Uncategorized Archives - Truepoint Analytics

Forensic Accounting

December 2, 2022/in Uncategorized/by Daren Sanborn

Business Advisory

December 1, 2022/in Uncategorized/by Daren Sanborn

Cash flow planning
Fraud analysis
Financial projections and templates
Internal control evaluations
Inventory controls and cost systems
Mergers and acquisitions
Spreadsheet modeling
Trend and ratio analysis
Troubled company turn-around

Business Valuation

December 1, 2022/in Uncategorized/by Daren Sanborn

(Sale of Business) Manufacturing Company: Completed a full business appraisal of a multi-state manufacturing company for ownership transition purposes.
(Sale of Business) Manufacturing Company: Completed a full business appraisal of a manufacturing company for ownership transition purposes.
(Sale of Business) Agricultural Company: Tax consulting project to analyze and calculate potential discounts for lack of control and lack of marketability for ownership transition purposes.
(Estate Planning) Retail Shopping Center: Completed a full business appraisal of a retail shopping center for IRS gifting purposes.
(Litigation) Construction Company: Completed a full business appraisal of a large regional construction company for marital dissolution litigation purposes. Prior to business appraisal I analyzed financial statements, identified potential financial statement fraud, developed forensic accounting plan to corroborate red flags, prepared document production requests to independent certified public accounting firm and prepared mediation/trial slides. Result: Settlement and significant valuation differences due to discoveries of potential fraud.
(Litigation) Construction Company: Completed a full business appraisal of a construction company for shareholder litigation purposes. Prior to business appraisal I analyzed financial statements, identified potential financial statement fraud, developed forensic accounting plan to corroborate red flags, prepared document production requests to independent certified public accounting firm and prepared mediation/trial slides. Result: Settlement and significant valuation differences due to discoveries of potential fraud.
(Litigation) Logging Company: Completed a full business appraisal of a logging company for shareholder litigation purposes. Prior to business appraisal I analyzed financial statements, identified potential financial statement fraud, developed forensic accounting plan to corroborate red flags, prepared document production requests to independent certified public accounting firm and prepared mediation/trial slides. Result: Settlement and significant valuation differences due to discoveries of potential fraud.
(Litigation) Fabrication Company: Testifying expert for dispute related to Discount for Lack of Marketability for marital dissolution litigation purposes.
(Litigation) Service Company: Consulting expert for dispute related to Discount for Lack of Marketability for marital dissolution litigation purposes. Result: Settlement.
(Litigation) Hair Salon: Business appraisal of a well-known hair salon for marital dissolution litigation purposes. Prior to business appraisal I analyzed financial statements, identified potential financial statement fraud, developed forensic accounting plan to corroborate red flags, prepared document production requests to independent certified public accounting firm and others, reviewed bank statements and prepared adjustments to financial statements which enhanced value to accurate amounts. Result: Settlement.
(Sale of Business) Health and Beauty Service Provider: Business appraisal of a well-known health and beauty service provider for sale to outside investor group.
(Shareholder Buy-out) Construction supply wholesaler: Business appraisal of a regional construction supply wholesaler for buyout of minority investor.
(Litigation) Software and Service Company: Business appraisal of out of state software and service company in marital dissolution matter.
(Collaborative Marital Dissolution) Construction and Medical Companies: Completed multiple business appraisals of related entities for collaborative marital dissolution litigation purposes. Prior to business appraisal I analyzed financial statements, identified red- flags of misstatements, developed forensic accounting plan to investigate red flags, prepared summaries for both parties, discussed with both parties the items within my valuations that an independent expert for either party could disagree with and exploit arguments for value increase or decrease and the reasons why those arguments would likely fail, communicated with all parties at the same time and facilitated both parties’ desire to settle. Result: Settlement.

Fraudulent Transfer Act

December 1, 2022/in Uncategorized/by Daren Sanborn

Malbco Holdings, LLC. v. Bhupendra R. Patel et. al. (Oregon District Court, Case No. 3:14-cv-947-PK): Testifying expert for defense counsel involving a case where Defendants guaranteed a $4.3 million construction promissory note that was in default and later transferred to the plaintiff who obtained a judgement against defendants. In connection with collection efforts, the plaintiff alleged that defendants improperly transferred assets between each other and between related entities owned or controlled by defendants. Analyzed significant intercompany transactions, recommended adjustments to financial statements to properly account for current and previous transactions, analyzed income and gift tax returns and recommended strategies to minimize tax effects of transfers. Prepared forensic reports, expert report, analyzed opposing counsel expert reports, provided rebuttal arguments and cross- examination issues for defense counsel consideration. Result: Settlement.
Reggie Williams v. Metal Polishing By Timothy, Inc. et. al. (Multnomah County Court, Case No. 17cv26494): Testifying expert for defense counsel involving a case where plaintiff alleged fraudulent transfers to avoid paying a judgement awarded to plaintiff. Analyzed related party and other transactions, analyzed accounting treatment for each transfer, prepared analysis and exhibits in anticipation of trial or settlement. Result: Settlement.

Employment

December 1, 2022/in Uncategorized/by Daren Sanborn

(Former Chief Financial Officer v. Former Employer): Testifying expert for defense counsel in wrongful termination claim by former Chief Financial Officer. Review of work product prepared by CFO, evaluated accuracy of work product, evaluated failure to follow professional accounting standards, provided consultation related to settlement. Result: Settlement.
Gary and Susan Carlson v. American Pacific Mortgage Corporation (United States District Court for the Western District of Washington, Case No. 2:14-CV-01141-RSM): Testifying expert for defense counsel in wrongful termination case and dispute involving the calculation of bonuses earned by plaintiffs in connection with employment agreements and related amendments. Reviewed financial statements, analyzed errors causing inflated income levels, prepared schedules calculating specific bonuses earned vs. claimed and prepared expert report for federal court. Result: Settlement.
Vernon Banta v. The City of Merrill, Oregon (Oregon District Court, Case No. 06- CV3003-CL): Testifying expert for plaintiff counsel in wrongful termination case. Prepared damage model for lost income, wages, and benefits and testified in federal court. Result: Jury verdict for plaintiff.
(Former Employee v. Foreign Resort Operator): Testifying expert for defense counsel involving claims made by former Employee related to fraud, embezzlement, breach of

U.S. national security, and tax evasion in U.S. and foreign territories. Reviewed and analyzed complex international corporate and related party structures, income tax returns and financial statements, bank statements, other documents, and interviewed witnesses. Provided income tax research, corporate structuring advice, analyzed U.S. and international investments, identified professional malpractice claims against 3rd party accounting firm, and provided advice and information in connection with settlement discussions and mediation. Result: Settlement.

Terry Peters and Douglas Schroeder v. Seeds, Inc. (Washington State Superior Court in and for Whitman County, Case No. 14-2-00266-0): Testifying expert for defense counsel involving claims made by former CEO and CFO related to breach of employment agreement and failure to pay wages. Reviewed financial records and financial statements and discovered evidence of misappropriation of company assets by plaintiffs. Performed forensic analysis of issues discovered and calculated amounts in excess of damages claimed by plaintiffs. Provided deposition and prepared mediation and trial exhibits. Result: Settlement.
Nicki Cribbs v. Stacey Clark, DPM, PC et al. (Oregon District Court, Case No. 2:17CV00724-SU): Testifying expert for defense counsel in a case involving a former employee who sued a former employer alleging violations of ERISA laws, fraud and misrepresentation. Performed forensic analysis of documents, retirement plan contributions made compared to required contributions, prepared mediation and trial exhibits. Result: Settlement.
Pieter Smeenk v. Michael Faught and The City of Ashland (Oregon District Court Case No. 1:17-CV-01466-CL): Testifying expert for defense counsel in a case involving a former employee who sued the City for wrongful termination and whistleblower retaliation. Analyzed Plaintiff damages calculations, prepared independent damages calculations, expert report, trial exhibits, and testified in trial. Result: Jury verdict for Plaintiff and damages amount equal to defense expert calculations.
Mental Health Care Provider v. Former Shareholder and Chief Executive Officer (Private Arbitration Matter): Testifying expert for plaintiff counsel involving counter claims made by former shareholder and CEO related to wrongful termination and business valuation. Analyzed financial statements, projections and budgets, and other financial information, prepared an independent business valuation and trial exhibits supporting my testimony that opposing expert report and testimony should be entirely disregarded in favor of my analysis. Result: Arbitration ruling in favor of plaintiff and opposing expert opinion was excluded as by panel.
Northwest Tower Crane Services, Inc. v. Donna L. Angevine (Superior Court of Washington for King County Case No. 19-2-17353-0- KNT): Testifying expert for plaintiff counsel in a case involving a former financial officer accused of misappropriation. Analyzed expert reports with respect to the actions of Defendant, analyzed the standard of care and fiduciary duties of a financial officer, and testified in connection with her alleged actions that violated her fiduciary duty and the standard of care expected of a financial officer. Result: Settlement.

Corporate veil

December 1, 2022/in Uncategorized/by Daren Sanborn

(Family Shareholder v. Family-Owned Business and Sibling Shareholders): Testifying expert for defense counsel in arbitration matter brought by a sibling shareholder of a substantial family-owned farming enterprise where plaintiff alleged usurpation of corporate opportunity and breach of fiduciary duties, and where plaintiff sought to pierce the corporate veil and receive a court ordered liquidation and distribution of all corporate assets. Analyzed financial statements and general ledger detail from inception for numerous entities to develop defense exhibits, diagramed complex flow of funds between multiple entities, developed valuation expectations and settlement options, prepared witnesses for testimony, consulted with mediators related to income tax and settlement issues, and prepared testimony and related trial exhibits for testimony. Result: Settlement.
Hendgen McMinnville LB LLC v. Summercrest Development, LLC et al (Washington County Circuit Court, Case No. C101209CV): Testifying expert for plaintiff counsel in trial regarding counterclaim brought by defendant alleging corporate “milking” and other allegations in an attempt to pierce the corporate veil. Evaluated financial statements and transactions, contracts and other related documents. Analyzed claims and provided testimony at trial. Result: Jury verdict for plaintiff.
(California State Compensation Insurance Fund v. Undisclosed Policy Holders): Consulting expert to plaintiff Insurance Company alleging breach of contract and intentional misrepresentations by policy holder. Appointed by Insurance Company in vigorously contested lawsuit after discovery requests made by collection agency had lapsed, but prior to plan to dismiss case against defendant. Analyzed initial discovery requests and prepared discovery plan intended to yield more useful, yet not duplicative information from defendants than previously requested. Assisted plaintiff counsel in preparing litigation plan to pierce the corporate veil of defendant entities and recover directly from its owners. Prepared written discovery requests, assisted counsel in writing motions to compel defendants to release additional discovery requested, analyzed information received from defendants, identified additional related party individuals and corporations that could be named as additional defendants, analyzed transactions and documents that led to plaintiff amending complaint and seeking to pierce the corporate veil and recovery directly from the business owners, and evaluated and recommended potential testifying experts for trial. Discovery requests and litigation plan prepared with my assistance in this case have since been used by California State Compensation Insurance Fund as a template for all similar cases. Result: Settlement.

Criminal

December 1, 2022/in Uncategorized/by Daren Sanborn

United States of America v. David Shelofsky (Oregon District Court, Case No. CR-06-415-KI): Testifying expert for defense counsel in trial related to embezzlement from major United States financial institution. Assisted counsel in analysis of transactions, forensic review of multiple bank accounts and real estate transactions, prepared damage report, conferred with United States Assistant Attorney, United States District Court Judge, Federal Bureau of Investigation and bank executives. Result: No disgorgement of defendant’s net worth in penalty phase of trial and no other individuals indicted in scheme.
United States of America v. Thomas G. Turner (Washington Western District Court, Case No. CR-05-355C): Testifying expert for defense counsel in trial related to public company executive accused of fraud and lying to public company auditors. Analyzed multiple complex real estate purchase and sales transactions, adherence to Generally Accepted Accounting Principles (GAAP), analyzed standard of care violations of “Big-4” accounting firm in connection with the audit of financial statements, reviewed / analyzed numerous depositions, and provided testimony in federal court. Result: Jury verdict guilty on other counts.
(Undisclosed Corporate Executive): Consulting expert to white-collar criminal defense counsel in connection with corporate executive who was investigated by the U. S. Securities & Exchange Commission related to his role and fault in accounting irregularities that led to significant restatements of publicly filed financial statements and disclosures. Analyzed executive’s role in corporation, analyzed disclosures that executive made to other officers inside the company related to financial transactions, analyzed the standard of care related to financial executives of the company, analyzed company documents related to the restatement issues, prepared potential deposition related questions and interviewed client according to those potential questions and issues, assisted in evaluating potential claims against corporation. Result: No criminal indictment.
(Undisclosed Bookkeeper): Consulting expert for defense counsel in matter involving a bookkeeper accused of embezzling funds from her former employer. Prepared forensic analysis of transactions in multiple bank accounts and credit card statements, reviewed and analyzed police detective’s report, and prepared multiple reports for review by police detective and county district attorney. Result: No criminal indictment.
United States of America v. Jon Michael Harder (Oregon District Court, Case No. 3:12-CR-00485-KJ): Consulting expert for defense counsel related to Chief Executive Officer of Sunwest Assisted Living enterprise accused of wire and mail fraud and defrauding investors out of approximately $130 million. The Sunwest enterprise was the largest privately held senior housing company in the United States with over 700 related entities and real estate valued in excess of $5 billion. Recommended case strategies related to reliance on independent certified public accounting firms and hundreds of financial statement audits that were performed, recommended case strategies related to “pooling of funds” and Mr. Harder’s assertion that its entities were not “commingled”, recommended case strategies related to prohibited related party transactions, calculated Mr. Harder’s economic status as a “net lender” to Sunwest (instead of an embezzler), prepared summary analysis of market losses in all real estate segments during the relevant periods to highlight loss causation issues, and analyzed numerous Private Offering Memorandums (“PPM”) to identify areas where representations differed from actual events. Result: Plea agreement.

Construction

December 1, 2022/in Uncategorized/by Daren Sanborn

Tanglewood Hills Condominium Association v. Tanglewood Associates LLC et al (Clackamas County Circuit Court, Case No. CV05100865): Testifying expert for defense counsel in lawsuit by HOA alleging fraudulent conveyance, negligence and breach of contract. Evaluated financial statements and transactions. Analyzed claims and provided support for trial preparation. Result: Settlement.
The Association of Unit Owners of Washing Park Condominiums v. Park West Associates, LLC, et. al. (Multnomah County Circuit Court, Case No. 0702-01228): Testifying expert for defense counsel in lawsuit by HOA alleging negligence and breach of contract. Evaluated financial statements and transactions. Analyzed claims and provided support for trial preparation. Result: Settlement.
(Undisclosed Homeowner Association v. Contractor): Consulting expert for defendant in lawsuit filed by HOA alleging $5 million in damages for negligence and breach of contract. Assisted defendant in preparing defense strategy and identified causation issues, prepared requests for production, provided information necessary for depositions of plaintiff, recommended strategy for mediation purposes. Result: Settlement – $16,000
12W RPO, LLC et al v. Victaulic Company (Oregon District Court – Portland Division, Case No. 3: 15-cv-0 14 1 1-MO): Testifying expert for plaintiff counsel in a case involving lost profits sustained by plaintiff due to allegations of construction plumbing product defects occurring in a large apartment building (skyscraper) located in Portland, OR. Reviewed historical financial statements, rent rolls, market information, deposition and other data to calculate damages in support of amounts represented by plaintiff, prepared multiple rebuttal expert reports in connection with defense counsel expert reports rebutting plaintiff damages calculations, provided independent lost profits calculations and deposition, prepared analysis in support of multiple Motions filed against plaintiff, prepared mediation and trial exhibits. Result: Settlement.
Ventana Partners v. Chicago Title, Inc. (Multnomah County Circuit Court, Case No. 0805-07701): Testifying expert for defendant in lawsuit filed by developer / builder alleging breach of contract for title issues, including damages. Assisted defendant in preparing defense strategy, identified causation issues, prepared requests for production, analyzed lost profits claims, prepared timeline of alleged losses, calculated actual potential damages, identified additional 3rd party defendants, provided information necessary for depositions, and prepared exhibits for mediation or trial. Result: Settlement.
New National, LLC v. Reliance Construction Company et al. (Circuit Court of the Eleventh Judicial Circuit in and for Miami Dade County, Florida, Case No. 2015-00612-CA-01): Testifying and joint defense counsel expert for multiple architects and engineering professionals in a case involving alleged construction negligence occurring in a large renovation of a Miami Beach hotel. Reviewed historical financial statements, occupancy and STR data, and deposition transcripts, prepared rebuttal report of plaintiff expert damages report demonstrating lack of “reasonable certainty” in plaintiff calculations, assisted defense counsel in numerous court motions, identified specific discovery items not previously requested, prepared analysis for motion to compel production of the newly identified information that provided significant value for defendants once received, provided deposition, mediation and trial exhibits. Result: Settlement.

Breach of Fiduciary Duty

December 1, 2022/in Uncategorized/by Daren Sanborn

Pendleton Grain Growers, Inc. et al. v. Farmers Warehouse and Commission Company (Washington State Superior Court for Klickitat County, Case No. 16-2- 00120-9): Testifying expert to plaintiff counsel in case involving Horse Heaven Grain, LLC, a joint venture undertaken by both parties and where plaintiff alleged that defendant engaged in improper related party transactions, conflicts of interest, and failure to distribute Horse Heaven’s cash flow. Performed an analysis of all related party transactions, prepared restated financial statements for litigation purposes, analyzed and rebutted business valuation prepared by defendant expert, prepared mediation exhibits and presentation, and assisted plaintiff counsel at mediation. Result: Summary judgement motion granted in favor of defendant.
Thomas Michael Anderson, as Trustee for Timothy P. Moyer Trust et al. v. Fox Tower LLC et al. (Multnomah County Circuit Court, Case No. 1205-05664): Testifying expert to defense counsel in case alleging damages of $4.5 million for breach of partnership agreements, conversion, breach of fiduciary duty, accounting and constructive trust. Analyzed all transactions alleged by plaintiff to determine proper accounting, prepared analysis and exhibits for trial or settlement purposes. Result: Settlement.
David Giller v. Douglas Westervelt (Multnomah County Circuit Court, Case No. 1305-06470): Testifying expert to defense counsel in case alleging damages of $6.3 million for breach of agreements, and breach of fiduciary duty. Analyzed related party transactions alleged by plaintiff to determine proper accounting, prepared analysis and exhibits for trial or settlement purposes. Result: Settlement.
ABG V, LLC v. Alpenrose Company, Smith Brothers Farms, Inc. et. al (Multnomah County Circuit Court, Case No. 19CV35818): Testifying expert for plaintiff counsel in a case where 2% shareholders of a family-owned dairy commenced litigation to prevent the sale of the dairy to non-family owners claiming the Board of Directors of Alpenrose breached their fiduciary duty to the minority shareholders. Analyzed process of the Board related to the process for determining price and buyer, discovered unreported intangible lease value of approximately $15 million which would accrue to majority owners, analyzed unreasonable sale terms and valuation of proposed sale below liquidation value, and testified in trial regarding the same. Result: Judicial ruling for 98% plaintiff group.
In the Matter of the Trusts created by Arthur Demuro (Deceased) (Multnomah County Circuit Court, Case No. 18PB05100): Testifying expert to defense counsel in case alleging Trustee breach of fiduciary duty, self-dealing, asset mismanagement, failure to keep adequate records, and inappropriate compensation among other items. Analyzed related trust agreements for permitted and prohibited transactions, reviewed financial information and tax returns, analyzed relevant transactions, prepared analysis of beneficiaries of relevant transactions, advised counsel related to each allegation for each transaction, prepared analysis and exhibits for trial or settlement purposes. Result: Settlement.

Breach of contract

December 1, 2022/in Uncategorized/by Daren Sanborn

Aloha Cat & Dog Hospital, P.C. and 401(k) Plan Trustee v. Standard Retirement Services, Inc. nka Invesmart, Inc. (Oregon District Court, Case No. cv08-927): Expert witness for defense counsel of Third-Party Administrator accused of failing to provide proper advice regarding bonding requirements for Plan assets that were misappropriated by the Plan’s investment manager, Mr. Wesley Rhodes, who was sent to federal prison in connection with the misappropriations. Discovered relevant financial documents and evidence in a previously unknown public warehouse which was maintained by U. S. Securities and Exchange Commission for a related case, discovered previously unknown financial recoveries of Plan losses which were obtained by Trustee, discovered previously unknown evidence which led to counter claims brought by Invesmart against Plan Trustee. Analyzed potential damages and concluded that even if liability were established against Invesmart, damages would be $0. Result: Settlement.
Door Supply Inc. et. al. v. Alliance Door Products LLC et. al. (Multnomah County Circuit Court, Case No. 0709-10849): Testifying expert for defense counsel in connection with business sale where seller alleged wrongdoing by buyer that caused the failure of seller’s other remaining business. Analyzed financial statements, purchase / sale contracts, and lending agreements to determine that buyer was not the cause of failed business. Prepared for depositions, prepared “fault” model, and provided mediation analysis. Result: Settlement.
Zorn et. al. v. Shell Oil Company (Oregon District Court, Case No: 3:2005cv00664): Testifying expert to plaintiff counsel in connection with business sale where plaintiff alleged wrongdoing by seller (Fortune 500 Company). Analyzed financial statements, purchase and sale contracts, and prepared damage model. Result: Settlement.
F.P. Management Corp. et. al. v. Carlos H. Orellana et. al (Multnomah County Circuit Court, Case No. 0702-02094): Testifying expert for defense counsel in connection with termination of contract and allegations of fraud and embezzlement by consultant. Analyzed transactions and financial statements and provided trial preparation. Result: Settlement.
Oregon Health and Science University v. FamilyCare Incorporated (Multnomah County Circuit Court, Case No. 121216134): Testifying expert for plaintiff counsel in connection with breach of contract claims made against defendant related to reimbursement rates for health care services delivered by plaintiff. Reviewed financial information, patient data, and contract rates to determine amount of damages alleged by plaintiff, prepared damages report, mediation and trial exhibits and assisted counsel in mediation. Result: Settlement.
Tioga Logging, Inc. v. Millicoma Logging, Inc. (Coos County Circuit Court, Case No. 16-CV-18689): Testifying expert for plaintiff counsel in case involving breach of contract and conversion where a company related to a co-owner of plaintiff allegedly breached his fiduciary duty and defendant was unjustly enriched. Assisted counsel in discovery requests, analyzed financial information, performed forensic accounting analysis, prepared damages calculations, prepared mediation and trial exhibits and assisted counsel in mediation. Result: Settlement.
Daniel M. Mullinex et. al. v. Sysco Spokane, Inc. (Eastern District of Washington, Case No. CV-13-305-LRS): Testifying expert to plaintiff counsel in the analysis of a contract “earn-out” provision and the use of Generally Accepted Accounting Principles to determine amounts owed to Seller in connection with a business acquisition. Analyzed purchase agreement and all relevant terms, provided expert rebuttal report and deposition, identified previously unknown earn-out provisions that benefitted plaintiff, prepared trial support for plaintiff counsel and recommended strategies for mediation purposes. Result: Settlement.
The Baseball Club of Tacoma, LLC v. SDL Baseball Partners, LLC et. al. (Superior Court of the State of Washington for the County of King, Case No. 12-2-25136-3 SEA): Consulting expert to defense counsel related to the sale of the Tacoma Rainiers AAA baseball club to a Texas – based hedge fund where plaintiff alleged that the financial statements of the baseball club were materially misstated before the purchase and resulted in a significantly inflated purchase price. Analyzed and rebutted all financial statement allegations, discovered “offsets” to alleged financial statement adjustments, review and analysis of plaintiff and defense valuation reports, provided research and support necessary for “motion to compel” production of international accounting firm audit workpapers, reviewed audit workpapers and obtained support for conclusions drawn, prepared trial support for defense counsel. Result: Settlement.
The State of Oregon et. al. v. Oracle America, Inc. et. al. (The Circuit Court of the State of Oregon for the County of Marion, Case No. 3:14-cv-1532): Consulting expert to defense counsel related to damages alleged of $6.5 billion over the purported failure of Oracle America, Inc. to properly complete websites and other consulting projects for Cover Oregon and the Oregon Health Authority. Conducted forensic audit of all amounts paid to Oracle America, Inc. by the State of Oregon, including reconciliation of all categories of cost paid and traced all amounts paid to invoices and bank statements. Conducted forensic audit of all amounts paid to the State of Oregon by the United States Federal Government for the same projects and calculated damages in connection with the amounts paid by the State of Oregon. Preparation of trial exhibits and other defense related consulting in preparation for trial. Result: Settlement.
WSB Investments, LLC v. Pronghorn Development Company, LLC et. al. (Deschutes County Circuit Court, Case No. 11CV0180 ST): Testifying expert for defense counsel in connection with allegations by plaintiff of improper uses of “reserves” funds owned by homeowners’ association, overbillings of “common area maintenance” fees, and underpayment of homeowner association fees by developer, which in part resulted in the loss in value of plaintiff’s condominium investment. Analyzed financial statements and general ledgers of homeowners’ association, analyzed “reserves” studies calculating required reserves, analyzed whether developer failed to make required payments to homeowners’ association, analyzed whether homeowners failed to make required payments to the association, analyzed losses in plaintiff condominium investment caused by “market losses”, and prepared mediation exhibits and discovery requests in anticipation of trial. Result: Settlement.
Janet C Powers Investments LLC et. al. v. The Lough Road, Inc. et. al (Multnomah County Circuit Court, Case No. 1311-15313): Testifying expert for plaintiff counsel in connection with securities offering by new entity that became insolvent. Analyzed financial statements and financial solvency, quantified financial distress, reviewed related offering document disclosures, and testified at trial. Result: Defense verdict on legal issues.
First Financial Security, Inc. v. Freedom Equity Group, LLC (U.S. District Court, Northern District of California, San Jose Division, Case No. 15-cv-1893): Testifying expert for plaintiff counsel in connection with damages alleged by plaintiff when certain key employees of plaintiff left their employment with plaintiff and began working for defendant allegedly in violation of various agreements. Analyzed significant financial information, contracts and depositions, calculated lost profits of plaintiff and prepared expert report regarding damages and methodologies. Result: Settlement.
MFG LLC dba International Business Associates v. Bonzi Technology, Inc. (Washington County Circuit Court, Case No. 16CV25518): Testifying expert for defense counsel in connection with allegations by plaintiff that a contract existed between plaintiff and defendant regarding business brokerage services and related commissions alleged to be owed by defendant. Analyzed technical resources available to plaintiff in connection with services alleged to have been provided, resources plaintiff utilized in performing services, experience of plaintiff in delivering services, specific advice and value-added services provided, and forensic audit analysis of the indicators of a contract and the value of services delivered. Testified at trial related to my work and opinions. Result: Plaintiff verdict on legal issues and settlement on alleged damages amount.
Lender/Property Owner v. Winery Company (A Matter of Arbitration, Portland, Oregon): Testifying expert for defense counsel in connection with breach of contract claims alleged by plaintiff where defendant asserted counterclaims of contract interference and alleged lost profits. Analyzed forecasted financial statements, sales history reports and conducted market research to determine lost profits associated with defendant’s counter claims where historical financial statements were not presented into evidence, prepared damages report, trial exhibits, and testified at arbitration hearing. Result: Settlement.
Business Owner v. Oregon State Social Services Organization (A Matter of Arbitration, Portland, Oregon): Testifying expert for plaintiff counsel in connection with breach of contract claims alleged by plaintiff where plaintiff asserted breach of contract and lost profits. Analyzed business agreement, historical and prospective financial information and income tax returns, conducted market research, prepared lost profits calculation associated with plaintiff claims, prepared trial exhibits and testified at arbitration hearing. Result: Pending.
Jubitz Corporation v. Vancouver Hospitality Partners (Superior Court of the State of Washington for the County of Clark, Case No. 17-2-05075-3): Testifying expert to plaintiff’s counsel in claims related to breach of contract of joint parking agreement of adjacent hotel property. Analyzed contract terms, financial information and prepared calculation of potential damages for mediation and trial purposes. Result: Settlement.
Comforcare Hillsboro McMinnville Corporation v. Marissa Phillips and Because It’s There, LLC. (Washington County Circuit Court, Case No. 18CV24348): Testifying expert to defense counsel in the calculation of potential damages alleged by plaintiff misappropriation of trade secrets case. Analyzed financial and franchise information, calculated potential damages, prepared mediation exhibits in anticipation of settlement or trial. Result: Settlement.
Former Shareholder v. Service Company (A Matter of Arbitration, Portland, Oregon): Consulting expert for plaintiff counsel in connection with breach of contract claims related to earn-out provisions of a business sale agreement. Analyzed sale contract, financial statements, sales history reports and bank statements to determine additional purchase value withheld from Former Shareholder. Prepared damages report and exhibits in anticipation of trial or settlement. Result: Settlement.