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Certified Public Accountants
(805) 306-7890

Litigation Consulting


Forensic Accounting - Fraud - Business Valuation


April 2012

Recent Case:
"Recent Case: Fraud and Theft of Residential and Commercial Real Estate and Cash and Marketable Securities"

Summary of issue:
Arxis Financial
was hired by plaintiffs, an elderly couple who believed they had been swindled.  The couple was, at one time, very wealthy with extensive investment in residential and commercial real estate – all of which was completely debt-free.  Additionally, they had substantial wealth in cash and marketable securities that were growing from the cash flow provided by the real estate holdings.  Among the allegations was that defendants re-titled (stole) real property, encumbered the properties, that were not re-titled, with debt (proceeds disbursed to defendants) and that cash had been stolen from checking accounts.  Arxis was hired to quantify the money that was stolen.  Other experts were retained to deal with the real estate-related fraud.

Arxis’ work:
Discovery – Extensive research had been done prior to our involvement in the case – discovery was closed already.  We were provided with 954 exhibits and several depositions including those of the defendants. 

Forensic -  Work was done to quantify the losses based on an incomplete record of transactions.  It was unfortunate that we were retained “too late” in the case to assist with efficient and adequate discovery.  954 exhibits was a lot of information but much of it was incomplete or irrelevant.

Trial – Trial was held involving testimony from several experts.  The accounting testimony took several hours and established the flow of money and evidence that the transactions were hidden or misrepresented to the plaintiffs.  It was established that several hundred thousands of dollars were stolen.

Verdict in favor of the plaintiffs.  Real property was returned.  Further restitution is still underway.

Upcoming Speaking Engagements for Chris Hamiltion

April: Business Valuation Training for the Franchise Tax Board in Sacramento, CA

April: “Forensic Accounting Issues in Wildland Fire Cases” presented at the 2012 Wildland Fire Litigation Conference in Sacramento, CA

April: Online/Webinar "Business Valuation Fundamentals, Techniques, and Theory" for the Internal Revenue Service.

May: CALCPA/San Fernando Valley – Presentation on "Fraud and Forensic Accounting"

May: Business valuation round table – Cal State University Northridge

May: Presentation for the Ventura County Family Law Bar Association on “Understanding Tax Returns”

Practice Profile:
Forensic Accounting Services for Inventory Losses

Every month, we profile a different service offered by Arxis Financial. This month, we invite you to learn more about our Forensic Accounting Services for Inventory Losses.

Inventory losses can have a major impact on a company's operations and profitability. When inventory loss does incur, whether due to financial statement fraud, misappropriation or other means, forensic accounting is often the first step to uncover the full extent of damages.
In such cases, clients hire the trained specialists in Arxis Financial's "Forensic Accounting" practice to assist in determining the monetary loss or damages and to help uncover how the loss occurred.

Forensic accounting, by its nature, involves actual or anticipated disputes or litigation. Our specialists have extensive experience in presenting and defending our findings in litigation proceedings, including depositions and trial at local, state and federal court levels, as well as mediation and arbitration. We assist attorneys in interpreting the valuation, and help counsel to understand and analyze events or issues. This level of support can be a key asset in determining a legal strategy as well as reaching a reasonable and efficient conclusion.

Partner Profile:
The Forensic Accounting practice is headed by partner Chris L. Hamilton, CPA, CFE, CVA, DABFA. Mr. Hamilton is a Certified Public Accountant, Certified Fraud Examiner, Certified Valuation Analyst, and a Diplomate with the American Board of Forensic Accounting. He is a licensed life and disability insurance agent and a General Securities Representative. Mr. Hamilton has published articles in several publications, and has made presentations at national conferences, training institutes and seminars on topics including forensic accounting, fraud and business appraisal.

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Copyright 2012 Arxis Financial. Articles may not be reprinted without permission.

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Chris Hamilton, CPA CFE, CVA, DABFA
(805) 306-7890
@ArxisChris on Twitter
Chris Hamilton Photo
Litigation Consulting
Forensic Accounting - Fraud - Business Valuation

Clients know us for results. Opposing counsel know Arxis for wishing they had hired us.