Intelysis was approached by a financial services client that had financed a sizeable retail business in a factoring deal that had gone sour. The more our client looked at the situation, the less it made sense, and our forensic accounting professionals were retained to help them solve the problem. The Intelysis team began a full forensic audit of the business, and after a considerable amount of work, identified a carefully disguised discrepancy in payments that were supposedly for “management fees”. While our investigators looked into the trail left by these payments, the accountants continued with their painstaking search for evidence of fraud.

The investigators traced the money to a Florida company, and with these details in hand the accountants unearthed a complex scheme of fraudulent shares, options and warrants issues that had effectively moved control of the company into the hands of the wrong doers behind the Florida corporation. Further spade work revealed that the mastermind behind the scheme was a high profile felon who had been notorious in the previous decade for a major scam and had spent time in jail on that case. When his links to insiders at our clients company were confirmed, a series of lawsuits were considered, including one against the auditors who appeared to have turned a blind eye to the scheme. As the strength of our case became clear the matter was settled to the satisfaction of our client and the mastermind was forced to abandon the spoils and seeks greener pastures elsewhere.