Fraud / Ponzi Schemes

KM has acted as financial advisors, damages experts, testifying experts, forensic accountants, claims administrators and litigation consultants in fraud /Ponzi scheme matters, advising SEC and FTC Receivers, Chapter 11 Trustees and other fiduciaries in fraud investigations. Our investigations have included tracing of funds flows to determine fraud/Ponzi and preparation of in-depth Ponzi analyses, which were instrumental in court testimony to recover additional assets for distribution to defrauded investors.

KM provides forensic and financial analysis, assessments of complex and intricate corporate, insider and related party transactions, identification and tracing of assets and targets of recovery, preferences and fraudulent conveyances, evaluation of alternative strategies and feasibility plans. Ponzi schemes and fraudulent business conduct are special targets for KM consultants and analysts. Our forensic investigation includes discovery and unraveling of vast webs of tangled real estate holdings, corporate shells, mismanagement and misstatements, and fraudulent transfers. Our forensic investigations have encompassed off-shore banking and international monetary transactions.

KM has investigated and identified related party transactions and traced cash flows by analyzing and evaluating the voluminous financial activity of these entities. The S.E.C./U.S. Government seized the corporate assets and closed the businesses due to the Companies’ alleged sale of unregistered securities and securities fraud. KM assisted the Receivers in securing the premises, identifying and marshaling assets and prepared written reports, which were utilized by both the S.E.C. and the Receivers for enforcement and recovering assets for the benefit of investors. The analysis and investigation of corporate transactions involved significant transfers of intricate webs of funds, including international and offshore corporate structures.