In the midst of divorce litigation, a man discovered that millions of dollars were missing from a family trust. The trust had been set up shortly after the marriage, at his wife’s insistence, to jointly hold their marital assets. FSS was hired to investigate where the money went and who benefited.
Because of the complexity of the trust and the scope of the alleged fraud, the FSS team embarked upon a forensic investigation that married sophisticated data analytic techniques with traditional investigative skills.
Our forensic investigation began with a reconstruction of the record to help us trace the sources and uses of funds through the family trust. Record reconstruction is a critical step that can be expedited by the use of specialized software designed to organize thousands of transactions. FSS also brings to the table experienced financial fraud investigators who know how to identify and interpret anomalies in the data and seek further evidence where necessary to prove claims.
As a result of our work, we uncovered an extensive maze of transfers through nearly 100 financial accounts totaling more than $10 million. Of note, we identified:
- The family trust was funded only by the husband’s premarital assets. None of the wife’s premarital assets were used to fund the family trust.
- Funds were transferred to numerous undisclosed accounts in the wife’s name.
- $2.5 million in assets were transferred into accounts solely in the name and control of the wife and her children from a previous marriage.
We presented a comprehensive report of findings to our client that included the results of our forensic investigation detailing the flow of funds through the family trust and the beneficiary of each transaction. Our findings were not challenged, and based on our report, the parties reached an equitable agreement and settled their divorce litigation.