Franchise Fraudulent Transfer Matter

Brief

HKA was engaged to provide forensic accounting and investigations services on a complex dispute matter.

What we did

HKA provided trial testimony relating to allegation of fraudulent transfers of multiple retail franchises.

HKA’s expert testified for the Plaintiff as to:

• indications of fraud in transfer documents of 67 franchises and 4 businesses;
• debtor was insolvent at time of transfer;
• numerous seven figure cash distributions identified from tax filings in contemplation and after insolvency; and
• inconsistent defendant testimony and loan agreement indicating family member lent debtor money contrary to personal financial statements filed with financial institutions.

Outcomes

HKA’s client was awarded several million in damages and attorney fees and transfers were unwound.