Stephen Linker, LLC

Forensic Accounting Fraud article. Make sure your details are in order. Call Stephen Linker, LLC for an evaluation

OTHER BUSINESS SERVICES Conduct baseline and periodic business valuations in a wide range of industries Evaluate the methodology and conclusions of other forens...ic advisors Provide estate and gift planning support Elder asset protection Calculate damages in cases of: Management malfeasance Lost profits Product liability Personal injury Business interruption Intellectual property infringement Professional malpractice (e.g., accountants, executors, trustees, medical practitioners, etc.) Provide services related to: Shareholders’ disputes Uncovering Ponzi schemes Breach of contract Breach of warranty Commercial litigation support and expert testimony Ensure that any buy/sell agreements are fair to both the buyer and seller Provide profit enhancement consulting, often for business owners contemplating the sale of their businessese.g, determine what can be done to maximize annual profits and cash increases during each of the next several years. See more

CASE STUDY: HIDING HORSES Marital assets in this case,we were hired to determine the fair market value of a marital estate during the divorce of a wealthy couple. We asked for the Statement of Net Worth and tax returns for the previous five years. It took a while, but in comparing the assets listed on the Statement of Net Worth to the income derived from the assets, as reported on the income tax returns, we determined that there were bank accounts, stocks and bonds accounts, and several race horses (some had been disclosed) that had not been listed on the Statement of Net Worth. Eventually, we uncovered $100,000 in hidden cash, securities worth $400,000, and previously undisclosed horses worth more than $200,000.

CASE STUDY: OIL IN, CASH OUT Marital assets.....Several years ago, we were hired by a lawyer whose client, the owner of a retail oil heating company, was concerned about what seemed to be very low cash flow. Marital assets.....Several years ago, we were hired by a lawyer whose client, the owner of a retail oil heating company, was concerned about what seemed to be very low cash flow. We interviewed the bookkeeper, who was charged with computerizing the accounts receivable. Ap...parently, she had been procrastinating on the change from manual to automated system. The company had 1,800 customers, so no one suspected she was trying to keep information from management. That’s the first thing we thought of. We asked for the most recent manually prepared schedule of accounts receivable and asked one of my associates to add up all of the columns. The schedule didn’t add up. The total accounts receivable was about $1 million; the books showed the receivable balance to be about $400,000. We asked the company’s accountant about the variation. He said he’d never checked: All he was ever paid to do was prepare the corporate tax returns based on the information in the books. When we had an opportunity to speak with the bookkeeper privately, we told her what we had found. She then pulled out a schedule reconciling the $600,000 difference. It turns out, she had been stealing about $200,000 per year for three years. See more

EMBEZZLEMENT AND FRAUD PREVENTION Interview management Learn the company’s accounting methods and existing internal control procedures Advise the business owner or management if further steps need to be taken... Follow up on signs of any problems Put controls in place to prevent any future problemse.g., a written system of internal procedures based on separating financial responsibilities among multiple people, plus creating checks and balances to ensure oversight of all financial transactions. Bank and mortgage services Determine overstated or understated collateral Discover fictitious mortgage documentation Find fraudulent draws, failures to inspect Trace funds Recover assets Provide litigation support and expert witness testimony