ACC693: Bank Record Analysis
Question # 00100276
Posted By:
Updated on: 09/03/2015 02:12 AM Due on: 10/03/2015
ACC693: Bank Record Analysis
Janet Johnson d/b/a/ ACME Products, 49 Back Street, Portsmouth, NH 03801
ACME Products, LLC is a wholesale construction products company owned and operated by Janet
Johnson. It has come under suspicion as a money-laundering conduit. Business and personal bank
records for the business were subpoenaed from Citizens Bank for the period of January through June.
These records are summarized below.
Bank Account Activity Summary
ACME Products and Janet Johnson
#12345678; #98765432 Citizens Bank, N.A.
Period of January 1June 30
ACME Products
ACME Products - # 12345678
No. Totals
Beginning Balance
Deposits
Withdrawals
Ending Balance
#
504
362
Amount
$ 130,544.04
$ 10,682,224.95
$ 10,100,000.00
$ 712,768.99
J. Johnson - # 98765432
No. Totals
Beginning Balance
Deposits
Withdrawals
Ending Balance
#
Amount
$ 2,043.27
$ 112,340.89
$ 95,442.56
$ 18,941.60
32
97
ACME Products Primary Payees
Name
# PMTS
Date Span
Amount
Keller Williams Realty
6
1/26/2
$300,000
A.B. Atlas
6
1/56/22
$1,020,000
PDI Plumbing
6
1/286/26
$825,000
NAAD
5
1/65/24
$1,340,000
Pierce Financing
5
1/255/27
$2,000,000
Cash
24
1/16/28
$1,050,000
J. Johnson
12
1/26/15
$96,000
ABC Corp.
6
1/206/20
$2,000,000
Total:
$8,631,000
ACME's primary payees account for $8,631,000 of the $10,100,000 withdrawn during the period.
Janet Johnson Primary Payees
Name
# PMTS
Date Span
Amount
American Express
6
1/156/15
$43,027
VISA
6
1/36/4
$8,000
Pierce Financing
5
1/285/25
$25,000
University Travel
2
1/103/4
$6,300
BMW Financing
6
1/56/5
$6,000
Total:
$88,327
Johnsons primary payees account for $88,327 of the $95,443 spent during the period.
Deposits to Accounts
Janet Johnson had four sources of deposits to this account: ACME Products ($96,000), cash ($8,500),
rental income ($7,200), and interest ($641).
ACME Products, LLC had four main sources of deposits:
Pierce Financing $5,000,000
Cash $1,500,000
Greggson Construction $873,900
Watermark Construction $934,400
The amount of cash and the loan combined total $8,308,300, or the bulk of the monies deposited.
Wire Transfers
A significant part of the outflow from this account occurred through wire transfer. All payments to ABC
Corp. and NAAD were in the form of wire transfer. The payments to ABC were wired to the Cayman
Nations, Cayman Islands, account #22288021. The funds to NAAD were wired to the Dublin, Ireland,
account #8349005. In total, $3,340,000 in funds was wired to these offshore bank accounts.
Cashiers or Certified Checks
The payments to PDI Plumbing ($825,000) were done by certified check.
Money Flow: Create a chart of the money flow for the accounts.
Identify the red flags.
Discuss how you would investigate further.
Janet Johnson d/b/a/ ACME Products, 49 Back Street, Portsmouth, NH 03801
ACME Products, LLC is a wholesale construction products company owned and operated by Janet
Johnson. It has come under suspicion as a money-laundering conduit. Business and personal bank
records for the business were subpoenaed from Citizens Bank for the period of January through June.
These records are summarized below.
Bank Account Activity Summary
ACME Products and Janet Johnson
#12345678; #98765432 Citizens Bank, N.A.
Period of January 1June 30
ACME Products
ACME Products - # 12345678
No. Totals
Beginning Balance
Deposits
Withdrawals
Ending Balance
#
504
362
Amount
$ 130,544.04
$ 10,682,224.95
$ 10,100,000.00
$ 712,768.99
J. Johnson - # 98765432
No. Totals
Beginning Balance
Deposits
Withdrawals
Ending Balance
#
Amount
$ 2,043.27
$ 112,340.89
$ 95,442.56
$ 18,941.60
32
97
ACME Products Primary Payees
Name
# PMTS
Date Span
Amount
Keller Williams Realty
6
1/26/2
$300,000
A.B. Atlas
6
1/56/22
$1,020,000
PDI Plumbing
6
1/286/26
$825,000
NAAD
5
1/65/24
$1,340,000
Pierce Financing
5
1/255/27
$2,000,000
Cash
24
1/16/28
$1,050,000
J. Johnson
12
1/26/15
$96,000
ABC Corp.
6
1/206/20
$2,000,000
Total:
$8,631,000
ACME's primary payees account for $8,631,000 of the $10,100,000 withdrawn during the period.
Janet Johnson Primary Payees
Name
# PMTS
Date Span
Amount
American Express
6
1/156/15
$43,027
VISA
6
1/36/4
$8,000
Pierce Financing
5
1/285/25
$25,000
University Travel
2
1/103/4
$6,300
BMW Financing
6
1/56/5
$6,000
Total:
$88,327
Johnsons primary payees account for $88,327 of the $95,443 spent during the period.
Deposits to Accounts
Janet Johnson had four sources of deposits to this account: ACME Products ($96,000), cash ($8,500),
rental income ($7,200), and interest ($641).
ACME Products, LLC had four main sources of deposits:
Pierce Financing $5,000,000
Cash $1,500,000
Greggson Construction $873,900
Watermark Construction $934,400
The amount of cash and the loan combined total $8,308,300, or the bulk of the monies deposited.
Wire Transfers
A significant part of the outflow from this account occurred through wire transfer. All payments to ABC
Corp. and NAAD were in the form of wire transfer. The payments to ABC were wired to the Cayman
Nations, Cayman Islands, account #22288021. The funds to NAAD were wired to the Dublin, Ireland,
account #8349005. In total, $3,340,000 in funds was wired to these offshore bank accounts.
Cashiers or Certified Checks
The payments to PDI Plumbing ($825,000) were done by certified check.
Money Flow: Create a chart of the money flow for the accounts.
Identify the red flags.
Discuss how you would investigate further.
-
Rating:
/5
Solution: ACC693: Bank Record Analysis