2. Overview
• Background on Ellin & Tucker, Chartered
• Overview of Forensic and Valuation Services
• Forensic Accounting
• Litigation and Business Valuation
• How to Get Into FVS
• Our Backgrounds and Experiences
• Questions
3. Who are we?
• Mid-Atlantic regional firm established in 1946
• Over 65 years of service
• More than 100 employees
• Four locations
• Headquartered in Baltimore
Baltimore Washington, DC Frederick Belcamp
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4. What services do we provide?
• Services • Industries
• Accounting and Auditing • Automotive
• Bankruptcy • Construction
• Business & Management • Employee Benefit Plans
Consulting • Health Care
• Business Valuation • Hi-tech/Biotech
• Damages & Litigation • Law Firms
• Forensic Accounting & • Manufacturing
Fraud Investigation • Non-Profits
• Mergers & Acquisitions
• Professional Services
• Tax Service
• Printing
• Private Investment Funds
• Real Estate
• Retail
• Wholesale Distributions
5. The Forensic and Valuation Services Group:
• Advices clients and provides expert testimony in domestic and
international litigation matters
• Cases have involved significant damage amounts
• Performs numerous investigations of national and international
investment schemes, bank embezzlements and fraud in a variety
of industries
• Analyzes complex financial transactions providing counsel,
partnerships and other business entities with the answers they
need to resolve legal, regulatory and general business disputes
• Respond timely and communicate financial information clearly and
concisely in a courtroom setting
6. Typical FVS Casework
Fraud
Business Investigation/ Domestic
Valuations Examination Disputes Damages Other
Sale Deception Hidden Assets Commercial Loss from
Purchase Intentional Hidden Income Patent Shutdown of
Shareholder Manipulation of Infringement Business
Disputes Records Personal Injury Operations
Wrongful Fire losses
Death Misappropriation
Wrongful of Funds
Termination Breach of Contracts
Transaction Analysis
Asset Tracing over
Time
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7. Who engages the FVS Group?
• Public and Private Entities
• US and International
• Attorneys
• CPA Firms
• Banking Institutions
• Trust and Wealth Managers
• Insurance Companies
• Government and Law Enforcement Agencies
9. Definition of Forensic Accounting
• The term Forensic Accountant refers to an accountant
who performs an orderly
analysis, investigation, inquiry, test, inspection or
examination in an attempt to obtain the truth and develop
an expert opinion.
• What does this mean?
• Applies accounting skills to legal matters in a wide range of
issues
• Addresses a past event
• Uses financial information
• Produces information about finances
• For use in judicial proceedings
10. Roles of Forensic Accountants
Expert Witness
for Litigation
(e.g. Damages)
Expert Witness
Transitional Business for Valuation
Advice (e.g. Transaction)
Forensic
Accounting
Event
Fraud
Analysis
11. Fraud, Forensic and Anti-Trust
• Civil fraud investigations • Asset and transaction tracing
• Criminal fraud investigations • Accountant malpractice
• Director and officer negligence
• Securities fraud investigations
and self dealing
• Money laundering • Contract compliance
• Transaction tracing • Investment advisor malpractice
• Internal corporate investigations • Corporate veil piercing
• Sarbanes-Oxley compliance • Application of accounting
principles
• Misappropriation of corporate
• Accounting controls and
assets and corporate
procedures reviews
opportunities
• Regulatory compliance and tax
evasion
12. Why are Forensic Accountants needed?
• Fraud prevention
• Examine current internal controls for weaknesses
• Implement changes to strengthen internal controls
• Suspicion of fraud
• Investigate any allegations of fraud
• Fraud has already occurred
• Determine the extent of the loss
• Follow the paper trail and expose how the fraud occurred
• Testify in court
• Litigation support
• Business valuations
• Calculation of loss and damages
• Estimate any unreported/over-reported income
14. Litigation Support
• Commercial Litigation Services include
assisting legal counsel and their clients with
commercial disputes and litigation at every
stage of the litigation process
• Commercial Damages
• Calculation of Lost Profits
• Calculation of Loss in Value
15. Commercial/IP Litigation & Bankruptcy
Services
• Discovery and Fact Finding • Patent infringement
• Damage Analysis and • Trademark infringement
Quantification
• Trade secret misappropriation
• Settlement Negotiations or
Mediation • Copyright infringement
• Expert Reports and Expert • Trade dress
Witness Testimony
• Bankruptcy Analysis,
• Lost Profits Investigation, Turn-Around,
and Restructuring Support
• Loss of Business Value
• Increased Cost Claims
16. Business Valuation Services
• Valuations of closely held business interests including
corporations, partnerships, and limited liability companies
• Valuations of securities and fractional interests including debt, preferred
stock, SAR’s, and restricted publicly held stock
• Valuations of intangible assets and intellectual property
• Valuations of stock options, warrants, and stock grants
• Valuations of ESOP interests
• Valuations for recapitalization and freeze transactions
• Fairness opinions
• Fair value determination for financial statement purposes
19. Where to Start?
• Accounting vs. Finance Backgrounds
• Accounting Background
• Auditing experience
• Understanding of financial statements
• Understanding of financial analysis
• Workpapers and supporting documents
• Finance Background
• Financial Analyst Experience
• Understanding the macro and micro level economic factors
• Understanding financial markets
• Understanding of cash flow
• Risk and return analysis
• Time value of money
20. What is an Auditor? What is a Forensic
Accountant?
Auditor Forensic Accountant
• An independent third-party • An accountant who performs
who examines and verifies a an orderly analysis,
Company’s financial and investigation, inquiry, test,
accounting records as well
as supporting documents to inspection or examination in
express an opinion on the an attempt to obtain the
Company’s financial truth and develop an expert
statements opinion
• Auditor’s report provides
credibility to a Company’s
financial statement
21. Designations and Certifications:
Experience, education and professional competence of
the forensic accountant is crucial for the proper
management of an engagement
• Certified Public Accountant (CPA)
• Chartered Financial Analyst (CFA)
• Certified Forensic Financial Analyst (CFFA)
• Certified Fraud Examiner (CFE)
• Tax Degree (MST)
• Courtroom Experience
• Written and Verbal Communication Skills
• Ongoing Continuing Professional Education