Forensic Accounting Case Studies

Provided forensic accounting and expert services in connection with an evaluation of debtor's business operations, inventories, profitability and other issues in a lawsuit involving recovery of consigned inventory, ownership of consigned inventory, ownership of consigned inventory in a bankruptcy, and related alleged damages.

Provided forensic accounting and litigation support services to assist Unisource International to identify its secured collateral in a bankruptcy. Work involved tracing of raw material paper stock through its conversion to finished good, accounts receivable and cash collateral.

Performed an insolvency analysis, prepared an opinion report and provided testimony relevant to the insolvency of Mednet, a publicly traded company, in connection with its acquisition of Arc Ventures.  Expert work involved analysis on opinion of Mednet's insolvency at the date of the transaction, insolvency as a result of the transaction and insolvency at the dates of subsequent transfer payments even after subsequent capital infusions.

Performed forensic accounting to investigate and trace cellular phones sold by AB Cellular, a subsidiary of AT&T Wireless, to a distributor and investigate the cause of a substantial amount of phones not becoming activated through AT&T.

Provided forensic accounting and consulting services to document and assess damages involving valuation of an apartment building.

Provided forensic accounting services, including analysis of the defendant's operations, books and records, meetings with the SEC, Receiver and their attorneys, preparation of an accounting of the defendant's cash receipt and disbursement transactions to provide evidence for litigation, recovery of assets and verification of investor claims, identification of assets for recovery, preparation of accountings for individual investors for use in "Proof of Claim" verification and distributions, confirmation of investor transactions to determine allowed claims, assistance in creditor distributions and other litigation support as required by the Receiver and the SEC.

Provided extensive forensic accounting and financial/securities consulting services to assist in identifying and accounting for over $60 million in certificates of deposits and derivatives therefrom sold to approximately 700 investors. Work involved tracing of investor funds, accounting for C.D. purchases, maturities, interest accumulation, as well as accounting for highly complex derivatives in the form of "zero" coupon investments and annuities sold to investors based on the underlying C.D.s.

Performed forensic accounting to locate over $2 million which had been fraudulently diverted from the accounts of the Lutheran Church. Biggs prepared a comprehensive accounting and identified the recipients and uses of all the funds. This work supported recovery actions by the attorneys for the Church. The matter was referred to criminal authorities for prosecution.

Biggs & Co. provided forensic accounting for the Court appointed Receiver. Work was performed to reconstruct accounting records, trace and account for cash receipts and disbursements, and identify investors and recipients of funds. A database of investor files and accounting transactions was compiled for analysis and the tracing of assets. Biggs substantiated investor transactions, identified and verified sources of funds from unidentified parties/investors, and traced checks and researched disbursements to identify and classify them by payee and nature of disbursement.

Biggs also prepared accountings and reports for the SEC and Receiver to provide evidence to prosecute the case. Biggs met with the Receiver, U.S. Attorney, and FBI to review accounting, findings and information for trial. Work was performed as well to prepare and identify potential recoverable assets, to reconcile assets with those liquidated by the Receiver, and to provide accounting of additional potential recoverable assets to the Receiver. Biggs provided further assistance with claims analysis and exemptions.

Additional work was performed to prepare and file year-end payroll tax returns and W-2s, as well as preparation of corporate tax returns.

Biggs & Co. was engaged in this securities litigation matter to provide consulting, litigation support, forensic accounting and expert witness services. The engagement involved a compilation of securities transactions to determine gains, losses, commissions and changes incurred in connection with a complaint involving excessive trading activity (i.e. "churning") and inappropriate investments relative to the Lachman investment accounts. Biggs developed financial valuations and alternative analyses to assist in the dispute resolution for this case, and provided forensic accounting to develop case support for legal defense and prosecution.

This was a securities litigation matter in which Biggs provided services similar to those rendered in the case of Lachman vs Peters. Biggs prepared a compilation of securities transactions to determine gains, losses, commissions and changes incurred in connection with a complaint involving excessive trading activity and inappropriate investments relative to Samaan investment accounts. Biggs also developed financial valuations to assist in dispute resolution, developed case support for defense and/or prosecution of legal matters and provided expert testimony.

Biggs provided forensic accounting services and prepared an extensive report and declaration relevant to its work and findings to assist LACOE in support of its claim against Federation of Preschool and Community Education Centers, Inc., as well as to assist in its defense.

Biggs validated and substantiated LACOE's claims against Federation relating to alleged embezzlement and misappropriation of funds by former Federation officers and employees. Biggs reviewed and analyzed claims, stipulations, LACOE's Internal Audit & Accounting Division audit reports, complaints and cross-complaints, contracts, relevant federal codes, and other documents relating to the operations of Federation, its bankruptcy case, and the claims of the respective parties against each other.

Provided forensic accounting services in this bankruptcy case to trace and recover funds and other assets which were believed to have been diverted to foreign bank accounts and other entities. As a result of Biggs' accounting and the evidence it generated, the Trustee and his attorneys were able to pursue major recoveries. Samuel R. Biggs testified at trial relevant to Biggs' findings and work, and provided other declarations and evidence, all of which resulted in awards and judgments exceeding $7.6 million in favor of the bankruptcy estate and other plaintiffs.

Provided forensic accounting services in this case involving a waste disposal and recycling business with annual gross revenues in the range of $20 million per year. Biggs was appointed to investigate allegations of misappropriation of funds by the principals and to report on any diversion of corporate assets by either of the principals.

Appointed by L.A. Superior Court as accountant to investigate and perform a damage analysis of Domany Select Furniture relating to disproportionate shareholder distributions, costs incurred from the Receivership, and failure to file tax returns.