Organized crime has given new meaning to the term ‘corporate takeover,’ and CPAs and tax professionals should be aware of emerging, sophisticated fraudulent schemes that can sack whole companies. Slick criminals who create Medicare bilking schemes use identity theft to heist unbelievable amounts of cash from Uncle Sam through fraudulent clinics. Similar scams, even on a small scale, can bankrupt a private company’s reputation.

Members of one crime ring with connections to Armenia pled guilty in 2010 to creating $100 million in fake billings submitted to medical clinics using false identities stolen from physicians. It would seem that international criminal gangs view Medicare as a cash cow that can be milked and bilked at an alarming rate.

Organized crime dogs private enterprise, too. Such criminals raid government coffers as well as corporations. In those cases in which a client’s reputation is tainted by a criminal investigation, the impact on a company’s profitability may be devastating.

A CPA or tax professional is often the first line of defense in detecting fraud on behalf of clientele. Here are some ways a tax professional can help clients avoid any entanglements with organized crime:

Realize that sophisticated crooks create not just one or two shell companies, but they often erect an elaborate maze of deceit that obfuscates attempts to uncover the scheme.

Your best defense is to be skeptical. Scrutinize transactions. Look for red flags, such as a consultant with only a P.O. Box and a minimal presence on the Internet. Criminals create the appearance of a legitimate office through the use of answering services and fake addresses. Often it is only that tiny voice that warns a business tax professional to look for more discrepancies.

Also be on the alert for the rapid formation of tight bonds between freshman associates and new clients. If someone appears to be on the fast track with a new client, be alert to any signals that may indicate new collaborations are moving rapidly. Organized criminals are extremely adept at hiding fraudulent schemes. That is why both the Federal Bureau of Investigation’s forensic accountants and a company’s accountant should note any odd behavior, loose ends or appearances that seem to be deceptive.