ACG 4931—Fraud Examination

douglas and susan clark case study

DOUGLAS AND SUSAN CLARK CASE STUDY

ITEM 1 - FACT SHEET

SCENARIO DIRECTIONS:
You receive an anonymous tip that
Douglas and Susan Clark are the Using the following facts, you need to
masterminds behind an identity theft complete a net worth analysis for Doug and
Susan Clark for the years 2014, 2015, and
fraud ring that has bilked consumers 2016 arriving at the figure for funds from
out of millions of dollars. As a first unknown sources for each year.
step in your investigation, you decide
to develop a financial profile of your • The Clarks had personal
targets by determining what they own, credit card charges as
owe, spend, and earn. Accordingly, follows:
you interview Mr. Clark and gather the 2014 - $31,110
necessary documents for completing 2015 -$35,284
a net worth analysis of Douglas and
2016 - $36,758
Susan Clark.

•During an interview with Clark,

he admitted that he and his wife
always have at least $8,000 in
cash on hand.

• In 2013 the real estate transfer fee rate

was $3.00 per $1,000 paid.

The following page contains a

summary of the documents gathered:

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DOUGLAS AND SUSAN CLARK CASE STUDY
SUMMARY OF DOCUMENTS

Item No. Description

1 Fact Sheet
2 Deed for purchase of house
3 Ventura Savings and Loan - home mortgage account summary
4 Ventura Savings and Loan - application (2 pages}
5 Sierra RV - invoice
6 Fallon Auto Mall - invoice
7 Los Angeles Wheels - invoice
8 Somerset Savings and Loan - loan statement
9 Fulton Pools and Spas - invoice
10 Teton Boat Sales - invoice
11 Todd's Jet Skis - invoice
12 Walker Bank - savings account statement (account #889765 dated 1/15/14)
13 Walker Bank - savings account statement (account #889765 dated 1/15/15)
14 Walker Bank - savings account statement (account #889765 dated 1/15/16)
15 Walker Bank - savings account statement (account #889765 dated 1/15/17)
16 Walker Bank - checking account statement (account #800643 dated 1/15/14)
17 Walker Bank - checking account statement (account #800643 dated 1/15/15)
18 Walker Bank - checking account statement (account #800643 dated 1/15/16)
19 Walker Bank - checking account statement (account #800643 dated 1/15/17)
20 Federal Tax Return - 2014 (4 pages}
21 Federal Tax Return - 2015 (4 pages}
22 Federal Tax Return - 2016 (4 pages}
23 IRS tax transcript for 2013
24 IRS tax transcript for 2014
25 IRS tax transcript for 2015
26 IRS tax transcript for 2016
27 Affidavit of Harriet Lyon
28 Affidavit of Kevin Jasper
29 Affidavit of Donald Stokes, MD
30 Affidavit of Allen Manchester, DDS
31 Crockett University -tuition statement for 2014
32 Crockett University -tuition statement for 2015
33 Crockett University -tuition statement for 2016

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 2 - DEED FOR PURCHASE OF HOUSE

DOCUMENTARY TRANSFER TAX $ 1,104.00

Computed on the consideration or value of property conveyed; OR
Computed on the consideration or value less liens or encumbrances 271540
remaining at time of sale.

James Gilman Hickory Title Company

Signature of Declarant or Agent determining tax - Firm Name

GRANT, BARGAI N, SALE DEED

THIS INDENTURE WITNESSETH; That

COLBY HOMES OF CALIFORNIA, A PARTNERSHIP

for a valuable consideration, the receipt of which is hereby acknowledged, do hereby Grant, Bargain, Sell and

PROPERTY.

all that real property situate in the CITY OF LOS ANGELES County of LOS ANGELES
State of California, bounded and described as follows:

LOT 22 BLOCK A of GRAND BANKS UNIT TWO, filed in the office

of the County Recorder of Los Angeles County, State of California, on
June 9, 2006, as File No. 2169133.

SUBJECT TO: Taxes for the fiscal year 2007-2008 paid current;
Limitations, covenants, conditions, restrictions, reservations,
easements, liens and charges in an instrument recorded August 8,
2003, as Document No. 847122, in Book 1027, Page 481 of
Official Records, Los Angeles County, California. An instrument
declaring modifications of same was recorded August 29, 2003; as
Document No. 946585, February 8, 2004, as Document No. 278124;
April 17, 2004, as Document No. 891115; and April 3, 2005 as
Document No. 1562690, re-recorded April 8, 2005, as Document No.
1065032.

Covenants, conditions, and restrictions in an instrument recorded

December 14, 2006, as Document No. 2212502, in Book 1150, Page
625 of Official Records.

GRANTOR EXPRESSLY reserves unto itself and assigns all water

and mineral rights whether decreed or permitted, appurtenant to
the real property described herein.

Together with all and singular the tenements, hereditaments and appurtenances thereunto belonging or in anywise
appertaining.

Witness my hand this 7th day of August ,20 13

STATE OF CALIFORNIA
COUNTY OF LOS ANGELES

On 08/7/13 ESCROW NO. RECORDER'S

ORDER NO. 17276 INSTRUMENT NO. _
personally appeared before me, a Notary Public.

Vickie Nye
authorized agent for Colby Homes

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 3 - VENTUR A SAVINGS AND LOAN / HOME MORTGAGE ACCOUNT SUMMARY

VENTURA
Yearly Mortgage Account Summary

Account Name Clark, Douglas Loan Amt. 330,000.00

Loan # A80G007 IInt. Rate 7.25%
Date of Loan 08/07/2013 Payment Amt. 3,012.44
Property Address 1234 McKenry Lane First Pmt Due 09/01/2013
City Los Angeles Term 180 Months
County Los Angeles Escrow Acct. M
Noneh
State California

PAID TO INTEREST PAID TO PRINCIPAL PRINCIPAL BALANCE

12/31/13 $7,937.92 $4,111.84 $325,888.16

12/31/14 $23,202.28 $12,947.00 $312,941.16
12/31/15 $22,231.76 $13,917.52 $299,023.64
12/31/16 $21,278.42 $14,870.86 $284,152.78

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 4 – VENTURA SAVINGS AND LOAN / APPLICATION

VENTURA SAVINGS AND LOAN

PLEASE FILL IN THE FOLLOWING INFORMATION REGARDING:

TOTAL AMOUNT REQUESTED $ 330,000

-FIXED RATE LOAN
X .EQUITY BUILDER (Owner occupied property only)
HOME EQUITY LOAN FOR MONTHS _ HOME EQUITY LINE OF CREDIT INCREASE
FUNDS TO BE USED FOR THE PURPOSE OF (Complete all applicable boxes: total(s) must equal total amount requested)
X HOME PURCHASE $ 368,000 HOME IMPROVEMENTS $ _OTHER (DESCRIBE)
_REFINANCE OF AN EXISTING MORTGAGE$
ADDRESS OF PROPERTY SECURING LOAN 1234McKenry Lane CITY Los Angeles STATE CA__
NOTE: Product and pricing will be determined by state inwhich property securing loan is located.
X Primary residence Second home Investment/rental property
You may apply for an individual account regardless of your marital status. This application is _ in your name alone _x_ joint with your spouse, or joint with a co-applicant
who is not your spouse.
Homeowner's Insurance Co. Name: NASH Policy No. 123456789
Agent Name: John Elko Agent Phone No. 213-999-0000

FIRST MIDDLE LAST -JR FIRST MIDDLE LAST -JR

NAME Douglas INITIAL NAME Clark NAME Susan INITIAL NAME Clark -SR
-SR
DATE SOCIAL DATE SOCIAL
OF BIRTH 03/8/71 SECURITY # 000-00-1769 OF BIRTH 02/06/73 SECURITY # 000-00-3985 .
MARITAL STATUS.X.MARRIED UNMARRIED (including single, divorced, and widowed) _SEPARATED MARITAL STATUS.X.MARRIED UNMARRIED (including single, divorced, and widowed) _SEPARATED
CURRENT CURRENT
ADDRESS 3434 Pitkin Blvd # 110B ADDRESS Same # 110B
CITY Los Angeles COUNTY Los Angeles CITY COUNTY
TIME TIME
STATE CA ZIP 89511 THERE 7YRs1MOS. OWN X.RENT STATE ZIP THERE YRs1MOS. OWN X.RENT HOME

# DEPENDENTS OTHER HOME # DEPENDENTS

PHONE 213-888-0000 THAN SELF OR SPOUSE I PHONE NOT SHOWN ON LEFT
(other than self or spouse)
BEST TIME/PLACE BEST TIME/PLACE
TO CALL YOU MORNING AFTERNOON XEVENING XHOME WORK TO CALL YOU -MORNING _AFTERNOON _EVENING _HOME - WORK
PREVIOUS APT TIME PREVIOUS APT TIME

- --
CURRENT WORK CURRENT WORK
EMPLOYER Self Employed PHONE 213-667-0000 EMPLOYER Housewife PHONE
EMPLOYER'S EMPLOYER'S
ADDRESS 3434 Pitkin Blvd, #110 B ADDRESS
CITY Los Angeles STATE CA ZIP 89511 CITY STATE ZIP
TIME YEARS TIME YEARS
THERE 5YRS. 6 MOS. OCCUPATION 14 THERE YRS. MOS. OCCUPATION
I
N FIELD IN FIELD --
PREVIOUS EMPLOYER PREVIOUS EMPLOYER
(if at current employer (If at current employer
less than two years) Harvard Engineering OCCUPATION Engineer less than two years) OCCUPATION

TIME TIME
THERE 8YRS. 6 MOS. ADDRESS 12334 S.nead Blvd THERE YRS. MOS. ADDRESS

CITY Ventura STATE CA ZIP 8951 CITY STATE ZIP

MONTHLY GROSS SALARY AND WAGES $ 10,000 MONTHLY GROSS SALARY AND WAGES $ 0

DIVIDENDS AND INTEREST $ 100 DIVIDENDS AND INTEREST $ 0

OTHER INCOME(DESCRIBE)' $ 0 OTHER INCOME (DESCRIBE)' $ 0

(1) YOUR MONTHLY INCOME $ 10,100 (2) CO-APPLICANT'S MONTHLY INCOME $ 0

TOTAL INCOME (1 PLUS 2) $ 10,100
*Alimony, child support or separate maintenance income need not be listed unless you wish it to be considered in evaluating this application.

The bank will report tax information in the name of one borrower only. In whose name do you wish to have it reported? Douglas Clark 000-00-1769
Name Taxpayer Identification

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 DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 4 - VENTUR A SAVINGS AND LOAN / APPLICATION

List assets and liabilities for both you and your co-applicant. If married, we will assume all assets are community property and all debts are
community obligations unless you indicate otherwise. Attach a separate sheet if necessary.
ASSETS LIABILITIES - Check if to be repaid with
this loan’s proceeds
DESCRIPTION CASH OR CREDITOR’S NAMES, ADDRESSES, ACCOUNT NOS. + MONTHLY PMT AND MOS UNPAID
MARKET LEFT TO PAY BALANCE
VALUE
CHECKING AND SAVINGS ACCOUNTS DEBTS (include "revolving" charge accounts) $ Pmt./Mos $ 0.00
(show name of institution and
account number) Walker Bank
$
(checking) 800643 2,000
(savings)
(savings) 889765 24,000
IRA/KEOGH
STOCKS AND BONDS (attach schedule)
LIFE INSURANCE (net cash value) OTHER LIABILIITIES
REAL ESTATE OWNED REAL ESTATE LOANS: FIRST MORTGAGE
DOES THIS LOAN HAVE A NEGATIVE
AMORTIZATION AND OR
BALLOON PAYMENT FEATURE? YES NO
SECOND MORTGAGE
AUTO (make and year) 2011 Dodge 29,532 AUTO LOAN
AUTO (make and year) AUTO LOAN
VESTED INTEREST IN RETIREMENT FUND PROPERTY TAXES AND HAZARD INSURANCE
PREMIUMS
FURNITURE AND PERSONAL PROPERTY 46,000 HOMEOWNERS' ASSOCIATION DUES
NET WORTH OF BUSINESS OWNED RENT OR SPACE RENT 1,600
OTHER ASSET Cash 8,000 ALIMONY, CHILD SUPPORT & SEPARATE
MAINTENANCE
TOTAL ASSETS $109,532 TOTAL LIABILITIES 1,600 $ 0.00
Show any other name under which you have obtained credit:
If the answer to any of these questions is "yes” please explain circumstances on an attached sheet
1. Have you declared bankruptcy in the last 10 years? ___yes _X_no
2. Have you had any voluntary or involuntary repossessions within the last 7 years? ___yes _x_no
3. Have you had any property foreclosed upon, including deed-in-lieu, within the last 7 years? ___yes _x_ no
4. Do you have any unpaid debts with Worth Bank, for any dollar amount, such as accounts which were settled for less than the balance owed
or charged off? ___yes _x_no
5. Do you have any unpaid debts over $1,000 with any financial institution, including retail cards or student loans, which were settled for less
than the balance owed or charged off? ___yes _X_ no

How do you want to receive the loan proceeds? X Deposit to Escrow Account No._WA6734634RC______________________
Deposit to: ___Checking ___Savings ___Account No._________________________ ___other (describe)

To process this application, the bank may require an appraisal and certain property inspections, such as a pest control inspection. However,
even if we do not require certain inspections or if we make the loan, it does not mean the property is free of defects or Infestation. The bank
assumes no liability for the accuracy of Inspections and makes no warranty of any kind about the condition of the property. You may wish to
consult a qualified expert regarding structural soundness, earthquake or slide hazard, toxic substances and other matters related to the
condition of the property.
By signing below you certify that all the information you've given or will give with this application is true and complete. You authorize us to
verify all your statements with any source, obtain credit and employment history, and exchange Information with others about your credit and
account experience with us. You agree to provide additional information that we may require to process this application, Including but not
limited to true and complete Federal income tax returns, employment verification and income verification.
You acknowledge receipt of the "Disclosures About Home Equity Loans and Lines of Credit" and "What You Should Know About Equity Lines
of Credit"
Douglas Clark ___06/01/13__ __________ Susan Clark__ __06/01/13
YOUR SIGNATURE DATE CO-APPLICANTS SIGNATURE DATE

INFORMATION FOR GOVERNMENT MONITORING PURPOSES The following information is requested by the Federal Government for certain
types of loans related to a dwelling, In order to monitor this bank's compliance with equal credit opportunity fair housing and mortgage
disclosure laws.

APPLICANT: I do not wish to furnish this Information (initials)____ CO-APPLICANT: I do not wish to furnish this Information (initials)____
RACE/ ___American Indian or Alaskan Native ___ Asian or Pacific Islander RACE/ ___American Indian or Alaskan Native ___ Asian or Pacific Islander
NATIONAL ___Black, not of Hispanic Origin ___Hispanic NATIONAL ___Black, not of Hispanic Origin ___Hispanic
ORIGIN X_White, not of Hispanic Origin ___Other (specify) ___ ORIGIN X_White, not of Hispanic Origin ___Other (specify) ___
SEX __Female _X_Male SEX _X_Female ___Male
BANK USE ONLY: Verification of applicant identity
by_____________________________________________Type___________________#___________________
Res. #Mktg. Code_____ Rx2407____________S/U # X374 Sales Officer___J. Smith___Social Security #___000-00-8884___

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 5 - SIERRA RV / INVOICE

SOLD TO: Douglas Clark DATE: 2-2-15

1234 McKenry Lane
Los Angeles, California 89511 ORDER# 875421
213-688-0000
SALESMAN: Greene
Delivered: 2-2-15

DESCRIPTION OF MOTOR VEHICLE ·

MAKE MODEL YEAR COLOR SERIAL #
Sterling Phoenix 2015 White/Gold 9864RT67Y7U7788

OPTIONAL EQUIPMENT BASIC PRICE 54,640.00

AIR CONDITIONING 1,398.00 TRANSPORTATION 1,552.00

GPS SYSTEM 4,444.00 OPTIONAL EQUIPMENT 13,884.00

STEREO/TV/VCR/DVD 5,442.00 TAX 4,790.00

SATELLITE DISH 2,600.00 LICENSE 910.00

TOTAL $13,884.00 BALANCE DUE 75,776.00

DOWN PAYMENT 2-2-15 $75,776.00

TRADE-IN ALLOWANCE 0.00

BALANCE DUE ON DELIVERY 0.00

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 6 - FALLON AUTO MALL /INVOICE

SOLD TO: Douglas Clark DATE: 1-2-15

1234 McKenry Lane
Los Angeles, California 89511 ORDER# 24680
213-688-0000
SALESMAN: BROWN

DESCRIPTION OF MOTOR VEHICLE

TOYOTA

OPTIONAL EQUIPMENT BASIC PRICE $27,400.00

AIR CONDITIONING 610.00 TRANSPORTATION 1,610.00

SUN ROOF 354.00 OPTIONAL EQUIPMENT 2,952.00

LEATHER INTERIOR 888.00 TAX 1,918.00

METAL FLAKE PAINT STANDARD LICENSE 1,012.00

AUTOMATIC TRANSMISSION STANDARD BALANCE DUE $34,892.00

RADIAL TIRES STANDARD DOWN PAYMENT 1-2-15 10,000.00

AM/FM/AUX/CD 1,100.00 TRADE-IN ALLOWANCE 0.00

TOTAL OPTIONS 2,952.00 BALANCE DUE ON DELIVERY $24,892.00

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 7 - LOS A NGELES WHEELS / INVOICE

SOLD TO: SALESMAN: ALBRIGHT

1234 McKENRY LANE

LOS ANGELES, CALIFORNIA 89511

DATE ORDER# MAKE MODEL YEAR

12/27/2013 12432 LEXUS GS F 2013

PRICE: $ 89,230.00

EXTRAS: FULLY EQUIPPED 4,770.00

TAX: 6,580.00

LICENSE: 1,420.00

TOTAL: $102,000.00

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 8 - SOMERSET SAVINGS AND LOAN I LOAN STATEMENT

Somerset Savings & Loan

Somerset Savings & Loan - Account Summary

Account Name: Douglas and Susan Clark

Purchase of 2013 Lexus GS F on 12-27-13

Payments Beginning 1/14 Principal $ 95,374.24 Months 72.00

Rate 7.50% Years 6.0000

Payment $1,649.032

Interest Per Principal Payment

Year Per Year Year Payment Date Number Balance Payment Interest Principal
$95,374.24

2014 1 1 $ 94,322.32 $ 1,648.00 $ 596.08 $ 1,051.92

2 2 $ 93,263.84 $ 1,648.00 $ 589.52 $ 1,058.48

3 3 $ 92,198.74 $ 1,648.00 $ 582.90 $ 1,065.10

4 4 $ 91,126.98 $ 1,648.00 $ 576.24 $ 1,071.76

5 5 $ 90,048.52 $ 1,648.00 $ 569.54 $ 1,078.46

6 6 $ 88,963.34 $ 1,648.00 $ 562.80 $ 1,085.20

7 7 $ 87,871.36 $ 1,648.00 $ 556.02 $ 1,091.98

8 8 $ 86,772.54 $ 1,648.00 $ 549.20 $ 1,098.80

9 9 $ 85,666.88 $ 1,648.00 $ 542.32 $ 1,105.68

10 10 $ 84,554.30 $ 1,648.00 $ 535.42 $ 1,112.58

11 11 $ 83,434.76 $ 1,648.00 $ 528.46 $ 1,119.54

$6,709.98 $13,066.02 12 12 $ 82,308.22 $ 1,648.00 $ 521.46 $ 1,126.54

2015 1 13 $ 81,174.66 $ 1,648.00 $ 514.42 $ 1,133.58

2 14 $ 80,034.00 $ 1,648.00 $ 507.34 $ 1,140.66

3 15 $ 78,886.20 $ 1,648.00 $ 500.22 $ 1,147.78

4 16 $ 77,731.24 $ 1,648.00 $ 493.04 $ 1,154.96

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 5 17 $ 76,569.06 $ 1,648.00 $ 485.82 $ 1,162.18

6 18 $ 75,399.62 $ 1,648.00 $ 478.56 $ 1,169.44

7 19 $ 74,222.88 $ 1,648.00 $ 471.24 $ 1,176.76

8 20 $ 73,038.76 $ 1,648.00 $ 463.90 $ 1,184.10

9 21 $ 71,847.26 $ 1,648.00 $ 456.50 $ 1,191.50

10 22 $ 70,648.30 $ 1,648.00 $ 449.04 $ 1,198.96

11 23 $ 69,441.86 $ 1,648.00 $ 441.56 $ 1,206.44

$5,695.64 $14,080.36 12 24 $ 68,227.86 $ 1,648.00 $ 434.02 $ 1,213.98

2016 1 25 $ 67,006.28 $ 1,648.00 $ 426.42 $ 1,221.58

2 26 $ 65,777.08 $ 1,648.00 $ 418.78 $ 1,229.22

3 27 $ 64,540.18 $ 1,648.00 $ 411.10 $ 1,236.90

4 28 $ 63,295.56 $ 1,648.00 $ 403.38 $ 1,244.62

5 29 $ 62,043.16 $ 1,648.00 $ 395.60 $ 1,252.40

6 30 $ 60,782.92 $ 1,648.00 $ 387.76 $ 1,260.24

7 31 $ 59,514.82 $ 1,648.00 $ 379.90 $ 1,268.10

8 32 $ 58,238.78 $ 1,648.00 $ 371.96 $ 1,276.04

9 33 $ 56,954.78 $ 1,648.00 $ 364.00 $ 1,284.00

10 34 $ 55,662.74 $ 1,648.00 $ 355.96 $ 1,292.04

11 35 $ 54,362.64 $ 1,648.00 $ 347.90 $ 1,300.10

$4,602.54 $15,173.46 12 36 $ 53,054.40 $ 1,648.00 $ 339.76 $ 1,308.24

2017 1 37 $ 51,738.00 $ 1,648.00 $ 331.60 $ 1,316.40

2 38 $ 50,413.36 $ 1,648.00 $ 323.36 $ 1,324.64

3 39 $ 49,080.44 $ 1,648.00 $ 315.08 $ 1,332.92

4 40 $ 47,739.20 $ 1,648.00 $ 306.76 $ 1,341.24

5 41 $ 46,389.56 $ 1,648.00 $ 298.36 $ 1,349.64

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 9 - FULTON POOLS AND SPAS /INVOICE

SOLD TO: Douglas Clark

1234 McKenry Lane Los Angeles, California 89511

ORDER # SALESMAN:

Down Payment

Paid upon completion

Balance Due 0.00

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 10 - TETON BOAT SALES / IN VOICE

DATE:
Douglas Clark ORDER# 44557889
1234 McKenry Lane
Los Angeles, California 89511 SALESMAN: Ellis
213-688-0000

MAKE Starecraft YEAR 2016

MODEL 26' SERIAL # DF6T5R4E3W2Q444

BASIC PRICE

Mercury Outboard Engine

$ 6,600.00

1,012.00

$
$6,600.00 WITH ORDER 12-22-15

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 11 - TODD'S JET SKIS / I N V O I C E

Todd’s Jet Skis

SOLD TO: Douglas Clark DATE: 04/07/16

1234 McKenry Lane
Los Angeles, California 89511 ORDER# 456545
213-688-0000
SALESMAN: Fayette
Delivered: 04/07/16

DESCRIPTION OF JET SKI

MAKE MODEL YEAR COLOR SERIAL #
TAOS J-3000 2016 Yellow 8Y7878Y3453
10TAOS J-3000 2016 Green 8Y7878Y3788

BASIC PRICE $ 9,332.00 Each

TRANSPORTATION $ 642.00 Each

TAX $ 652.00 Each

LICENSE $ 172.00 Each

BALANCE DUE $ 10,798.00 Each BALANCE DUE $ 21,596.00

DOWN PAYMENT 04/07/2016 $ 21,596.00

TRADE-IN ALLOWANCE 0.00

BALANCE DUE ON DELIVERY 0.00

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 12 - WALKER BANK / SAVINGS ACCOUNT STATEMENT (account #889765 dated 1/15/14)

Walker Bank
Douglas & Susan Clark Savings Account # 889765
1234 McKenry Lane
Los Angeles, California

Service Charge Check & Debit Total # of Debits Deposit Total # of Deposits
0.00 3,200.00 3 6,720.24 2
Average Deposit Balance Forward Ending Balance Statement Date
24,684.00 23,776.00 27,296.24 1/15/14

Withdrawals Deposits Date

1,400.00 withdrawal 12/15/13
2,200.00 deposit 12/18/13
120.24 Interest 12/31/13
800.00 withdrawal 1/2/14
1,000.00 withdrawal 1/5/14
4,400.00 deposit 1/8/14

Interest paid in $1,283.32

2013

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 13 - WALKER BANK I SAVINGS ACCOUNT STATEMENT (account #889765 dated 1/15/15)

Walker Bank
Douglas & Susan Clark Savings Account # 889765
1234 McKenry Lane
Los Angeles, California

Service Charge Check & Debit Total # of Debits Deposit Total # of Deposits
0.00 4,000.00 4 5,077.30 2
Average Deposit Balance Forward Ending Balance Statement Date
32,402.00 31,792.00 32,869.30 1/15/15

Withdrawals Deposits Date

800.00 withdrawal 12/15/14
1,800.00 withdrawal 12/17/14
2,400.00 deposit 12/18/14
131.30 Interest 12/31/14
1,000.00 withdrawal 1/2/15
400.00 withdrawal 1/8/15
2,546.00 deposit 1/15/15

Interest paid In 2014 $1,510.80

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 14 - WALKER BA NK I SAVINGS ACCOUNT STATEMENT {account #889765 dated 1/15/16)

Walker Bank
Douglas & Susan Clark Savings Account # 889765
1234 McKenry Lane
Los Angeles, California

Service Charge Check & Debit Total # of Debits Deposit Total # of Deposits
0.00 1,715.40 2 2,397.76 3
Average Deposit Balance Forward Ending Balance Statement Date
34,888.00 34,609.00 35,291.36 1/15/16

Withdrawals Deposits Date

1,700.00 deposit 12/16/15
515.40 withdrawal 12/20/15
137.76 Interest 12/31/15
1,200.00 withdrawal 1/3/16
360.00 deposit 1/5/16
200.00 deposit 1/11/16

Interest paid In 2015 $1,602.50

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 15 - WALKER BANK I SAVINGS ACCOUNT STATEMENT (account #889765 dated 1/15/17)

Walker Bank
Douglas & Susan Clark Savings Account # 889765
1234 McKenry Lane
Los Angeles, California

Service Charge Check & Debit Total # of Debits Deposit Total # of Deposits
0.00 3,760.00 4 9,542.10 5
Average Deposit Balance Forward Ending Balance Statement Date
49,054.70 45,514.70 51,296.80 1/15/17

Withdrawals Deposits Date

1,960.00 withdrawal 12/15/16
2,500.00 deposit 12/18/16
400.00 withdrawal 12/27/16
1,600.00 deposit 12/28/16
142.10 interest 12/31/16
2,500.00 deposit 1/2/17
800.00 withdrawal 1/5/17
600.00 withdrawal 1/8/17
2,800.00 deposit 1/13/17

Interest paid in 2016 $1,689.32

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 16 - WALKER BANK I CHECKING ACCOUNT S T A T E M E NT ( account #800643 dated 1/15/14)

Walker Bank
Douglas & Susan Clark Checking Account # 800643
1234 McKenry Lane
Los Angeles, California

Service Charge Check & Debit Total # of Debits Deposit Total # of Deposits
0.00 681.00 9 2,800.00 3
Average Deposit Balance Forward Ending Balance Statement Date
3,333.94 2,333.76 4,452.76 1/15/14

Withdrawals Deposits Date

109.00 12/15/13
380.00 12/15/13
20.00 200.00 12/18/13
24.00 12/19/13
66.00 12/27/13
22.00 400.00 12/27/13
18.00 1/2/14
32.00 1/2/14
10.00 2,200.00 1/8/14

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 17 - WALKER BANK / CHECKING ACCOUNT STATEMENT (account #800643 dated 1/15/15)

Walker Bank
Douglas & Susan Clark Checking Account # 800643
1234 McKenry Lane
Los Angeles, California

Service Charge Check & Debit Total # of Debits Deposit Total # of Deposits
0.00 515.90 12 460.00 2
Average Deposit Balance Forward Ending Balance Statement Date
4,725.90 4,790.90 4,735.00 1/15/15

Withdrawals Deposits Date

65.00 12/15/14
33.60 12/15/14
197.00 350.00 12/18/14
27.00 12/19/14
4.90 12/27/14
63.60 12/27/14
20.00 1/2/15
57.80 1/2/15
10.00 110.00 1/8/15
24.00 1/10/15
5.80 1/11/15
7.20 1/15/15

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DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 18 - WALKER BANK / CHECKING ACCOUNT STATEMENT (account #800643 dated 1/15/16)

Walker Bank
Douglas & Susan Clark Checking Account # 800643
1234 McKenry Lane
Los Angeles, California

Service Charge Check & Debit Total # of Debits Deposit Total # of Deposits
0.00 677.60 16 450.00 3
Average Deposit Balance Forward Ending Balance Statement Date
9,309.80 9,537.40 9,309.80 1/15/16

Withdrawals Deposits Date

34.00 12/17/15
23.60 12/17/15
36.00 12/17/15
77.00 12/17/15
33.00 200.00 12/17/15
58.00 12/20/15
30.00 12/21/15
25.00 12/21/15
30.60 12/21/15
20.00 150.00 12/26/15
145.60 12/26/15
42.00 12/27/15
27.20 12/27/15
11.60 1/4/16
39.00 100.00 1/14/16
45.00 1/14/16

21
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 19 - WALKER BANK / CHECKING ACCOUNT STATEMENT (account #800643 dated 1/15/17)

Walker Bank
Douglas & Susan Clark Checking Account # 800643
1234 McKenry Lane
Los Angeles, California

Service Charge Check & Debit Total # of Debits Deposit Total # of Deposits
0.00 724.00 9 450.00 2
Average Deposit Balance Forward Ending Balance Statement Date
11,176.00 11,254.00 10,980.00 1/15/17

Withdrawals Deposits Date

30.00 12/15/16
32.00 12/15/16
26.00 400.00 12/18/16
46.00 12/19/16
240.00 12/31/16
160.00 50.00 1/2/17
20.00 1/8/17
120.00 1/10/17
50.00 1/15/17

22
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 20 – FEDERAL TAX RETURN 2014 (PAGE 1/4)

23
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 20 – FEDERAL TAX RETURN 2014 (PAGE 2/4)

Douglas Clark

Douglas Clark
4/1/15
Ssan Clark 4/1/15

24
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 20 – FEDERAL TAX RETURN 2014 (PAGE 3/4)

25
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 20 – FEDERAL TAX RETURN 2014 (PAGE 4/4)

26
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 20 – FEDERAL TAX RETURN 2015 (PAGE 1/4)

27
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 20 – FEDERAL TAX RETURN 2015 (PAGE 2/4)

Douglas Clark
3/30/16
Ssan Clark 3/30/16

28
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 20 – FEDERAL TAX RETURN 2015 (PAGE 3/4)

29
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 20 – FEDERAL TAX RETURN 2015 (PAGE 4/4)

30
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 20 – FEDERAL TAX RETURN 2016 (PAGE 1/4)

31
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 20 – FEDERAL TAX RETURN 2016 (PAGE 2/4)

Douglas Clark
3/30/17
Ssan Clark 3/30/17

32
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 20 – FEDERAL TAX RETURN 2016 (PAGE 3/4)

33
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 20 – FEDERAL TAX RETURN 2016 (PAGE 4/4)

34
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 23 - IRS TAX TRANSCRIPT FOR 2013

Clark, Douglas & Susan SSN/EIN 000-00-1769 Transcript Date 8/24/17

1234 McKenry Lane Spouse SSN 000-00-3985 DLN 29221-110-887765
Los Angeles, California 89511 Type of Tax Income Period Ending 9712
Form Filed 1040 Name Control CLAR

Transaction Date Assessment Date Cycle DLN Amount Due Amount Paid

Return Filed 04/12/14 04/14/14 9813 29221-110-887765 1,624.00 0.00

Payment with Return 04/12/14 9813 29221-110-887765 0.00 1,624.00
CID Hold - 914 08/24/17 0132 29334-288-107311 0.00 0.00

35
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 24 - IRS TAX TRANSCRIPT FOR 2014

Transcript of Account

Clark, Douglas & Susan SSN/EIN 000-00-1769 Transcript Date 8/24/17

1234 McKenry Lane Spouse SSN 000-00-3985 DLN 29221-110-887765
Los Angeles, California 89511 Type of Tax Income Period Ending 9812
Form Filed 1040 Name Control CLAR

Transaction Date Assessment Date Cycle DLN Amount Due Amount Paid

Return Filed 04/14/15 04/14/15 9914 29221-110-887765 2,080.00 0.00

Est. Tax Penalty 04/14/15 04/14/15 9914 29221-110-887765 94.00 0.00
Payment with Return 04/14/15 9914 29221-110-887765 0.00 2,174.00
CID Hold - 914 08/24/17 0132 29334-288-107311 0.00 0.00

36
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 25 - IRS TAX TRANSCRIPT FOR 2015

Transcript of Account

Clark, Douglas & Susan SSN/EIN 000-00-1769 Transcript Date 8/24/17

1234 McKenry Lane Spouse SSN 000-00-3985 DLN 29221-104-764391
Los Angeles, California 89511 Type of Tax Income Period Ending 9912
Form Filed 1040 Name Control CLAR

Transaction Date Assessment Date Cycle DLN Amount Due Amount Paid

Return Filed 04/10/16 04/10/16 0013 29221-104-764391 3,284.00 0.00

Payment with Return 04/10/16 0013 29221-104-764391 0.00 0.00
Est. Tax Payment 04/14/15 9914 29229-110-653111 0.00 1,000.00
Est. Tax Payment 07/14/15 9928 29229-195-635791 0.00 1,000.00
Est. Tax Payment 09/13/15 9936 29229-253-623461 0.00 1,000.00
Est. Tax Payment 01/12/16 0002 29229-012-711133 0.00 1,000.00
Refund Overpayment 04/10/16 0013 29229-104-753111 0.00 (716.00)
CID HOLD - 914 08/24/17 0132 29334-288-107312 0.00 0.00

37
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 26 - IRS TAX TRANSCRIPT FOR 2016

Transcript of Account

Clark, Douglas & Susan SSN/EIN 000-00-1769 Transcript Date 8/24/17

1234 McKenry Lane Spouse SSN 000-00-3985 DLN 29221-110-756433
Los Angeles, California 89511 Type of Tax Income Period Ending 0012
Form Filed 1040 Name Control CLAR

Transaction Date Assessment Date Cycle DLN Amount Due Amount Paid

Return Filed 04/16/17 04/16/17 0114 29221-110-756433 1,946.00 0.00

Payment with Return 04/16/17 0114 29221-110-756433 0.00 1,946.00
CID HOLD - 914 08/24/17 0132 29334-288-1-07312 0.00 0.00

38
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 27 - AFFIDAVIT OF HARRIET LYON

AFFIDAVIT

United States Of America

Judicial District of California

I, Harriet Lyon of Ventura California state that:

I reside at 231 West 9th Street, Ventura, California. I further state that
my nephew is Douglas Clark, of Los Angeles, California. For the past several

years, I have given my nephew and his family $5,000 in cash as a Christmas gift.
I delivered this currency to them personally on my annual trip to Florida in December.
Them HL
I know I gave him ^ $5,000 in each of the following years: 2012, 2013, 2014, 2015
and 2016.

I have read the foregoing statement consisting of this page only. I fully understand this statement
and it is true, accurate and complete to the best of my knowledge and belief. I made any corrections shown
and placed my initials opposite each. I made this statement freely and voluntarily, without any threats
or rewards, or promises of reward having been made to me inreturn for said statement.

(Signature of affiant)

Subscribed and sworn to before me this 28th

day of
2017

at Los Angeles, California

(signature)

(title) (signature of witness)

DEPARTMENT OF THE TREASURY - INTERNAL REVENUE SERVICE FORM 2311(REV 8-96)

39
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 28 - AFFIDAVIT OF KEVIN JASPER

AFFIDAVIT

United States of America

Judicial District of California

I, Kevin Jasper, solemnly state that:

I reside at 2566 Long Street, Los Angeles, California. I am the owner of Jasper Air

Charter Service, Inc. which I operate from the Ventura Municipal Airport. Douglas Clark is

one of my regular customers and is a personal friend. I first met Douglas in August 2012 when he

called and asked me to fly him to the Grand Cayman Islands for vacation. Since that time I

have flown Douglas and his wife to Grand Cayman every summer. Douglas always pays me in

cash and told me that he doesn't need a receipt. I record all these payments in my accountsledger

and all of the flights are recorded in my flight logs. I agree to provide copies of all of
KJ
these records on December 15, 2017, when my bookkeeper returns from-bvacation. My
computer reflects the following payments from Douglas Clark: $8,600 for the year 2012,

$9,200 for the year 2013, $9,500 for 2014, $10,100 for 2015 and $10,400 for 2016.

I have read the foregoing statement consisting of this page only. I fully understand this statement
and it is true, accurate and complete to the best of my knowledge and belief. I made any corrections shown
and placed my initials opposite each. I made this statement freely and voluntarily, without any threats or
rewards, or promises of reward having been made to me in return for said statement.

(signature of affiant)

Subscribed and sworn to before me this 3rd

day of
2017
at Los Angeles, California

(signature)

(title) (signature of witness)

DEPARTMENT OF THE TREASURY - INTERNAL REVENUE SERVICE FORM 2311(REV 8-96)

40
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 29 - AFFIDAVIT OF DONALD STOKES, M D

AFFIDAVIT

United States of America

Judicial District of California

I, Donald Stokes MD state that:

I reside at 139 Titus Lane, Los Angeles, California. I am a self-employed
physician with an office located at 2500 E. Mills St., Los Angeles, California. Pursuant to a
subpoena for records, I am providing the following information: Douglas Clark and his wife,
Susan have been patients of mine since about 2009. During the years 2014 through 2016,
Clark paid the following amounts for medical services to my office in cash:
2014: $2,880.00
2015: $5,578.00
2016: $9,776.00
Records of these payments are stored on my office computer, a copy of which has been
ordered for you from my bookkeeper.

I have read the foregoing statement consisting of this page only. I fully understand this statement
and it is true, accurate and complete to the best of my knowledge and belief. I made any corrections shown
and placed my initials opposite each. I made this statement freely and voluntarily, without any threats or
rewards, or promises of reward having been made to me in return for said statement.

Subscribed and sworn to before me this 30th

day of 2017
at Los Angeles, California

(signature)

(title) (signature of witness)

DEPARTMENT OF THE TREASURY - INTERNAL REVENUE SERVICE FORM 2311(REV 8-96)

41
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 30 - AFFIDAVIT OF ALLEN MANCHESTER

AFFIDAVIT

United States of America

Judicial District of California

I, Allen Manchester DDS state that:

I reside at
1357 Upton St., Los Angeles, California. I am a self-employed dentist
with an office located at 1500 Weber Ave., Los Angeles, California. Pursuant to a s ubp oen a
for records, I am providing the following information: Douglas Clark and his wife Susan have been
patients of mine since about 2011. During the years 2014 through 2016, Clark paid the
following amounts for dental services to my office in cash:
2014: $2,532.00
2015: $2,690.00
2016: $2,912.00
Records of these payments are stored on my office computer, a copy of which
has been ordered for you from my bookkeeper.

I have read the foregoing statement consisting of this page only. I fully understand this
statement and it is true, accurate and complete to the best of my knowledge and belief. I made any
corrections shown and placed my Initials opposite each. I made this statement freely and voluntarily,
without any threats or rewards, or promises of reward having been made to me in return for said
statement.

C
(signature of affiant)

Subscribed and sworn to before me this

3rd
day of 2017

at Los Angeles, California

(signature)

(title) (signature of witness)

42
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 31 - CROCKETT UNIVERSITY / TUITION STATEMENT FOR 2014

Crockett University 1500 Aurora Blvd. + San Diego, California 93434

Date Description Charges Payments Balance

1/8/14 Tuition - Cole Clark 10,000.00 10,000.00

2/1/14 Payment 4,000.00 6,000.00

6/2/14 Payment 2,800.00 3,200.00

9/1/14 Payment 1,800.00 1,400.00

11/21/14 Payment 1,400.00 0.00

Please pay this amount 0.00

43
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 32 - CROCKETT UNIVERSITY / TUITION STATEMENT FOR 2015

Date Description Charges Payments Balance

1/10/15 Tuition - Cole Clark 11,000.00 11,000.00

2/8/15 Payment 3,750.00 7,250.00

6/8/15 Payment 3,750.00 3,500.00

9/8/15 Payment 1,750.00 1,750.00

12/1/15 Payment 1,750.00 0.00

Please pay this amount 0.00

44
DOUGLAS AND SUSAN CLARK CASE STUDY
ITEM 32 - CROCKETT UNIVERSITY / TUITION STATEMENT FOR 2016

Crockett University

Date Description Charges Payments Balance

1/8/16 Tuition • Cole Clark 12,000.00 12,000.00

2/1/16 Payment 4,750.00 7,250.00

6/2/16 Payment 2,750.00 4,500.00

9/1/16 Payment 2,750.00 1,750.00

11/21/16 Payment 1,750.00 0.00

Please pay this amount 0.00

45