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Cr nny Steerer Sarena > Investigating Fraud in Bankruptcy Cases By — 3. Edgar Hoover, Director, United States Bureau of Investigationg 18 the duty of the United States Bureau of Investigation to investigate alleged vio- lations which occur in the administration of the Nationa! Bankruptcy ct. Violations of this act are usually reported to the Bureau by referees in bankruptcy, trustees, credit associations, or creditors. However, the Bureau will appreciate re- ceiving any information which you may ob- tain relative to violations of this act, such as concealing money, merchandise, or property either before or after the filing of the bank- . Tuptcy petition; concealing, destroying, muti- lating, or falsifying books and records before or after the bankruptcy petition was filed; receiving concealed property, or perjury or false claims. - NX. Information that shipments were made from the bankrupt store late at night or in a@ covert manner; that vans or trucks were Joaded at the bankrupt's premises; that the bankrupt hastily Nquidated his affairs imme- diately prior to closing by sacrifice or below- cost sales, all are significant of irregularities and are a material aid to the progress of the investigation. Attempts on the part of the bankrupt to collect old accounts after proceedings have been instituted also indi- cate possible violations. : . 7 In bankruptcy cases, particularly, local peace officers obtain valuable information 5 Cem de> on which is not available to an outside in-. vestigator. . . 7 . . t BA BINT. LEMP: wn. veges ak 7 tone OF tee 1 THURSDAY, NOVEMBER 17, 1932 The Gnuited States a ily, 2.