When an insurance agent with a £15 million turnover went into liquidation, GSI Associates was called upon by the liquidator to investigate discrepancies in the company’s accounts. Here is how we used forensic analysis to recover crucial data and provide insights that benefited the creditors.
Type of business: Insurance agent – £15m turnover
Our client: Insolvency Practitioner
GSI Associates’ services:
- Data recovery of deleted data
- Accounts data correction
- Data entry
- Accounts production
- Forensic analysis
- Report of conclusions for court
The problem
The company, which sold insurance policies for major insurers like Aviva, faced liquidation after significant clawbacks of commission. The liquidator faced several challenges, including:
- Accounts prepared six months before insolvency on Xero.
- Large sums paid out of the company to holding company through complex inter-company transactions prior to insolvency.
- Erratic trends in commissions received and clawed back during the final months of trading.
- Missing records such as emails and commission statements.
How GSI Associates solved it
GSI’s cryptologist recovered 89,000 deleted emails and vital financial data from the company’s server. By completing the accounts and analysing clawback notifications, GSI revealed that the directors had 2.4 months’ notice of clawbacks which meant that they should have been aware of the potential losses before they paid out substantial sums in dividends and other payments to related parties. The findings led to an out-of-court settlement where the directors repaid substantial sums, benefiting the company’s creditors.
The outcome
- Financial recovery: The directors agreed to an out-of-court settlement, repaying substantial amounts into the liquidation.
- Creditor benefit: The recovered funds directly benefited the creditors, easing the financial impact of the liquidation.
Why choose GSI Associates?
GSI Associates brings advanced forensic analysis and data recovery to tackle complex insolvency cases. From recovering crucial records to uncovering irregularities, we empower liquidators with the evidence they need to take action.
If you need support in forensic accounting or insolvency investigations, get in touch with us today.