We are very honored to be able to invite the Senior Managing Director of FTI Consulting (FCN US, MV $1.5bn), a billion-dollar NYSE-listed global forensic consulting firm, as a guest speaker in our SMU classes to share his knowledge and wisdom with the students in the Accounting Fraud in Asia course in Week 6, the week of 9th February. Over the years in the Asian capital jungles, the FTI people are amongst the few professionals whom I respect for their on-the-field expertise and thought leadership in the area of fraud and forensic investigation. I am sure that the talk will definitely make an impact for our SMU students who will learn not only invaluable lessons from the speaker’s knowledge and wisdom but also about FTI Consulting as their future career choice.
We are very honored to be able to invite the Senior Managing Director of FTI Consulting (FCN US, MV $1.5bn), a billion-dollar NYSE-listed global forensic consulting firm, as a guest speaker in our SMU classes to share his knowledge and wisdom with the students in the Accounting Fraud in Asia course in Week 6, the week of 9th February. Over the years in the Asian capital jungles, the FTI people are amongst the few professionals whom I respect for their on-the-field expertise and thought leadership in the area of fraud and forensic investigation. I am sure that the talk will definitely make an impact for our SMU students who will learn not only invaluable lessons from the speaker’s knowledge and wisdom but also about FTI Consulting as their future career choice.
We are very honored to be able to invite the Senior Managing Director of FTI Consulting (FCN US, MV $1.5bn), a billion-dollar NYSE-listed global forensic consulting firm, as a guest speaker in our SMU classes to share his knowledge and wisdom with the students in the Accounting Fraud in Asia course in Week 6, the week of 9th February. Over the years in the Asian capital jungles, the FTI people are amongst the few professionals whom I respect for their on-the-field expertise and thought leadership in the area of fraud and forensic investigation. I am sure that the talk will definitely make an impact for our SMU students who will learn not only invaluable lessons from the speaker’s knowledge and wisdom but also about FTI Consulting as their future career choice.
FTI: Scaling the Great Wall of Accounting issues in chinese reverse mergersasianextractor
We are very honored to be able to invite the Senior Managing Director of FTI Consulting (FCN US, MV $1.5bn), a billion-dollar NYSE-listed global forensic consulting firm, as a guest speaker in our SMU classes to share his knowledge and wisdom with the students in the Accounting Fraud in Asia course in Week 6, the week of 9th February. Over the years in the Asian capital jungles, the FTI people are amongst the few professionals whom I respect for their on-the-field expertise and thought leadership in the area of fraud and forensic investigation. I am sure that the talk will definitely make an impact for our SMU students who will learn not only invaluable lessons from the speaker’s knowledge and wisdom but also about FTI Consulting as their future career choice.
We are very honored to be able to invite the Senior Managing Director of FTI Consulting (FCN US, MV $1.5bn), a billion-dollar NYSE-listed global forensic consulting firm, as a guest speaker in our SMU classes to share his knowledge and wisdom with the students in the Accounting Fraud in Asia course in Week 6, the week of 9th February. Over the years in the Asian capital jungles, the FTI people are amongst the few professionals whom I respect for their on-the-field expertise and thought leadership in the area of fraud and forensic investigation. I am sure that the talk will definitely make an impact for our SMU students who will learn not only invaluable lessons from the speaker’s knowledge and wisdom but also about FTI Consulting as their future career choice.
We are very honored to be able to invite the Senior Managing Director of FTI Consulting (FCN US, MV $1.5bn), a billion-dollar NYSE-listed global forensic consulting firm, as a guest speaker in our SMU classes to share his knowledge and wisdom with the students in the Accounting Fraud in Asia course in Week 6, the week of 9th February. Over the years in the Asian capital jungles, the FTI people are amongst the few professionals whom I respect for their on-the-field expertise and thought leadership in the area of fraud and forensic investigation. I am sure that the talk will definitely make an impact for our SMU students who will learn not only invaluable lessons from the speaker’s knowledge and wisdom but also about FTI Consulting as their future career choice.
FTI: Scaling the Great Wall of Accounting issues in chinese reverse mergersasianextractor
We are very honored to be able to invite the Senior Managing Director of FTI Consulting (FCN US, MV $1.5bn), a billion-dollar NYSE-listed global forensic consulting firm, as a guest speaker in our SMU classes to share his knowledge and wisdom with the students in the Accounting Fraud in Asia course in Week 6, the week of 9th February. Over the years in the Asian capital jungles, the FTI people are amongst the few professionals whom I respect for their on-the-field expertise and thought leadership in the area of fraud and forensic investigation. I am sure that the talk will definitely make an impact for our SMU students who will learn not only invaluable lessons from the speaker’s knowledge and wisdom but also about FTI Consulting as their future career choice.
The ability to write clear, concise, accurate and informative investigation reports is a valuable skill for investigators of all kinds. A well-written investigation report provides a complete picture of the incident or event and leaves no questions unanswered about who did what, when and how and is written in language that can be understood by anyone reading it.
Unfortunately, many investigators see writing effective investigation reports as a chore, and that’s why so many reports are rushed, poorly written and incomplete.
ICIL is one among few companies in Pakistan who is providing key AML solutions in accordance with country AML regulatory framework to Pakistan banking industry & sectors regulated by State Bank of Pakistan (SBP) & Security & Exchange Commission of Pakistan (SECP).
Simplify Your Background Check and Compliance ProcessNewton Software
Join Curt Schwall, Vice President of Compliance and Regulatory Affairs at EBI and learn what it takes to run a top-notch background check program that ensures you stay compliant.
A powerpoint presentation giving basic insights on forensic audit,forensic auditors, how is the engagement conducted, its scope , the famous Satyam Case and the Nirav Modi case along with the RBI guidelines regarding the same. It is a presentation made for educational and awareness purpose and not to be copied or reproduced without prior consent.
Rob Wells presents "Investigating Stock Brokers, Investment Advisers and Financial Planners" during the Fall 2013 Society of American Business Editors and Writers Conference in New York, Oct. 4, 2013.
Wells is a lecturer at the Philip Merrill College of Journalism at the University of Maryland and a former Reynolds Visiting Professor in Business Journalism at the University of South Carolina.
For more information on training for business journalists, please visit http://businessjournalism.org.
The ability to write clear, concise, accurate and informative investigation reports is a valuable skill for investigators of all kinds. A well-written investigation report provides a complete picture of the incident or event and leaves no questions unanswered about who did what, when and how and is written in language that can be understood by anyone reading it.
Unfortunately, many investigators see writing effective investigation reports as a chore, and that’s why so many reports are rushed, poorly written and incomplete.
ICIL is one among few companies in Pakistan who is providing key AML solutions in accordance with country AML regulatory framework to Pakistan banking industry & sectors regulated by State Bank of Pakistan (SBP) & Security & Exchange Commission of Pakistan (SECP).
Simplify Your Background Check and Compliance ProcessNewton Software
Join Curt Schwall, Vice President of Compliance and Regulatory Affairs at EBI and learn what it takes to run a top-notch background check program that ensures you stay compliant.
A powerpoint presentation giving basic insights on forensic audit,forensic auditors, how is the engagement conducted, its scope , the famous Satyam Case and the Nirav Modi case along with the RBI guidelines regarding the same. It is a presentation made for educational and awareness purpose and not to be copied or reproduced without prior consent.
Rob Wells presents "Investigating Stock Brokers, Investment Advisers and Financial Planners" during the Fall 2013 Society of American Business Editors and Writers Conference in New York, Oct. 4, 2013.
Wells is a lecturer at the Philip Merrill College of Journalism at the University of Maryland and a former Reynolds Visiting Professor in Business Journalism at the University of South Carolina.
For more information on training for business journalists, please visit http://businessjournalism.org.
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Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
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Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
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Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
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Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
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"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
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RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Unveiling the Secrets How Does Generative AI Work.pdf
FTI: Asset Tracing in Asia
1. Presentation for FraudNet
Asset Tracing Investigations in Asia -
The Real DealThe Real Deal
David Holloway, Senior Managing Director
Catherine Williams, Senior Managing Director
11 March 2011
2. Contents
I. Introduction
II. Asset Searching by Investigators
III. Asset Tracing by Forensic Accountants
IV. Case Study – Moulin Global Eyecare Holdings LimitedIV. Case Study – Moulin Global Eyecare Holdings Limited
V. Q & A
4. The Global Footprint of FTI Consulting
We deploy more than 3,500 professionals from every major financial
center to every corner of the globe so that we can serve our clients
wherever challenges arise.
North America
United States
Annapolis
Atlanta
Baltimore
Bethesda
Boston
Brentwood
Cambridge
Charlotte
Chicago
Cleveland
Dallas
Denver
Detroit
Houston
Indianapolis
King of Prussia
Los Angeles
Miami
Morristown
Nashville
Asia Pacific
Australia
Melbourne
Perth
Sydney
China
Beijing
Guangzhou
Shanghai
Hong Kong
India
Mumbai
Japan
Tokyo
The Philippines
Manila
Nashville
New York
Oakland
Orlando
Orange County
Philadelphia
Phoenix
Pittsburgh
Rockville
Roseland
Saddle Brook
Salt Lake City
San Francisco
Seattle
Tucson
Walnut Creek
Washington, DC
West Palm Beach
Canada
Toronto
Vancouver
Mexico
Mexico City
Panama
Panama City
Singapore
South America
Argentina
Buenos Aires
Brazil
São Paulo
Colombia
Bogotá
Africa / Middle East
Bahrain
Manama
United Arab Emirates
Abu Dhabi
Dubai
South Africa
Cape Town
Johannesburg
●
Europe
Belgium
Brussels
France
Paris
Germany
Frankfurt
Munich
Ireland
Dublin
Russia
Moscow
Spain
Madrid
United Kingdom
Epsom
London
Manchester
Northampton
Stirling
●
5. Forensic & Litigation Consulting Services in Asia
FTI is a leading independent provider of Forensic & Litigation Consulting services in Asia. As a specialist firm, we do not provide
audit, taxation or compliance services and so we are free from conflict of interest issues.
We offer a broad range of specific skills – from expert witness services to the valuation of businesses and equity, legal technologies and
reconstruction of accounting records.
Our team has been involved in many of the region’s most high profile and complex litigation, dispute resolution, forensic IT, financial and fraud
investigations.
Our Services
• Expert Witness
• Economic Loss Quantification
• Valuations
• Financial Investigations
• Reconstruction and Analysis of Accounting
• Records
• Asset Tracing
• Forensic Data Analysis
• Independent Accounting Based Evidence
Forensic Accounting Litigation Support
and Technology
Business Intelligence & Investigations
• Global Electronic Discovery
• Computer Forensics
• Forensic Data Analysis
• e-Discovery
• Expert Witness Testimony
• Fraud and Corporate Investigations
• International Asset Searches
• Investigative Due Diligence
• Pre IPO Investigative Due Diligence
• Corporate Governance
• Political Risk Assessment
• Crisis Management
9. •A - Thailand
•B - China
Fraud in Asia
Answer:
Where do the largest frauds occur in Asia ?
E - Japan•B - China
•C - Malaysia
•D - Indonesia
•E - Japan
E - Japan
10. • $$$ - impact to bottom line?
• Is the loss covered by insurance?
• Can we otherwise recover losses?
• Who is involved - management, staff?
• How did it occur & how can we stop further losses?
Key Management Concerns When Fraud is
Discovered
• How did it occur & how can we stop further losses?
• Is there a requirement to report to regulators?
• How to keep from media because of impact on corporate
image?
• Should a report be made to police?
14. Types of Asset Searching
• Proceeds of fraudulent activities
• Pre litigation assessment of assets
• Post judgment assessment
• Financial worth inquires
15. Role of Investigators
• Identification of actual and potential assets: direct and
beneficial ownership
• Evidence to support civil action/s and attachment of relevant
assets
• Working with legal counsel as necessary to facilitate
attachment and collection processattachment and collection process
• Assembly of evidential packages to support potential
leveraged discussions
• To support criminal action, where it is considered necessary
16. Keys to Successful Asset Searching
• Speed: asset searching needs to be initiated almost as
quickly as a fraud investigation commences - everyday
that goes by adds to the difficulty of recovery
• Ring-fence any relevant insurance policies as soon as
possible
• Think as the culprits• Think as the culprits
• Develop a chronology of events around key time frames –
‘more footprints in the sand’ are likely before discovery of
wrongdoing
• Local knowledge
17. Basic Methodology
Phase 1 – Review & Debrief
• Full debrief and securing of all available identifiers
• Establishing a base-line profile of the target/s from client
knowledge
• Establishing a base-line of known or suspected assets• Establishing a base-line of known or suspected assets
• Identifying potential live sources
18. Basic Methodology
Phase 2 – Profiling Targets through Research & Public
Record Sources
• Comprehensive profiling of the target/s: initially through
desktop investigative research
• Searching and analysis of public record sources• Searching and analysis of public record sources
• Requires full understanding of range of global research
and public record sources throughout the world
19. Basic Methodology
Phase 3 – In-depth Field Inquiries
• Using information and intelligence obtained during
debriefing and research, commence a series of discreet
field inquiries
• These inquiries are focused on those aspects,• These inquiries are focused on those aspects,
individuals or entities most likely to produce information
and evidence as to the identification and verification of
ownership and potential value of assets
• Use of link analysis tools to support findings
• Bank and securities accounts
20.
21. Basic Methodology
Phase 4 – Recovery of Assets
• During this process, we will agree with the client as to the most
effective recovery strategies and will support the client and
their legal advisors in executing the agreed process
• In appropriate circumstances, FTI may suggest proactive
dialogue with debtors to encourage early settlement –dialogue with debtors to encourage early settlement –
leveraged negotiations
22. Some Recent Asia Case Examples
– Successful identification in the PRC and Hong Kong of
concealed assets, primarily property/real estate estimated
to be worth US$100M, of the chairman (guarantor) of a
formerly listed PRC-based metals company
– Successful identification in India of significant land holdings
and property of two promoters of a listed company owingand property of two promoters of a listed company owing
US$40M to a leading Hong Kong bank – collateral for the
debts being non-existent trade receivables
23. Some Recent Asia Case Examples
– Successful identification in Australia, PRC, Taiwan and Hong
Kong (plus other jurisdictions in Asia Pacific) of land,
property, investments, etc valued in excess of US$300M of a
financial advisor to a mega-rich Middle-East family
– A successful investigation showing long-term fraud in
Taiwan and various parts of the PRC and Hong Kong by aTaiwan and various parts of the PRC and Hong Kong by a
seafood processing and exporting business and its
principals (the loan guarantors) in relation to unpaid loans
amounting to US$70M to a syndicate of 18 banks
25. Direct
Method
Identifies assets through specific financial
transactions:
• Accounting system – undisclosed ledgers
• Trial Balance – identifies all account ledgers
• General Ledger – all transactions / narrations
Asset Tracing
• General Ledger – all transactions / narrations
• Correspondence – emails, customer / supplier
files
• Accounting vouchers
• Bank statements – unrecorded funds flow
• Tax returns
• Forensic imaging – emails, laptops, servers
Where the books
and records are
available!
26. Indirect
Method
Identifies assets through financial analysis and
publicly available information:
• Financial ratios – listed entities
• Searches – Internet, Factiva, Bloomberg,
Company Registers, Property Title, Court
records
Asset Tracing
• Net worth analysis
• Source & application of funds
• Reconstruction of accounts
• Credit agencies
Where there are
partial or no books
and records!
27. IV. Case Study – Moulin Global Eyecare Holdings
LimitedLimited
28. • Listed on the HKSE October 1993
• Suspension from trading on 18 April 2005 for delay in filing financial
results
• Auditors resigned on 18 April 2005 (3rd change of auditors in 5 yrs)
• Accounting irregularities identified during review as IFA
Asset Tracing - Moulin
• Appointed PL on 23 June 2005; Liquidator on 28 August 2006
29. Issues encountered:
• Shredding of documents by employees
• Invoice templates for friendly suppliers located on employee’s
computers
• Fictitious sales – North American customers
Asset Tracing - Moulin
• Fictitious sales – North American customers
• Related party transactions - loans
• Friendly suppliers - operated / controlled by management
• Window dressing of cash balances at interim and year end
• Trade finance fraud – provided cashflow
• Secret room of documents
• Fake chops/ falsification of documents
32. Draft Balance Sheet as at 31 December 2004
Assets
• Cash at Bank – HKD1.2 billion
- Including HKD265 million in PRC
• Trade Receivables – HKD679 million
• “Other” Receivables – HKD500 million
• Actual cash at bank on our
appointment was about HKD9
million
• Trust Agreement signed
supporting HKD310 million in the
PRC but didn’t exist
• Window dressed bank accounts at
Moulin Balance Sheet
• Prepaid Board Space – HKD54 million
• Fixed Assets – HKD870 million
• Inventory – HKD465 million
• Due from Senior Mgmt – HKD93 million
Liabilities
• Bank Creditors – HKD1.7 billion
• Window dressed bank accounts at
year end
• Irregular trade finance
arrangement to provide cash flow
• “Round robin” transactions
• Group and “related” entities had
over 350 bank accounts
33. Draft Balance Sheet as at 31 December 2004
Assets
• Cash at Bank – HKD1.2 billion
- Including HKD265 million in PRC
• Trade Receivables – HKD679 million
• “Other” Receivables – HKD500 million
• Prepaid Board Space – HKD54 million
• 4 biggest customers were in
the US/Canada.
• Accounted for more than
37% of Group sales per
year.
• Didn’t exist, customer
addresses are all residential
addresses. One was a
Moulin Balance Sheet
• Prepaid Board Space – HKD54 million
• Fixed Assets – HKD870 million
• Inventory – HKD465 million
• Due from Senior Mgmt – HKD93 million
Liabilities
• Bank Creditors – HKD1.7 billion
addresses. One was a
Chinese Restaurant in
McCook, Nebraska and
another the CEO’s mother’s
residence in Richmond
Canada
• Moulin received significant
trade finance against these
debtors.
35. Draft Balance Sheet as at 31 December 2004
Assets
• Cash at Bank – HKD1.2 billion
- Including HKD265 million in PRC
• Trade Receivables – HKD679 million
• “Other” Receivables – HKD500 million
• Subsidiary with Money
Lending Licence.
• Supposedly lending funds to
third parties.
• Executed loan agreements
at 9% pa.
• Didn’t exist, questionable
parties signing loan
Moulin Balance Sheet
• Prepaid Board Space – HKD54 million
• Fixed Assets – HKD870 million
• Inventory – HKD465 million
• Due from Senior Mgmt – HKD93 million
Liabilities
• Bank Creditors – HKD1.7 billion
parties signing loan
agreements.
• Used Money Lending
Business to explain
significant fluctuations in
cash and support large
number of transactions
going through bank
accounts.
36. The PRC Credit Union where funds of HK$80 million
were said to be deposited
Moulin Balance Sheet
37. Draft Balance Sheet as at 31 December 2004
Assets
• Cash at Bank – HKD1.2 billion
- Including HKD265 million in PRC
• Trade Receivables – HKD679 million
• “Other” Receivables – HKD500 million
• Prepaid Board Space – HKD54 million
• Prepaid Board Space –
HKD54 million – didn’t exist
• Amount Due from Senior
Management – HKD93
million – didn’t exist
• Fixed Assets – HKD870
million – Significantly
Moulin Balance Sheet
• Prepaid Board Space – HKD54 million
• Fixed Assets – HKD870 million
• Inventory – HKD465 million
• Due from Senior Mgmt – HKD93 million
Liabilities
• Bank Creditors – HKD1.7 billion
million – Significantly
overstated
• Inventories – HKD465
million – Significantly
overstated
38. Draft Balance Sheet as at 31 December 2004
Assets
• Cash at Bank – HKD1.2 billion
- Including HKD265 million in PRC
• Trade Receivables – HKD679 million
• “Other” Receivables – HKD500 million
• Head office sold off
• Assets in China held on trust
Moulin Balance Sheet
• Prepaid Board Space – HKD54 million
• Fixed Assets – HKD870 million
• Inventory – HKD465 million
• Due from Senior Mgmt – HKD93 million
Liabilities
• Bank Creditors – HKD1.7 billion
• Assets in China held on trust
by relative
• No access to books and
records
• Some factory equipment
didn’t exist - leasing scam
• Freezing order on
equipment – Bank of China
39. Draft Balance Sheet as at 31 December 2004
Assets
• Cash at Bank – HKD1.2 billion
- Including HKD265 million in PRC
• Trade Receivables – HKD679 million
• “Other” Receivables – HKD500 million
Moulin Balance Sheet
• Prepaid Board Space – HKD54 million
• Fixed Assets – HKD870 million
• Inventory – HKD465 million
• Due from Senior Mgmt – HKD93 million
Liabilities
• Bank Creditors – HKD1.7 billion
• Approximately HKD1 billion
in “off balance” sheet
borrowings
• Simply didn’t report it
• Highly irregular trade finance
arrangements
• Business was burning cash
40. Storage of Documents - Hong Kong style
• Concealed by a cloak cupboard that swung outwards to
reveal a hidden door
• The hidden door, once opened, revealed a room stacked
with various accounting information and books and
records.
41. Results
What we realised:-
• Promissory note US$3 million – negotiated settlement with US debtor US$2 million
• Sale of retail optical shops (Shanghai)
• Factory in the PRC (Zhongshan)
• Sale of retail outlets in USA know as Eyecare Centers of America –Moulin acquired in
2005 shortly prior to collapse2005 shortly prior to collapse
• Golf and country club memberships
• Asian distribution business
• Debtors from subsidiaries
• Chairman & CEO bankrupt
• Litigation – auditors & directors
43. Jurisdictional issues
Issues where receivables are the major asset, especially if owed by
PRC entities:
• Local creditors have a commercial priority e.g. “jump in and freeze assets”.
• No effective recovery legislation i.e. recoveries work on “first in – first serve” basis.
• Any recoveries would be used to satisfy preferential creditors first – statutory debts• Any recoveries would be used to satisfy preferential creditors first – statutory debts
and employee entitlements.
• Workers and local authorities may cause significant issues.
• Offshore investors/creditors often receive little as local creditors strip assets before
they can be secured / realised
• Arbitration awards can be enforced by Chinese Courts however no transparency
• Chops and legal representatives - control business
44. Jurisdictional issues
Hong Kong Ordinance (Cap 32):
• Companies Ordinance:
S221 – Examination of directors and officers of the company
1. any officer of the company or person known or suspected to have in his
possession any property of the company or supposed to be indebted to the
company, orcompany, or
2. any person whom the court deems capable of giving information concerning the
promotion, formation, trade, dealings, affairs, or property of the company.
S211 – Power to recover company’s books and records
“.. to the liquidator any money, property, or books and papers in his hands to
which the company is prima facie entitled.”
• BVI Companies – joint appointment in both jurisdictions