Michael Goldman's Forensic Accounting Engagements
Most commercial disputes, as well as many marital
disputes, have a financial dimension. Forensic accounting and expertly
presented financial evidence can significantly influence the outcome of such
disputes and help ensure a satisfactory result, either in court or through
an earlier settlement process. Successful forensic investigation
requires special knowledge and a sharp understanding of business processes.
Michael Goldman has extensive experience designing and working with
financial and control systems both as an "insider" and as an external
consultant. His services include advising on the key business and
financial issues in a dispute, evaluating the controls and practices in
place in a business and the resulting likelihood of asset misappropriation,
independent analysis and review of financial data, and providing expert
witness reports that set out conclusions and the supporting evidence.
When you cannot find the money, the numbers don't make sense, or you need to
prove your case in court, Michael Goldman has the
knowledge and experience to help you.
Cases Worked On:
- Forensic Accountant for the Trustee in the bankruptcy case of a
$12 million printing company. Found the existence of a second
set of books, proved gross irregularities in bankruptcy schedules
and reports, provided two binders of evidence of cash skimming by
management, and obtained close to $3.5 million in judgments and
penalties assessed by the bankruptcy judge.
- Retained by the secured lender to investigate suspicions of both
pre-petition and post-petition fraud in a $25 million manufacturer.
Found extensive evidence of cash skimming that was previously missed
by both bank and Department of Revenue auditors. Documented
inaccuracies and potential perjury in filed bankruptcy schedules and
in statements testified to in bankruptcy court.
- Retained by a national franchisor to investigate the actions of
its largest franchisee. Found numerous accounting
irregularities, unrecorded cash transactions, and fabricated
- Retained as financial expert in a civil suit against a
tree-trimming company contracting for the State of Illinois in a
case involving a tree falling onto a driver. Reconstructed the
tree-trimmer's financial and operating records and compared them to
the Illinois Department of Transportation records and found enough
discrepancies to quickly settle the case at the maximum amount of
the tree-trimmer's insurance policy.
Court-appointed Examiner in a bankruptcy case involving a franchisor
and 27 franchisees. Reconstructed financial records and reported to
the court in issues relating to abuse of trust funds, check kiting,
financial statement fraud, and auditor malpractice.
Forensic Accountant for the Trustee of a $6 million retail chain.
Prepared analysis and provided evidence of a bust-out scheme and
fraudulent conveyances perpetrated by management.
Expert witness in the bankruptcy case of a nation-wide roll-up of
fertility clinics. Reconstructed pre-petition financial information
in order to perform solvency analysis for fraudulent conveyance
Forensic Accountant for the Receiver of an $80 million leasing
company. Reconstructed records and analyzed ownership of
collateral that had been pledged multiple times to various parties.
Investigated suspicions of loan fraud on a portfolio of residential
apartment buildings, providing bank with sufficient cause to
accelerate loans on the properties
Retained as expert witness in an accounting malpractice case
involving fraud. Reconstructed the work of the outside
accountant to determine the extent of the malpractice committed.
Consulted to the loss prevention department of a major national
franchisor. Performed lifestyle analysis of franchisees
suspected of skimming cash and under-reporting royalties.
Forensic accountant for the creditors in the bankruptcy of a metal
working company. Traced loan payments to ascertain that the
proper credit was given by various lenders.
Assisted in the due diligence review during the acquisition of a $20
million company with accounting irregularities.
Retained as expert witness in a legal malpractice case involving
potential hidden assets of a divorcing spouse. Performed
lifestyle analysis and retrospective valuation on husband's assets
to determine actual net worth at various points in time during and
Retained in numerous divorce cases with suspicions of hidden assets
or misstated income - reconstructed family business records as
required in each case.
Designed and taught a 40-hour course on internal control to a $500
million company to assist them in satisfying terms of an SEC consent
decree after the discovery of fraud in a major division caused the
restatement of five years of financial statements.
Assisted a manufacturing company in determining the extent of fraud
committed by employees - identified truckloads of scrap steel being
shipped from the facility with no accounting or documentation for
Assisted a major commercial bank in defending against lender
liability claims - reconstructed and analyzed records to show that
insolvency of the bankrupt subsidiary debtor was unrelated to the
loan structure and payment plan negotiated between the bank and the
parent company of the creditor.
Assisted in a suit filed against the trustee for breach of fiduciary
duties - reconstructed seven years of financial records to trace
proceeds of estate assets through commingled trusts.
Investigate suspicions of fraud committed by the managing member of
two real estate development LLCs. Identified numerous
suspicious transactions in the books and records, identified
transactions not properly accounted for, and found numerous
instances of self-dealing and asset diversion by the manager.
Assisted a secured lender in evaluating its position and
establishing its strategy in a $150 million leasing company rendered
insolvent as the result of management fraud against creditors.
Reconstructed transaction records so that creditors could determine
who had the most legitimate claim to assets that had been pledged to
Assisted in a suit against trustee for breach of fiduciary duties -
reconstructed bank records of trust accounts to demonstrate abusive
over-charging of fiduciary fees by trustee bank.
Retained as Chief Restructuring Officer of an insolvent $35 million
technology recycling company. As a part of the case
reconstructed financial and operating records to determine the
degree of losses caused by the former CEO and Vice President who
were accused of embezzlement and negotiated settlements with them.
Retained by Chapter 7 Trustees to investigate suspicions of fraud in
Retained by commercial lenders to augment their collateral reviews
and to assist them in monitoring and negotiating with problem
Testified for a public housing agency against apartment owners not
properly following government regulations
Consulted to attorney litigating a shareholder oppression suit.
Determined the extent to which income of the company had been hidden
or understated, resulting in a case settlement.
Evaluated the extent of tax fraud committed over an eight-year
period privately held business to help settle a case where one of
the shareholders was extorting the other.
Retained in a legal malpractice case against a corporate attorney
Retained to investigate allegations that the executor of an estate
failed to disburse assets properly