Expert Witness & Forensic Accounting
Sugarman & Company LLP assists plaintiff and defense attorneys in all stages of pre-trial and courtroom activities. Members of the firm have testified before California and San Francisco Bay Area courts, as well as the federal bankruptcy and U.S. District courts, and have handled settlements in excess of $100 million dollars.
Among the wide range of services that Sugarman & Company LLP provides are:
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Here are a few of our representative cases:
- When a highly publicized publicly traded company which had to file bankruptcy was believed to be involved in a massive ponzi scheme, we were retained by the creditor's committee to conduct a simultaneous fraud investigation and preference analysis to aid in the recovery of assets. We assessed the value of numerous properties. We participated in the negotiation of settlement agreements with a variety of lenders and in the development of the reorganization plan. We served as damage experts for lawsuits against the accountants, stockbrokers, and title company. During the course of seven years of litigation, we reviewed thousands of documents and determined the value of approximately 100 real estate projects. Our efforts resulted in $30 million of recoveries for the estate and the largest jury verdict in Northern California - $122 million against the former president.
- After settling a multi-million dollar lawsuit for improper title policies, a large title insurance company turned to its insurance carriers for relief. The three underwriters in question claimed that their policies did not cover the issues and refused restitution. The plaintiff sought recovery of millions of dollars in punitive damages. When the case went to trial, Sugarman & Company LLP was retained by plaintiff's counsel as its expert. Our testimony helped to convince the jury that damages were justified and to award settlement.
- When a large sporting goods retail operation, alleging $1.5 million in damages due to overpayment of income taxes, sued its Big Four accounting firm, we served as the defendant's experts on the standard of care and damages. The conflict arose out of complicated tax elections. The plaintiff charged the Big Four firm with failure to discover, in a timely manner, an error in LIFO inventory calculations made by their predecessor. The IRS refused to allow an amended tax return to correct the error. A favorable settlement was reached.
- Following an economic downturn, an asset manager, overseeing billions of dollars in union pension plans, was sued for significant damages based on alleged imprudent investments and violation of fiduciary duties. Among the charges, the plaintiffs alleged that the asset manager had failed to conduct appropriate due diligence in acquiring the real estate, had improperly managed the subsequent workout, and had conflicts of interest with the general partner. We were retained by defense counsel to testify on the standards used in the workout and to conduct valuations of the property and portfolio in question. We prepared detailed testimony, including market study comparisons and both individual and portfolio alternative investment calculations. Ultimately, the case was settled for an amount satisfactory to all parties.
- A Fortune 500 company in the household products field had a real estate subsidiary with a $120 million real estate loan for renovation of an office building. The loan was secured by real estate, letters of credit, liquid collateral and, ultimately, by the CEO's oral guarantee. When the project failed to proceed as planned, the loan went into default. The financial institutions that financed the project retained us as experts on the damages and other related matters. After conducting our analysis, we testified in deposition. The debtor settled the morning we would have appeared in court, agreeing to repay the banks 100% of their debt.
- In an accounting malpractice case against a Big Four firm filed by a bankruptcy trustee, we were retained by defense counsel to calculate the damages and provide expert testimony. The Big Four accounting firm had performed audits for a Southern California automobile dealership whose owner was found guilty of a variety of fraudulent transactions, including financing non-existent sales. After we analyzed the overall operations and hundreds of auto loans, we were able to substantiate that the damages were significantly less than the $100 million asserted by the trustee's expert. The case was settled for a nominal amount.