CRA was hired by a major investment management firm to conduct a privileged independent investigation into whistleblower allegations, alleging massive fraud, caused by alleged cell formula errors in a valuation model that was being used to evaluate and make decisions about what stocks to invest in. Our professional’s assisted client’s counsel, conduct the investigation, including email review, a digital forensic examination of hard drives and cell phones, and a thoughtful review of the valuation model, governance over the model, and the stock purchase and sale decisions that were made based on the use of the model — all in preparation for the witness interview. Our investigation confirmed the existence of cell formula errors in the valuation model, but concluded that these errors had no impact on the performance of the portfolio. CRA professionals presented findings to the board of directors and the SEC. The SEC subsequently determined not to recommend an enforcement action by the Commission against the firm.
DOJ: Inability to Pay – Civil Matters