FRP - Forensic Services Annual Review

In this publication, FRP Advisory Restructuring Advisory Partners, Ian Corfield and Phil Armstrong explore the headwinds the leisure sector is facing, and the key factors that leisure businesses will need to keep in mind as they re open their doors.

A year in review: Forensic Services Annual review 2023

Annual review 2023

A year in review: Forensic Services

From multiple high-profile appointments to recognition in the Chambers and Partners directory and numerous features in Who’s Who Legal, 2023 saw a number of notable achievements for our Forensics Services practice.

2023 has been a further year of significant growth and expansion for the Forensic Services team. Our five Forensic Services Partners, six Forensic Services Directors and team of 32 forensic accountants and technologists are located across our offices in London, East Anglia, and Birmingham, working on assignments across the UK and internationally. 2024 will see our Forensic Services practice expanding in Leeds and Bristol. New senior hires included Jonathan Wheatcroft as an investigations- focused Partner and Jon Walklin as a Forensic Services Technology Director, both in our London City office. Faye Hall is joining us in January 2024 and will also be based in our London City office whilst working closely with FRP’s team in Bristol. Faye has particular expertise in providing financial remedies for divorce proceedings, contentious trust matters and commercial disputes, with her most recent role as Partner and Head of Private Client Disputes at Evelyn Partners.

There were a number of internal promotions in 2023 including Andrew Fingerett, Rob Whitefoot, Katherine Parker, Tom Arnold, Naomi Gardner, Jude Corbett and Ben Lambert. Engagements included complex investigations, most notably on behalf of three listed businesses, litigation support on a significant number of disputes, including over 100 expert witness matters, and a wide variety of forensic technology assignments. We were delighted to be recognised for the fifth year running in Chambers and Partners for our litigation support services, and for the second year running for our e-Discovery services. A number of our Partners and Directors were ranked in Who’s Who Legal, and Christopher Osborne and Jon Dodge were selected in Business Today’s top 10 Forensic Accountants. In this annual review, seven of our Forensic Services Partners and Directors explain their professional highlights from 2023.

2

3

Case study

FRP assists fraud investigation for AIM-listed company

FRP’s Forensic Technology team assisted with the investigation by imaging electronic devices and hosting email data on our e-Discovery platform, Relativity. We performed targeted searches to assist in our understanding of the events leading up to the creation of fraudulent sales. We prepared a report outlining our findings. Our report was also shared with the client’s auditors to assist with their year-end audit and signing of the company’s financial accounts.

Service activities of a senior sales employee and to review the systems and controls to determine how the alleged fraud occurred. We undertook an independent fact FRP was engaged by an AIM-listed company to investigate fraudulent gathering investigation to establish if the sales were in fact fraudulent and who was involved in the fraud. We conducted interviews with individuals in senior positions at the company and individuals that had regular contact with the senior sales employee to determine the fact base. We obtained documentary evidence to further understand the policies and procedures in place at the organisation.

“This year has continued the theme from 2022 of uncertainty...the ongoing war in Europe, conflict in the Middle East, and more economic and political uncertainty. 2023 has been extremely busy across our national Forensic Services practice. We have welcomed a number of new hires with more due to join us in early 2024, including a new Partner, Faye Hall. We have been instructed on a multitude of significant assignments including a number of high-profile investigations and high value disputes (in the commercial courts and international arbitration). One of the most pleasing aspects of the year, in addition to building out the services we offer and capacity of our team, is that we have demonstrated our joined up approach by delivering forensic assignments (often multi-jurisdictional in nature) across multiple offices.” How has 2023 compared to 2022 for Forensic Services?

“I led the engagement on behalf of an FTSE listed company to investigate historic transactions to assist in determining whether there had been any financial irregularities. I was also appointed as a quantum expert by the respondents, two banks, in a high value LCIA (London Court of International Arbitration) arbitration matter in which a health care provider was the claimant, all based in the Middle East. Another notable case involved our appointment by the board of an AIM-listed business, to undertake a multi-phased investigation into corporate governance and financial reporting.” Which assignments were most notable in 2023?

Christopher Osborne, Partner

5 5

4

Case study

Appointed as party adviser on valuation dispute

Upon submitting our findings to the independent expert, we also provided comment on the other party’s submission. The valuation in the final determination was substantially higher than the original offer to our clients and closer to our submission. As a result, the consideration payable to our client was considerably higher and the costs of the expert determination were borne by the other party.

Fiona was engaged as party adviser to provide support for the minority shareholders of a company in relation to a dispute regarding the valuation of their shares upon exiting. An independent expert was separately appointed to determine the value of the company and our client’s shareholding. Our engagement was to prepare a submission to the independent expert on behalf of our clients. Fiona analysed the available information from the company as well as market data and arrived at a valuation range which was significantly higher than the original offer.

“2023 has been a busy year for the Forensic Services team in East Anglia. I have been instructed on 78 new matters by solicitors across the UK and beyond, including 35 engagements as single joint expert. We have continued to expand the specialist local team with the addition of Lucy Day, a trainee chartered accountant. As a team we have received some great feedback from instructing solicitors which is appreciated. On conclusion of a case, whether in mediation, arbitration or court; it is pleasing to know we have assisted parties in reaching a resolution. In the second half of 2023 I noted an uptick in instructions as expert to give a binding determination on financial disputes.” How has 2023 looked for Forensic Services?

“I acted as party expert on a professional negligence claim against a firm of auditors in respect of a claim by the administrator of the company. Alongside this, I was appointed as party expert in relation to a shareholder dispute involving a related group of 80 property companies. I was also instructed as single joint expert in a matrimonial matter involving the valuation of a specialist engineering group, and in a further matrimonial matter involving the valuation of another specialist engineering group.” Which assignments were most notable in 2023?

Fiona Hotston Moore, Partner

6

7

Case study

Instructed as expert witness in £75 million loss claim

Henry was instructed as an expert witness on behalf of a manufacturer of high-tech medical equipment responding to a claim for loss of profits which had been pleaded as over £75 million. The claim concerned an alleged breach of contract, with the claimant stating that, but for the actions of the manufacturer, it would have grown its business by a factor of ten over a five year period. The forward looking nature of the claim and the fact that the claimant’s existing business was small, meant that there was very little actual data to support the calculations that had been put forward.

Working with a market expert, we analysed the key components and assumptions underpinning the claim calculation, highlighting inconsistencies, and showing that the level of profit being claimed was multiple times above that reported by other market participants. The case went to trial in October, and Henry was cross examined in the High Court. The barrister commented that he was very impressed with both the written and oral evidence and would have no hesitation in recommending FRP for future work. The judge commented that Henry and the other experts ‘provided their honest, carefully considered, well reasoned and independent opinions.’

“This year has been a busy one, continuing to build the Forensic Services practice in the Midlands as well as delivering a wide variety of interesting and challenging engagements. During the year I have been instructed on a range of matters, including investigations, loss of profits claims and transaction related disputes. It has been great to win and deliver significant engagements locally, but also to draw on the expertise of the wider Forensic Services team working together to provide our clients with the advice they need. We have continued to focus on building our presence in the market and it was great to host our Spring Drinks in April with over 50 lawyers and intermediaries attending, an event which we will repeat. It is also pleasing that the team is growing, with promotions to celebrate and recruits to welcome.” How have you found 2023 for Forensic Services?

Which assignments were most notable in 2023?

“I advised a client through an expert determination process relating to an earn out dispute, resulting in the client achieving a multi-million pound award. I also performed an independent review of a client’s investigation into inappropriate business practices in its marketing team. I was appointed as single joint expert in a dispute between a business owner, manager and operations director regarding the alleged misappropriation of revenues. I was also engaged to investigate potentially fraudulent activity undertaken by the seller of a business in order to boost revenue, inflating the purchase consideration.”

Henry Pocock, Partner

8

9

“As a newcomer, my year has been a little different to normal. Obviously, joining the Forensic Services team in London has been an absolute highlight, and I have really enjoyed getting to know my new colleagues and other Partners across the firm. In the run up to my arrival in September, I watched with interest the press articles referring to FRP’s involvement in the investigations at WANdisco, plc., and then at Inland Homes plc. The confidential nature of such important and sensitive work often means that our role is not known publicly, so it was great to see FRP clearly identified as the trusted, independent forensic investigator.” How have you found your first few months at FRP?

“My immediate priority is making new connections with clients, lawyers and colleagues. I have also been reflecting on the much-debated ‘Economic Crime and Corporate Transparency Act’ (ECCTA) as it made its way through Parliament, and considering what its practical implications are for corporate fraud risk management. In response, FRP has developed a robust and flexible framework to help companies identify and manage fraud risk efficiently, alongside their other misconduct risks – you will be hearing more about this in the new year.” What are your priorities for 2024 at FRP?

Jonathan Wheatcroft, Partner

10

11

Case study

Appointed as an SJE in lengthy complex family dispute

Jon was appointed on a complex family case, involving numerous companies, significant property holdings, a range of closely connected trading businesses with different year ends, cross guarantees for extensive bank borrowings and extensive inter-company lending. With uncertainty over maintainable trading performance, and a very complex tax issue requiring disclosure to HMRC in order for it to be settled, the case ran over two years before the final hearing. Jon was instructed as a single joint expert and in the High Court hearing his oral evidence was required to address each of the above points. In addition, he was also required to provide expert opinion on the alternative scenarios for resolution as presented by opposing Counsel and to address further questions raised by the Judge in respect of the competing proposals. Jon’s evidence ran over three days, including attendance in person, by video link and through further written submissions. A complex valuation proposition combined with the wider intricacy of the case required the input of an expert with current transaction, complex tax and business refinancing experience and Jon was able to assist the court in all three areas.

“2023 has been another busy year for our specialist matrimonial and business valuation team. As a Forensic Services Partner, I have worked during the year on over 30 significant business valuation cases (in the Family Courts and in Expert Determinations) and as a Corporate Finance Partner, I have also led 8 completed M&A transactions. The ongoing interaction between my two key specialist areas of work has resulted in a continuation of fascinating appointments during the year across multiple sectors, including retail, construction, financial services, leisure, manufacturing, infrastructure, professional services and others.” What has 2023 looked like for matrimonial and valuations matters?

Which assignments were most notable in 2023?

“In 2023 my instructions covered a very wide range of businesses in terms of size, value and level of shareholding. Values ranged from under £1 million (but with huge complexity and other fundamental case issues being addressed) to in excess of £400 million. Shareholdings ranged in size from less than 3% to 100% controlling interests. With this diversity, I find it rare for any individual case not to have some unique characteristic that makes it notable. My chosen case study provides a flavour of the sort of issues that arise on a case by case basis.”

Jon Dodge, Partner

12

13

“With my arrival at FRP this year, the Forensic Services team expanded our services to include forensic document analysis, CCTV and video analysis, audio enhancement and analysis and high level digital forensic examinations. We have also been acting as a single point of contact for clients requiring accredited expert witnesses in other highly specialised fields.” Which additional services have been introduced?

“I was instructed in a litigation case to analyse and compare the signature on a crucial document and to compare it with known signature samples. We provided an expert opinion as to the authenticity of the questioned signature. Another matter saw me instructed to analyse CCTV from multiple locations and carry out a clothing comparison to track the movements of an offender in a murder case. I was also instructed to process and enhance CCTV of a shooting incident, to analyse the audio and video recordings and to give an opinion on the positions of the various persons involved.” Which assignments are most notable from 2023?

“2023 marks the Forensic Technology team’s first full year running RelativityOne, an Azure cloud-hosted SaaS platform, for all of our clients’ eDiscovery projects. This feature rich environment provides additional functionality such as ‘on-the-fly’ document translations and native file redaction capabilities. As predicted last year, we have seen a significant increase in the volume of short message data, such as Teams, Slack and WhatsApp across all investigation matters in 2023. We also expanded our team and can now support forensic audio-visual and signature analysis.” How was 2023 for the Forensic Technology team?

“My notable assignment from this year was supporting a large internal investigation with a focus on identifying lines of communication, and individuals who were aware of a set of specific events. The initial review of email correspondence provided an incomplete picture and following our advice, Slack data was brought into scope. The Slack data set comprised circa five million ‘chats’ which we converted into Relativity Short Message Format (RSMF) and analysed. This exercise resulted in the identification of an additional 212 custodians of potential interest, who had not been identified during the email review.” What was your most notable 2023 assignment?

Jon Walklin, Director

Adrian Coates, Director

14

15

The Forensic Services team FRP’s team includes qualified accountants and members of the Association of Certified Fraud Examiners, the Academy of Experts, Chartered Institute of Arbitrators and RCA qualified forensic technology specialists, all ready to turn the unexpected into the expertly handled.

Chris Osborne Partner Forensic Services London +44 (0)7983 593 259 chris.osborne@frpadvisory.com

Fiona Hotston Moore Partner Forensic Services Norwich & Cambridge +44 (0)7770 642 491 fiona.hotstonmoore@frpadvisory.com

Henry Pocock Partner Forensic Services Birmingham +44 (0)7751 930 083 henry.pocock@frpadvisory.com

Laura Dymott Director Forensic Services London +44 (0)20 3005 4136 laura.dymott@frpadvisory.com

Rob Whitefoot Director Forensic Services Norwich +44 (0)7552 964 005 rob.whitefoot@frpadvisory.com

Janet Parker Associate Director Forensic Services Norwich +44 (0)7780 008 055 janet.parker@frpadvisory.com

Jonathan Wheatcroft Partner Forensic Services London +44 (0)7759 706 622 jonathan.wheatcroft@frpadvisory.com

Jon Dodge Partner Forensic Services Norwich +44 (0)7775 696 809 jon.dodge@frpadvisory.com

Adrian Coates Director Forensic Services London +44 (0)7709 713 214 adrian.coates@frpadvisory.com

Graeme Freeland Senior Manager Forensic Services London +44 (0)20 3005 4134 graeme.freeland@frpadvisory.com

Harry Trick Senior Manager Forensic Services London +44 (0)7936 344 589 harry.trick@frpadvisory.com

Katherine Parker Senior Manager Forensic Services London +44 (0)7599 105 478 katherine.parker@frpadvisory.com

Andrew Fingerett Director Forensic Services London +44(0)7751 927 832 andrew.fingerett@frpadvisory.com

Jon Walklin Director Forensic Services London +44 (0)7756 877 042 jon.walklin@frpadvisory.com

Karen Mura Consultant Director Forensic Services London +44 (0)20 3005 4139 karen.mura@frpadvisory.com

Molly Sandquest Senior Manager Forensic Services London +44 (0)20 3005 4016 molly.sandquest@frpadvisory.com

Tom Arnold Senior Manager Forensic Services Norwich +44 (0)1603 369 309 tom.arnold@frpadvisory.com

Geoff Gray Manager Forensic Services London +44(0)7923 249 360 geoff.gray@frpadvisory.com

16

17

Holly Baker Manager Forensic Services London +44 (0)20 3005 4144 holly.baker@frpadvisory.com

Naomi Gardner Manager Forensic Services Birmingham +44(0)7355 034 555 naomi.gardner@frpadvisory.com

Tom Bui Manager Forensic Services London +44(0)7435 764 016 tom.bui@frpadvisory.com

Ben Lambert Assistant Manager Forensic Services Norwich +44 (0)1603 369 312 ben.lambert@frpadvisory.com

Fraser Anderson Assistant Manager Forensic Services London +44 (0)7999 108 443 fraser.anderson@frpadvisory.com

Jude Corbett Assistant Manager Forensic Services Norwich +44 (0)7923 221 861 jude.corbett@frpadvisory.com

Karan Deepak Assistant Manager Forensic Services London +44 (0)77 0971 3895 karan.deepak@frpadvisory.com

18

19

FRP Advisory Trading Limited

110 Cannon Street London EC4N 6EU

FRP Advisory Trading Limited is a company incorporated in England and Wales registered number 12315855

For media enquiries, please email press@frpadvisory.com

January 2024

frpadvisory.com

Page 1 Page 2-3 Page 4-5 Page 6-7 Page 8-9 Page 10-11 Page 12-13 Page 14-15 Page 16-17 Page 18-19 Page 20

Made with FlippingBook - professional solution for displaying marketing and sales documents online