Forensic Accounting Services
Forensic accounting services are useful in several areas of law, such as contract disputes and commercial litigation, minority oppression actions, dissenting shareholder actions, other stakeholder disputes, matrimonial / family law matters, white collar crimes / occupational fraud, estate and trust matters, and bankruptcy. Forensic accounting services are also provided in connection with calculations for certain insurance claims, such as business interruption and fidelity. There are additional situations where forensic accounting services are required, which are not detailed here, such as when a party believes that assets or income in a trust or estate were misused or were diverted altogether. Wickes Forensic Accounting & Consulting LLC employs a customized approach to each engagement to meet the needs associated with each fact pattern. Forensic accounting services for civil and criminal cases and non-litigious matters can be retained by either an individual, an organization, or a law firm, as applicable, and either individually or jointly with other parties.
The results of a forensic accounting investigation can significantly impact the value of a business. In situations where forensic accounting services are rendered related to a business that is being valued we work effectively with the valuation team to provide the valuation analysts the information necessary to properly account for the forensic accounting findings, such as unreported income or personal expenditures, in the business valuation calculations. With Pamela Wickes’ experience valuing businesses, she is well versed in business valuation concepts and identifies and advises the business valuation team of items that came to light during the forensic accounting engagement, which should be considered during the valuation analysis. Since Pam specializes in forensic accounting and also has over ten years of business valuation experience, she is an asset to the team when a matter calls for both forensic accounting and valuation services.
During 2019 Wickes Forensic Accounting & Consulting LLC and Equitable Value, LLC joined forces with an affiliate partnership and moved our teams into one office to provide our clients a broader suite of forensic and valuation services under one roof. If you need a business valuation in addition to our forensic accounting services, we can perform both phases of the engagement under one retainer agreement, as Equitable Value, LLC serves as our subcontractor for valuation services. Equitable Value, LLC’s CEO, Scott DeMarco, MBA, CBA, CVA, CDFA, CPVA, is the testifying expert and leads the business valuation services.
Forensic Accounting Procedures
The procedures employed in forensic accounting engagements varies widely (depending on the concerns, allegations, and type of dispute) and can include tracing assets, cash flows, and transactions; reconstructing financial books and records; gathering evidence; reviewing and comparing source documents; conducting interviews; performing economic and industry research and economic calculations; summarizing and communicating findings, providing litigation support, and negotiating settlements and/or testifying, etc.
Following are some of types of matters in which Wickes Forensic Accounting & Consulting, LLC can assist:
We investigate allegations of fraudulent activity in organizations of all sizes, from small emergency response organizations to publicly traded companies, as well as governments and not-for-profits, with losses ranging from a few thousand dollars to nearly $10 million. Sometimes we are asked to just confirm the suspicions of employee embezzlement and theft and other times she has to quantify/evaluate the losses over a certain period of time for criminal prosecution/defense. We assist client with preparation of the Proof of Loss for their crime and fidelity insurance policy claim. Wickes Forensic Accounting & Consulting, LLC can be retained by insurance companies to evaluate and critique loss claims as well. Pam Wickes has also investigated alleged deposit structuring and unreported income related to Cash Transaction Reports (CTRs), Suspicious Activity Reports (SARs), and income tax fraud.
In connection with actual or anticipated lawsuits, as well as insurance claims, involving individuals, businesses or other organizations, Wickes Forensic Accounting & Consulting, LLC calculates damages related to the specific issue at hand, such as a contract dispute, theft, fraud, fire, etc. The circumstances of each case are different, and sometimes attorneys engage us to simply help with discovery and settlement negotiations or to rebut an opposing expert report. The estimate of damages may include lost profits, increased cost, reconstruction of financial data, loss of buildings and equipment, etc. Estimates for personal earnings losses may include lost earnings, lost earnings capacity, lost benefits, medical costs incurred, future medical costs, and lost household services.
Financial forensics are helpful to resolve minority oppression and dissenting shareholder matters, as well as post-acquisition disputes. We provide forensic accounting services to assist with issues relating to entitlements to profit sharing or dividends, non-business related expenditures, unreported income, conflicts of interest, earn out disputes, etc. The investigation of payments made pursuant to earn-out provisions of a sale are tailored based on the specific terms to the applicable agreement. As with other owner / stakeholder disputes, the financial investigation entails conducting interviews and obtaining and analyzing related financial documents and information.
Pamela Wickes has in depth knowledge of the specialized accounting in the construction industry from both her position at a contractor when she was in private industry and the significant number of clients in the construction industry during her traditional public accounting tenure. Pursuant to the owner’s right to audit in a construction contract, we have performed review and analysis of contractor’s accounting and related books and records for the contract and reported findings accordingly. Wickes Forensic Accounting & Consulting, LLC is able to effectively perform investigations that are required in certain contract disputes and claims.
Divorce / Family Law
We provide forensic accounting and litigation support services either jointly or separately for clients ranging from those with relatively small estates to those who are very high net worth individuals. Pam Wickes has provided services in divorces of celebrities and high profile individuals. Following is a list of some of the matters in matrimonial / family law proceedings, from the very basic to the complex, in which Wickes Forensic Accounting & Consulting, LLC can assist:
- Lifestyle analysis;
- Statement of Net Worth preparation;
- Separate property tracing;
- Tracing and quantifying sources (income/assets/debt proceeds) and uses (expenditures/investments/assets) of monies;
- Allegations of hidden assets and unreported or deferred income;
- Income determination;
- Tracing the use and quantifying distributions from assets in the marital estate;
- Identification of assets, determination of ownership and how/when they were acquired;
- Characterization of assets as premarital or marital;
- Quantification of assets and liabilities (marital balance sheet);
- Determination of the nominal and beneficial ownership of investment(s) in, entitlements to, and control of the assets;
- Settlement negotiations / scenarios considering division of assets / income;
- Economic contribution claims; and
- Support modifications – financial analysis and investigation.
Bankruptcy & Debtor/Creditor Matters
Wickes Forensic Accounting & Consulting, LLC can investigate issues that arise in bankruptcy cases, such as fraudulent conveyance, concealment of assets, and unreported income, as well as preferential payments to insiders and the level of consideration for assets conveyed. In addition, we have experience investigating the factors leading to insolvency. The “badges of fraud” and co-mingling of personal and business transactions related to piercing the corporate veil will be considered, as necessary.