MCA Financial Group was engaged as a financial expert in a complex litigation matter involving a senior executive recruited to lead operations for a major resort development project. The project ultimately failed, triggering a dispute over significant unpaid compensation and denied investment opportunities that had been central to the executive’s negotiated role.
Retained by legal counsel to the executive, MCA was tasked with evaluating claims for salary, bonuses, and equity participation. These key components of compensation were withheld by ownership following the loss of a key construction loan at the onset of the COVID-19 pandemic, which stalled the project and led to the dispute.
A core aspect of MCA’s role involved applying the alter ego doctrine—a legal theory used to hold individuals personally liable when they have exercised such control over a company that the entity is no longer distinct from its owners. This analysis is often used to justify “piercing the corporate veil” when corporate formalities are ignored and the entity is effectively functioning as an extension of its principals.
To support the client’s claims, MCA:
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- Conducted a forensic review of employment contracts, term sheets, operating agreements, and side letters to assess the scope of compensation and investment rights;
- Analyzed ownership, capitalization, management control, and governance of the development entities to assess whether they operated as alter egos of their principals;
- Synthesized complex legal, financial, and structural issues into clear, authoritative expert testimony in support of litigation strategy.
MCA’s findings and testimony played a critical role in achieving a favorable resolution through settlement. The engagement showcases MCA’s expertise in navigating complex ownership structures, identifying the financial implications of disputed executive agreements, and providing clear and credible support for complex litigation.