Business Litigation / expertise with fraudulent transfers and skip tracing

Entity Client was sued by its former Managers / Investors. Our office represented the entity and Dentons represented the current leadership / Investors. We were brought into this case because of our expertise with fraudulent transfers and skip tracing of funds.

At the inception of the Company, Manager A suspected Manager B of stealing funds from the Company. Manager B had exclusive access to all the books and maintained a similar company covering a different territory in Los Angeles. In fact, in order to balance cash flow, Manager B had commingled assets moving inventory between companies without tracking or informing leadership. Moreover, there was an issue as to whether Manager B had made their initial capital contribution.

As a result of the suspicious activities, Manager A ousted Manager B from the Company, recapitalized the Company, and grew it to one of the most successful wireless providers in Southern California.

Three years later, Manager B came back and asked for their equity. It was truly a mess. We worked with the CFO and financial auditors to subpoena records and analyze the books to establish the equitable value of Manager B’s contributions to the Company.