Investigation into firm of Chartered Architects

Investigation into firm of chartered architects

• Analysis of finance agreements / accounting data.
• Claims in excess of £1.1m identified.
• Additional £300,000 recovery from investigations.

Situation

Mazars were appointed as Liquidators over a firm of chartered architects.

Following the appointment, Mazars achieved asset recoveries in excess of £300,000.

The Contentious Insolvency Team were subsequently engaged to determine whether there  were any potential rights of action that could result in additional recoveries for the benefit of creditors.

Approach

A forensic analysis of the company’s bank statements was conducted and amounts totalling in excess of £1m were identified as being received from numerous finance houses.

Further enquiries were undertaken, and a forensic analysis of the finance agreements / associated equipment was conducted, in addition to a review of the available accounting data.

It was identified that there had been a loss to the company, in excess of £800,000, resulting from the duplicate financing of equipment.  A re-working of the company accounts also revealed recoverable debts in excess of £300,00, which were previously not apparent.

The investigations resulted in the identification of claims under the Insolvency Act 1986 / Companies Act 2006 totalling in excess of £1.1m.

Outcome

The investigations conducted by the Contentious Insolvency Team resulted in an additional £300,000 recovery for the insolvent estate, following a settlement being reached on a commercial basis.