holmes accounting
 

Selected Litigation Case History of our Professionals

Anti-Trust ("Monopoly") (Competitor Company vs. Anti-Competitive Company):

Expert damage witness for plaintiff counsel in anti-trust ("monopoly") litigation of client involved in the transportation industry. Prepared damage report and complex damage model totaling approximately $60 million using anti-trust damage model theories, consulted with counsel in preparation for settlement discussions, prepared counsel for trial, and responded to defense counsel motions in limine. Result: Settlement.

 

Anti-Trust ("Monopoly") (Competitor Company vs. Anti-Competitive Company):

Expert damage witness for plaintiff counsel in anti-trust ("monopoly") litigation of client involved in the transportation industry. Prepared complex damage model totaling approximately $13 million using anti-trust damage model theories. Result: Settlement.

 

Bankruptcy (Debtor Accountant for Jon Harder, Chief Executive Officer of the Sunwest Enterprise of Companies):

Assisted in the preparation of financial restructure plan and analysis of multiple competing restructure plans, tax planning and analysis, evaluation of asset retention and disposition issues, and evaluation of claims against third parties. Sunwest was a $2.5 billion + assisted living facility enterprise. Result: Settlement.

 

Bankruptcy (Mountain Resort Entity vs. International Lending Institution):

Assisted plaintiff counsel in trial preparation against a multi-national lending institution accused of breaching its fiduciary duty to a mountain resort entity by lending over $200 million to the primary owner of the entity which was to be used for personal purposes, not business purposes. The money was never repaid to the corporation, which filed for bankruptcy. Result: Judicial verdict for plaintiff.

 

Bankruptcy (West Coast Construction Company vs. National Financial Lending Institution):

Expert consultant for plaintiff counsel of company that had its debt financing cancelled unexpectedly. Analyzed numerous accounting issues, bank "internal audit reports", company and CPA prepared financial statements, work-in-process schedules and financial liquidity and forecasts. Assisted counsel in negotiation of implementation of new internal controls and accounting oversight. Result: Settlement and long-term extension of credit facilities.

 

Bankruptcy / Professional Malpractice (West Coast Nursery Producer vs. Local Accounting Firm):

Assisted plaintiff counsel in the analysis of a sale of a nursery producer where purchase price was based on certain inventory levels that were alleged to have been overstated. Performed an analysis of the accountants' working papers to determine compliance with applicable standards of care, prepared cost accounting models, determined material misstatements with respect to inventory amounts, and prepared counsel for depositions. Result: Settlement.

 

Commercial Contract Disputes (Undisclosed Seller vs. Undisclosed Buyer):

Expert witness for defense counsel in connection with business sale where seller alleged wrong-doing by buyer that caused the failure of seller's other remaining business. Analyzed financial statements, purchase and sale contracts, and lending agreements to illustrate that failed business was no fault of buyers. Prepared attorneys for depositions, prepared "fault" model, and provided analysis for mediation. Result: Settlement.

 

Commercial Contract Dispute (Undisclosed Buyer vs. Undisclosed Seller):

Expert damage witness for plaintiff counsel in connection with business sale where plaintiff alleged wrong-doing by seller (Fortune 500 Company). Analyzed financial statements, purchase and sale contracts, and prepared damage model. Result: Settlement.

 

Commercial Contract Dispute (Undisclosed Restaurant vs. Consultant):

Expert witness for defendant in connection with termination of contract and allegations of fraud and embezzlement by consultant. Analyzed transactions and financial statements and provided trial preparation. Result: Settlement.

 

Commercial Contract Dispute (2 Individuals vs. Terminated Investment Manager):

Consultant for Plaintiff, a terminated investment manager and general partner of certain private investment funds. Performed an accounting of the partnerships assets, assessed the amount of management fees owed, and the balance of Plaintiff's capital accounts. Result: Settlement.

 

Commercial Contract Dispute (Trucking Company vs. Agriculture Distributor and Processor):

Consultant for Defendant. Plaintiff alleged that Defendant had underpaid Plaintiff for services spanning over a ten-year period. Reviewed and reconciled the Plaintiff's and Defendant's databases to determine and resolve discrepancies. Result: Settlement.

 

Commercial Contract Dispute (Multiple Car Dealerships vs. Manufacturer and Distributor of Motor Vehicles):

Consultant for Defendant. Plaintiffs alleged Defendant dumped inventory at their dealerships and increased the balances of their related installment loans, without consent. Determined damages resulting from the carrying of excess inventory using the governing agreements.

 

Commercial Contract Dispute (DSL Wholesaler vs. National Telecommunications Provider):

Consultant for Plaintiff that entered into a Merger Agreement with Defendant. Defendant agreed to acquire the Plaintiff but ultimately breached the merger agreement. Through market research and analysis of the Plaintiffs accounting records, prepared a calculation of the consequential loss in value of the DSL business. Result: Settlement.

 

Contract Dispute (Partnership vs. Former Partner):

Consultant for Defendant, an entertainment attorney. Plaintiff alleged that Defendant misappropriated client files and breached the partnership agreement by leaving the firm and taking clients. Plaintiff claimed that in accordance with the Partnership Agreement it was entitled to a percentage of income Defendant received from the Plaintiff's former clients. Defendant claimed that the clients had terminated their agreement with the Plaintiff and entered into a new and separate agreement with Defendant. Through a review of client agreements, and the related cash flow resulting from the clients various projects, prepared an analysis of amounts due to Plaintiff.

 

Construction Developer/Home Owner Association (Undisclosed Home Owner Association vs. Commercial Construction Developer):

Expert witness for defense counsel in lawsuit by HOA alleging fraudulent conveyance, negligence and breach of contract. Evaluated financial statements and transactions. Analyzed claims and provided support for trial preparation. Result: Settlement.

 

Construction Developer/Home Owner Association (Undisclosed Home Owner Association vs. Commercial Construction Developer):

Expert witness for defense counsel in lawsuit by HOA alleging negligence and breach of contract. Evaluated financial statements and transactions. Analyzed claims and provided support for trial preparation. Result: Settlement.

 

Construction Dispute (Individual vs. General Contractor):

Consultant for Plaintiff that alleged that Defendant was negligent in the construction of Plaintiff's home. Utilized reports prepared by construction experts to calculate Plaintiff's loss and prepare a report of damages.

 

Construction Dispute (Individual Homeowner vs. General Contractor):

Consultant for Plaintiff that alleged the General Contractor had overcharged on a large home remodel. Reviewed all invoices and accounting records to quantify and substantiate charges.

 

Criminal Defense (United States of America vs. Undisclosed Individual):

Expert litigation consultant and witness for defense counsel in trial related to embezzlement from major United States financial institution. Assisted counsel in analysis of transactions, forensic review of multiple bank accounts and real estate transactions, prepared damage report, conferred with U.S. Assistant Attorney, United States District Court Judge, Federal Bureau of Investigation and bank executives. Result: No disgorgement of defendant's net worth in penalty phase of trial and no other individuals indicted in scheme.

 

Criminal Defense (United States of America vs. Undisclosed Individual):

Expert witness for defense counsel in trial related to public company executive accused of fraud and lying to public company auditors. Analyzed multiple complex real estate purchase and sales transactions, adherence to Generally Accepted Accounting Principles (GAAP), analyzed standard of care violations of "Big-4" accounting firm in connection with the audit of financial statements, prepared for, reviewed and analyzed numerous depositions, and provided trial preparation support. Result: Settlement.

 

Criminal Defense (United States of America vs. Undisclosed Individual):

Expert witness for defense counsel in trial related to public company executive accused of fraud and lying to public company auditors. Analyzed multiple complex real estate purchase and sales transactions, adherence to Generally Accepted Accounting Principles (GAAP), analyzed standard of care violations of "Big-4" accounting firm in connection with the audit of financial statements, reviewed and analyzed numerous depositions, and provided testimony in federal court. Result: Jury verdict guilty on other counts.

 

Criminal Defense (Undisclosed Individual):

Expert litigation consultant and witness for defense counsel in matter involving a bookkeeper accused of embezzling funds from her former employer. Prepared forensic analysis of transactions in multiple bank accounts and credit card statements, reviewed and analyzed police detective's report, and prepared multiple reports for review by police detective and county district attorney. Result: No criminal indictment of defendant.

 

Embezzlement (Construction Company vs. Chief Financial Officer):

Expert witness and consultant for plaintiff counsel representing construction company that experienced embezzlement from its Chief Financial Officer and minority shareholder. Provided forensic analysis of transactions, prepared damage report and negotiated with defense counsel. Result: Settlement and all amounts recovered.

 

Embezzlement (Owners of a Hotel vs. Hotel Management Company):

Plaintiff alleged that Defendant misappropriated assets belonging to the hotel. Defendant altered bank statements before presenting them to the Hotel owners and created financial statements that did not faithfully report the Hotel's financial condition. Through review of accounting records and supporting documents, was able to determine amounts that were legitimate. Prepared a report and supporting schedules detailing the amount of misappropriation by the Defendant and also identified methods used by the Defendant in the misrepresentations.

 

Employment (Former Employee vs. Former Employer):

Expert financial and forensic consultant for defense counsel involving wrongful termination for claims made by former Employee related to fraud, embezzlement, breach of U.S. national security, and tax evasion in U.S. and foreign territories. Reviewed and analyzed complex international corporate and related party structures, income tax returns and financial statements, bank statements and other financial and non-financial records, and interviewed witnesses. Provided income tax research, corporate structuring advice, analyzed U.S. and international investments, identified professional malpractice claims against 3rd party accounting firm, and provided advice and information in connection with settlement discussions and mediation. Result: Settlement.

 

Employment (Former Chief Financial Officer vs. Former Employer):

Expert consultant for defense counsel in wrongful termination claim by former Chief Financial Officer. Review of work product prepared by CFO, evaluated accuracy of work product, evaluated failure to follow professional accounting standards, provided consultation related to settlement. Result: Settlement.

 

Employment (Former Employee vs. The City of Merrill, Oregon):

Expert damage witness for plaintiff counsel in wrongful termination case. Prepared damage model for lost income, wages, and benefits, prepared for trial and testified in federal court.

 

Employment (Former Employee vs. State of California):

Consultant for Plaintiff, a former state employee. Calculated damages and prepared damage report based on wrongful termination due to age discrimination. Result: Jury awarded damages in the amount calculated in damage report.

 

Insurance / Loss of Income Dispute (Individuals vs. National Insurance Company):

Consultant for Defendant, a national insurance company. Defendants disputed the amount that they received as a result of their claim for loss of business income. Reviewed the Plaintiffs' financial records and determined the period of loss and the actual loss of business income in accordance with the Plaintiffs' insurance policy.

 

Intellectual Property / Commercial Contract Dispute (National Gaming Company vs. International Gaming Company):

Expert damage consultant for plaintiff counsel in dispute related to breach of contract for failure to pay for acquired intellectual property rights of on-line gaming technology. Reviewed purchase and sales agreement for plaintiff, analyzed sales by customer information, researched market trends and market share for on-line gaming associated with plaintiff technology, prepared damage report of amounts in excess of $300 million

 

Intellectual Property (Photography Company. vs. Publishing Company):

Expert damage witness for plaintiff counsel in trial related to infringement of intellectual property rights. Reviewed financial statements and related financial information of defendant company, prepared damage calculations for plaintiff counsel and testified in federal court.

 

Intellectual Property (National Government Body for Scientific Research vs. Manufacturer of Networking Equipment):

Expert consultant for Plaintiff counsel. Plaintiff developed technology that was allegedly infringed upon by Defendant. Calculated damages by developing a "reasonable royalty" based on the fifteen "Georgia-Pacific factors." Through review of the Defendant's financial records, determined the amount of infringing sales, and profit margins on the infringing products.

 

Personal Injury (Individual vs. Farmers Insurance):

Expert consultant for defense counsel in lawsuit alleging lost wages and other lost business income related to automobile accident. Analyzed personal and business income tax returns, market trends, deposition transcripts, company statistics and economic indicators. Determined that loss sustained by plaintiff was a fraction of amounts alleged. Prepared damage report for mediation, exhibits for trial, and prepared counsel for deposition questions. Result: Settlement.

 

Personal Injury (Individual vs. Provident Insurance):

Expert consultant for defense counsel in lawsuit alleging lost wages and other lost business income related to personal injury. Analyzed personal and business income tax returns, deposition transcripts, and company statistics. Determined that losses claimed by plaintiff were grossly overstated. Prepared damage report for mediation, exhibits for trial, and deposition questions for counsel. Result: Settlement.

 

Personal Injury (Individual vs. City of Menlo Park):

Consultant for Defendant where Plaintiff alleged that Defendant failed to maintain and properly mark a public path. The Plaintiff alleged that due to the Defendant's negligence, he crashed his bike and was unable to work as a result. Reviewed the Plaintiff's claim and prepared a loss of income analysis.

 

Professional Malpractice and Securities Fraud (Synectic Venture Funds vs. Arthur Anderson, Local Accounting Firm & Fund Manager – Craig Berkman):

Acted as lead consulting expert to plaintiff counsel for analysis of claims and damages against accounting firms involved in accounting and tax services provided to venture capital funds. Performed forensic accounting and investigated fraudulent activities and transactions, analyzed accountants' working papers, determined applicable accounting standards and standard of care violations, prepared complex damage models, prepared case presentation for mediation, prepared case for trial, prepared cross-examination outline of defense experts for attorneys, and analyzed punitive damages proposals and settlements. Result: Approximately $75 million in pre-trial settlements and verdicts, including punitive damages, according to newspaper reports.

 

Professional Malpractice (Wholesale Distributor vs. Local Accounting Firm):

Expert witness for plaintiff counsel. Analyzed financial statement audit and related violations of standard of care. Prepared information for mediation, discover assistance and case evaluation. Result: Settlement.

 

Professional Malpractice and Securities Fraud (U.S. District Court Appointed Receiver for Plaintiffs vs. Local Accounting Firm #1):

Acted as consulting expert to plaintiff counsel for analysis of claims and damages against local accounting firm involved in providing audited financial statements and income tax services to multiple entities included in the Sunwest enterprise of companies (Sunwest was the largest privately owned Assisted Living Facility in the United States and had over $2 billion of debt). Analyzed audited financial statements and related disclosures, income tax returns and other discovery documents. Identified professional standard of care violations related to proper disclosures in financial statement footnotes, required communications to investors, departures from Generally Accepted Accounting Principles (GAAP) reported upon in financial statements, failures to consolidate financial statements of the enterprise, and failures to record off-balance sheet financing identified during discovery. Prepared exhibits and plaintiff counsel for mediation and trial. Result: Settlement.

 

Professional Malpractice & Securities Fraud (Enron Related Litigation):

Consultant for Plaintiffs in various Enron related litigation. Assisted counsel in analyzing a number of structured transactions and determining whether Enron's financial statements were in accordance with GAAP, as well as assessing whether Arthur Andersen's audits were performed in accordance with GAAS.

 

Professional Malpractice & Class Action (Investors vs. PriceWaterhouseCoopers & Ernst & Young Accounting international accounting firms):

Consulting expert for plaintiff counsel in Class Action litigation related to standard of care violations of international accounting firm (PWC) accused of selling and promoting abusive tax shelter products as well as rendering false opinions on audited financial statements (along with E&Y) of publicly traded company. Analyzed financial statements and transactions for adherence to Generally Accepted Accounting Principles (GAAP), analyzed standard of care violations of "Big-4" accounting firms regarding sale and promotion of abusive tax shelter products, determined errors in financial statement line items related to income tax provision and liabilities, identified IRS regulations that prevented accounting firm from relying on engagement letter with respect to limitations on damages, identified and recommended tax shelter testifying experts to conclude case. Result: $28 million settlement reported.

 

Professional Malpractice (Wholesale Distributor vs. Local Accounting Firm):

Expert witness for defense counsel. Analyzed alleged violations of standard of care by CPA firm for income tax preparation services. Prepared information for case evaluation, discovery and settlement. Result: Settlement.

 

Professional Malpractice (Construction Company vs. Regional & Local Accounting Firms):

Consulting expert for plaintiff counsel in dispute related to negligent preparation of income tax returns and IRS audit representation. Analyzed income tax returns and applicable tax standards related to disallowed expenses and revenues not included in tax return, analyzed applicable accounting professional standards related to conflicts of interest, quality control, AICPA Code of Professional Conduct, and Oregon Board of Accountancy Act. Prepared documentation and analysis for mediation, analysis for client to request waiver of all penalties from Internal Revenue Service, and attendance at mediation. Result: Settlement agreement with accounting firms and waiver of all IRS penalties.

 

Professional Malpractice (Members of a Hardware Cooperative vs. Big 5 Accounting Firm):

Consultant for Plaintiff. Reviewed audit work-papers and prepared a report assessing the areas in which the Plaintiff's financial statements failed to be prepared in accordance with GAAP and GAAS.

 

Professional Malpractice (Property Developer Client vs. Local Accounting Firm):

Expert witness for insurance defense counsel. Analyzed alleged violations of standard of care by CPA firm for income tax preparation services, including required communications for certain tax positions taken. Prepared information for case evaluation, discovery and mediation. Result: Settlement.

 

Securities Fraud (14 Individual Investors vs. All State Financial Services, LLC):

Expert witness for defense counsel of national investment advisory and insurance firm whose former employee was accused of misusing "side investor" funds and violating the terms of his employment agreement. Through forensic accounting, analyzed complex and multiple transactions within multiple bank and credit card accounts, developed damage model utilizing various damage theories, and developed deposition exhibits for counsel utilizing results of forensic accounting. Result: Settlement.

 

Shareholder Rights (Minority Shareholder vs. Undisclosed Company):

Expert consultant for plaintiff counsel in minority shareholder lawsuit alleging shareholder oppression. Prepared transaction reports and financial statements for litigation, mediation reports, consulted with business valuation expert and in settlement discussions and negotiations, and participated in mediation. Result: Settlement.

 

Shareholder Rights (Minority Shareholder vs. Undisclosed Company):

Expert consultant for plaintiff counsel in minority shareholder lawsuit alleging fraud, usurpation of corporate opportunity, and shareholder oppression. Prepared transaction reports and financial statements for litigation, mediation reports, consulted with business valuation expert, participated in settlement discussions and negotiations. Result: Settlement.

 

Shareholder Rights (Minority Shareholder vs. Undisclosed Company):

Expert consultant for plaintiff counsel in minority shareholder dispute alleging breach of contract and fraud. Reviewed financial statements, evaluated accounting principles in accordance with contract requirements, identified errors and irregularities in financial statements, determined material understatement in shareholder stock valuation formula, participated in negotiation with opposing expert and defense counsel. Result: Settlement.