Selected Financial Investigative Activities

• Retained by “Family Office” Investment Company to analyze and opine to the cause of the loss of an investment. Due diligence surfaced major fraud by borrower. Ensuing activity included the drafting of an Expert Witness Report detailing the fraud, resulting in further forensic activity. Subsequent forensic work conducted by the Receiver in the deal has surfaced multiple players involved with the fraud and allowed the client to seek collection of its subordinated note from multiple parties. While still ongoing, GFS is optimistic that some recovery will be possible. Expert testimony by GFS resulted in the non-dischargability of the perpetrators personal guarantee to its senior lender as sought in a personal bankruptcy filing.

• Provided expert witness summary for law firm representing client in a promissory note financing program that went awry. Provided opinions as to primary cause of demise of operating company and financial analysis to confirm such opinions. Case is ongoing.

• Through quick and concise analysis, quickly identified a $53 million Ponzi scheme. Upon questioning, the Perpetrator confessed, allowing for the appointment of a Receiver over both personal and corporate assets within the following eleven business days. Strategic planning and implementation allowed for the maximum recovery of assets for the Lender/Investor’s. Perpetrator is now in jail, sentenced on multiple fraud related charges.

• Retained by Lender to investigate if fraud was taking place within portfolio borrower. Analyzed company, concluded amount of Lender exposure. Company was not viable without fraudulently obtained funding. Liquidated company with lender collecting in excess of the estimated amount. Company employed over 800 people.

• Retained by borrower to remediate their relationship with their lender which was destroyed when the borrower diverted cash from the lender. After analyzing the company to assure viability, negotiated new line of credit with lender with revised structure and collateralization. Efforts allowed borrower to exorcise the fraud over subsequent years of proper behavior creating the opportunity to eventually finance the company with a lower cost bank.

• Retained by company to analyze a major vendor relationship and negotiate a settlement from vendor related to the analysis. The settlement was based upon fraudulent behavior by the vendor.

• Hired by borrower at referral of lender. Found fraudulent accounts receivable created in collusion with a company borrowing from another lender. Remediated fraud with client and allowed the other lender to collect out of its’ debt because of early notice.

• Retained by borrower to investigate major lender behavior suspecting fraudulent behavior creating additional interest and financing charges. Discovered abusive behavior in recording and application of incoming wire transfers creating additional “float” revenue for lender. After confirming borrowers’ suspicion, negotiated a restructuring of loan and refund of a substantial amount of equal to the total overcharges by lender to borrower as well as a full release of borrowers personal guarantee.

• Retained by company owner to analyze company performance and advise as to improvement. Found fraudulent activity by CFO in concert with outside CPA to defraud owner through embezzlement schemes.

• Retained by family of principal to manage and liquidate a drayage company, including the repayment of the senior lender. Principal had been convicted of murdering his business partner.

• Retained by branded snowboard manufacturer to restructure the company and the business purchasing/sales process. Discovered massive fraud by marketing partner creating a large shortfall in the ability to repay senior and junior debt. Quarterbacked the recovery of potential product and dollars, negotiated the debt forgiveness from lenders to allow a sale of the company with primary proceeds going to the lenders. The senior lender was repaid entirely, the junior lender lost approximately 50% of their loan.

• While conducting portfolio review on behalf of lender, surfaced fraud related to a multi-location real estate rental owner who was double pledging the properties to obtain financing from multiple lenders. Quick action allowed the lender to collect out of the loan entirely.

• Administered loan relationship with truck body manufacturer discovering diversion of cash that should have gone to the lender. Collected out all principal and interest. Principal served sentence for fraud.

• Retained by client hardware distributor to analyze vendor relationship with major retailer. Client had projected a more profitable relationship with retailer then actualized. When analyzed, discovered that retailer was not following the purchase contract requirements resulting in the purchasing of only lower margin product versus purchasing by a required matrix insuring the retailer carried the full line of the clients’ products. After monetizing the purchase contract breach, negotiated with retailer to pay large seven figure settlement. Retailer continued to carry the clients’ products.

• While administering a loan portfolio, discovered inconsistent cash application of accounts receivable collections. Suspicion led to a drive by of the borrowers’ location resulting in the observation of many trucks loading up and leaving with inventory. Followed trucks allowing for the lender to take control of the inventory that was moved to an offsite location. Liquidated company, sold inventory, collected accounts receivable resulting in 100% repayment to lender of all interest and expenses.