Forensic Accountancy: Commercial Litigation

Case Study 1 - Assisting with insolvency investigations

In a recent case, we assisted the liquidator in undertaking investigations into a limited company to demonstrate that the director/shareholder had effectively run the company as if it was a sole trader, and financed various of his other businesses from the company, extracted funds for his personal benefit in preference to others, and arranged the extraction of company assets to settle fabricated inter-company indebtedness. Ultimately, the Liquidator recovered significant funds in addition to costs, based in the main on our detailed findings.

Case Study 2 - Internal investigations

A company invested £1.5million into a start-up technology company which failed within 3 years of the investment, with the entire investment lost.

We undertook investigations into potential fraudulent misrepresentations made to the investor to induce their investment, reviewed the technology company’s Research & Development Tax Relief claims for potential false claims, and identified how the investors £1.5million cash investment had been used, as it was suspected that significant sums had been paid out to parties linked to the technology company’s management.