KW Economics prepares fraud and tracing analysis for partnership and shareholder dispute cases venued in Maine: what the loss claim consists of, the records that drive it, and a present value built to Maine 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.
Maine courts ask whether the economist is qualified by training and experience, whether the opinion rests on a reliable foundation, and whether it will help the fact finder, under the state's own reliability inquiry. A damages report meets that inquiry by showing the published basis for each assumption and its fit with the record.
Highest court: Maine Supreme Judicial Court. Court system: courts.maine.gov.
Federal venues: District of Maine.
Maine reduces a negligence-based award by the plaintiff's share of fault and bars recovery once that share equals or exceeds the defendants'. Prejudgment interest runs from the filing of the notice of claim or the complaint in civil actions generally, liquidated or not, so the interval between filing and judgment is part of the economic picture. Economic damages are not subject to a general statutory limit, and the report separates past from future amounts so the interest computation can follow.
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.
Maine courts ask whether the economist is qualified by training and experience, whether the opinion rests on a reliable foundation, and whether it will help the fact finder, under the state's own reliability inquiry. A damages report meets that inquiry by showing the published basis for each assumption and its fit with the record. Partnership and Shareholder Dispute cases venued in Maine are heard in the Superior Court (General jurisdiction; civil cases, jury trials in major criminal cases), with final appeals to the Maine Supreme Judicial Court. Matters within federal jurisdiction proceed in the District of Maine.
Maine reduces a negligence-based award by the plaintiff's share of fault and bars recovery once that share equals or exceeds the defendants'. Prejudgment interest runs from the filing of the notice of claim or the complaint in civil actions generally, liquidated or not, so the interval between filing and judgment is part of the economic picture. Economic damages are not subject to a general statutory limit, and the report separates past from future amounts so the interest computation can follow. 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 Maine rules to a documented figure.
Request a consultation on Fraud & Tracing or call (201) 343-0700. Plaintiff and defense counsel.