Investigations and Forensic Reviews
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Investigations and Forensic Reviews

Representative Engagements

Whether required by regulators or undertaken at firms’ own initiative, independent investigations and forensic reviews are often an important part of diagnosing the cause of a control lapse, understanding its quantitative and qualitative impact, and remedying it. These types of investigations and reviews are also central to appropriately responding to regulatory and law enforcement inquiries. In selecting a firm to conduct an investigation, credibility is critical. Credibility, in turn, depends upon independence and subject matter expertise.

 

Promontory teams are led by individuals with long careers as regulators or auditors and known for their willingness to give candid advice and render thorough conclusions. Some of our professionals conducted investigations earlier in their careers for government agencies, including the SEC. We also have extensive experience with “look back” reviews in the anti-money-laundering (AML)/counter-terrorist financing, sanctions, and mortgage foreclosure contexts.     

Investigations  

Our professionals have extensive experience conducting complex internal fact-finding investigations. Promontory harnesses the unique ability to combine the expertise of former senior law enforcement and regulatory officials with the know-how of seasoned professionals in investments, finance, accounting, and economics. Our thorough, informed, and timely investigations cut through allegations and speculation and provide a balanced view of the relevant facts. 

Our work - the majority of which is non-public - is known and highly respected in law enforcement and regulatory circles. Our experience includes engagements on behalf of boards of directors, board-level committees, outside legal counsel, and executive management. In some situations, we are retained to objectively gather and analyze facts and report our results to a client’s management and board as well its regulator and law enforcement.  In other situations, based on the facts gathered, we work to determine the appropriate courses of action for companies and their shareholders and provide smart, individualized solutions to meet those demands. 

Matters we have investigated include allegations of financial and accounting irregularities, disclosure violations, and corporate governance and supervisory failures. Our professionals have also investigated allegations of broker-dealer and investment adviser misconduct, trading and sales practice abuses, insider trading, market manipulation, and improper activity with respect to municipal securities. 

Forensic Reviews 

Promontory has extensive experience in performing forensic reviews that are thorough, on time, and on budget.   Our recent forensic reviews have included foreclosure compliance, suspicious activity identification and reporting, and sanctions compliance. 

Foreclosure Compliance: We use our knowledge of compliance and credit issues to conduct rapid credit file due diligence reviews for buyers of distressed assets. This expertise can be combined with our forensic ability to provide rapid and authoritative review of credit files to ensure that foreclosure processes have been followed in a way that complies with internal policy, external requirements (including state foreclosure requirements), and emerging national standards.  

Suspicious Activity Identification and Reporting: We are experts in performing transaction reviews for financial institutions that have been found to have deficiencies in their AML Compliance program. These transaction reviews have included both U.S. and non-U.S. institutions, business units ranging from private banks to foreign correspondent banks and retail banking units. Promontory uses its proprietary suspicious activity identification software and case management tools to identify suspicious activity while minimizing the amount of time and expense wasted on false positives. Promontory has a strong track record of providing on-time and on-budget reviews.  

Sanctions Compliance: Promontory frequently helps clients resolve sanctions compliance issues, conducting transaction reviews that involve hundreds of millions of SWIFT messages gathered from locations around the world. Our on-the-ground presence in 14 locations around the world gives our forensic team a global reach, and our reports have earned praise from OFAC, high regulators, and law enforcement agencies for their clarity and thoroughness. In addition, we use our proprietary sanctions filtering, fuzzy logic, and case management tools to generate superb results, leveraging our risk-based list of geographic and bank identifiers, including AML Atlas, Sanctions Atlas, and BIC Atlas. 

Representative Engagements

  • Conducted look-back reviews of mortgage servicing practices for two of the nation’s largest mortgage servicers;
  • Conducted reviews of various sanctions transactions for several global financial services companies
  • Investigated specific allegations of financial fraud and related misleading disclosures, and evaluated effectiveness of internal controls at several financial institutions of varying complexity