CASE STUDY

Fraud Examination Case in California

 

BACKGROUND 

            

Sebastian M grew up in California but is living now in Texas.  His grandmother passed away in 2016.  His father bought out grandma from the family business in 2004 and now runs it with Sebastian’s other two siblings in California.  Grandma was very generous with Sebastian and his two siblings and left her $6.9M estate to be evenly split between them.  During her life, she sent Sebastian to France to follow his passion to study wine and he became a wine sommelier.  At the conclusion of the trust settlement, the estate value had dropped to $4.085M.

 

ISSUE        

                  

Sebastian’s father is the trustee of the estate and his relationship with his father has always been strained, while his relationship with his siblings is good.  Prior to settlement, the three grandchildren had already received a partial distribution in the total amount of $750,000.  At the settlement of the estate which was planned to be in July of 2021, Sebastian was to receive $647,520 while the other two beneficiaries were to receive $1,133.954, and the remainder was to cover expenses and reserve.

Sebastian hired an attorney to object to the trust accounting.  His lawyer engaged Lucrum Legal Accounting, LLC powered by Paula Field, CPA, PLLC, to perform a forensic review of the trust accounting. 

 

RESULT

                        

A forensic review was performed and a report was provided for mediation.  “They settled due in large part to your analysis,” said Sebastian’s attorney. 

Our involvement helped Sebastian receive a settlement offer for $1,225,000 and avoid costly litigation fees.  He plans to move to Oregon, open a wine bar, and grow his vineyard.

 

                                    $   897,520      Original Proposed Distribution

                                    $1,475,000      Total Distribution After Forensic Review

                                    $   577,480      VALUE ADDED TO THE CLIENT