CurbyMcLintock was engaged by a major creditor of an ASX-listed organisation involved in a shareholder dispute following the company’s collapse into administration and subsequent insolvency. Allegations had emerged that the CEO had deliberately falsified financial reports, overstated sales performance, and misled the Board regarding the company’s true financial position, conduct that was suspected to have contributed to the organisation’s financial failure.
CurbyMcLintock’s forensic accounting specialists undertook an extensive examination of the company’s financial books and records, including management accounts, board reporting packs, internal financial statements, correspondence, and operational documentation. The work was performed to support litigation strategy, including the preparation of evidence relevant to a potential claim against the organisation’s Directors and Officers (D&O) insurance policy.
The review identified a series of significant financial irregularities, including inflated revenue figures, misleading representations made to the Board, and inconsistencies between internal financial performance data and what had been formally reported. The analysis also identified indicators consistent with potential insolvent trading by the company, including evidence suggesting the CEO was aware, or ought reasonably to have been aware, of the company's financial position.
Our key findings, evidentiary artefacts, financial discrepancies and reconstructed timelines formed a critical component of the creditor’s litigation strategy, including the potential claim under the D&O insurance policy.
