White Collar Crime Investigations

Hemming Morse’s white collar crime experts regularly conduct forensic consulting and fraud investigation services in the areas of embezzlement and corporate fraud – both internal and external. Our clients benefit from the investigative expertise of a staff of seasoned professionals, including Certified Fraud Examiners (CFE) and a former special agent with the Federal Bureau of Investigation (FBI).

Our professionals possess the necessary skills and experience to conduct appropriate investigations, report findings, consult with counsel and testify in both civil and criminal proceedings. We are committed to providing our clients with the highest level of consulting and expert witness services.

Representative Matters

Investigation of Securities Fraud

Hemming Morse investigates elaborate fraud scheme by company’s former CFOs, helps SEC recover multi-million dollar judgment.

Hemming Morse was retained by the SEC to investigate a multi-million dollar securities fraud scheme against Pegasus Wireless Corporation and several of its officers. The investigation involved analyzing the ownership of millions of shares of Pegasus Wireless stock used for sales to outside investors, including analyses of the sources and uses of funds in 44 bank and brokerage accounts, totaling over 40,000 transactions. Our stock investigation showed that the company’s former chief financial officers (CFOs) – who had claimed they held minor interest in Pegasus Wireless – actually sold millions of shares to investors through individuals and entities they secretly controlled as nominees, resulting in over $31 million in direct proceeds. Additionally, the Hemming Morse team revealed that the company’s former chief executive officer (CEO) had used investor funds for personal and other non-business uses. Ultimately, the SEC ordered the former CFOs to collectively repay the over $31 million received from ill-gotten gains, plus approximately $14 million in interest. The matter was also criminally prosecuted by the U.S. Attorney, in which our team’s SEC report was used as evidence of the allegations.

Financial Fraud Investigation

Hemming Morse uncovers $2.5 million fraud scheme by disposal services company in Contra Costa County.

Hemming Morse was engaged to conduct a financial investigation into the operation of Orinda Moraga Disposal Services (OMDS), ultimately uncovering a $2.5 million fraud scheme. The investigation was initiated by the Central Contra Costa Sanitary District after the owners of OMDS had made multiple requests to increase its rates. Our team uncovered several fraud schemes involving diversions of customer payments, as well as sham payments to undisclosed entities controlled by the owners of OMDS. Ultimately, the owners of OMDS pled guilty to federal mail and wire fraud charges. Hemming Morse’s fraud discovery in this case resulted in civil litigation against the company’s former owners, as well as the audit firm that issues “clean” audit opinions. We also worked closely with the FBI and U.S. Attorney’s Office on the proceeding criminal case.

Embezzlement and Fraud Investigation

Hemming Morse serves as accountant to trustee of company whose owner had been operating fraud scheme with losses exceeding $100 million.

Hemming Morse served as the accountant to the trustee of Institutional Treasury Management (ITM) after the company was placed into bankruptcy by a court appointed examiner following an investigation by the SEC and FBI that uncovered a massive fraud scheme with losses in excess of $100 million. The owner of ITM was found to have operated an embezzlement and Ponzi scheme involving investments by institutional clients in the U.S. Treasury Market and, after pleading guilty, had been sentenced to 14 years in prison. Hemming Morse’s work on the case included tracing cash transfers totaling in excess of $1.5 billion through numerous accounts. Our investigation resulted in the filing of avoidance actions by the trustee seeking recoveries in excess of $10 million.