Las Vegas Firm Helps Businesses Fight Fraud in Financial Statements

Experienced Nevada attorney handles cases involving misrepresentations on documents

Clear, accurate financial statements are essential for the fair flow of commerce. Accordingly, intentional misrepresentation on these documents can lead to serious criminal sanctions and monetary losses. At Reliance Law Firm in Las Vegas, we assist companies in avoiding the potentially disastrous consequences associated with financial statement fraud. Attorney Rulon Huntsman has decades of experience successfully handling sophisticated legal matters on behalf of Nevada clients. He can provide the high-level counsel you need to root out problems and to hold wrongdoers accountable. With a Certified Fraud Examiner on staff, we are equipped to take on situations involving forced reconciliation of accounts, material omissions and other forms of fraudulent activity.

Types of financial statement schemes

There are numerous specific forms of illicit activity associated with financial statements. The following are some of the major types identified by the Association of Certified Fraud Examiners (ACFE):

• Reporting of fictitious revenues
• Timing discrepancies that result in distorted figures
• Improper asset valuation
• Concealed liabilities and expenses
• Omission of required disclosures or misstatements within disclosures
• Concealment of liabilities and expenses

Whatever type of fraud is occurring in your situation, we will thoroughly investigate the facts and give you a clear outline of your legal options.

Asset misappropriation

Misappropriation of assets is often difficult to discern because money is taken in a series of transactions, none of which might necessarily raise a red flag. This type of theft could involve one or more of these illegal activities:

• Skimming of revenues
• Larceny of cash holdings
• Fraudulent billing schemes
• Personal purchases disguised as expenditures for business needs
• Payments to nonexistent employees
• Falsified wage payments

These intentional acts not only deplete company funds but also can negatively impact the reputation of your business.

Corporate and industrial espionage

There is a difference between business espionage and legal methods of gathering competitive intelligence. Unlawful acts designed to obtain valuable trade secrets need to be stopped promptly or the victimized company might not be able to recover, even after the party engaging in corporate or industrial espionage is caught. Moreover, theft of proprietary information might discourage future investment and affect profits.

Detection of fraud

In order to detect and assess suspected fraud efficiently, you should consult a team of unbiased fraud professionals with the necessary skills. The ACFE recommends that all members of the fraud team be impartial throughout the entire process in order to provide an accurate measure of the level of risk that your business is facing or encountering. Our firm’s certified fraud examiner will develop a comprehensive strategy and assemble the requisite team so that the fraud assessment is carried out with the highest degree of professionalism.

Prevention of fraud

Key components of fraud prevention include division of duties among employees and implementation of internal controls that cannot be overridden by management. Everyone in the corporate organization should be made aware of a zero-tolerance policy regarding fraud. Furthermore, every employee should be engaged in the fraud-prevention process. Management is ultimately responsible for detecting and preventing fraud and for adopting adequate internal controls for the industry in which the business operates. Nothing can guarantee a fraud-free corporate environment, but the risk of fraud can be mitigated so that the damage is limited even if a problem arises.

Contact a Las Vegas lawyer regarding a financial statement fraud issue

Reliance Law Firm in Las Vegas advises Nevada clients on a full range of matters related to financial statement fraud, including the investigation and prevention of possible problems. For a consultation regarding your particular legal needs, please call 702-205-3500 or contact us online.