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Forensic Accounting Case Studies



Steve was engaged by the board of directors to performance a HOA forensic accounting investigation regarding cash flow shortages. Using forensic techniques, particularly data analytics, Steve determined the management company was intentionally misappropriating funds from homeowner dues, as well as self-dealing with the homeowner association’s funds. Total misappropriation was six figures.

Partnership – Misappropriation

Steve was engaged by one partner of a three-person partnership. Initial concern was the lack of formal internal controls. Utilizing information gained through interviews and data extraction, Steve determined that a substantial amount of cash was taken from the partnership to pay personal expenditures of the other partners. Total repayments was in excess of six figures.

Partnership – Use of Funds

During a partnership dispute, Steve was hired by both partners to review the information related to multiple partnerships held by both partners. After unwinding the complex intercompany transactions, Steve determined that one partner was utilizing partnership assets for other personal endeavors. The timeframe was in excess of 10 years. Total amount due back to the partnership, including interest approached seven figures.

Lost Profit

Steve was engaged by the defendant’s attorney regarding lost profits. Utilizing ‘But-for’ method, determined that the Plaintiff’s alleged actions cause substantial impact on the defendant’s business operations, resulting in sizable monetary difference between projected and actual results.

Lost Wages

Plaintiff’s legal counsel engaged Steve to review possible lost wages. Plaintiff was terminated from prior position, and through analysis of the employer’s actions, Steve calculated the lost wages. Case was settled minutes prior to deposition.

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