Fraud and tracing analysis applied to fraud and embezzlement litigation: methodology, deliverables, and case-specific considerations.
In a fraud or embezzlement matter the economist maps how the scheme worked from the records, identifies each transaction that fits it, and confirms the amounts against bank statements, check images, and third-party documents rather than the internal books alone. The diverted funds are traced forward through the accounts they passed through to the real estate, vehicles, investments, or other holdings they reached, and the loss is quantified by scheme, by year, and by account. The report separates amounts established from records, amounts estimated from patterns where records are missing, and amounts that could not be determined.
Forensic accounting for embezzlement, misappropriation, and financial statement irregularities. The work reconstructs the flow of funds through bank, ledger, and payment records, traces diverted assets to where they came to rest, quantifies the loss for each scheme identified, and documents the evidence trail so it can support a civil claim, an insurance recovery, or a referral to authorities.
The claim consists of the amounts diverted, reconstructed transaction by transaction from bank records, the general ledger, payroll, vendor files, and supporting documents; the consequential losses the diversion caused, such as lost profits when funds were unavailable to the business, penalties and interest, or the cost of borrowing to replace the funds; the cost of investigating and remediating the scheme; and, where the assets were converted into property or other holdings, the current value of what the funds bought. The drivers are the completeness of the bank and accounting records, the accounting system's audit trail, and third-party records that confirm or contradict the internal books.
We issue the final report and provide deposition and trial testimony, support for insurance or restitution claims, and rebuttal of opposing accounting analyses.
The economist quantifies what the records support directly and, where a consistent pattern exists, estimates the missing periods with the method and its limitations stated. Documented amounts and estimated amounts are separated so counsel can decide how to present each.
Yes. Each has different evidentiary needs, and the report is organized so the traced amounts, the supporting documents indexed to each transaction, and the loss by period can be presented in the form each forum requires.
Request a consultation on Fraud & Tracing or call (201) 343-0700. Plaintiff and defense counsel.