CASE Study

Tracing Trust Account Funds

Sometimes those entrusted to act with fiduciary responsibility can be found at fault in their dealings. A court judgement against high profile trial lawyer ordered him to pay partners from a prior firm. He claimed he didn’t have the money, and the plaintiff suspected he was hiding it.

Scott Sims of Frank Sims Stolper, a California based national law firm, filed subpoenas for relevant banking activity from 35 different accounts.

Scott was representing the plaintiff and stayed up for hours each night trying to make heads or tails of the activity. Scott started to enter the transactions into a spreadsheet, but it was taking too long, and he didn’t have the budget to outsource the work so Scott reached out to Valid8.

Process

Scott uploaded over 600 statements to Valid8 and had fully verified and reconciled statement data within hours, to gain a complete picture of the situation.
Money moving between accounts was identified within minutes using patented algorithms.
Having partnered with Valid8 for just a few days, Scott could see from the visualization of transactions that the defendant was emptying the bank accounts each month, including trust accounts with client funds.
Case Development: Despite the complex methods employed to move funds through a network of accounts, Scott Sims delivered a clear opinion, in partnership with Valid8.

Outcome

Accelerated Analysis: After extracting over 100,000 transactions spanning 35 accounts over seven years, within hours, $480 million of inflows and outflows were analyzed.
Fraud Identified: Within days, Scott Sims had reviewed 2,633 transfers totaling $144 million and identified multiple millions of stolen client funds.
Resource Efficiency: A fully reconciled and comprehensive set of transaction data was ready for analysis in less than 24 hours.
Case Development: Despite the complex methods employed to move funds through a network of accounts, Scott Sims delivered a clear opinion, in partnership with Valid8.

Customer Testimonials

“We loaded up Valid8 with the documents and it was incredible. Within minutes we understood what was happening and identified new accounts to subpoena.”

“Defendant was emptying the bank accounts each month and moving the funds through a complex network of other accounts.”

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