Having trouble viewing this message? Click here to view this message in a browser window.

Arxis Financial Logo

Certified Public Accountants
(805) 306-7890

Litigation Consulting


Forensic Accounting - Fraud - Business Valuation

April 2014

Recent Case:

Lost Income via Facilities Management Company

Type of Matter:

The owner of a parking structure contracted out the management of the facility. The management services included collecting the parking fee and remitting the appropriate amount to the owners. At some point the owners began to suspect that money was being stolen. They did an investigation that included reviewing video surveillance evidence and determined that there was reason to proceed with a more formal investigation. They reviewed surveillance videos for several days and determined rather precisely how many cars entered the facility that were not reported as paying cars. With that evidence in hand they replaced the management company and called an attorney who contacted Arxis.

Arxis Work:

Arxis Financial initially reviewed the sampling of days that had been reviewed by management. There was little doubt that the amount of revenue actually collected on those days was materially understated. Based on the sampling we determined the methodology of the theft and, at least on those days, the amount of the theft. The methodology was confirmed by review of additional surveillance and documentation.

The next concern was to determine the period of time the theft took place so that the under-reported revenue could be quantified. Documents were reviewed and we found that the same company held the contract for several years and, additionally, the personnel hired by the management company to work at the parking structure had not changed since the beginning of the contract. The conclusion was that the loss period extended over the entire period of the contract.

Arxis Financial determined a ratio of reported cars to actual paying cars identified on the video surveillance and applied that ratio across the entire contact period to determine an amount of lost income. We compared our results with the actual results of income reported by the new management company and were satisfied that we had accurately estimated the lost income.


A jury trial was conducted at which we provided expert witness testimony. The jury came back with a verdict against the defendants and awarded damages based on the lost income calculations prepared by Arxis Financial.

Service Profile:

Forensic Accounting Services for Commercial Litigation

Arxis Financial's "Forensic Accounting" services for commercial litigation include reconstruction of accounting records, analysis of business transactions, document review and tracing, and expert witness testimony. We apply detailed investigation and analysis that is necessary to uncover essential facts and provide meaningful insights.

Arxis Financial professionals provide valued assistance in a wide array of commercial litigation matters, including: loss of earnings, bad faith, breach of contract, business interruption, fraud, partnership and shareholder disputes, trade secret and unfair competition, wrongful termination, commercial collection, debtor/creditor litigation, mergers and acquisitions, corporation/partnership dissolution, lender liability, product liability, trade libel, and Uniform Commercial Code disputes.

Our experts 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 data, 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.

The Forensic Accounting practice is headed by partner Chris L. Hamilton, CPA, CFE, CVA. Mr. Hamilton is a Certified Public Accountant, Certified Fraud Examiner, Certified Valuation Analyst, and a Diplomate with the American Board of Forensic Accounting. 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.


Arxis Financial respects your time and your privacy. If you no longer want to receive e-mails such as this one, please click here.
Note: Please do not respond to this E-Mail. The reply to E-Mail address is not a monitored account.

Copyright 2014 Arxis Financial. Articles may not be reprinted without permission.

Chris Hamilton Photo

Chris Hamilton, CPA CFE, CVA
(805) 306-7890
@ArxisChris on Twitter

Arxis Financial Logo

Litigation Consulting

Forensic Accounting - Fraud - Business Valuation


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