Listed below are several recent examples of our experience performing financial investigations:
- Invotex Group was appointed receiver to a private real estate investment group after the Maryland Attorney General’s Office froze the assets. The entity offered small investors the opportunity to invest in “high yield” real estate investments promising large returns in “reasonably short periods of time” through investing in a so-called REIT. In reality, it was operating a Ponzi scheme in which it used funds raised from new investors to repay investors who withdrew interest and/or principal. At the time of the receivership, the entity had approximately 400 investors, had raised more than $7 million in just over 18 months and owed approximately $4.5 million in principal. Invotex, as receiver, has been charged with identifying, gathering, receiving, controlling, managing, liquidating and administering all of the assets and, ultimately, distributing any available funds to claimants.
- Invotex provided consulting services to a State Insurance Commissioner in connection with the seizure and liquidation of several national and international sureties and insurance companies domiciled in that state. This work required the identification, tracing, location, attachment and collection of assets hidden in more than 600 bank accounts worldwide.
- Invotex provided fraud investigation and forensic services to a division of a State’s Department of Transportation leading to the conviction of an employee who stole substantial amounts in a fictitious claimant insurance fraud scheme.
- An insurer of lease back receivables, hired our consultants to review four portfolios that had been packaged by a commercial bank. The credit insurer had experienced greater-than-forecasted losses on these four portfolios. At the insurer’s request and with the bank’s permission, we reviewed the lease files and servicing to determine that lease income and lease terms were appropriately reported and monitored and that the initial credit decision behind the lease was supported with quality credit information, as required by the agreements between the insurer and the bank. We also reviewed monitoring and collection of delinquent accounts and collection and reporting of residuals paid by lessees. The bank was the intermediary between seven national leasing companies, and its parent was the source of initial funding for the leases. Permanent financing for these leases was obtained through securitizations, the receivables of which were insured by the credit insurer.
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