Forensic Accounting Exposes Hidden Payments in Partnership Dispute

The Challenge:

Our firm was engaged by members of a closely held partnership who suspected financial misconduct by the managing partner, who also controlled the company’s books and records. The partners raised serious concerns about questionable transactions, particularly payments to entities related to the controlling partner.

Our investigation faced an immediate and significant obstacle: the managing partner provided a QuickBooks file that was conspicuously incomplete, with entire months of transaction data missing. Her attorney formally asserted that these missing periods were “outside the scope” of the review, attempting to legally wall off a critical timeframe from examination. Our clients were faced with a seemingly intractable problem, how to prove financial malfeasance when the primary evidence was being deliberately withheld.

The Approach:

Undeterred by the incomplete records, our forensic team leveraged advanced data recovery techniques within QuickBooks. We conducted a thorough audit trail analysis, a function that logs every change and deletion within the accounting system.

This sophisticated approach allowed us to bypass the obstruction completely. We successfully identified and reconstructed all of the deleted transactions from the “missing” months. Our analysis pieced together a complete financial picture, revealing a pattern of payments that had been funneled to the managing partner herself and to various related parties. We compiled this evidence into a clear, definitive report that documented the full extent of the unauthorized transactions.

The Results:

Faced with the forensic evidence, the managing partner immediately engaged in settlement talks. Our report, which detailed the reconstructed transactions and payments to related parties, provided the leverage needed for a swift out-of-court settlement for our clients. The matter was resolved without the need for a costly trial, demonstrating the decisive power of thorough forensic accounting.

How we can help you

This case demonstrates that financial records are never truly deleted when a skilled forensic accountant is on the case. If you suspect financial mismanagement, undisclosed related-party transactions, or are facing obstruction in a partnership or shareholder dispute, our expertise in fraud examination and forensic accounting can uncover the truth. We provide the clear, defensible evidence needed to protect your financial interests.

Forensic Accounting Exposes Hidden Payments in Partnership Dispute

The Challenge:

The Approach:

The Results:

How we can help you

Turn Evidence into a winning strategy