Fraudulent activity investigated
Bankruptcy fraud in excess of $5 million was the claim made by three participating financial institutions against the lead bank involved in a swiftly failing real estate project.
At the beginning of the venture, each of the financial institutions involved contributed a specific amount of funding for the entire project. The goal was to complete the project quickly, recoup their investment and of course, turn a profit. Despite the best-laid plans, costs for the project quickly escalated, timelines were adjusted and the whole project was in jeopardy. The lead bank in the group invested more capital to get the project completed.
After the project was finished, the participating financial institutions accused the lead bank of not applying the funds properly for repayment and withholding funds they were owed. To diffuse the situation, SVA was hired to complete an investigation providing litigation support if needed.
SVA’s forensic accounting professionals took the financial data involved in the case and organized it into typical accounting formats. Utilizing the expertise of SVA’s real estate professionals (a luxury not many forensic accounting teams have) a further examination of the financials was completed to review the scope and ensure invoices were properly allocated. At the completion of the investigation and review, SVA provided easy-to-track and easy-to-read methods so all parties involved could interpret the findings.
In working with all four financial institutions and their attorneys, further legal conflict was avoided and resolution reached.
*Due to the sensitivity of fraud cases, as well as for the security of our clients, individuals and organization names are not disclosed in the SVA Fraud Measurable Results.™ stories.