Three days after the fire, MDD was hired by the insurer to quantify the loss and evaluate the financial condition of the insured. The firm’s team of forensic accounting experts reviewed the bar’s records for lost inventory and damaged leasehold improvements. Additionally, they attempted to verify the original sources of payment of these items and reviewed the lease.
The team examined numerous related entities and parties that had books reflecting the intermingling of funds. What’s more, because the owner of the bar was using offshore bank funds as proof of financial viability, there was a need to expand the review to consider other entities. This step was essential in order to establish the financial condition of the bar, its owners and their associates.
The information gathered by MDD indicated that the bar was in poor financial condition at the time of the fire and raised suspicion that there was a financial motive for arson.