Intellex Forensics Prospectus

80 S Eighth Street IDS Center – Suite 900

Minneapolis, MN 55402 612.455.4555 phone

952.487.5175 fax www.intellexforensics.com

Intellex Forensics Inc 2015 pg. 2

Table of Contents Page

I. Our Firm ................................................................................................................................ 3

II. Key Contacts .......................................................................................................................... 5

III. Our Team .............................................................................................................................. 6

IV. Our Services: An Overview………..…………………………………………………………………………....……… 7

V. Litigation Support…………………………………………………………………………………………………….…..…. 10

VI. Representative Engagements………………………………………………………………………………………….. 11


I. Our Firm With over 28 years of experience in accounting, finance management and risk mitigation, we have the available team and experience to support and complement various litigation, risk mitigation, financial services, and investigative requirements. Our representative engagements are an example of the tone we set to exceed your expectations. Our professionals have served clients in over 100 countries throughout Europe, North America, Africa, Asia, South America, and The Middle East. Our team is comprised of Certified Fraud Experts, Certified Accounting Experts, Financial Experts, Program Managers, Business Analysts, Certified Valuation Experts, Data Analytic Technicians, and Transaction Services Experts.

Intellex Forensics professionals provide expertise to law firms of all sizes, corporate counsel, management teams, and government entities to help resolve various types of financial disputes. We are accustomed to providing support and leading engagements with a team of seasoned professionals working with clients that benefit from our multi-language capabilities.

Our boutique size and structure allows our clients to work face-to-face with the key decision makers on our team. Our professionals possess extensive industry experience and serve as frequent advisors and keynote speakers on issues relating to Forensic Accounting, White Collar Crime, Foreign Corrupt Practices Act “FCPA”, Anti-money Laundering, and UK Bribery Act.

In addition, we have extensive experience providing support and expertise to clients in specialty areas of finance. We advise clients on a wide range of standards including International Financial Reporting Standards (IFRS), Islamic Finance, Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and the Islamic Financial Services Board (IFSB).


“Our mission is to help our clients become more successful by providing solutions that promote sustainability and growth. Our strategic team of professionals provide our clients with the best chance of success by addressing their needs in an efficient and effective manner.”


Eric Stephens Managing Director Intellex Forensics 80 S Eighth Street IDS Center - Suite 900 Minneapolis, MN 55402 [email protected] 612.860.6395

Summary of Experience Eric’s experience provides an impressive resume surrounding risk mitigation, forensic accounting, anti-money laundering,

accounting operations, Islamic finance, financial analysis, and policy formulation. He has extensive experience providing FCPA-

related expertise to mid-sized and large multi-national companies for the purposes of investigating potential violations,

implementing controls, and improving compliance efforts. In addition, Eric acts as a frequent advisor to our global clients in

their effort to develop and implement measures to combat corruption and mitigate risk as a result of embezzlement and

fraud. His experience in the international arena is substantial as he provides client support in the areas of asset tracing,

forensic accounting, FCPA risk mitigation, the UK Bribery Act, due diligence, and compliance.

Cory Svihla Director Intellex Forensics 80 S Eighth Street IDS Center - Suite 900 Minneapolis, MN 55402 [email protected] 612.455.4555

Summary of Experience In addition to a substantial background in areas surrounding risk mitigation, data management and review, forensic

accounting, and financial analysis, Cory is responsible for business development, marketing, and brand development for the

firm. He has helped build and expand the company from the ground up and has developed a client base across the globe from

5 continents and 14 countries. Prior to his involvement with Intellex Forensics, Cory was Director of Business Development

for a CPA firm based in Washington, DC. His interest, familiarization with clients, and his ability to discuss business in a

collaborative manner has enabled Intellex Forensics to expand business to areas relatively untouched by the forensic

accounting community.

II. Key Contacts

mailto:[email protected]

mailto:[email protected]


III. Our Team

Industries We Serve Financial Institutions

Oil & Gas

Manufacturing

Chemical

Printing & Publishing

Private Equity

Professional Categories Certified Fraud Experts

Certified Accounting Experts

Financial Experts

Islamic Finance Experts

Data Analytic Technicians

Business Systems Analysts

Transaction Services Experts

Project Managers

Construction

Technology

Retail

Shipping & Logistics

Gaming & Casinos

Mining & Engineering

Software/Systems Expertise SAP – FI, CO, MM, SD

PeopleSoft

Hyperion

Great Plains

Oracle

Lawson

MS Office (Excel, Word, Project, Access, PowerPoint)

Areas of Expertise Litigation Support

Transaction Services

Due Diligence and Review

Forensic Accounting

Islamic Finance

Program Formulation

Asset Tracing

Asset Investigation

Policy Formulation

Expert Testimony

UK Bribery Act

Anti-money Laundering

FCPA

IFRS Compliance

AAOIFI Compliance

IFSB Compliance

Risk Mitigation

Agriculture

Hospitality

Government

Insurance

Packaging

Healthcare

Our Clients

Law Firms

Businesses

Government Organizations

Our Focus

IDEA

SharePoint


IV. Our Services: An Overview

a. Forensic Accounting and Litigation Support Our professionals help investigate and discover facts underlying our clients concerns surrounding fraud, misconduct, and other vulnerabilities. We have a team of seasoned Forensic Accountants, Certified Fraud Examiners, anti-money laundering professionals, and compliance specialists who work with law firms, our client’s legal counsel, audit and compliance departments, businesses of all sizes and industries, and government organizations to resolve financial misconduct by taking the facts from the office to the courtroom.

Areas of focus include:

Employee Fraud

Misappropriation

Embezzlement

Money Laundering

Bribery

Corruption

b. Risk Mitigation and Compliance We have served businesses and organizations in a wide range of industries giving our team the ability to provide the highest level of expertise to our clients. Our professionals apply their industry knowledge and wide-ranging experience to serve clients in the areas of risk assessments, anti-corruption programs, and risk mitigation. Our team can help businesses of all sizes turn risk mitigation and compliance efforts into opportunities for future growth and sustainable business processes.


Anti-money Laundering

FCPA Compliance

Program Management

Training

Policy & Program Formulation

Risk Assessments

Forensic Accounting

Litigation Support

Investigations

Multi-lingual

Diverse Expertise

Multi-national Clients


c. Asset Tracing, Investigations, Valuation, and Verification Using sophisticated technology and expertise, our team helps businesses and individuals manage asset tracing, verification, and recovery efforts to assist in the discovery process. We serve our clients during investigations to manage data, uncover facts, and provide feedback. Our response time is expeditious with no disruption to our client’s organization. Our professionals work with our clients both in the domestic and international arenas providing insight on relevant facts with no disruption to your organization.


Partner Due Diligence

Merger & Acquisition Background Checks

Compliance Support

Asset Disputes

d. Business Valuation With a team of experienced and Certified Valuation Experts, we offer a strategic approach to valuing your business organization using a practical and in-depth analytical process.

e. Specialty Finance Our team demonstrates our diverse experience and expertise by representing and educating multi-national clients on a wide range of standards and principles relating to Islamic Finance. We work with our clients and their Islamic financial institutions to enhance compliance with AAOIFI standards. When lack of expertise is an obstacle for various institutions advancing with Islamic Finance, we can absorb the stress by developing and conducting training courses to help meet the needs of their team and organization.


International Financial Reporting Standards (IFRS)

Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)

Islamic Financial Services Board (IFSB) standards compliance

Sharia Compliance

Training

Accounting and Financial Advisory


“Our boutique structure allows us the capability of providing experienced professionals with the right subject matter expertise, technical skills, and personal characteristics for the role and responsibility at hand.”


Intellex Forensics works with clients ranging from Fortune 500 companies and Legal 500 firms, to small family run businesses and sole practitioners. We help our clients prepare for litigation by investigating, reviewing, and analyzing financial data that is relevant to the litigation. Our team works with clients to minimize damages as a result of fraudulent conduct and to ensure business continuity.

V. Litigation Support

Our litigation support services include the following:

Serving as both expert and fact witnesses

Issuing expert reports and preparing exhibits for trial

Deposition preparation

Assisting counsel with cross-examinations

Complex data discovery, retention, and analysis

Case management and litigation strategy

Asset tracing, discovery, valuation, and analysis

Analyzing financial statements, audit work papers, key

documents and contracts, and electronic correspondence

Professional malpractice and intellectual property violations

Business insurance claims preparation and management

Serving as advisors on issues relating to diligence concerning

mergers and acquisitions

Our team has the ability to transition a client from a complex issue such as an employee fraud litigation matter,

to a plan for resilience and long-term success of the company. We have the ability to respond to a critical issue

in an efficient and effective manner as well as proactively mitigate future risk. Our professionals separate

themselves from our competitors by having an in-depth understanding of business processes, the legal system,

and controversial events that may perpetuate in the due course of business. We pride ourselves in not only

helping our clients turn issues into positive outcomes, but also treating each client as unique in order to help

them navigate through future challenges confidently and efficiently.

Financial

Institutions

CLIENT TESTIMONIAL

“Amazing! This is the best description I can give for working with Intellex Forensics. They worked very

closely with us and understood and anticipated our needs sometimes before we did. I would hire them

again in a heartbeat!”

-Lynne A., Corporate CEO, Minneapolis

Identify Preserve Collect Analyze Report


Intellex Forensics is an accomplished team of professionals with extensive experience in due diligence surrounding business and litigation support, asset verification, risk management, forensic accounting, mergers and acquisitions (buy and sell side), and transaction services. Further, our experience with domestic and international accounting operations enable us to serve clients in areas of technical accounting (GAAP, IFRS, IAS), Islamic Finance, audit, Foreign Corrupt Practices Act (FCPA), UK Bribery Act, regulatory reporting, financial analysis and compliance. Listed below are select representative engagements which summarize scope and expanded detail of such engagements.

Employee Embezzlement Scheme – Expert Witness/ Litigation Support Worked with this large US based firm in its effort to mitigate risk caused as the result of an

employee embezzlement scheme. The scope of our work involved analyzing 14 years of accounting records, dissecting payments to and from the subject employee, analyzing payroll, dividends, and bonus payments, and subsequently reviewing the defendant’s banking records supplied under protective order. Further work involved analyzing the subject employee’s emails where it was discovered that this individual was also a key figure in an illicit kickback scheme involving a major vendor to the client. Prior to our introduction to the firm, the initial estimated damages to the client were $38,000. Through our process of research and analytics that amount currently is estimated at well over $1.7 million. We expect a full recovery for our client.

$74 Million Fraud Scheme – Expert Witness/ Litigation Support Managed a fraud investigation and served as an expert witness in a $74 million fraud scheme

perpetrated by a business owner to the detriment of his business partner. The scheme involved substantial misappropriation and concealment of assets in off-shore tax havens located in Switzerland, the Cayman Islands, the Isle of Man, and Dubai. The scope of this engagement consisted of assessing the extent of the fraud committed, supporting all allegations by evidentiary matter, presenting all evidence in court, and serving as expert witness. Subsequent to a favorable judgment, further work was directed toward recovery of assets which were located in foreign countries. This involved substantial effort working with local courts, legal representation, law enforcement, and financial institutions between EU member countries and the plaintiff to ensure recovery of assets. Ultimately, funds and assets amounting to 96% of the claims were recovered.

Fact Witness, Forensic Accounting – Misappropriation of Assets/ Investigations Worked with this UK based law firm in an effort to provide forensic accounting services for their

client undergoing a marital separation. The initial scope of this engagement surrounded assets allegedly invested in U.S. based real estate in Florida and Nevada. Estimated holdings in these assets totaled approximately $128 million. After a thorough review and investigation into the ownership of the assets and the value thereof, it was discovered that substantial funds originally invested in real property were misappropriated to off-shore tax havens in the Isle of Man and Bermuda. Subsequent work was involved in the area of serving as fact witness and providing testimony as to the use of funds which were misappropriated. Further work involved working with US and UK tax authorities to clear the client from tax evasion charges.

VI. Representative Engagements


$1 Billion Global Watercraft Manufacturer – Forensic Analysis Managed the forensic analysis of data for potential recovery subsequent to the bankruptcy of a

$1 billion global watercraft manufacturer. The scope of our work involved using data mining software to aggregate data from five different locations on eight different accounting systems and analyzing more than 50 million records of general ledger entries. The process of analyzing approximately $72 million of expenditures led to identification of approximately $35 million of potential recovery.

$54 Billion Chemical Company – Sale/Divestment, Due Diligence

Worked with this $54B US based global chemical company as a project manager for the sale / divestment of a $13B product line division. This client, an industry leading firm, underwent this transaction in an effort to raise capital and focus rather on core businesses. The scope of this project required our ability to carve out from a financial perspective, all relevant financial data for this major division in order to provide an estimated sales price. This due diligence process involved substantial effort directed toward analyzing balance sheet and income statement accounts, including but not limited to cost of sales, raw materials, direct costs, inventory and overhead allocations. This effort involved the development and use of a complex financial model which, when complete, was used as the primary financial modeling tool.

Gaming Casino Fraud – Financial Discovery and Analysis Represented a large gaming casino in its effort to terminate a casino management firm as a result

of fraud. Various forms of fraud were perpetrated through wire transfer activity, credit card activity, expense reimbursements, payroll transactions, and fraudulent loan schemes. The result was a favorable verdict for our client in the amount of approximately $22 million in damages, an amount representing actual damages plus legal and forensic accounting fees.

International Manufacturing Firm – Forensic Audit and Review Performed an audit and subsequent forensic review of all executive level compensation and

reimbursement programs for a U.S. based international manufacturing firm at the request of the Board of Directors. This review resulted in the discovery of approximately $2.8 million in fraudulent reimbursement claims. Additional work was performed formulating compliance policies and procedures.

$270 Million Family Trust Dispute – Data Analysis Worked with this U.S. based law firm in a matter of a Family Trust dispute involving several family

members and a Trust valued at approximately $270 million. The engagement scope was to identify Trust management fees and ascertain whether fees actually charged the trust were within contractual guidelines. This matter settled through mediation and resulting in an approximate $32 million refund of management fees returned to the trust in addition to a full recovery of legal and accounting fees.


US Patriot Act and Anti-money Laundering – Investigations and Analysis Detected the existence and sources of fraudulent financial activity throughout international

affiliates of a large multinational client to assess potential violations of the U.S. Patriot Act and Anti-money Laundering (AML) standards. The scope of this engagement included reviewing multi-currency monetary and investment activity and presenting all findings to the board of directors. Substantial effort was directed toward suspected asset misappropriation and the detection of money laundering activity.

European-based €102B Global Banking Firm – US GAAP, IFRS

Worked with this European-based €102B global banking, asset management and insurance firm to perform and manage the external financial reporting process and to provide technical accounting guidance on a US GAAP and IFRS basis. Additionally, position papers, related technical memos and disclosures were produced to support the various accounting treatment of these transactions and their related values. Project deliverables included the presentation of documentation to internal and external auditors in addition to U.S. regulatory authorities. Further subsequent service was provided to the client during a related conversion from US GAAP to IFRS standards.

$36 Billion Global Family Entertainment Company – FCPA Compliance Provided expertise to this $36 billion global family entertainment company in the area of FCPA

related practices and matters for entities located in Europe and Asia. This client represented a joint venture enterprise with various foreign governments and required investigation of purported FCPA related violations and the subsequent formulation of policies to mitigate further risk in these areas.

$224 Million Recovery - Asset Tracing - Bermuda, Cayman Islands, and Barbados At subject was a family business which was founded by the marital couple. Marital assets included

a family business in Florida and a financial portfolio of approximately $92 million. The initial scope of the engagement consisted of asset tracing for purported assets located in Bermuda and the Cayman Islands. Subsequent asset tracing and investigations followed in Barbados. Assets were ‘hidden’ and ‘sheltered’ in fictitious trusts and business created by a former spouse in locations commonly friendly to foreign investment. Through legal action and further investigation, a substantial amount of investment in these foreign trusts and businesses were proven to have been originally misappropriated from the family business. Total recovery and settlement for our client amounted to 92% of the initial sought after amount which exceeded $224 million.

Global Equity Firm – International Acquisitions/ FCPA Compliance Worked with this leading global private equity firm to support the business / investor assessment

and assurance phase of international acquisitions. This involved verifying compliance with local laws and standards and ensuring compliance with FCPA standards, leading due diligence matters with prospective acquisition targets, formulating proposals, performing financial analyses and managing a team of twelve individuals.


$800 Million Auto Repair Company – Acquisition Support Surrounding Due Diligence Represented this $800 million auto repair client undergoing substantial acquisition activity. The

scope of our engagement consisted of performing due diligence on prospective acquisition targets in addition to asset and character verification. Subsequent client service involved working with the client finance organization to ‘fold’ all acquisitions into the client structure, first as part of the integrated finance systems organization to streamlining all AP, AR and internal audit functions.

Marital Separation – Forensic Accounting/ Investigation Worked with our client during a marital separation whereby a family business was involved. The

husband initially offered the wife, our client, a settlement of $100,000 which included what he claimed to be her half of the value of the family owned business. After 18 months of forensic accounting, review and investigation, it was determined that the husband had diverted assets to an investment in a European confectionary company and had intentionally “managed” the business to near bankruptcy in an effort to de-value the company. The settlement for the wife resulted in a $36.7 million payout.

Tracing Illicit Funding in Central and South America Worked with this global client in an effort to trace illicit funding originating in Mexico, various

parts of South America and Russia. This project involved substantial data mining and working with a cross section of attorneys and company executives to minimize penalty assessments and to formulate internal compliance programs.

European Energy Firm – Risk Mitigation Worked with this European based energy firm to investigate FCPA violations and to minimize

further risk in this arena by developing compliance manuals and training all relevant staff. This project required working with client entities in seven countries, leading various phases of investigation and communicating with executive management, governmental and law enforcement entities.

Golf Manufacturer – Islamic Finance, Sharia Law, IFRS, SAP, US GAAP Worked with this large US based golf equipment manufacturer to provide interim CFO and

Controller services. This high profile client firm required direct hands-on involvement to lead the finance organization during a merger and pre-IPO activity. Specifically, this client required direct involvement to identify and analyze target acquisitions, identify key seller characteristics, perform planning, positioning and negotiation functions, manage the LOI process for all acquisitions and manage the financial integration (analysis, reporting, and systems) pre and post-acquisition. This also involved the concurrent integration of SAP ERP from the stage of initial project planning through training and ultimately go-live. Additionally, as the firm was majority owned by a Middle East banking organization, compliancy with Sharia Islamic principles was required which affected borrowing capacity, financial hedging capacity and certain operational supply components. Strong US GAAP technical expertise was required as was a full comprehension of IFRS concepts. Additionally, extensive travel was required to the Middle East and Asia to work directly with business partners and directors.

80 S Eighth Street • IDS Center – Suite 900 • Minneapolis, MN 55402 • Phone 612.567.8716 • www.intellexforensics.com

Financial

Institutions

80 South Eighth Street

IDS Center – Suite 900 Minneapolis, MN 55402

612.455.4555 phone 952.487.5175 fax www.intellexforensics.com

http://www.intellexforensics.com/

Documents

Intellex Forensics Prospectus