Max was an experienced tax accountant. He had a small CPA firm whose members included him, a receptionist and two staff accountants. Max decided that he wanted to branch out into litigation support services. Before he did, he took courses on how to value a business and eventually got his Accredited in Business Valuation (ABV) …
I recently read an article about fraud within the Massachusetts State Police (MSP). The author, a former MSP trooper, outlined an investigation by the U.S. Department of Justice (DOJ) and the Massachusetts Attorney General’s Office. The investigation involves a minimum of 46 troopers with the allegations including payroll fraud and conspiracy, among other federal violations. …
In a previous blog, I discussed the term “forensic accounting” and ultimately provided a very general definition: Forensic accounting is the application of specialized accounting, finance, economics and related knowledge and skills in a legal setting. After publishing that blog, I realized that I may have given short shrift to the term forensic economics. Upon …
Crime is big business both domestically and across the globe and, as a result, money laundering activities are extensive. In fact, the United Nations Office of Drugs and Crime reports that “[t]he estimated amount of money laundered globally in one year is 2% – 5% of global GDP, or $800 – $2 trillion in current …
When valuing a business using an income approach, a valuation analyst will develop a discount rate or capitalization rate to apply to the expected ongoing income or cash flows of the Company. The discount or capitalization rate (cost of capital) is essentially a rate of return expected by the potential buyer for the investment in …
If you have experience testifying in court and you felt no stress of any sort, you must be a robot. Not me. As a CPA, I’ve testified over 150 times in state courts in Arizona, New Mexico, Nevada and California as well as federal courts in Arizona and Texas. Before I became an accountant, I …
I recently received a call from a lady identifying herself as an agent of the Internal Revenue Service. She said I owed a large sum of money to the IRS in back taxes and that if I did not pay up, I would find myself being prosecuted to the fullest extent of the law and …
Several years ago, I wrote about the Fraud Triangle. A recent case I read about shows once again how relevant it is. In 1973, Donald Cressey published the results of his research on embezzlement in Other People’s Money: A Study in the Social Psychology of Embezzlement. Mr. Cressey’s hypothesis has become known to many as …
The professionals who testify as experts – and the attorneys who retain them – are likely very familiar with the “Daubert Standard,” as challenges to experts and their testimony has become more and more commonplace since the 1993 U.S. Supreme Court ruling in Daubert v. Merrell Dow Pharmaceuticals, Inc. and the 1999 ruling in Kumho …
If you’re a business owner and preparing to sell soon, these six steps will prepare you for an orderly and well-orchestrated process: Identify your personal and business goals. For most business owners, much of their personal wealth is in their business. Therefore, it is important to integrate your personal and business goals. Start by speaking …
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