Fraud happens, even with the most effective controls in place to prevent it. Action taken to assess, document, and respond to each allegation must be measured and appropriate to mitigate economic and legal risks.
Legion assists companies, board members, investors, lenders, and legal counsel to evaluate allegations of fraud. We act quickly to gather and preserve evidence and stop further fraudulent activities. We conduct forensic analyses of books, records and associated agreements, and quantify damages. We also serve as independent monitors in oversight roles and assist with asset recovery. Our extensive real-world experience helps pinpoint fraudulent activity quickly and report findings in a clear, concise, and meaningful manner required to take decisive action.
Areas of Expertise, Include:
Accounting fraud and concealment
Accounts receivable schemes
Breach of employment agreements
Breach of fiduciary duties
Fictitious vendor schemes
Improper asset or stock valuations
Improper revenue or expense recognition
Inappropriate related-party transactions
Kickbacks and self-dealing
Preference analyses and avoidance actions
Theft and embezzlement
Representative Engagements, Include:
Real-EstateBreach of Fiduciary Duty and Misappropriation of Funds
Performed a forensic investigation on behalf of the principals of a national, multi-billion-dollar real-estate investment trust to identify potential causes of action related to breach of fiduciary duty by certain officers and managers of a local office and the misappropriation of funds. Analysis included the identification of fraudulent business relationships between certain officers, local managers, general contractors, subcontractors and other related entities, identification and calculation of misappropriated funds through payments to a related general contractor, and the involvement of the certain officers and local managers in the acquisition, construction and management of specific assets.
Retained by a creditor of one of the largest multi-family real-estate development companies in Arizona in Chapter 7; analyzed publicly available business records and identified potentially fraudulent business relationships between debtor, a potential successor entity and other operating entities; analyzed debtor's historical financials and identified potential fraudulent transfers totaling over $9 million; provided findings in an extensive report to the Chapter 7 trustee; assisted with the preparation of a civil complaint against debtor; and was later retained by the Chapter 7 Trustee to prepare an expert report and provide expert witness testimony regarding same.
ConstructionConversion and Fraudulent Transfer
Performed a forensic investigation of a large regional pool builder which historically generated up to $35 million dollars in annual revenues: investigated and identified causes of action relating to conversion, successor liability, and transfers of collateral outside the estate; and prepared expert report for use by certain stakeholders.
AutomotiveAuto Dealer Fraud
Performed a forensic investigation of an auto-dealer to identify, quantify and document approximately 100 vehicles sold out-of-trust.
RetailChapter 11 Trustee Misappropriation
Quantified potential damages related to Chapter 11 bankruptcy, trustee's alleged misconduct, and misappropriation of company assets.