Technical advisory on fraud at an investment fund
Examination of irregular transactions that drove an investment fund into insolvency, at the request of counsel for a family of investors in an accounting-for-proceeds action.
The Client's Request
A family of investors sought accounting, economic and financial advisory support in an accounting-for-proceeds action concerning an investment fund in which they held a significant stake and which had become insolvent. The family suspected that former directors and managers of the fund had dissipated its assets through complex transactions involving multiple companies, including offshore entities, and that this had triggered the liquidity crisis and the fund's insolvency. During the proceeding, the respondents failed to produce all of the documents and information requested, which hindered the examination of the accounting and financial events involved.
How SGEx Approached It
SGEx examined and catalogued the accounting, economic and financial documentation available in the court file and in the client's possession. Given the scarcity of documentation, SGEx prepared a preliminary accounting opinion that provided the technical basis for obtaining access to the full financial records of the companies under investigation, including bank statements. On the strength of that opinion, counsel obtained a court order for the necessary records, which SGEx then examined as part of a financial expert examination and investigation.
Results
SGEx identified a total of R$ 80 million in irregular transactions carried out by the fund's former managers, officers and related parties. In the court-ordered expert examination, the appointed expert confirmed that the transactions in question lacked justification and validated the figures presented by SGEx.
Related Technical Topics
Services, specialties, contexts and industries connected to this topic under SGEx's relationship matrix.
Related Services
- Fraud InvestigationTechnical investigation of financial and accounting irregularities, including fund tracing and the documentation of findings.
- Accounting Expert ExaminationIndependent expert examination of accounting records, financial statements and calculations, prepared for judicial, arbitral and administrative proceedings.
- Economic and Financial Expert AnalysisAnalysis of values, cash flows, economic assumptions and financial models in disputes and decisions that turn on quantification.
- Forensic AccountingReconstruction and examination of accounting records and financial flows for evidentiary purposes, in contexts of suspected wrongdoing, conflict or inquiry.
Related Specialties
- Forensic Accounting and AuditAccounting reconstruction, tracing of financial flows, analysis of financial statements, contingencies and fraud investigation.
- Rendering of Accounts and Financial ReconciliationExamination and reconstruction of accounts, reconciliations, and receivables, payables and balances among partners, officers and other parties.
- Judicial Reorganization, Bankruptcy and InsolvencyPreliminary expert examination, verification and challenge of claims, asset valuation, insolvency and liquidation.
Related Areas of Practice
- Judicial Reorganization, Bankruptcy and InsolvencyJudicial reorganization, out-of-court reorganization and bankruptcy proceedings in which creditors, the debtor and the court all depend on reliable technical information.
- Corporate and Shareholder DisputesDisputes among shareholders, partners and officers, corporate dissolutions, buyout claims and disagreements over financial results.
Request an Analysis
Describe the technical question, the context in which it arose, and the documents available. This information lets SGEx assess the scope of the work before any proposal.