Fraud committed by a vendor, agent, advisor or other outside party can involve overbilling, price fixing, kickbacks or rigged valuations, which undercuts the company’s profitability. The investigation starts with examining the scope of the fraud and determining whether the suspect acted alone or in collusion with someone on the inside. The forensic team must discreetly consider all the potential participants and then define and track suspicious funds or transactions, sometimes going back decades.
We have extensive experience in conducting expert forensic investigations into suspected wrongdoing by outside parties.
A large insurer turned to CHS when it suspected one of its agents was working with others to inflate insurance policy values and make improper withdrawals. Our forensic accountants traced 20,000 deposits and withdrawals through various records over a 17-year period. We prepared an expert report and testified at trial. The judge found for the company based on the findings of our report.
CHS was retained to investigate an oil explorer and producer suspected of accounting improprieties and carrying out non-arm’s length transactions and transactions oppressive to its own minority shareholders. A team of CHS investigators travelled to certain Caribbean countries to review documents and interview key individuals. Our forensic accounting report was entered into evidence at the trial and was accepted without restriction by all parties involved.
An investment bank called on our professionals after becoming concerned about the actions of one of its investment advisors. The forensic investigation required combing through every one of the adviser’s many client accounts to identify potentially questionable transactions. We ultimately identified several clients who had suffered a misappropriation of funds, which helped them recover their losses. Our report was also used to support the brokerage’s Proof of Loss claim with its insurer and as the basis to bring charges against the rogue investment adviser, which led to criminal conviction.
We were called in to trace the actions of an investment broker who had been making unauthorized trades and withdrawals on client accounts. Our forensic specialists traced more than $60 million of investors’ funds through 50 investment and bank accounts. The complex findings were presented at trial, and judgment was granted adopting the findings of our report.