Industry – Food & retail
Territory – USA, Israel
Client – A Liquidator of food and retail group (“the Group”) that included a Nasdaq listed company.
Case – Our services were retained in order to determine whether fraudulent activities led to the collapse of the Group and whether The Group’s assets were concealed.
Actions – The examination was conducted, both, in Israel and in the USA, in co-operation with the Israeli attorney’s office that filed a criminal lawsuit against the Group’s executives for fraud and tax evasion, later resulted in convictions and jail sentences. During the examination we conducted interviews with the Group’s executives, employees and advisors, alongside detailed analysis of documentation and financial material (including large scale re-construction of financial and accounting records). Fraud examination revealed solid evidence that serious fraud activities were committed by the Group’s executives over a long period of time. Among those activities, the Group’s executives systematically deceived investors and banks in order to receive substantial financing, credit lines and funds based on false and misleading presentations. The fraud scheme included sophisticated system of falsifying accounting material over at least 5 years prior to the collapse, through manipulations made in the accounting software, falsification of inventory stock counts and systematic infusion of false records. The work conducted by our experts also discovered that valuable assets, including real-estate and customers’ drafts, were concealed and transferred, short time before the collapse, to a company controlled by the executives. The findings and evidence were submitted to the liquidator in a well-supported report.
Outcome –