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June 2018 |
Recent Case:
"Real Estate Fraud: How a Forensic Accountant Saves Clients Money -- With Just a Few Questions!"
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Summary:
Arxis Financial was contacted to assist legal counsel in determining the validity of a fraud claim and the best approach to credibly establishing the claim. The victim was a network of inter-related entities that owned commercial property and undeveloped real estate. Significant cash flow from the entities was managed and controlled by one of the owners. The allegation was that millions of dollars had been fraudulently taken by the manager/owner. The initial contact by the law firm was to retain Arxis to do a preliminary forensic investigation to establish the equivalent of probable cause.
Arxis Work:
In this case not a single document was reviewed. No forensic accounting was done. No damage calculations performed. Instead, a series of simple questions established that all the elements of fraud could be easily proven - except one. In this case, the disbursements to the owner were recorded as loans and reported on internal financial statements and tax returns. Therefore, the core of the case would revolve around whether the loans were authorized and whether the disclosures to the other owners over several years constituted ratification or approval of the transactions. Significant work might eventually be done to verify the accuracy and completeness of the accounting and to establish whether additional money was taken through other forms (expenses, distributions, payroll, etc.).
Result:
The client was saved a lot of unnecessary accounting fees by redirecting the focus of the efforts away from an accounting and back to a legal question that would eventually be the core of the case.
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Service Profile:
Forensic Accounting Services for Inventory Losses
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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.
If you have any questions about Forensic Accounting Services for Inventory Losses, please feel free to contact us.
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Speeches:
Upcoming Speaking Engagements for Chris Hamilton
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Chris Hamilton's upcoming presentations include:
June:
- "Damages and Forensic Accounting" presented to Santa Clarita Valley Bar Association
- "Prisoner #61727-054" presented to Leadership Simi Valley, Reagan Library
- "Intermediate Valuation Webinar" presented to NACVA (webinar)
- "Weighted Average Cost of Capital" presented to NACVA Annual Conference, Las Vegas, NV
- "Making the Break - Transitioning to Full-time Litigation" presented to NACVA Annual Conference, Las Vegas, NV
- "Hardball with Hitchner" presented to NACVA Annual Conference, Las Vegas, NV
July:
- "Valuation Fundamentals, Techniques, Theory" presented to NACVA, Washington, D.C .
If you are interested in asking Mr. Hamilton to speak at your organization's upcoming meeting, please feel free to contact him.
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