At Foodman CPAs & Advisors, we give our clients the information and the tools they need to win cases, help protect their assets and comply with tax laws. Following are a few of the cases in which we have helped our clients achieve their goals.
Divorce
Case
A divorce attorney in the U.S. Virgin Islands was attempting to win a fair and equitable financial distribution for his client, the wife. Her husband was the principal of a paving company registered under the Economic Development Company statute in the U.S. Virgin Islands. The company was filing as an S corporation there.
Solution
Through our financial investigation, we found that the only other shareholder was a foreign individual, a violation of U.S. Virgin Islands S corporation regulations. We also found that the husband was hiding cash flow from his wife by transferring it to his foreign partner as prohibited shareholder distributions. He was hiding assets from his wife by investing corporate funds into the construction of a large home in the name of the company.
Outcome
The attorney for the wife was able to negotiate a pre-trial $2 million settlement for the wife that consisted of transferring the corporate home to the wife and the payment of $ 1 million.
Case
A divorce attorney was attempting to win a fair and equitable financial and time-sharing agreement for his client, a wife and mother of one. Her husband, a contractor, was paid large sums of money in cash, making his income difficult to quantify.
Solution
We were able to determine the husband’s income based on an in-depth investigation of his style of living. Our professionals found that the husband’s income was at least $200,000 per year.
Outcome
The attorney was able to win an equitable settlement for the wife, including the alimony, child support and time-sharing arrangement she was seeking.
Federal Tax Evasion
Case
A criminal tax defense attorney was attempting to defend his client on charges of failing to truthfully report the receipt of more than $2 million in income.
Solution
After an in-depth review and debriefing of the client, regarding his business, we determined that the client had in fact over-reported income in earlier years and was deducting the over-reported income for the years under investigation as allowed by the Internal Revenue Code.
Outcome
The client was acquitted of all charges.
Criminal Defense
Case
Criminal defense attorney Bruce Fleisher was attempting to defend his client John Connolly, a former FBI agent, against charges that Connolly took money in exchange for information that led to murder.
Solution
- We examined each and every one of the more than 120,000 discovery documents provided by the State. We created a financial history of John Connolly’s life from 1980 through 1991 from those 120,000 documents. We assisted the legal team with their depositions of the State’s only financial expert witness, an IRS special agent.
- We provided questions designed to leave no escape routes for her.We attended her deposition to assist them with issues not anticipated during our deposition preparation.
- We attended her direct and cross examination at trial. We were able to point out when the exhibits used by the State in support of her testimony were patently inaccurate and misleading; almost resulting in a mistrial.
Outcome
Because of what we uncovered in our examination of the 120,000 discovery documents, Stanley Foodman, as expert witness was able to provide irrefutable direct and cross examination testimony at trial; proving to the satisfaction of the jury that the Defendant John Connolly never took a bribe from the gangsters recruited by the State to testify against him in exchange for reduced sentences.
Internal Analysis/Internal Controls
Case
A major foreign embassy was concerned about financial security and potential violations of U.S. banking laws.
Solution
Our team of professionals conducted a thorough analysis of the financial systems in place, identified weaknesses.
Outcome
We developed internal controls to help prevent waste and potential fraud and ensure compliance with U.S. banking laws.
