Posted On: September 16, 2007
Forensic Accounting Expert Witness Report Results in $41.5M Directors Payment
Buccino & Associates, Inc. was hired in 2003 as an expert witness in the Just For Feet (JFF) Chapter 7 case. Their forensic accounting expert witness report resulted in the largest out of pocket payment by outside directors in history. The former JFF directors will pay $41.5 million, more than the combined payments of former directors in the Enron and WorldCom cases. EarthTimes.org describes Buccino as being hired to:
...perform forensic analysis, opine on corporate governance matters, evaluate Chapter 11 options, opine on insolvency issues, value the pro-forma reorganized company on a fair market operating basis, and, finally to determine financial damages. From 1996 to 1999, earnings were overstated by tens of millions of dollars. In 1999 alone, pre-tax income was reported as $43 million; and, if properly stated would have been a loss in excess of $100 million. In November, 1999, JFF filed for Chapter 11 and in early 2000 the case was converted to a Chapter 7 and its assets auctioned.
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