Representative Projects: Financial Investigations

  • Assisted a cooperative in conducting a special financial investigation of inventory discrepancies.  The scope of our work included conducting a site visit of the manufacturing plant, verifying the results of an internal investigation, reviewing current inventory procedures and processes, determining the reason(s) for the inventory shortage, and interviewing retail store personnel regarding the quality of inventory received from the plant.
  • Assisted an insurance company in conducting a special financial investigation of the payroll function as a result of certain discrepancies identified by management in the year-to-date federal and Virginia state tax withholdings.  The scope of our analysis included:  identification of the perpetrator(s) of any suspect acts including potential fraudulent acts; determination of how the acts were perpetrated, including the identification of potential internal control weaknesses and the identification of potential violations of company policy that contributed to the conduct of the acts; determination of how the acts were concealed; quantification of the amount of funds involved; compilation of evidence to support a possible insurance claim; and compilation of evidence for use in potential criminal and civil actions.
  • Assisted a credit union in conducting a special financial investigation in connection with the potential embezzlement perpetrated by the CEO.  The scope of our work included identification of perpetrator(s), determination of how the fraud was perpetrated, determination of how the fraud was concealed, quantification of the amount of funds embezzled, and compilation of evidence for use in the potential criminal and civil actions.

  • Assisted a consumer products company in conducting a special financial investigation involving the embezzlement of approximately $750,000 by a purchasing director who used company credit cards to make cash advances for personal use.  Responsibilities included conducting forensic computer analysis, identification of potential suspect financial transactions, determination of the amount of funds embezzled, and compilation of evidence for use in the criminal and possible civil actions.
  • Assisted an insurance company in conducting a special financial investigation involving the embezzlement of $2.1 million by a former claims attorney through schemes involving the issuance of fraudulent checks for fictitious claims against insurance policies.  Responsibilities included identification of potential suspect financial transactions, determination of the amount of funds embezzled, and tracing to the perpetrator’s personal financial records.
  • Appointed by the U.S. Office of the Federal Public Defender as a consultant to assist with their representation of a defendant allegedly engaged in wire and mail fraud conspiracy, money laundering conspiracy, and bulk cash smuggling involving $126 million.  Responsibilities included assisting with discovery; analysis of documents; tracing transactions to accounting records, bank statements, and related source documents; reconstructing financial records; providing assistance in analyzing certain tax-deferred exchanges under section 1031 of the Internal Revenue Code.
  • Assisted a non-profit health organization in conducting a special financial investigation to assess whether or not certain terminated employees embezzled funds.  Tasks included analysis of employee expense reports, travel advances, analysis of the procurement process and vendor contracts,  and performing computer forensic analysis.
  • Appointed by the U.S. District Court, Eastern District of Virginia, Alexandria Division, as accountant to assist a Receiver in connection with a Securities and Exchange Commission investigation of a Ponzi scheme involving over $18.2 million. Responsibilities include maintaining the accounting records for the Receivership, preparing required federal and state income tax returns for the Receivership, performing forensic accounting to identify potential assets for recovery and tracing of funds, performing computer forensic analysis to recover documents, and preparing required reports for the Court.
  • Appointed by the U.S. District Court, Western District of Virginia, Charlottesville Division, as accountant to assist a Receiver in connection with a Securities and Exchange Commission investigation of a Ponzi scheme involving over $70 million.  Responsibilities include maintaining the accounting records for the Receivership, preparing required federal and state income tax returns for the Receivership, performing forensic accounting to identify potential assets for recovery and tracing of funds, performing computer forensic analysis to recover documents, supervising the operations of a business under the control of the Receivership, liquidating assets, assisting with the development and implementation of the Plan of Distribution, including development of a proof of claim, development of procedures for ascertaining the validity of submitted claims and the identity of investors, processing of claims, development and operation of a computer system to support claims processing, development of a formula for purposes of allocating the recovered funds to investors, managing documents, coordinating the distribution of funds to claimants, and preparing required reports for the Court.
  • Appointed by the Circuit Court as a neutral forensic accountant to conduct a special financial investigation to assess whether or not the owner of  multiple hedge funds had hidden assets to avoid payment of spousal support or division of the assets in equitable distribution in connection with a divorce matter.
  • Assisted a private, non-profit, health organization in conducting a special financial investigation involving the alleged embezzlement of funds by the former controller through schemes involving wire transfers and credit card transactions.  Tasks included identification of potential suspect financial transactions, determination of the amount of funds embezzled, and tracing to the perpetrator’s personal financial records.
  • Assisted a group of physicians/shareholders in a medical practice in conducting a special investigation to assess alleged misappropriation of funds by other shareholders and mismanagement of the practice.
  • Assisted an insurance consulting company in conducting a special investigation involving the alleged embezzlement of funds by the company’s former controller through schemes involving issuance of unauthorized payroll checks, payment of personal credit card transactions, and reimbursement of personal expenses.  Tasks included identification of potential suspect financial transactions and determination of the amount of funds embezzled.
  • Assisted a county government in assessing a potential accounting malpractice claim against its auditors for failure to detect a fraud perpetrated by the county’s former administrator.
  • Assisted an educational testing company in conducting a special financial investigation involving an alleged embezzlement of funds to identify potential suspect financial transactions, determine the amount of funds embezzled, and assess the system of internal controls.
  • Assisted a publicly traded information technology company in conducting a special financial investigation of a $15 million embezzlement to determine the total amount of funds embezzled by its controller, assess how the embezzlement was concealed, trace the disposition of the funds, and identify potential assets for recovery.