Economic Damages – Civil Litigation
Situation:
Brian Forensics was engaged to calculate reasonable and reliable estimates of economic damages and lost profits for a new business that had not yet been established. The task also involved presenting these findings effectively in court. A consortium of 15 charities and a gaming operator filed a civil lawsuit in magistrates court, alleging that a competing gaming operator conspired with local law enforcement to withhold their gaming license. The plaintiffs claimed financial losses due to missed opportunities because they were unable to open the planned establishment.
Strategy:
Brian Forensics employed a widely accepted methodology to calculate damages, gathering relevant data from various sources. They used accounting models, estimates from the plaintiff’s lenders, and the defendant’s financial records to create fact-based assessments of the plaintiff’s losses. Brian Forensics provided expert testimony to present their findings and analysis.
Results:
The financial analysis and economic damage calculations presented by Brian Forensics strengthened the plaintiff’s case. The judge accepted the Brian Forensics model of lost profits and awarded the plaintiff over $77,375 in compensatory damages, along with an additional $15,275 in punitive damages.
This case highlights the importance of engaging an experienced investigative team when fraud is suspected. Financial investigators, such as certified fraud examiners (CFE), not only gather and analyze relevant data but also ensure that assessments are conducted effectively and efficiently. They help determine if wrongdoing has occurred and propose best practices to prevent future fraud.
