Fraud Examinations

Fraud Examinations2016-11-10T11:30:23+00:00

Fulcrum personnel have investigated every type of financial fraud, including defalcations, embezzlement, fraudulent financial reporting, and money laundering. We gather, assess, reconstruct, and analyze accounting and other business information. Our investigative accounting teams apply both experience and modern technology to learn the truth. When necessary, our expert testimony capabilities allow us to express our findings clearly and persuasively.

Related Experience:

Representative Engagements

  • On numerous occasions, evaluated and documented “ponzi schemes”. This work demonstrated how and why the underlying economics of the business were unsound and could not be indefinitely continued.
  • Analyzed the flow of funds in a money laundering matter. Involved multiple countries and aliases, covering a period of several years.
  • Performed a fraud investigation in which more than $20 million was allegedly taken. Discovered and documented the fraud, allowing criminal authorities to successfully prosecute.
  • On numerous occasions, investigated the financial affairs of an operating enterprise on behalf of minority stockholders or partners. In each instance, identified inappropriate expenditures by the majority owner leading to substantial recoveries for our clients.
  • Performed a forensic investigation of a publicly traded software company to determine the amount of revenue fraudulently reported. Worked with outside legal counsel to interview employees and review documents to identify the nature and amount of the over reported sales. Determined that the Vice President of Sales entered into side letter agreements with customers, thereby invalidating the sales in the quarter reported. Performed electronic analysis of the suspected employee’s hard drive to identify the side letter agreement which voided over sixty percent of the company’s annual sales. Calculated the amount of the restatement filed with the SEC.
  • Investigated and quantified false claims submitted for processing by an insurance claims officer. (The claims were ultimately funneled to the corrupt employee). Resulted in termination of the employee and eventual repayment to the company.
  • On numerous occasions, performed forensic investigations involving disputes between partners/owners of restaurants and other cash-oriented businesses in which it was alleged that the “operating” partner was skimming cash.
  • Investigated an alleged fraud by a former owner of a bankrupt company. An over $10 million defalcation was discovered and quantified. Performed related asset tracing to locate the stolen funds.
  • Investigated and quantified false invoices submitted and paid through the collusion of two accounting employees. Resulted in the employees being terminated and the stolen funds being repaid. Our report was accepted by all parties and the Court.
  • Analyzed alleged inappropriate transactions on behalf of a minority shareholder. Determined reasonableness of executive compensation.
  • Investigated the complex financial affairs of an officer and director of a failed charity on behalf of a regulatory agency. Based on the results, a constructive trust was placed over most of the former director’s assets.

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