Financial Forensics Prove Invaluable in Criminal and Negligence Cases |
Posted: November 11, 2013 |
There is no substitute for expertise. There are a whole host of legal problems that need a financial mind to support a case. They can range from the issue of criminal proceeds to professional negligence and commercial litigation. There are accountants that focus solely on the legal sector as opposed to auditing and financial advice. They still deal in figures but not from the same standpoint. Criminal proceeds Years ago it seemed that criminals found guilty and jailed were prepared to spend their time locked up knowing that the rewards of their activities were awaiting them when they were released. The law has changed and the confiscation of criminal proceeds is both allowed and occurring regularly. The Crown Prosecution Service has to prepare a report to justify any sum that is to be confiscated from a known criminal. Inevitably defendants will look to engage experts who can make an equally compelling case as to why that confiscation either should not take place at all or the figure claimed should be reduced. Almost invariably the defendant’s case will revolve around the accumulation of assets by honest means and will look to have those assets ring fenced from any compensation claim. It will be the battle of financial experts with both sides hoping that their logic will be accepted. Every judicial decision is based upon the burden of proof and a defendant who is able to see the case against him or her can set about countering the prosecution’s argument by producing evidence of legal activities. Negligence in the Commercial Sector Another area where forensics is required is in commercial litigation where it is necessary to establish a loss that has occurred due to an activity that may even be sheer incompetence. In recent years, incompetence or negligence claims have increased because of the investment advice that some people have followed. The fall in property prices was unforeseen as was the reduction in demand for office space as the economy was struggling. While things have improved there has been no way back for some people who were heavily indebted to banks and unable to continue borrowing when the value of their portfolio had obviously plummeted. An objective report In many cases the advice was given in good faith and litigation is often a sign of desperation in someone trying to hold on to something. There are current cases, however, where professional negligence can reasonably be argued whether in property valuation, legal advice or mortgage provision. Each case is different but the common thread is the value of a forensic accountant in presenting a report that is probably more objective than some of the opinions that are offered. Firms dedicated to forensic accounting such as Frenkels offer a range of services which will meet most needs. The confiscation of criminal proceeds is always a difficult subject and quantifying or objecting to a figure is a task for financial people with experience and access to the latest legal opinion. Negligence and commercial litigation can be equally challenging. If you need help, seek expert advice.
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