SECURITIES LITIGATION


CFE specializes in securities litigation services. The following is a representative sample of types of CFE engagements. 

 

Earnings Manipulation and Financial Misrepresentation

CFE has extensive experience with financial statement irregularities in myriad circumstances.  Significant cases have included:

  • Use of “cookie jar reserves;”
  • Transactions with special purpose entities;
  • Revenue recognition issues;
  • Derivatives accounting and trading;
  • Acquisition accounting;
  • Affiliate transactions and disclosure thereon;
  • Misappropriation of assets or business opportunities;
  • Generally Accepted Accounting Principle (GAAP) issues;
  • International Financial Reporting Standards (IFRS) issues
  • Generally Accepted Auditing Standards (GAAS); and
  • International Financial Reporting Standards.

 

Accountant and Auditor Liability

Nearly all cases involving material financial misrepresentation also involve aspects of audit, review or compilation.  CFE has provided assistance in assessing the propriety of these external accountant functions.  It also advises on appropriate discovery tools to expedite factual development.

Foreign Corrupt Practices Act

CFE performs international investigations.  CFE efficiently and effectively compiles a team that can expedite a transaction level, deep-dive evaluation of source documents and witness statements in multi-lingual and cultural environments.

Broker Dealer, Insider Trading and Market Manipulation

CFE provides analytical assistance and advice to clients in a range of cases involving licensed professional market participants.  Significant cases have involved:

  • Market manipulation and insider trading;
  • Misappropriation or unauthorized trading;
  • Churning or excessive trading;
  • Suitability;
  • Inadequate supervision;
  • Mark ups; and
  • Marking the close.

 

Sarbanes – Oxley Act (Act)

CFE has been retained by clients to advise upon or investigate regulatory impacts and/or liabilities imposed by the Act.  Some significant matters have included:

  • Adequacy of corporate and disclosure controls;
  • Whistle-blower allegations;
  • Certification exposure;
  • Internal control audits; and
  • Alleged retaliatory employment actions.

CIVIL AND CRIMINAL FRAUD


CFE provides assistance in all aspects of dealing with fraud. We investigate and identify the extent of a flagged irregularity. We have often proved allegations to be false and then documented findings for regulators, prosecutors or other decision makers. Where fraud is discovered, we identify causes and perpetrators. We assist with interrogations, advise on employment actions, and assist with reports to relevant authorities. We help to identify shortcomings and methods to improve related internal control weaknesses.  These cases often relate to:

 

  • Misappropriation of funds and other assets);
  • Related party claims or conflict of interest;
  • Acquisition fraud;
  • False federal and state tax returns;
  • Pyramid schemes;
  • Corporate internal control failure;
  • Government contract fraud;
  • Embezzlement schemes;
  • Money laundering, and
  • False financial statements.

FORENSIC SERVICES


CFE has extensive experience assisting counsel and other clients in all phases of investigation, fact finding and presentation to the decision-maker, often from discovery through trial. Key areas of assistance include:

 

  • Asset tracing, and recovery (e.g. CAFRA tracing);
  • Document authentication;
  • Bankruptcy;
  • Construction claims;
  • Breach of contract;
  • Corporate, partnership and marital dissolutions;
  • Investigation of financial reporting irregularities;
  • Investigation of purchasing fraud and kickback schemes;
  • Audit committee investigations;
  • Employee theft;
  • Payroll fraud;
  • Billing fraud;
  • Evaluation of recordkeeping practices;
  • Court receiverships;
  • Damages calculations;
  • Insurance claims disputes;
  • Accountants professional liability.
  • Shareholder disputes;
  • Corporate fraud investigations;
  • Financial reporting and securities fraud;
  • Fraudulent conveyances;
  • Health care fraud and abuse;
  • Internal and white collar investigations;
  • Business valuation; and
  • Construction delays and cost overruns.

LITIGATION SERVICES


CFE has consulted in hundreds of litigation matters. As advisor, or as a testifying witness, CFE’s work often involves the following:

 

  • Preliminary damages assessments and methodology consulting;
  • Evaluations of opposing party damage calculations;
  • Expert evaluations and rebuttal report preparation;
  • Demonstrative and illustrative exhibit development;
  • Expert reports and testimony;
  • Assistance with evidentiary discovery and document requests;
  • Assistance with witness depositions; and
  • Assistance with settlement discussions.

BANKRUPTCY


Like the advisory services in securities cases, those performed for parties to a bankruptcy cover a number of issues that often interrelate.  Among the more frequent issues requiring expert advice are those involving:

 

  • Adequate protection and relief from the automatic stay;
  • Involuntary petitions;
  • Reclamation claims;
  • Disputed claims;
  • Avoidable transactions;
  • Lender liability;
  • Equitable subordination;
  • Prepackaged plans of reorganization;
  • Substantive consolidation;
  • Exclusivity; and
  • Cram-down.

INTERNATIONAL


CFE’s significant experience and expertise in international matters have involved

 

  • Foreign Corrupt Practices Act investigations;
  • Confiscatory tax regime assessment;
  • Cross boarder bank fraud;
  • Business valuation;
  • Money laundering and cross border asset tracing;
  • Transfer pricing assessments;
  • Anti-dumping actions;
  • Foreign commercial regulatory assessments; and
  • International audit standards.

DIVORCE


CFE has advised in many aspects of marital or corporate divorce, including:

 

  • Prenuptial agreement assessments;
  • Financial statement preparation;
  • Search for hidden or undisclosed assets;
  • Marital estate distribution analysis;
  • Asset tracing;
  • Business and interest valuations;
  • Assessment of separate or marital property assertions;
  • Alimony and child support calculations;
  • Income and expense analysis;
  • Build-up income analysis;
2712 NW Howard Creek LN, Stuart, FL 34994 | 202-704-6703 | mmulligan@cfeforensics.com