Corporate Accounting and Fraud Investigations

  • Retained by outside counsel for a Fortune 500 information technology company to assess and investigate its contract revenue recognition practices as part of a Securities and Exchange Commission (SEC) inquiry. As a result of our investigation, it was found that the company had failed to account for and disclose material losses on its contracts, which resulted in the restatement of prior year financial statements. We also assisted in the design and implementation of new revenue recognition policies and procedures.
  • Investigated potential procurement fraud against a publicly traded multinational retail chain, which entailed a detailed review of the retailer’s accounting records, database of expenditures, and internal control processes. Based on our investigation, we identified over $3 million of misappropriated funds through the use of shell companies and fraudulent invoices. The Federal Bureau of Investigation utilized our report to convict the perpetrators for defrauding their employer.
  • Worked with outside counsel, on behalf of the audit committee of a publicly traded clothing manufacturer with over $300 million/year in revenue, regarding the alleged misappropriation of assets and the improper accounting for related party transactions. We identified numerous accounting and internal control deficiencies resulting in the restatement of prior year financial statements and the termination of the Chief Executive Officer. Over $1.4 million in fictitious employee reimbursements were identified along with evidence of manipulation of sales allowances, inventory, and tax balances.