Case Studies
J.S. Held Strengthens Forensic Accounting and Financial Investigations Expertise and Expands Suite of Services in Canada with Acquisition of ADS Forensics
Read MoreWe were contacted by the owner of a construction business that works on federal government construction contracts. The business owner was reviewing company financial records, a task usually managed by a long-time, trusted executive employee, and noticed a series of unusual transactions made to vendors the owner did not recognize. After further reviewing the available records, the business owner began to suspect that two executive employees misappropriated funds that were disguised in the financial records as legitimate business expenses.
We referred this matter to an attorney. The business owner engaged the attorney who retained our expert as a forensic accountant to perform an internal investigation and quantify the alleged misappropriations on behalf of the client. Retaining an attorney for the investigation allowed communication to and from the attorney to be covered by the attorney-client privilege. Therefore, discussions between the client, our team, and the attorney were protected from discovery on behalf of the client, government, or any third parties.
Our team collaborated with counsel to create an investigation plan that included data collection, data analytics, email review, general ledger account focus areas, document review, interviews, and reporting. We worked with Information Technology professionals to ensure the electronically stored information was preserved and collected in a forensically sound manner. In addition, the investigative work plan included which clients’ employees were to be interviewed and in what order.
We analyzed the general ledger transaction activity, reviewed supporting documentation, and collaborated with counsel to conduct interviews with key client personnel. Our expert quantified the amount of the alleged misappropriations, which was supported by information gathered from interviews conducted and documents obtained, including board meeting minutes, financial and accounting records, email communications, bank account statements, business tax returns, and payroll records.
After our investigation, we prepared a report with demonstrative exhibits to summarize our findings. This matter has been referred to the U.S. Department of Justice for potential prosecution for violations of the False Claims Act.
L. Erik Ringoen, CPA, CFF, ABV, CIRA
Senior Vice President
Economic Damages & Valuations
+1 856 433 6059
[email protected]
> Fraud
Our highly qualified professionals include Certified Public Accountants, Certified Fraud Examiners, and Certified Financial Forensics experts who specialize in financial fraud prevention, investigations, and regulatory compliance. We are retained to deliver expert services in matters involving first-party and third-party fraudulent activity, as well as allegations of fraud.
> Forensic Accounting
Our Forensic Accounting Practice includes Certified Public Accountants, Certified Fraud Examiners, Certified Financial Forensics experts, and other financial experts who specialize in financial investigations, dispute resolution, and regulatory compliance. We deliver the truth behind the numbers in financial matters involving insurance claims and disputes, business interruption/lost profits, cyber damages, Delay in Start-Up (DSU) / soft costs, extra expense, family disputes, fraud, labor & employment disputes, personal injury damages, and bankruptcy/insolvency.
> Economic Damages & Valuations
We combine financial expertise with industry and market knowledge to quantify economic impact and determine the value of tangible and intangible assets. Our economic damages experts evaluate, quantify, and testify in matters involving breach of contract, business interruption/lost profits, commercial litigation, family law disputes, fraud, insurance claims & subrogation, intellectual property, labor/employment disputes, personal injury, and wrongful death/medical malpractice.