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Summary:
Arxis Financial
was contacted to assist legal counsel in determining the validity of a
fraud claim and the best approach to credibly establishing the claim.
The victim was a network of inter-related entities that owned
commercial property and undeveloped real estate. Significant cash flow
from the entities was managed and controlled by one of the owners. The
allegation was that millions of dollars had been fraudulently taken by
the manager/owner. The initial contact by the law firm was to retain Arxis
to do a preliminary forensic investigation to establish the equivalent
of probable cause.
Arxis Work:
In this case not a single document was reviewed. No forensic accounting
was done. No damage calculations performed. Instead, a series of simple
questions established that all the elements of fraud could be easily
proven - except one. In this case, the disbursements to the owner were
recorded as loans and reported on internal financial statements and tax
returns. Therefore, the core of the case would revolve around whether
the loans were authorized and whether the disclosures to the other
owners over several years constituted ratification or approval of the
transactions. Significant work might eventually be done to verify the
accuracy and completeness of the accounting and to establish whether
additional money was taken through other forms (expenses,
distributions, payroll, etc.).
Result:
The client was saved a lot of unnecessary accounting fees by
redirecting the focus of the efforts away from an accounting and back
to a legal question that would eventually be the core of the case.
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Whether for plaintiff or defense
counsel, wrongful death matters hold significant financial
consequences. Loss calculations can easily reach into the multi-million
dollar range based on an individual's earnings, fringe benefits and
inheritance, as well as damages for mental anguish or pain and
suffering of the survivors, and possible punitive damages. Hiring the
right expert in such matters is therefore an imperative.
Arxis is
thoroughly equipped to offer extensive litigation
consulting services in wrongful death cases. We provide an
independent analysis of damages, using current market data, national
estimates and case specific facts. We also provide analysis of opposing
expert's reports, especially when the calculated loss appears to be
overstated. Our experts review the underlying assumptions and methods,
verify accuracy of their calculations, and compare these to
professional standards. We can also provide questions for cross
examination of the opposing damages expert. Our expert analysis can often
provide a basis for negotiating a reasonable settlement.
Our experts are readily available to
attest to their findings in depositions and trial at local, state and
federal court levels as well as mediation and arbitration. Clients are
pleased with Arxis' abilities to clearly, persuasively, and
accurately present economic and financial evidence and opinions.
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