On the Forensic Front: Problem Resolution for Misconduct Cases
Most of DWC’s projects and assignments require robust accounting support. This is due to the nature of workouts: when the firm takes control of an asset as a fiduciary, placing financial controls is a standard element of the process.
When forensic accounting is needed
On the flip side of frothy markets, DWC tends to see more projects requiring forensic accounting services: accounting that involves specific and trained investigative skills that are used to uncover financial misconduct. This misconduct may come in the form of a financial fraud such as a Ponzi scheme, like the recent $735 million 1inMM scheme for which DWC President Michele Vives serves as receiver to recover funds for defrauded investors; operating company disputes where partners have dishonestly placed or hidden funds; or simply cases where ownership of an entity or asset has mishandled finances, leaving the accounting in a state of disarray.
“In the current market, which continues to be defined by several uncertainty factors, we are seeing an uptick in inquiries for this specialized kind of work,” says DWC Chairman and CEO Douglas Wilson. “Some may not know that our team includes two in-house CPAs with significant forensic accounting experience, including DWC Controller Rene Weidman, who is an accredited forensic accountant.”
The 1inMM receivership
In the matter of 1inMM, which was investigated by the U.S. Securities and Exchange Commission, the team conducted a comprehensive forensic accounting analysis of more than 24,000 transactions in an effort to recover assets. Under Vives’s leadership, DWC will conduct a claims dispute process for more than 350 victim investors.
In a number of other matters, from Ponzi schemes to cannabis operating company disputes, the team has provided an equally thorough and detailed approach to retracing funds and reconstructing accounting systems as part of the recovery process.
“Forensic work requires a specific skill set that DWC is proud to offer as these cases come to light,” Wilson says.
Read more in Alternative Workouts Part 5: Forensic Accounting and Financials, or learn about DWC’s receivership and fiduciary services.
