Exposure of fraud can often be an outcome of erratic stock market behavior.
Looking at precedent downturns, economic fraud activity was exposed shortly after the stock market’s low points.
Once you have addressed the critical efforts to safeguard your family and your people, you must turn to the health and safety of your business. Experience tells us that the risk of economic fraud is high. Regardless of the current scenario, our recommendations remain the same:
• Move quickly: Take immediate action to understand the financial impact, the source, and details of the fraud.
• Preserve value: Safeguard assets. Secure IT systems. Obtain documents. Information is key to investigations and disputes. Preserved assets help compensate victims.
• Understand dynamics: Financial fraud and Ponzi schemes have far-reaching implications. We utilize our suite of services to seamlessly and efficiently analyze financial data, develop complex analyses, institute claims processes, and support litigation and asset recovery.
• Communicate: Investors are looking for information. Develop channels to quickly share details as information is learned and understood.
With COVID-19 concerns wreaking havoc on the stock market, combined with several years of a soft regulatory environment, it seems inevitable that the current state of the stock market will potentially expose new economic and corporate fraud schemes as investors seek liquidity.
Compliments of AlixPartners – a member of the EACCNY.