SCG was engaged in this post-judgment matter involving a multi-national entity. The entity had reached a settlement with a business enterprise involving a $25m+ settlement payment, but had yet to collect dollar "one".
The multi-national firm, through counsel, engaged a huge accounting and consulting practice to investigate and substantiate allegations of fraud and wrongdoing. While successfully building the case against the smaller entity, the consultants failed to consider collection. When a major settlement was reached and the judgment was entered, the multi-national firm had no avenue to collecting. Counsel contacted us to pierce the corporate veil to facilitate collection.
SCG performed detailed background investigations on the principals/owners of the smaller business, all of whom claimed no assets. We also prepared to pierce the corporate veil by identifying commingled funds, employees and other resources shared between entities and individuals.
By providing a written expert report and expert testimony at multiple depositions, SCG identified additional assets and bolstered the allegations of alter ego entities. SCG's work also resulted in sanctions against defendants.
The client’s attorneys used SCG’s work to negotiate a settlement and subsequent payments at a pre-trial hearing.
Parting words of wisdom from this case? The best forensic accounting can lead to recovery of substantial damages. However, failure to consider the means to collect can often leave a “successful" litigant holding the proverbial (and very) empty bag.