills  1.5 years  $10 bills  1.5 years  $20 bills  2 years  $50 bills  5 years  $100 bills  9 years  Regardless of denomination each bill cost about 4.2 cents to make

23. BEP  United States Bureau of Engraving and Printing  Gov’t agency in the U.S. Dept of Treasury  Facilities in  Washington D.C.  Fort Worth, Texas  Primarily print Federal Reserve Notes  Mutilated Currency  Over 30,000 claims per year = $30 million in refunds

24. Federal Reserve Notes  Our current money today  only one that is still printed  Represents 99% of all currency circulating  1913: Federal Reserve Act  Fiat Currency  Def: money that has a value primarily because a government demands it in payments of taxes  Fiat system = system of trust

25. United States Notes

26. United States Notes cont…  In order to stimulate the economy during The Civil War the U.S. Dept of Treasury put $300 million in circulation  Last placed into circulation in 1971  This recently happened (about 6 years ago)

27. $500 Bill  President William McKinley  Series: 1928 & 1932

28. $1,000 Bill  President Grover Cleveland  1928

29. $5,000 Bill  President James Madison  1934

30. $10,000 Bill  Treasurer and Chief Justice Salmon Chase

31. $100,000 Bill  President Woodrow Wilson

32. Security  Very Specific Dimensions  2.61” wide  6.14” long  0.0043” thick  Composition  Constant changes in ink and design  Embedded with red and blue synthetic fibers evenly distributed throughout paper  Cotton and linen blend with silk  Watermarks  Design/Hologram incorporated into money

33. Federal Reserve Seal  Bears the name of the issuing Federal Reserve Bank  Letter indicates the district in which the bank is located  A = Boston (1)  B = New York City (2)  C = Philadelphia (3)  D = Cleveland (4)  E = Richmond (5)  F = Atlanta (6)  G = Chicago (7)  H = St. Louis (8)  I = Minneapolis (9)  J = Kansas City, MO (10)  K = Dallas (11)  L = San Francisco (12)

34. Serial Numbers and Star Notes  Each note of the same denomination and series (year) bears a specific serial number  When a note is mutilated while manufactured it must be replaced in the series to ensure a proper count  To print another note would be costly and time consuming  Note is given a star

35. Plate Position Letter & Number  Designates the position of the note  32 are printed on each face plate

36. Plate Serial Number  Number and letter indicate which plate the money was printed from

37. Series Date  Signifies the year the design of the particular note originated or year of a major revision  If a letter follows it that indicates a minor revision was made

38. Color copier Technology  Due to increases in color copier technology two security features were added to the Series 1990, 1993, and 1995

39. Security Threads  Thin ribbon which is threaded through the notes paper which contains text or numbers  Made of polyester  1 st appears in 1990 on $100, $50, and $20 bills  By 1993 appears on all denominations except $1 bills  Glow when exposed to ultra-violet light

40. Microprinting  Appears same time as the Security Threads  Microscopic Printing that appears to the naked eye as a solid line and could only be read using magnification  Office machine copiers and printers cannot accurately reproduce it

41. Security Series (1996 & 2004)  New elements incorporated to make U.S. currency easier to recognize as genuine and more secure against advanced reproduction technology  Same historical figures, national symbols, size, color, texture remain same

42. The $1 Bill  Treasury Dept. Seal  Balancing Scales  justice  13 stars  13 original colonies  Key  authority and trust

43. The Owl

44. The Great Seal  Tip of pyramid (all seeing eye)  United States is far from finished  Shadow cast from pyramid  the undiscovered land to the west  Rising sun  a new nation has begun

45. The Great Seal cont…  Annuit Coeptis  Annuere  to nod, approve  Coepere  to begin, undertake  “He/It favors the things that have begun”  Novus Ordo Seclorum  Seclorum  generation, age  “New Order of Ages”  Roman Num. MDCCLXXVI  1776  Declaration of Indep.

46. The Eye  Very popular amongst conspiracy theorist  Illuminati secret society  Elite set of enlightened individuals behind many events leading to a New World Order

47. The US Dollar and the Freemasons?  The Eagle’s left wing has 32 feathers (number of degrees in Scottish Rite Freemasonry)  The Eagle’s right wing has 33 feathers (there exists a 33 rd degree mason for outstanding service)  9 Tail Feathers (number of degrees in York Rite Freemasonry)  13 Stars form a five pointed star (A Masonic symbol)

48. The Heraldic Bald Eagle  Front of eagle is an unsupported shield  Symbolizes the fledging country’s ability to stand on its own  Olive branch and arrows  Symbolizes desire for peace but readiness to fight if necessary  E Pluribus Unim  From many, one

49. The Number 13  The number 13, symbolizing the 13 original colonies, is seen numerous times  13 total letters/digits in 1776 (4) and MCDDLXXVI (9)  13 stars above the eagle  13 steps in the pyramid  13 letters in Annuit Coeptis  13 vertical bars on the shield  13 horizontal stripes on the top of the shield  13 leaves on the olive branch  13 berries on the olive branch  13 arrows  13 letters in E Pluribus Unum

50. United States Secret Service  Headquarters  Washington D.C.  Over 150 offices country wide  2 nd Responsibility  “Detecting persons perpetrating fraud against our government”  Perpetrating = perform or commit  In response to  KKK  Smugglers  Mail Robbers

51. U.S.S.S. cont…  3 rd Responsibility  Protect against land fraud  Only 35 states at the time  Had to protect the United States against rebels who were looking to flee and claim land that wasn’t theirs  Protect against Revolution

52. U.S.S.S. cont…  4 th Responsibility (1894)  Protection of President  At first protection was only part time  Not until 1902 did the U.S.S.S. provide fulltime protection of the U.S. Presidents  What happened in 1902 to change this?  President McKinley is the 3 rd President to be assassinated

53. Who does the U.S.S.S. protect today? 1.Vice President’s 2.Presidential and Vice Presidential Nominees 3.Families of President and VP during Presidency 4.Widows until death or remarriage 5.Children until age of 16 (post Presidency) 6.Foreign Officials 7.Presidents elected pre Jan 1, 1997  Lifetime 8.Presidents elected after Jan 1, 1997  10 years following Presidency