4100 Guardian Street
Suite 250
Simi Valley, CA 93063
805.527.1499
805.583.1607 - Fax
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Experience

Past Engagements:
Payne Financial Forensics professionals have vast experience in financial consulting. Following are descriptions of selected engagements in which our professionals have participated:

  • Conducted fraud investigation for closely held manufacturing company.
    Analyzed business and personal financial and banking records for a ten year period to identify and quantify fraudulent activity by insiders.
    Confidential Client – Performed forensic analyses related to dispute over CAM charges and gross up issues in commercial lease.  Analysis included evaluation of fixed and variable costs and review of lease audit report.

    • Central Metal, Inc. – Performed forensic investigation into allegations of asset misappropriation by the lender for this debtor in possession.  Prepared report and declaration detailing procedures and findings, which was filed with the bankruptcy Court.
    • · Confidential Client – Acting on behalf of a large multi national financial institution, investigated cash flows, financial and contractual reporting for a billion dollar factor of medical receivables.  Information obtained during our investigation was used by the SEC in its complaint for securities fraud and request for receiver.  Provided information to assist receiver in quickly understanding issues and assembling relevant information.

     

    Acting on behalf of a large multi national financial institution, investigated cash flows, financial and contractual reporting for a billion dollar factor of medical receivables.  Information obtained during our investigation was used by the SEC in its complaint for securities fraud and request for receiver.  Provided information to assist receiver in quickly understanding issues and assembling relevant information.
  • Investigated allegations of asset misappropriations by a number of employees of a hotel management company on behalf of the hotel owner. All aspects of hotel operations were investigated to determine extent and nature of fraud, and determine amount of losses and responsible parties.
     
  • In the capacity as financial advisors to the Examiner of this bankrupt subprime mortgage lender, analyzed mortgage industry accounting issues, including assessing management’s decision making process and auditor workpapers.
     
  • Negotiated settlement with U.S. Trustee on behalf of owner of several bankrupt entities who were being accused of diverting and concealing assets. Our analysis provided a basis for a favorable settlement with the U.S. Trustee which was approved by the Bankruptcy Court.
     
  • Performed forensic audit on fraud detection procedures for this manufacturer of semi-conductors who experienced a massive fraud.
     
  • Preparation of expert report related to valuation of selected equity interests of a portion of a large energy concern in defense of fraudulent conveyance actions. This engagement required extensive document review and contract interpretation, as well as in-depth analysis of industry, subject business, and application of various valuation methodologies.
     
  • Preparation of expert report and expert witness testimony in rebuttal to plaintiff’s damage expert. This was a contract dispute arising from the sale of certain Jamaican assets sold by large bankrupt aluminum company as part of its bankruptcy reorganization. A very favorable settlement was obtained by our client after issuance of expert report and deposition.
     
  • Preparation of expert report defending the actions of the former CEO of this software company against allegations of earnings management by the SEC. In depth analysis of numerous software contracts as well as interpretation and application of accounting standards related to software revenue recognition. In addition, evaluation of internal and external auditor workpapers was performed.
     
  • In capacity as confidential consultant, prepared analyses of extremely complex accounting issues related primarily to the treatment of derivatives used to hedge risk. These analyses were utilized by counsel in their defense of former CEO of a large mortgage concern against allegations of earnings management and improper financial statement reporting.
     
  • Preparation of solvency analyses of a large energy concern. This project involved over ten million documents and a complex analysis of various off-balance sheet transactions in order to determine valuation of various business segments and other assets. The determination of solvency at various points in time required analysis of balance sheet solvency, capital adequacy and ability to pay debts as they become due.
     
  • Financial advisors to the Unsecured Creditors’ Committee of the nation’s third largest general merchandise retailer. Services performed included providing oversight and protecting Committee during the Company’s investigation of alleged accounting and stewardship issues. Provided accounting analyses and litigation support to counsel for Creditor Trust in its efforts to recover monies for the benefit of creditors.
     
  • Financial and restructuring advisory to the debtor, which is a luxury themed resort hotel and casino located on the Las Vegas Strip. Prepared damage analysis and provided deposition testimony on behalf of the debtor with respect to litigation arising out of the bankruptcy. Assisted in completing an Information Memorandum to be used by potential buyers of the property.
     
  • Performed analysis of financial information and events leading up to the second Bankruptcy filing for a large engineering and construction company. Analyzed debt and equity financing instruments as they related to certain transactions preceding the filing and the associated documentation. Prepared Examiner’s report to be filed with the Court.
     
  • Financial advisors to the debtor-in-possession which owns and operated a five star resort/casino in Las Vegas. Prepared analysis of cash disbursements of bankrupt hotel/casino to determine potential preferential payments. Developed and documented an understanding of the Debtor’s cash management system. Assisted Debtor in the preparation of various analyses related to the sale of the property.
     
  • Performed solvency analysis and detailed analyses of defenses to fraudulent conveyance and preference claims for a creditor of a bankrupt power marketing company. Conducted in depth review and analysis of power trading transactions, including a complex “sleeve” transaction. Prepared affidavit for use in settlement hearing, which resulted in a favorable settlement for our client.
     
  • Analysis of operations and financial affairs on behalf of the Secured Lenders for a large leasing company. Directed the evaluation of collateral, monitoring of operations and review of cash flows, budgets and cash disbursements. Assisted in the development of a process to report cash application to various parties. Performed liquidation analysis and tracking of lease fundings with various lenders, as well as analyzing cash receipts and disbursements, inventory and accounts payable. Participated in negotiation of forbearance agreement and eventual sale of the Company’s leasing portfolio and other assets. Performed monitoring of cash receipts and allocations during the wind down of the Company’s operations.
     
  • Analyzed business operations and business plan feasibility, including revenue, expense and cash flow projections and asset values for a manufacturing debtor on behalf of a bondholder’s committee. Performed liquidation analysis for a portion of the debtor’s operations and prepared a recovery plan for presentation to the bankruptcy court.
     
  • Investigation of a trucking company in Chapter 11 on behalf of creditor’s committee. Reviewed accounts payable and cash disbursements for preference payments, examined monthly operating reports for accuracy, participated in renegotiation of contract for leased equipment, performed analysis of expenses and cash flow.
     
  • Investigation of a food distribution company on behalf of a secured lender. The secured lender’s concern, related to potentially falsified borrowing base certificates and diversion of accounts receivable collections was confirmed by the investigation of the company’s books and records, including accounts receivable, inventory and cash flow. Assisted the secured lender in evaluating alternatives and provided written testimony to the bankruptcy court. Assisted the secured lender in placing the distribution company into receivership and directed operations of the company until the receiver was in place.
     
  • Analysis of business operations of a troubled real estate developer on behalf of the company. Performed cash flow and income statement projections and analysis of financing history. Recommended debt restructuring plan as well as examining other financing alternatives.
     
  • Assisted a major electric utility with its efforts to institute appropriate accounting and finance tools to support its entry into a competitive electricity supply market. Responsible for budgeting and forecasting costs, performing cost analysis, answering data requests related to ongoing hearings with regulatory bodies and other special projects.
     
  • Quantified damages to be presented at trial resulting from alleged breach of long term contract involving a major public utility in Texas on behalf of several Texas cities. Analyzed equity structure and organization of financing subsidiary and accounts receivable factoring with outside parties. The large monetary verdict rendered in favor of the cities by the jury was in agreement with our findings.
     
  • Performed a performance analysis of a coal supply contract between a coal company and a large Midwest electric utility spanning over 30 years, including analysis of cash flow, revenue, expenses, production, fixed assets, and contract elements.
     
  • Analyzed environmental “past costs” for seven contaminated sites of a large chemical manufacturer in connection with its lawsuit to recover such costs from its insurance carriers. Directed a large team involved in locating appropriate data sources, building a database containing over 200,000 records, and preparing a report that ultimately lead to a favorable settlement for our client.

Industry Experience Includes:
  • Aluminum smelting
  • Computer Software
  • Construction
  • Electric Utility
  • Energy
  • Environmental
  • Food distribution
  • Information Technology
  • Hospitality
  • Leasing
  • Legalized Gaming
  • Manufacturing
  • Mining
  • Mortgage Banking
  • Real Estate
  • Restaurants
  • Retail
  • Software
  • Telecommunications
























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