What are Financial Forensics

If parties are contemplating recovery of losses or damages through litigation, there are often questions.

What actually happened?     Was it reasonable?     What would the impact have been if ….?

VFP’s financial forensic services are designed to define the information needed to answer these questions and to locate or determine the most appropriate sources of this information.

VFP looks beyond the numbers to assess and explain the impacts of these investigative efforts.  As part of our forensics work, we will investigate, analyze and when necessary, reconstruct financial records.  Some samples of work that we have performed are outlined below.

  • Tracing.  Trace the flow of funds and assets between bank, credit card, brokerage, and other accounts to demonstrate the actual use of funds and/or to establish whether or not additional accounts and assets exist
  • Misappropriation.  Review of business financial records and bank accounts to evaluate accusations of inappropriate use of business funds or assets or trust assets
  • Dissipation.  Evaluate claims for dissipation of marital assets (use of marital assets an illegal or inequitable purpose)
  • Reconstruction.  Reconstruct various financial and business records
  • Support for Damages.  Review of historical sales records to support damages claims
  • Compensation review and related analyses
  • Fiduciary.  Investigate various financial records to assess activities and the implications for meeting fiduciary obligations
  • Review.  Review of contracts, employment agreements, business transactions and due diligence documents for comparison to financial records to establish the baseline for our analysis

You will not win or lose your case because a forensic analysis was completed, but in some cases it may lead to the discovery or additional information.  In other cases it will eliminate the “fear” of the unknowns that cause parties to make bad decisions throughout the process.  Ideally, a forensic analysis will enable a settlement if all parties develop an understanding of what actually happened and the impact it has on your dispute.

The VFP team is experienced in performing these financial forensics analyses for disputes.  To learn more about our forensic services, review:  Shareholder Disputes; Contract Disputes; Divorce; Trust and Estate LitigationHow is VFP Different in the Forensic Services section.