Financial Crimes

Fraud Recovery

In the event that fraud has been found by Bates or other avenues, the focus is then shifted to the recovery of assets. According to the 2016 ACFE Report, nearly 42 percent of all organizations studied were able to recover part or all of their losses in just the two years the report covered, while others continue to seek restitution.  Bates can assist you by locating and recovering assets, calculating economic damages, drafting comprehensive reports for use in litigation and pre-litigation situations and providing expert witness testimony.

Asset Tracing

Bates Group’s dedicated team of former senior legal and compliance officers, Certified Fraud Examiners and Certified Public Accountants has extensive hands-on experience in tracing assets. Making full use of custom tools and reports developed by our top-tier IT team and utilizing some of the best software available, we have demonstrated time and again our ability to quickly trace assets and help uncover attempts to commit  fraud. These software platforms also allow us to clearly present asset flows to regulators, juries, law enforcement or other audiences through advanced visualization techniques. The clarity of these presentations is often a key contributing factor in the favorable resolution of these matters.

Economic and Other Damages

Bates Group experts have provided opinions in many dispute resolution forums related to economic damages arising from lost profits, lost future wages, and loss of support claims.  Our practitioners are experts in generally accepted practices and benchmarks for estimating damages in these type of claims, as well best practices in documenting and supporting the calculated figures.  Often, we have helped counsel by ensuring that the appropriate supporting documents are obtained and have helped to separate necessary data from irrelevant information in making these calculations.  We also provide guidance on analysis-types that are likely to prevail in a given matter, based on our previous experience.  In many instances, we have been able to identify and analyze key misstatements (or inaccurate assumptions) that significantly mitigate the damage amount claimed without ever having to create an alternative model ourselves.

Expert Witness Consulting

Bates Group’s consultants and testifying experts have diverse backgrounds resulting in a wide variety of expertise. With all that diversity, they have one thing in common – they are all outstanding practitioners in their fields. Our nation-wide roster of over 165 quantitative and substantive consultants and experts span 250 unique areas of expertise. They support clients and their counsel in retail, institutional and complex securities and other financial services matters. They consult and testify in SEC and other regulatory matters; in FINRA, NFA, AAA, and JAMS and other arbitration forums; in state and federal court proceedings; and in insurance and actuarial matters. Our experts’ 250+ unique areas of expertise cover all aspects of the financial industry, from industry practices to specific products. We pride ourselves on providing the highest level of expertise, and you can see that commitment reflected in the quality of our individual consultants and experts, who typically have 15+ years of industry experience within their field, followed by years of experience testifying as expert witnesses in numerous forums.


Examples of Bates Group‘s Capabilities

Fraud Recovery

Case Examples
  • In a well-publicized bankruptcy involving a broker-dealer, we managed millions of data points across competing databases. With our IT team and in-house programmers, we efficiently searched each database and succeeded in tracing the movement of the firm’s assets under management (customer funds) in the weeks prior to bankruptcy. In turn, this enabled our team to identify and illustrate when assets had been used inappropriately.
  • Asset tracing for a large Ponzi scheme involving over 25 entities and 50 bank accounts. We were tasked with determining how much of the money was legitimately spent and how much was involved in the Ponzi scheme. Using visualization software, we were able to assist our client with understanding the ownership structure and the sources and use of funds.
  • In another matter, the compliance department of a major broker dealer retained us to investigate allegations that an individual financial advisor was “parking” stock purchases in customer accounts, only to cancel these trades and move them to his personal account when the stocks went up. By analyzing internal trade correction records, error reports, trade confirmation slips, time and sales reports, and email correspondence, we quickly identified and documented each unauthorized transaction, allowing our client to promptly resolve this investigation.

Contact Bates Group

Bates Group is with you every step of the way. Contact us today for more information on how our End-to-End Solutions can help your firm.

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