CASE STUDY #4

OUR CLIENT

South American/European Fraud Investigation for Five Major Insurance Companies Involving a Large European Food Company

Through a Large National Law Firm

The insurance companies had invested over $300,000,000 in notes and bonds of a major international food company based in Europe.

OUR PART

UHY Advisors was asked to determine the appropriateness of the financial disclosures made to the investors in their dealings with the company and their Private Placement Agent, a large Investment Bank, as well as determine damages sustained for both recession and fraud. The company appeared to be growing and generating significant income. It had extensive international business and revenues from across Europe and North and South America. The transactions that led to the issuance of the bonds and notes arose out of the company’s South American operations. The trail, however, led through South America, Europe, the Caribbean and the US.

UHY Advisors determined that the bank had a great deal of significant and relevant information that was not disclosed to the investors, that this information was both primarily negative in content, contrary to other disclosures that were made, and also raised significant indications of potential fraud at the company.

UHY Advisors determined damages for each investor under relevant statutes for recession and fraud.

END RESULT

The company involved in this matter was the subject of one of the world’s most significant and largest frauds and has resulted in the conviction and imprisonment of several corporate executives, bankers, professional advisors, and auditors. Significant litigation is still pending both internationally and in the US.