Case Study

Extensive tracing analysis helps banking and insurance investor achieve satisfactory settlement in fraudulent transfer claims case

Our client’s need

A major investor in a network of companies in the mortgage banking and insurance industries faced a lawsuit by the Chapter 7 trustee overseeing the case. At issue were loans made by the investor, which were funneled through a chain of companies related to the debtor, and subsequently repaid by offsetting the loan amounts payable against the investor’s obligations to the company. The trustee asserted that the offsets constituted fraudulent transfers, and was seeking approximately $18 million from the investor.

Baker Tilly solution

The investor turned to Baker Tilly to conduct an extensive tracing analysis of the investor’s investment activity within the companies spanning a period of more than ten years. Additionally, our analysis involved the tracing of funds through both onshore and offshore accounts at myriad companies and financial institutions.

Results achieved

As a result of the analysis, we established that the loan amounts payable were properly offset against the obligations and presented our findings in an expert report. Shortly after our expert report was filed in the matter, the trustee settled the case for a fraction of what he was seeking.

For more information on this topic, or to learn how Baker Tilly forensic investigation specialists can help, contact our team.

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