Forensic Accounting & Litigation Support (Select Engagements)
Rothstein Rosenfeldt Adler, P.A – Expert Witness
Rothstein Rosenfeldt Adler, P.A. (“RRA”) bankruptcy proceeding was the result of a $1.4 billion Ponzi scheme ran by Scott Rothstein. Herbert Stettin, as Trustee for RRA, filed an adversary proceeding seeking to avoid over $5 million of alleged fraudulent transfers. Mr. King was engaged by defendant’s counsel to review, analyze and if necessary, provide rebuttal testimony to opinions offered by the Plaintiff’s expert. Mr. King reviewed extensive banking and accounting records, testimony and applied generally accepted cash tracing rules to prepare detailed analyses and rebuttal testimony that was contrary to certain opinions contained in the Plaintiff’s expert report. Subsequent to Mr. King’s testimony, the litigants agreed to a settlement.
Other Professionals / Stakeholders: Shawde & Eaton, P.L. (Defendant’s Counsel); Genovese Joblove Battista (Trustee’s Counsel); Berkowitz Pollack Brant (Trustee’s Expert)
Bernard L. Madoff – Litigation Support
Irving Picard, as Trustee for the Liquidation of Bernard L. Madoff Investment Securities LLC, filed an adversary proceeding seeking to avoid over $4 million as alleged fraudulent transfers. Mr. King was engaged by defendants’ counsel to provide litigation support including a forensic accounting analysis of over ten years of the defendants’ financial records, to provide insight and report on the defendant’s financial condition, ability to sustain a judgment, and to work collaboratively with counsel and his client in providing the necessary financial disclosures and arguments to assist with a timely settlement and forego further costly litigation.
Other Professionals / Stakeholders: Greenberg Traurig (Defendant’s Counsel); Baker Hostetler (Trustee’s Counsel)
Dreier, LLP (Law Firm) – Forensic Accountant
Dreier, LLP was a prominent New York-based law firm run by Marc Drier that was forced to file bankruptcy after it was discovered that Mr. Drier was running a massive $400 million Ponzi scheme. As a financial advisor to the Chapter 11 Trustee, Mr. King and a team of professionals provided the Trustee with extensive forensic accounting services, including funds tracing required to assist counsel in the pursuit and settlement of various multi-million dollar preferential and fraudulent transfers and other causes of actions. In addition, Mr. King provided assistance to the Chapter 11 Trustee in analyzing and evaluating the proof of claims filed in the estate.
Other Professionals / Stakeholders: Diamond McCarthy (Trustee’s Counsel)
People’s Choice Home Loan Inc. (PCHL) – Litigation Support
Washington Mutual Bank (“WaMu”), as a warehouse and repurchase lender for PCHL, claimed a loan deficiency and security interest in certain PCHL cash balances held and comingled as of the date of PCHL’s petition for bankruptcy protection. Mr. King provided WaMu’s counsel a detailed assessment of WaMu’s $300+ million PCHL loan portfolio to calculate and support a $30 million deficiency claim. Mr. King also prepared and analyzed various funds tracing analyses (FIFO, LIFO and Lower Intermediate Balance) that were used to assess and support counsel’s pursuit of WaMu’s security interest claim in PCHL’s cash balance.
Other Professionals / Stakeholders: Heller Ehrman (WaMU counsel); Washington Mutual Bank (Secured Lender); Alvarez & Marsal (Financial Experts for PCHL); Navigant (Financial Experts for Competing Secured Lender)
National Gold Exchange – Forensic Accountant
National Gold Exchange (NGE) was one of the largest wholesalers of gold coins in the world ($100M+) when it filed for Chapter 11 bankruptcy protection. Mr. King, as financial advisor to the Chapter 11 Trustee, provided the financial and feasibility review associated with of various plans submitted by the Debtor. Upon conversion to a Chapter 7 proceeding, Mr. King assisted the Chapter 7 Trustee by working with counsel in the identification, review and reconstruction of NGE’s business and accounting records, evaluating issues related to solvency, and in the quantification and recovery of preferential payments and fraudulent conveyances.
Other Professionals / Stakeholders: Berger Singerman (Trustee’s counsel); Sovereign Bank (Lender); Greenberg Traurig (Lender’s Counsel)
Global Bullion Exchange – Forensic Accountant for Assignee
Global Bullion Exchange, a company located in South Florida that purportedly sold precious metal investments, was a massive Ponzi scheme ($30m+) that was ultimately subject to an Assignment for the Benefit of Creditors. In addition to providing general fiduciary support services, Mr. King was directed by the Assignee and his counsel to perform the financial and forensic investigation into the company’s actual results including preparing a detailed funds tracing analysis , reports summarizing the company’s business and accounting records, interviews of potential witnesses, and meeting with various state and federal law enforcement officials. This support was used by the Assignee in support of recoveries for the Estate and by law enforcement agencies that were investigating criminal actions.
Other Professionals / Stakeholders: Messana Stern (Assignee’s counsel); FBI; US Postal Inspection Service; State of Florida’s Office of Financial Regulation
Exotic Car Dealership (Confidential) – Forensic Accountant for Lender
A South Florida dealer of high value exotic cars was out formula and trust with its floor plan lender. Mr. King, on behalf of the lender, reviewed “vehicle deal jackets” associated with the lender’s outstanding loan, traced loan and sale proceeds, noted exceptions and conducted numerous interviews with ownership in an attempt to reconcile apparent discrepancies, and prepared comprehensive report of findings to lender’s counsel for further lender negotiations and action.
Other Professionals / Stakeholders: Fifth Third Bank (Floor Plan Lender)