Forensic Accounting Investigations for Complex Litigation
When your case turns on what happened to the money, you need more than an accountant. You need a forensic accounting investigator who can build a financial narrative from source documents, identify what the records don’t show, and present findings that hold up under adversarial examination. That is the core of our forensic accounting and investigative services.
MSG’s forensic accounting team conducts financial investigations in commercial disputes, shareholder litigation, matrimonial actions, and fiduciary matters.
Working with Counsel from Investigation Through Trial
The most effective forensic investigations are coordinated with litigation strategy from the outset. MSG works directly with counsel to identify the financial issues that matter, prioritize investigative procedures, and develop a timeline that aligns with discovery and pretrial deadlines.
When retained in a consulting capacity, MSG’s investigative work is conducted in coordination with counsel and documented in a format consistent with work-product protection. We understand the boundary between privileged consulting and disclosable expert analysis, and we structure our engagement accordingly.
Beyond the written report, we assist with evaluating financial evidence produced in discovery, identifying gaps or inconsistencies in opposing party production, preparing counsel for depositions involving financial testimony, and developing cross-examination questions for opposing financial experts. All forensic work is performed in accordance with the AICPA Statement on Standards for Consulting Services and documented in a format consistent with admissibility requirements.
Asset tracing is a core forensic discipline in disputes involving suspected diversion, concealment, or dissipation of funds. It arises frequently in shareholder disputes where a partner is alleged to have siphoned company funds, in matrimonial cases where one spouse has moved assets beyond the reach of equitable distribution, and in fiduciary breach matters where a trustee or executor is alleged to have mismanaged estate or trust assets.
Our approach focuses on reconstructing the movement of funds through bank accounts, business entities, related parties, and third-party intermediaries. We analyze deposit and disbursement activity, identify unusual or unexplained transfers, trace funds across multiple accounts and entities, and determine the ultimate disposition of assets. When source documents are incomplete, we use corroborating evidence, including tax returns, loan applications, credit card records, and public filings, to fill gaps in the financial trail.
The goal of every asset tracing engagement is to produce a clear, defensible narrative that shows where the money came from, where it went, and whether the transactions were consistent with the explanations provided by the parties.
In matrimonial disputes, reported income does not always tell the complete story. When a spouse controls a closely held business or has access to cash-intensive revenue streams, the reported figures on a tax return may significantly understate actual economic activity. Lifestyle analysis bridges that gap by comparing known sources of funds against documented personal and household expenditures.
We reconstruct historical cash flows from all available sources: bank statements, credit card records, mortgage and loan documents, brokerage statements, and expense records. The analysis identifies recurring living expenses, large or unusual purchases, cash withdrawals, and third-party payments, then reconciles total spending against reported income and known assets to determine whether unreported income or concealed assets are indicated.
These analyses are used to support income determinations for maintenance and support calculations, challenge the credibility of financial affidavits, and establish a factual foundation for equitable distribution. Our reports present findings in a straightforward, exhibit-ready format that connects the financial evidence to the conclusions.
Not every dispute comes with a clean set of books. In many forensic engagements, the financial records are incomplete, unreliable, disorganized, or simply missing. This is common in closely held businesses that lack formal accounting controls, in disputes where one party has withheld or destroyed records, and in matters involving entities that operated informally or in cash.
MSG reconstructs financial records from the ground up using primary source documents: bank and merchant processing statements, invoices, receipts, payroll records, tax filings, and loan documentation. Where first-party records are unavailable, we obtain and analyze third-party records—including vendor and customer records, government filings, and financial institution documents obtained through discovery to build a reliable picture of the entity’s financial activity.
Record reconstruction provides the factual foundation for other analyses. Without reliable financial data, valuations, damages calculations, and income determinations lack credibility. Our reconstruction work is documented so that every figure can be traced to its source and defended under examination.