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Discovery of asset shortages:

A national service provider entered into a contract with an unrelated company for regional inventory management.  The service provider began to suspect mishandling and possibly breach of contract on the part of the inventory management company.  Our team was brought in to investigate the suspicion.

Though an analysis of purchases, deliveries and consumption, as well as industry research, we calculated an inventory shortfall of over $12 million.  The client terminated the agreement with the service company and is seeking recovery based on our assessment of damages.

Establishment of financial motive to commit arson:

The largest flue-cured tobacco warehouse in the world suffered a total loss from an incendiary fire.  The company sought $4.8 million in insurance proceeds.

Financial analysis revealed that the warehouse operations were deteriorating prior to the fire.  Upon investigation of banking and insurance records, it was discovered that the company increased insurance limits twice before the fire, the warehouse manager siphoned $700,000 out of the company for personal use, and the warehouse manager was involved in a check-kitting scheme.  A member of our firm offered expert testimony in the ensuing 53 count criminal trial.  The warehouse manager was subsequently convicted of arson and multiple counts of fraud.

Employee Dishonesty:

Members of our team have collectively reviewed and documented over 100 “employee dishonesty” claims filed with insurance companies.  The claims involved the defalcation of cash, inventory or other assets, and in some instances, collusion among employees and outside vendors.

Contract auditing:

A national accounting firm signed a contract to perform due diligence on over 1,000 commercial loans that a Wall Street investment bank subsequently marketed in a securitization.  The engagement involved 450 professionals throughout the country.  The accounting firm requested three increases to its “not to exceed” total cost limit.  A fourth request and a claim for additional fixed fees prompted a contract audit and forensic accounting investigation.

A member of our firm reviewed timekeeping, billing, and reclassification records, personally interviewed employees and documented alleged managerial false statements.  As a result, the accounting firm reimbursed $500,000 in previously paid fees, accepted the denial of over $700,000 in pending fees, and the senior partner retired.

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