KW Economics prepares fraud and tracing analysis for partnership and shareholder dispute cases venued in Hawaii: what the loss claim consists of, the records that drive it, and a present value built to Hawaii damages rules and venues. Plaintiff and defense.
When a partner or shareholder suspects that distributions, related-party payments, or unrecorded revenue have moved value out of the business, the tracing analysis reconstructs the flow of funds through the ledger and bank records and quantifies the amounts by year and recipient. The economist identifies transactions that fall outside authorized activity, follows them to the entities and accounts they reached, and documents each step so the finding supports an accounting claim, a valuation adjustment, or a damages claim. The results feed the normalizing adjustments a valuation of the interest requires.
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 valuation date and the standard of value control the result: a fair value standard may exclude the minority and marketability discounts that a fair market value standard applies, and the gap between the two can be substantial for a minority interest in a closely held company. Normalizing adjustments to owner compensation and related-party dealings often decide whether the business shows earnings to value at all. Where the claim includes diverted profits, the amount depends on how far back the records permit reconstruction and on whether the business's actual results can be separated from market conditions.
Hawaii courts ask whether an expert opinion is relevant and reliable and whether it will help the jury, treating the reliability factors the federal courts use as helpful rather than required and not insisting on general acceptance; the witness is qualified by training and experience. An economic damages report is examined on whether its assumptions have a published basis and fit the record.
Highest court: Hawaii Supreme Court. Court system: courts.state.hi.us.
Federal venues: District of Hawaii.
Hawaii reduces a negligence-based award by the plaintiff's share of fault and bars recovery once that share exceeds the combined fault of the defendants. Prejudgment interest is discretionary, so the report separates past from future amounts and supplies the schedule the court would need to award it. Economic damages are not subject to a general statutory limit outside specific statutory claims.
We issue the final report and provide deposition and trial testimony, support for insurance or restitution claims, and rebuttal of opposing accounting analyses.
When a partner or shareholder suspects that distributions, related-party payments, or unrecorded revenue have moved value out of the business, the tracing analysis reconstructs the flow of funds through the ledger and bank records and quantifies the amounts by year and recipient. The economist identifies transactions that fall outside authorized activity, follows them to the entities and accounts they reached, and documents each step so the finding supports an accounting claim, a valuation adjustment, or a damages claim. The results feed the normalizing adjustments a valuation of the interest requires.
Hawaii courts ask whether an expert opinion is relevant and reliable and whether it will help the jury, treating the reliability factors the federal courts use as helpful rather than required and not insisting on general acceptance; the witness is qualified by training and experience. An economic damages report is examined on whether its assumptions have a published basis and fit the record. Partnership and Shareholder Dispute cases venued in Hawaii are heard in the Circuit Court (General jurisdiction; larger civil cases, felonies, family court division), with final appeals to the Hawaii Supreme Court. Matters within federal jurisdiction proceed in the District of Hawaii.
Hawaii reduces a negligence-based award by the plaintiff's share of fault and bars recovery once that share exceeds the combined fault of the defendants. Prejudgment interest is discretionary, so the report separates past from future amounts and supplies the schedule the court would need to award it. Economic damages are not subject to a general statutory limit outside specific statutory claims. The report presents past and future amounts separately, states every rate and table with its source, and shows the result under the alternatives the other side is likely to argue, so counsel can apply the Hawaii rules to a documented figure.
Request a consultation on Fraud & Tracing or call (201) 343-0700. Plaintiff and defense counsel.