Fraud, Asset Misappropriation, Forensic Accounting
MCA was appointed liquidating trustee pursuant to a confirmed plan of liquidation regarding an alleged Ponzi scheme, in which owners of a concert promotion business had perpetrated a fraud involving in excess of $50 million. MCA was responsible for preparing detailed analysis of all cash sources and uses, negotiating final asset recovery and final distribution under the plan, and providing expert witness testimony in the U.S. Bankruptcy Court, District of Arizona.
Business Damage Determination and Assessment with Trial Support
Subprime Lender vs. Borrower
MCA was appointed as a state court receiver over the business and operations of a subprime automotive dealer/lender that included a vehicle leasing and sales operation in Phoenix. The case relied upon MCA’s expertise in the automotive industry to investigate vehicle title transactions and movement throughout several states in order to prove fraud and other violations on the part of the company’s owners. MCA assisted in asset recovery and obtaining judgments against former owners for the benefit of creditors.
Multi-Location Imaging Operation
MCA was the court appointed receiver for this provider of prenatal ultrasound screening and related testing for women, with 7 locations in the greater Phoenix area. The company shareholders were in dispute over operations and ownership. The company was under investigation by regulatory agencies on billing procedures and was running out of cash. MCA led a successful negotiation and settlement with regulatory agencies, implemented revised operating and billing procedures, closed under-performing locations, and negotiated a settlement between the shareholders resulting in the sale of the company to one shareholder.
Restructuring, Turnaround & Bankruptcy
Multi-State Wholesale Distributor
MCA was retained by this $240 million regional wholesale distributor’s board at critical juncture in growth strategy. After opening a second 500,000 square foot warehouse, this multi-state distributer ran out of cash and was facing a possible business shutdown, as the secured lender was not willing to advance on operating losses. MCA developed and led a reorganization plan to consolidate operations, substantially reduce inventory, and adjust costs to regain breakeven cash flow. MCA led the company and the secured real estate and ABL lenders through a successful sale process via the Delaware Bankruptcy Court, resulting in full recoveries for the secured lenders and recoveries for the unsecured lenders.
Asset Recovery Process
MCA was appointed receiver over a multi-state organization holding real estate investments, limited partnership interests, and joint ventures by a group of creditors to search, secure, and recover on assets. Lender and investor obligations exceeded $100 million and the process was highly litigious. MCA successfully recovered and monetized assets for distribution to lenders and investors.