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Corporate Fraud andEmbezzlement Investigationsin Austin, TX
Most financial bleeding in a company — or a dental or medical practice — comes down to white-collar crime: theft and embezzlement by a partner, an employee, or a vendor. Sage Investigations runs corporate fraud investigations in Austin that are designed to find the money, prove what happened, and give you evidence you can act on.
Warning signs
Common red flags include an employee living beyond their means relative to salary; resistance to audits or reluctance to delegate financial duties; unusual transactions or missing documentation; mismatched or unprofessional invoices; and billing complaints that contradict the financial records.
The investigation
How Sage investigates
We analyze and organize the financial records, determine the method and means of the offense, identify the control weaknesses that allowed it, and reconstruct where the money went. DIO is used to analyze bank, brokerage, and credit-card data and to produce evidence-based reports.
Beyond the books, we can also provide:
- Expert witness testimony in court, deposition, and arbitration
- Litigation support, including PPP loan analysis
- Computer forensics for computers, phones, and tablets, through a licensed computer-forensics specialist
- Surveillance and undercover work to document employee theft
- Technical surveillance countermeasures (TSCM) to detect eavesdropping devices, through a licensed specialist
- Nationwide asset searches for judgment recovery
- Locating and interviewing witnesses, with organized timelines and exhibits
Surveillance, when used, is documented with video, still photographs, and a written report, provided within 24 hours of completion.
Results
Representative results
Embezzlement at a flight center
Sage was hired to analyze records in an embezzlement scheme at a flight center in Morristown, New Jersey, where a one-third owner/manager used four schemes over eight years. The amount embezzled was $2.2 million. The arbitration judge and the defense agreed the partner had embezzled $1.7 million. IRS Criminal Investigation prosecuted the partner over unreported income of $870,000.
Vendor fraud at a Round Rock company
In a vendor fraud and theft case, a Round Rock computer company had $10 million stolen through insider dealings of an employee and two fraternity brothers. Two of the three defendants settled the civil matter. The third went to trial. The judge found in favor of the company and assessed $10 million in damages and $1.7 million in attorney fees. IRS-CI and the FBI later prosecuted two of the three, plus a CPA return preparer, and all of those prosecuted were sentenced to prison.
What counsel say
I had the opportunity to work with Sage Investigations on a Bankruptcy fraud case that ultimately went to trial. Their commitment to the entire process and Ed's professionalism in and out of the courtroom was a decisive factor in the winning outcome. Ed testified as our forensic accounting expert.
What is a corporate fraud investigation?
It uses forensic accounting and investigative techniques to detect, document, and prove financial wrongdoing inside a business — such as embezzlement, kickbacks, payroll fraud, or cooked books — and to produce evidence you can use to recover losses or prosecute.
Do you work with corporate counsel or directly with owners?
Both. We assist corporate counsel on sensitive internal matters and we work with owners and managers, rendering an objective report so they can make decisions.
How do you charge?
Rates vary by the type of case. We require a retainer and bill hourly against it. Call 512-659-3179 to discuss the matter.
