Recovering Embezzled Assets (Forensic Accounting)

Industry: Privately Held, Telecommunications Company

Client Overview

A global provider of long-haul, telecommunications services wanted to identify the surprisingly high burn-rate of a recent $2 million investment.


The company found that one of its partners had embezzled $600,000 of the $2 million dollar investment by setting up fictitious vendors, hiding parts of incoming bank statements and accounting for missing money as “vendor deposits” on the books.


CFO Consulting Partners’ personnel developed a forensic accounting program that identified the embezzled funds and put in place safeguards to mitigate further incidences of company theft.


The solution generated the following value-added outcomes:

  • Reviewed finance policies and procedures.
  • Conducted vendor analysis of tax ID numbers from W-9 forms.
  • Delegated financial responsibilities among several employees.
  • Rotated financial assignments.
  • Instituted unexpected audits of financials and inventory.
  • Provided unopened bank statements to partners.
  • Reconciled bank statements on a monthly basis.
  • Installed “positive pay” system where user approves all payments before bank clearing.
  • Locked checks and stopped the practice of check-signing machines.


To hear how we can help protect your company funds, please contact:

Meryl Ravitz, Director, CPA


M: 646.650.2028 x714