Investigations

Shareholder Disputes

Shareholder disputes often arise due to inequalities in the access to bank accounts or financial records. Whether the situation involves a minority shareholder whose rights are being oppressed or two 50/50 shareholders where one shareholder has primary responsibility for managing the accounting, the disputes can arise when one shareholder believes they are being taken advantage of or ignored by the other shareholder. Whether the concerns relate to intermingling of personal expenses with company expenses, non-arm’s length transactions, or other misuse of company assets, the role of the independent forensic accountant is to identify the facts in order to assist the parties, or the court, in arriving at a conclusion as the effect of the improper behaviour. 

We have been retained in numerous shareholder disputes and have a proven track record of identifying the relevant information and summarizing the findings in a manner that is accepted by the parties and assist them in resolving their disagreement.

Misappropriation of Funds 

Retained by the owner of a private investment fund to investigate the alleged inappropriate use of corporate funds by the CFO. 

The investigation included analyzing bank statements, credit card statements and other financial information, as well as conducting interviews of key employees. 

The expert report was used as the basis for a criminal complaint and the individual reached a plea agreement with the prosecution. 

Overspending by Elected Representatives 

Retained by a Canadian government body to investigate the level of spending by members of the elected legislative body. The investigation went back many years and involved large volumes of information that was not available in electronic form. 

The approach involved reviewing all the claims and building a database capturing relevant information that could then be organized in a structured way and analyzed according to the policies in effect at the applicable times. The report quantified the amounts spent in excess of the authorized limits as well as amounts charged that were not permitted by the applicable rules. 

Each of the individual defendants reached their own plea agreement that included varying amounts of restitution and/or time to be served in prison. 

Allegations of Employee Misconduct 

Retained on numerous occasions in connection with allegations of inappropriate conduct by employees. In each case, we worked with the employer to understand the nature of the allegations in order to develop an investigative approach that allowed us to confirm or refute the allegation and, at the same time, preserve the relationship between the employee and employer in the event that the allegations were without merit. 

Internal Investigation

Retained by a special committee of independent directors of a public company to conduct an investigation into allegations of improper spending by senior executives. The investigation involved reviewing disbursements and documents submitted in support of the disbursements. The report was relied upon by the board of directors and the external auditor in order to conclude on the adjustments required to the financial statements.

Issuance of Stock Options

Retained by the special committee of independent directors of a public company to investigate various stock option grants given by the company to ensure the pricing of options complied with the rules and that the accounting treatment for the grants was appropriate. Analysis included review of relevant emails, internal correspondence, board minutes, regulatory filings and any other documentation relating to the granting of options in order to determine when the options were granted, how they were allocated, when and how the grant price was determined. Our findings were used by the board to determine actions to be taken in respect of past grants and establishing a process to ensure future grants were fully compliant with the regulations.

Not-For-Profit Organization

Retained by counsel for a not-for-profit professional organization in respect of alleged misappropriation of assets by the organization’s bookkeeper. We conducted the internal investigation and quantified the amount of funds that could be traced to bank accounts that were for the benefit of the bookkeeper. We also advised counsel on the type of work the external auditor should have performed that would have identified the improper transactions sooner than they ultimately were identified.