Government Hospital

FINANCIAL INVESTIGATIONS – CONSULTING EXPERT

A staffing agency with over 100 related parties, 170 office locations and more than 250 bank accounts allegedly operated a check kiting scheme which ultimately unraveled leaving creditors unpaid. At a prior firm, an HMP executive investigated the kiting scheme on behalf of Counsel for a creditor with a multi-million-dollar exposure.

Issues:

  • Bank accounts held at numerous financial institutions had millions of transactions to review and analyze
  • Thousands of pages of documents produced were highly disorganized
  • The Agency had over 100 related parties, some of which, participated in the scheme. There were previously unidentified parties that we discovered during our investigation
  • Members of management were either indicted by federal authorities or, for the obvious reasons, unwilling to cooperate with the investigation

Approach:

  • Analyzed thousands of bank statement records for evidence of the commencement of the scheme
  • Reviewed publicly available information regarding the formation and ownership structure of the Agency and related entities
  • Queried document database for key financial records, including bank statements, financial statements and internally prepared cash schedules
  • Advised Counsel on the potential timing of when the check kiting scheme started

Results:

  • A confidential out-of-court settlement was reached prior to trial

 

Scroll to top