Asset Tracing – Misappropriation of Assets

SITUATION

FSS investigated the alleged misappropriation of assets by two former employees of a multi-faceted conglomerate.

STRATEGY

The FSS investigators traced assets through an extensive maze of companies, bank accounts and real estate loan accounts.  Transactional data from the accounting system was compared to a reconstructed database of bank records including bank statements, cancelled checks, deposit detail, and loan detail.  This comparison identified millions of dollars wrongfully converted to the personal benefit of the suspects.

RESULTS
  • Funds were misappropriated through excessive payroll transactions and the creation of unauthorized bank accounts and lines of credit, which were used by the suspects to pay personal expenditures and purchase real property.
  • Suspects consented to a $3 million civil judgment.
  • The suspects were indicted based on FSS findings.