Project Description

Factoring Expert

for Fraud Case

The need

Attorneys representing a bank in its lawsuit against a computer hardware distributor needed a factoring expert to make their case. Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable to a third party at a discount to meet its immediate cash needs. This case alleged that the defendant enabled a computer manufacturer’s elaborate scheme of circular transactions through which it sold fraudulent receivables based on purchase orders issued by foreign importers such as the defendant. Allegedly, the defendant participated in this scheme in exchange for kickbacks paid to its executives and employees. The ideal expert for the case would have experience with electronics distributorships and how they work with suppliers and customers.

Our approach

From conversations with the client, we understood that it would be a plus if the expert had spent time working at a company that sold manufacturer’s products to resellers using product delivery methods such as drop shipment and order fulfillment. We went to work to find the best expert for the case.

The expert

We found an expert in the factoring industry with over 50 years of experience, and specialized in verification and fraud prevention procedures. He had founded a consultancy focused on factoring, asset-based lending, loans, securitizations, and export finance. As a consultant, he had worked with factoring firms, asset-based lenders, purchase order financing firms and specialty lenders. In his long career, he had been a Vice President at a large bank and had also worked as a credit manager. Well-respected in his field, he held leadership roles in several factoring industry groups and regularly conducted fraud prevention seminars for the finance industry. Finally, he had prior expert witness experience on several cases including one involving factoring and fraud.