Corporate Investigations Case Studies
Securities Fraud
AlixPartners serves as claims agent and as accountant and consultant to the S.I.P.C. Trustee overseeing the liquidation of Bernard L. Madoff Investment Securities LLC (“BLMIS”). On behalf of the Trustee we assisted with day-to-day operational issues which included winding down and selling BLMIS’s broker-dealer businesses, creating and managing a claims database and hotline, and preserving electronic data to support the bankruptcy claims process and civil and criminal trials. We performed electronic reviews in connection with evidence gathering, and maintained books and records for the Trustee.
Forensic Investigations
AlixPartners performed a forensic investigation into anonymous allegations of corruption and accounting errors on behalf of the Audit Committee of the Board of a China-based medical devices company that is a publicly traded U.S. registrant. The investigation addressed potential violations of the Foreign Corrupt Practices Act. We analyzed the circumstances surrounding corporate transactions, performed an in-depth accounting investigation into both the company’s China GAAP and U.S. GAAP financial statements, and assisted counsel with interviews and inspection of the company’s financial records in the inquiry into potential FCPA violations. We provided electronic discovery services to counsel, including the identification, preservation, collection, processing, hosting and production of electronically stored information, which was largely Chinese-language based.
Financial Reporting Fraud
AlixPartners professionals conducted an investigation into accounting issues related to financial statement disclosures, reserves, and revenue recognition. We conducted an analysis to determine if sufficient justification existed for the set up and release of the reserves. We analyzed revenue transactions to determine whether or not they were properly recorded and disclosed. AlixPartners provided the results of the investigation to the company’s Board of Directors and Audit Committee and assisted the company in making improvements to its operations through recommendations of best practice procedures.
FCPA Investigations
AlixPartners reviewed multiple business units in more than 30 countries of a major multinational conglomerate in cooperation with the DOJ and the SEC and in connection with an FCPA compliance review. The review included analysis of transactional activity included in the company’s books and records, and an analysis of internal controls and financial reporting. We identified potential violations of the FCPA books and records and internal controls provisions and assisted with the company’s reporting of such reviews to U.S. authorities.
Post Event Monitoring
AlixPartners was named Independent Consultant by a software technology company in connection with a settlement with the SEC. We performed a review of the company’s policies, computer systems, and practices in affecting areas previously deemed problematic. We reported results of the review and delivered a series of recommendations for improvements to the company’s Board of Directors and the SEC. By implementing our recommendations, the company strengthened its internal control environment, reduced the risk of additional financial reporting errors and fraud, and complied with regulatory requirements.