Our Work
CJ Connolly takes a human approach to investigations and complex business disputes. These connections are our focal point and this approach allows us to deliver more impactful outcomes to our clients.
Here’s how we get to the heart of the matter:
Misappropriation of Assets
Counsel for a private investment company looked to Cathy to lead a team on an investigation of a long-tenured employee’s misappropriation scheme to divert company assets, including cash and equity, to personal accounts. She and the team interviewed a very small finance department shortly after the trusted employee was terminated and assessed the extent of the fraud. They also created a detailed restatement of all investment accounts outlining the financial losses to the company and various investors and communicated the chain of events and their impact to those investors. The team also periodically reported its findings to law enforcement agencies. The ability to assist a small finance organization to pick up the pieces, as well as maintain contact with the company, its stakeholders, and law enforcement, provided significant support to the organization at an extremely challenging time.
Financial Reporting Fraud
Audit committee counsel for a technology manufacturer engaged Cathy to investigate sales and revenue recognition practices involving international distributor arrangements. She assisted with interviews of employees and distributor personnel; assessed the scope of relevant issues; and reported to both the financial statement auditors and SEC. She also assisted with disclosure language to address the resulting restatement and related remediation efforts. An incredibly critical aspect of Cathy’s role in this matter was maintaining collaborative relationships with both the Board of Directors and management, who were navigating both the resource-intensive nature of the investigation, as the company continued to operate in a highly competitive market, and contemporaneously responding to auditors, regulators and exchange authorities.
Post-Acquisition Dispute
Counsel to an acquiring entity in the logistics industry looked to Cathy for assistance after discovering financial reporting irregularities subsequent to the close of a merger. She worked with summary reporting and provided succinct explanations of various accounting and financial reporting irregularities noted, including inaccurate and omitted disclosures that affected the representations and warranties of the executed merger agreement. More importantly, she assisted management to navigate the dynamics surrounding employees who were still loyal to predecessor management, while effectively gathering the information needed to assess a claim for a purchase price adjustment. Cathy also assisted in easing tensions during a highly contentious deposition preparation in which both clients were involved.