Corporate Fraud & Embezzlement Expert Witness

Scope of Expert Analysis

• Employee embezzlement, tracing of misappropriated company funds through payroll, expenses, and accounts
• Procurement fraud, kickbacks, inflated invoices, and supplier collusion
• Payroll fraud, ghost employees, inflated hours, and unauthorized payments
• Expense fraud, personal expenditure claimed as business costs
• Management fraud, financial statement manipulation and concealed liabilities
• Quantification of investigation costs recoverable as part of the fraud loss

Typical Instructions

• Shareholder disputes or derivative actions arising from internal fraud
• Dismissal and recovery proceedings against fraudulent employees or directors
• D&O insurance or fidelity bond claims following internal fraud discovery
• Regulatory investigation requiring independent loss quantification
• Business sale or investment due diligence revealing historical fraud

Methodology & Delivery

• Forensic review of accounting records, ERP systems, and internal controls
• Identification of control weaknesses exploited by the fraudster
• Tracing of misappropriated funds through company and personal accounts
• Quantification of direct theft, concealed losses, and business impact
• Expert report suitable for civil, regulatory, or arbitration proceedings

Related Expert Witness Services

Frequently Asked Questions

How does a forensic accountant quantify fraud loss?

A forensic accountant quantifies fraud loss by tracing the claimant's financial position before and after the fraudulent act, identifying the direct financial loss caused by the fraud, and applying the appropriate methodology for the specific fraud type, such as counterfactual analysis for investment fraud, or direct loss calculation for embezzlement. The methodology is fully disclosed in the expert report.

What is the counterfactual method in investment fraud loss quantification?

The counterfactual method in investment fraud loss quantification asks: what would have happened to the claimant's money if the fraud had not occurred? The expert models the return that a legitimate, suitable investment would have produced over the same period, then compares this to the actual outcome. The difference between the counterfactual return and the actual loss is the investment fraud loss.

Can you provide fraud loss expert evidence for international arbitration?

Yes. Fraud Loss Expert provides forensic accounting expert witness reports for international arbitration proceedings, including ICC, LCIA, SIAC, AAA/ICDR, and ICSID. Reports are prepared to the expert witness rules of the applicable arbitration institution and the applicable law governing the dispute.

What is APP fraud and how is the loss calculated?

Authorized Push Payment (APP) fraud occurs when a victim is deceived into authorizing a payment to a fraudster. Loss is calculated as the total amount of payments made as a result of the fraudulent instruction, less any amounts recovered. Forensic accountants analyze the payment records, trace funds, and produce an expert report quantifying the total loss.

What must a fraud loss expert report contain?

A fraud loss expert report should include the expert's qualifications, a summary of instructions, the facts and materials relied upon, the expert's opinion and methodology, a range of opinion where relevant, a summary of conclusions, and a statement confirming the expert's duty to the tribunal or court.