The following cases illustrate Invotex’s experience in the area of white collar crime:
- Invotex Group personnel, under the leadership of an Invotex managing director, were engaged by the Department of Justice’s Enron Task Force to assist in the investigation and subsequent prosecution of Kenneth Lay, Jeffrey Skilling and other senior executives of Enron. The engagement primarily was focused on insider trading, money laundering and asset forfeiture, including tracing proceeds and identifying assets purchased with illegally gotten gains. During the initial investigation, we identified two additional areas for investigation. The first was an analysis of personal security transactions and potential defenses to insider trading charges. The second was a fraud uncovered by Invotex Group personnel involving false statements made to banks relative to the use of proceeds from lines of credit over a 13 year period. During the course of the engagement Invotex Group personnel reviewed hundreds of thousands of documents, conducted numerous witness interviews and assisted in preparation for all aspects of trial.
- An Invotex managing director was engaged by the United States Department of Justice to assist in an investigation of a money laundering operation operating as a jewelry wholesaler, primarily through the sale of gold, in Panama. The analysis centered around three aspects of the investigation. One aspect was to support government undercover operations by tracing transactions through the banking system and company records to establish the receipt and use of narco-trafficing dollars. The second aspect included analysis of the company’s operations and bank accounts to demonstrate that the company’s receipts fit the pattern of a money laundering operation. The analysis also included a review of the company’s gold purchases and sales to determine whether the business was an intermediate money-laundering step, employing paper transactions, or if physical product was being sold and delivered. The third aspect involved assembling evidence to demonstrate that sister companies were also part of the money laundering conspiracy and, therefore, subject to seizure and asset forfeiture.
- Invotex has acted as consultants to the Insurance Commissioner of Maryland in connection with the seizure and liquidation of several national and international sureties and insurance companies domiciled in Maryland. This work has required the identification, tracing, location, attachment and collection of assets hidden in more than 600 bank accounts worldwide. Invotex Group’s experience has spanned the globe to include Australia, Guam, Federated States of Micronesia, Panama, the Caribbean, Switzerland, Liechtenstein and the United States.
- A worldwide consortium of banks financed a $320 million computer lease portfolio owned by Nelco, Ltd. (lessor). It was later determined that the lessee entered into the leases on false pretenses and never purchased the subject computers under the lease agreement. Invotex assisted the court appointed Trustee in his investigation of the fraud and the restatement of historical financial statements and tax returns of Nelco to remove the reported revenues and earnings associated with the fraudulent transactions. We also worked closely with the FBI and federal prosecutors in connection with their investigation.
- An Invotex managing director led an engagement on behalf of counsel to a South American country to investigate bank liability related to the embezzlement of multi-millions of dollars by an employee of its Washington embassy. The work included reconstructing transactions in a multitude of bank accounts over a 10-year period, tracing cash transfers, identifying unauthorized and fraudulent transactions and bank employee culpability, coordinating our efforts with government auditors through meetings in South America, tabulating losses and calculating damages. The matter was settled for the amounts we recommended.
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