Case Study:
Private Estate Assets
Forensic investigation uncovered the details of misappropriation of funds by CFO
A private estate with a net worth of $100 million fell victim to a theft of approximately $15M by their Chief Financial Officer. After the known misappropriation of funds was discovered, the beneficiaries of the estate determined the need for forensic services to examine all financial records of the estate and related entities for the past five years.
The Solution
Harney was engaged to provide forensic accounting services to identify fraudulent transfers or misappropriation of assets by former employees and inappropriate related party transactions.
We performed an examination of four years of accounting and financial records for 32 related entities to the estate for the years.
The scope included a review of FMV paid for ownership changes; a review of management agreements; and a review of all transfers to related parties.
The Results
Reports of findings identified inappropriate benefits to insiders and other issues that highlighted concerns regarding fiduciary responsibility of the management team.
A Compilation of Findings report was prepared and used in mediation/litigation between the estate’s beneficiaries.
Services & Roles
Forensics and Litigation
Forensic Accounting Services
*Some engagements may have been performed by team prior to joining Harney Partners.
