Sometimes bankruptcies occur because of fraud, improprieties, or mismanagement by corporate executives. In such situations, Trustees or examiners may be able to identify and pursue claims against former officers, auditors, and other third parties. Partnering with Wiley Rein's White Collar Defense & Government Investigations Group, the Bankruptcy & Financial Restructuring Group has the full capability to examine the circumstances that led to a bankruptcy and assess whether colorable claims exist.
The firm has extensive experience conducting internal investigations. Its matters range across all industries from government contracting to communications to information technology to pharmaceuticals, health care, and tobacco. For example, recently the Team has investigated allegations of fraud, accounting irregularities, false statements, abuse of expense accounts, improper revenue recognition, Sarbanes-Oxley violations, insider trading, insufficient corporate controls, kickbacks, financial fraud, regulatory violations, and other improprieties.
With a team of former federal prosecutors and congressional counsel, combined with the substantive expertise of the Bankruptcy Practice, Wiley Rein has the know-how to examine the conduct and practices of any company undergoing bankruptcy. Furthermore, the Team can move swiftly to preserve electronic materials before they disappear, sift through mountains of data, interview relevant employees, and report on its findings in a straightforward and clear manner. Similarly, the firm has a history of representing individual officers and directors during bankruptcy litigation and fraud investigations.
In the past few years, for example, the Team has:
- At the direction of the audit committee for the board of a Fortune 500 health care company, conducted an internal investigation of accounting irregularities and other alleged fraud;
- Investigated allegations of fraud, securities violations, and regulatory violations at a public communications company;
- Examined whistleblower allegations of fraud and kickbacks at numerous government contractors and communications companies;
- Represented an executive of a bankrupt pharmaceutical company in a long-running criminal investigation and lawsuits by creditors and shareholders who accused him of insider trading and other fraudulent schemes;
- Conducted an independent investigation of a high technology government contractor accused of computer fraud; and
- Represented directors of a major mortgage company accused of financial and accounting fraud.
For more information on bankruptcy examiner investigations, see the following:
- Getting the Right Bankruptcy Trustee
- Taneja Bankruptcy Trustee Settles Ponzi Scheme Lawsuits
- Hospital's Bankruptcy Examiner Identifies Millions of Dollars in Unauthorized Payments; Cites Law Firm for Breach of Duty
- The Effective Bankruptcy Examiner
- A Skilled Examiner Can Make All the Difference
ISSUE: DECEMBER 5, 2013