FRA

Forensic Risk Alliance

COVID-19 Resource Center

Forward-looking solutions to manage risk, adapt and thrive in a remote economy

As the COVID-19 pandemic continues to evolve, businesses across every jurisdiction and sector face unprecedented and ever-shifting challenges. Companies have been forced to move their workforce online and quickly adapt operations to remote environments—and their responses to the economic losses, supply chain interruptions and workforce shortages caused by the virus threaten to cascade into additional serious enterprise risks, such as cyber threats, fraud, legal disputes and compliance failures. For companies operating in this uncertain business landscape—and the law firms representing them—it is critical to have the right partner with robust investigative experience in remote environments to help regain control and develop forward-looking solutions as we emerge from this crisis.

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For more than 20 years, we have been proactively partnering with clients and their counsel to solve complex problems and manage risk in remote work environments.

While the global COVID-19 pandemic is unprecedented, helping our clients anticipate this new risk landscape, manage the disruption, and develop forward-looking action plans is in many ways business as usual for the FRA team. Since FRA’s inception, we have deployed remote data collection, remote transaction testing, remote interviews, and other remote procedures. This is our strength.

Our clients turn to us as their trusted advisor because we have a proven track record handling even the most complex investigations and data governance matters in remote environments, as well as the internal security structure and development capabilities to adapt quickly to our clients’ shifting needs and achieve remotely what others can’t. Our fully operational team offers creative, customized and regulatory-compliant solutions, which allow clients to adjust to this new virtual landscape via remote project management and forensic data collections, transfer and review.

Our Latest Insights

At FRA, we are closely monitoring the impact of COVID-19 on businesses and markets. Our specialists offer comprehensive insight and practical guidance to adapt and thrive in this new risk environment.

Capital markets during COVID-19 pandemic

How will the ‘new normal’ shape fraud and compliance?

If remote working is to be a significant part of the ‘new normal’ as we exit the COVID-19 lockdown, what are the implications of this shift in how and where business is conducted for fraud and compliance? We argue that many of the controls which may have been previously effective in the workplace, will need to change now and into the future. Adapting existing controls to the remote working environment, the use of data and analytics in monitoring risks, and the proper balance between human and technological oversight will become more important as the ‘new normal’ takes hold.

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Capital markets during COVID-19 pandemic

COVID-19, Data Analytics & the FCA: Big Response, Big Data, Big Risk

The U.S. federal government’s record $2.2 trillion response to the COVID-19 crisis will inevitably bring with it heightened scrutiny from government and private watchdogs, and a corresponding wave of False Claims Act (FCA) enforcement. Litigation trends in the FCA space over the past decade indicate this wave of enforcement will be heavily data-driven, with whistleblowers and privately-funded relators filing the large majority of lawsuits. These parties will rely heavily on advanced data mining and analytics techniques to spot potential indicators of fraud (“anomalous data”) in publically available data sets. Concurrently, the turmoil naturally caused by a public health crisis this widespread is likely to create large volumes of data that would be considered anomalous under normal circumstances. For example, as the healthcare system is strained with resource shortages and patient influx, organizations will be increasingly susceptible to good faith billing/coding errors, inaccurate certifications and documentation, and other anomalous data that would normally be a potential indicator of an FCA violation. It is unclear how enforcement agencies will view this data in the context of FCA enforcement, which often uses trend analysis to identify deviations from ‘normal’ as a means to prove guilt. Regardless, whistleblowers and privately-funded relators will have immense incentives to opportunistically leverage this data to their advantage. This article seeks to predict and explain the enforcement environment that we are likely to see over the coming months and years, and provide advice for organizations seeking to mitigate the risk that their data may be creating in the context of expected heightened FCA enforcement.

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Capital Markets during COVID-19 pandemic

COVID-19: A Watershed Moment in Tackling Illegal Wildlife Trade

The COVID-19 coronavirus global pandemic has had an astonishing impact on our world. Millions of people worldwide are living with some form of restriction on their daily movement, markets are in turmoil, businesses in many sectors are questioning their survival, individuals have lost their livelihoods and there is no clear answer as to when and how we may all get back to ‘normal’. Given these statistics, the question must be raised – how did this happen? And how can we stop this happening again? Tackling the illegal wildlife trade will be critical. Companies across key sectors have an important role to play and will undoubtedly come under increased scrutiny over the coming months as the world comes to terms with the pandemic. There are some practical steps that these businesses can implement to curb global wildlife trade.

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Modeling the End of Lockdown

Through analysis of available data, we now know that the extensive social distancing precautions taken in the US, UK and elsewhere, have had a dramatic impact to slow the spread of COVID-19, despite their painful social and economic costs. Now, the world is watching closely as governments in multiple jurisdictions have begun the tentative process of easing social distancing requirements on select populations and industry groups. These decisions will have complex ramifications in the weeks and months to come, as policy makers will be forced to walk a tightrope between protecting public health and jump-starting their economies.

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Capital Markets during COVID-19 pandemic

COVID-19 Modeling and Statistics

Responding to the current global health crisis presents multiple challenges, particularly when governments are left to make decisions based on imperfect information. Our Forensic Data Analytics team discusses the impact of limited quality data on modeling, and how that is illustrated in predicting the impact of pandemics. The team outlines organizational lessons to consider while facing unprecedented circumstances.

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COVID-19 Litigation Fallout: Disputed Margin Calls

The unprecedented market shocks caused by the coronavirus have already resulted in a wave of margin calls by banks on leveraged investments and derivatives sold to clients. Clients face an unenviable choice: either meet the margin call, assuming it was justifiably made, and they have the resources available, or face the consequences.

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Capital markets during COVID-19 pandemic

Market Integrity Amid COVID-19 Pandemic

While the world and markets are reeling, dealing with and adapting to the COVID-19 pandemic, the Securities & Exchange Commission’s (SEC’s) Division of Enforcement wants companies and individuals to know that it’s business as usual at the SEC. Put simply, the SEC does not view the COVID-19 pandemic as an invitation to shirk compliance, ethics and disclosure obligations, and it continues to be focused on insider trading and other corporate fraud.

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COVID-19 Economic Relief Packages Bring Fraud Risks

With so many government funds pouring into economies across the globe to mitigate the economic damage of COVID‑19, the potential for fraud and abuse is large. With more than $2 trillion in aid being pumped into the U.S. economy, enforcement actions stemming from the misuse of these funds will likely surpass the current enforcement statistics. This article details the relief packages in the U.S. and abroad, and how the False Claims Act, the Anti-Kickback Statute, and the FCPA, in addition to securities fraud laws, mail and wire fraud laws may be implicated. Anti-corruption program assessment is crucial.

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Capital Markets during COVID-19 pandemic

Now on Demand: Maintaining Business Continuity During COVID-19 Webinar

On Thursday, May 14, FRA specialists from our Data Governance, Compliance and Forensic Accounting practices discussed real world scenarios and practical solutions to ensure resilience during a period of rapid change and the continual emergence of cyber threats.

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Explore additional FRA Insights

Our Experience with Regulators

Our seasoned team includes former SEC, PCAOB, and SFO regulators and staff with unique insight into what regulatory and policy changes may result from the COVID-19 crisis. Because we have successfully worked with global regulators in the course of hundreds of client matters, we understand regulators’ requirements, and are already helping clients to address and comply with regulatory changes resulting from COVID-19, including with remote work environment global document productions and data collections.

  • – US Department of Justice (DOJ)
  • – US Securities and Exchange Commission (SEC)
  • – US Department of State (DOS)
  • – US Office of Foreign Assets Control (OFAC)
  • – Public Company Accounting Oversight Board (PCAOB)
  • – UK Serious Fraud Office (SFO)
  • – Parquet National Financier (PNF), France
  • – Ministério Público Federal (MPF), Brazil
  • – Controladoria-Geral da União (CGU), Brazil
  • – Tribunal de Contas da União (TCU), Brazil
  • – Openbaar Ministerie (OM), Netherlands
  • – Åklagarmyndigheten, Swedish Prosecution Authority
  • – Swiss Federal Prosecutor

How We Can Help

With a suite of services designed to proactively identify problems and provide creative, customized and regulatory-compliant solutions, we enable clients to adjust to this new virtual landscape in the context of regulatory investigations, disputes, fraud and accounting irregularities, post-M&A due diligence, and data and security issues. FRA’s team has experience with successful virtual site visits and testing while maintaining compliance with the General Data Protection Regulation (GDPR).


 Fraud and Forensic Accounting

The COVID-19 crisis and resulting economic downturn have created ripe conditions—pressure and, in some cases, opportunity—for financial fraud, including Ponzi schemes, insider trading, and financial reporting misstatements. In fact, such schemes have already begun to surface, and the global regulators have warned investors about coronavirus-related investment frauds. FRA has worked all over the world to solve complex forensic issues for our multinational clients. With particular expertise in analyzing securities fraud and financial reporting misstatements, our team of former regulators and experienced investigators helps international companies conduct internal investigations, uncover financial fraud and respond to regulatory investigations.

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  Accounting, Audit and Regulatory Advisory

Regulators at the SEC and PCAOB expect public companies, audit committees and their auditors to fulfill their financial reporting and auditing responsibilities, despite the challenges presented by the COVID-19 pandemic. Multiple accounting, reporting and internal control issues and auditing issues need to be addressed. Auditors may face difficulties with revising risk assessments and planned audit procedures, fieldwork, and evidence gathering. FRA’s team of former SEC and PCAOB accountants and former Big Four auditors, including National Office leaders, can partner with counsel to advise on SEC matters, including accounting and financial reporting issues, and PCAOB auditing matters. And, should regulatory issues arise, we are well equipped to assist with investigations or remediation activities. FRA’s professionals have experience dealing with many regulators, including the SEC, PCAOB, DOJ, UK Serious Fraud Office, US Office of Foreign Assets Control and other foreign regulatory authorities.

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  Data Governance, Technology Solutions & Forensics

Data governance in the context of international investigations, regulatory requests and responses, and litigation is made far more complex in the time of the coronavirus. We partner with in-house and external counsel to offer creative and customized solutions to our client’s most complex data governance issues, even within their own remote environment. We offer new case start up conferences and onboarding via secured collaborative work-site portals, dedicated workspaces and multiple secured data transfer options along with secured client meetings via video conferences. We also provide remote forensic data collections for almost all data, defensible self-collection plans, and can guide internal IT department professionals through the data identification and collection process and an alternative to traditional on-site collections. Our teams can consult on processing and organizing large data sets for review, employing the use of technology to design the most time efficient review process, all while performing thorough quality controls to ensure the final work product is ready for presentation to regulators and other parties.

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  Disputes & Damages Calculations

Disputes are inevitable as industries worldwide brace for the impact from the COVID-19 pandemic. Supply chains have been disrupted and resulting delivery delays have impacted deadlines and completion dates. Contract breaches have occurred and force majeure or similar contract clauses may result in termination. FRA can help you understand how your business may be impacted by preparing economic damages and quantum models, and providing forensic analysis and accounting. We offer guidance to help you navigate complex multi-jurisdictional data laws and regulations. FRA specialists have served as expert witnesses in courts around the world.

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  M&A Due Diligence

The COVID-19 pandemic has increased risks related to M&A transactions, specifically related to acquirers’ ability to conduct robust due diligence. Due diligence efforts have been impacted by office closures, travel restrictions, and quarantine measures, resulting in decreased access to target company personnel among other related diligence concerns. Other considerations include material adverse change clauses, drop-dead dates and additional representations and warranties. To combat these risks, FRA offers a wide variety of expert advisory services for every stage of the transaction lifecycle, including operational and technical due diligence, data analytics, financial modelling and investigative and forensic resources.

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  Securities Litigation

Public companies will face enormous challenges and risks resulting from coronavirus-related securities class action lawsuits. Market volatility and uncertainty is being monitored by the SEC, underscored by its recent press release reminding companies to provide investors with information about material risks to their businesses. The securities class action plaintiffs’ bar is actively soliciting plaintiffs for potential class action lawsuits. Public company boards of directors may also face derivative litigation. FRA’s deep bench of former regulators helps clients mitigate risks associated with complex securities litigation, supporting organizations and their legal counsel at all points of the litigation lifecycle, including discovery, damages calculations and serving as expert witnesses.

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 Business Interruption

The global COVID-19 pandemic has resulted in major disruption to businesses and has resulted in significant losses. Traditional business interruption coverage may not offer protection for losses from situations such as COVID-19. FRA’s team can assist with evaluating economic losses and preparing business interruption claims, including: estimating lost revenues based on year-over-year or quarter-over-quarter projected versus actual revenues, calculating lost revenues and profits based on lost contracts or orders, and calculating costs incurred due to business interruptions (e.g., severance packages for layoffs, borrowing costs under – or outside of – federal COVID-19 relief claims).
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  Restructuring and Insolvency

In times of volatility, companies across all sectors and jurisdictions face market challenges that may necessitate restructuring or bankruptcy expertise. As the global economic impact of COVID-19 continues to unfold, it is clear that many companies will continue to be negatively impacted by the turmoil. FRA blends market-leading capabilities in data mining, analytics and financial modeling with decades of experience in accounting and reporting in international business to perform complex analyses and calculations related to insolvency. We support companies as well as outside counsel representing both distressed companies and creditors by providing expert advice around maximizing value, managing cash, and investigating potential misconduct. Our unsurpassed expertise as investigators, analysts, monitors and advisors spans all industries and geographies, and enables us to develop effective strategies to protect the interests of our clients on their path forward.

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Our Team

Toby Duthie Who's Who Legal Award Win
Toby Duthie, Founding Partner
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Frances McLeod, Founding Partner
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Greg Mason, data protection expert
Greg Mason, Founding Partner and Chief Technology Officer
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