Ben Schrader was retained to review an incident that occurred on a processing unit at a petroleum refinery located in the western United States.  This incident involved the failure of equipment that resulted in the catastrophic loss of containment and release of hydrocarbons. The refinery had previously undergone a change in ownership, resulting in the original owner (who initially designed, constructed, started up and operated the refinery) selling to another company (current owner). no longer owning and operating the refinery when the incident actually occurred. The review evaluated whether the processing unit was engineered, operated, inspected, and maintained in accordance with its design parameters,…

The federal Bureau of Safety and Environmental Enforcement (BSEE) was considering forbidding the use of cranes to remove tubing or casing from offshore wells. They were considering requiring casing jacks for all such work. This would have slowed down the process and increased costs tremendously for the typical Gulf of Mexico rigless P&A process. I assembled a small team of industry experts and presented a one page table documenting existing best practices in the industry to BSEE. This educational meeting…

The lost 13,500 ft of coiled tubing in a high value 15,500 ft high pressure well.  Accumyn affiliated launched an investigation immediately. We ultimately discovered an operational error that in combination with a maintenance error and an equipment design flaw which had led to the loss of the coiled tubing. Accumyn Affiliated promptly presented the findings inside our company and also voluntarily to the industry through the SPE ICOTA group to prevent future mishaps of a similar nature

  Aberdeen, Scotland platform was likely struck by lightning during a hurricane. It was like walking on the surface of the moon afterwards. The metal had been heated extremely and then likely crystallized by the rapid cooling. We could not perform a standard lift. Mr. Hunger used 3D imaging in this case and obtained a perfect fit up between the VB 10,000 lift barge and our platform, which had been highly distorted by the fire.  Accumyn affiliate removed this disaster without a…

Accumyn Affiliated performed a complete cost analysis of the asset retirement obligation (ARO) for a production company in Trinidad within three weeks to meet an urgent audit deadline. This analysis included offshore, onshore, and midstream assets. Also, Mr. Hunger supported that work through a week-long audit by a big four audit firm.

Mr. Bass was an actuarial consultant for the Allied Pilots Association of American Airlines in their dealings with American Airlines and its parent company, AMR.  During labor negotiations, they could not come to an amicable arrangement regarding Pension Plans and Health Insurance Plans.  The agreed to take the case to Binding Arbitration before a Magistrate where his decision would be final.  The case involved a difference of opinion of tens of millions of dollars.  It was agreed that there would…

n 2005, there was an explosion in a plant in Texas where there were hundreds of injuries and deaths.  British Petroleum eventually settled this case with the Plaintiffs.  In determining the damages, a certain sub-group of the Plaintiffs is used to calculate the damages for all of the Plaintiffs. Mr. Bass, a Managing Director at Accumyn and Fellow of the Society of Actuaries, was the expert for British Petroleum regarding the losses for all of the Plaintiffs, whether it be…

Ben Schrader was retained as an expert in four parallel arbitrations under ICC, CRCICA, ICSID and UNCITRAL rules in relation to the breach of two commercial contractual, and two investment-treaty obligations incurred in connection with a Middle Eastern gas pipeline. Mr. Schrader opined and testified on pipeline operations, specifically on pipeline security. He developed his opinions based on decades of oil and gas industry experience, and dealing with similar types of issues throughout the Middle East and North Africa, in…

A sugar mill, with an associated ethanol plant, experienced an explosion and subsequent fire. Ben Schrader was retained to evaluate independently the Business Interruption (BI) portion of an insurance claim which was based on damages related to the fire and subsequent shutdown of plant process equipment. Relevant engineering, production, and maintenance data were examined and was followed by a site visit. The on-site visit included (1) inspecting the fields where the sugar cane was harvested, (2) observing the harvesting process,…

This matter involves a dispute between a leading television and internet seller of jewelry and a software company. Accumyn was asked to review and opine on the damages suffered by the jewelry seller as a result of the failed software implementation.  Accumyn determined the jewelry seller’s out-of-pocket costs and extra-expenses incurred as a result of failed software implementation. This included payments to the software company, as well to the other third-party vendors. This involved a determination of the value of the…

This matter involves a dispute between a high-end credit card company that provides co-branded marketing services and a global payment processing company. Accumyn was asked to review and opine on the damages suffered by the credit card company based on claims that the payment processing company breached its contractual and common-law obligations and interfered with the credit card company’s business operations. Accumyn determined the credit card company’s lost profits as a result of the payment processing company’s actions.  This analysis…

Howard led the technical and economic analysis in building a model calculating the overall economic impact for the Puget Sound region after an earthquake and subsequent redevelopment.  The project was funded by the Department of Homeland Security and required working with four area ports, as well as the larger community of public and private entities, eventually totalizing 250+ participants.  Howard worked directly with the financial and operating leaders across the ports, collecting and integrating the data into an overall regional…

Howard calculated valuation and related calculations for an enterprise software company in support of securing investments.  Adjustments from emerging trends and technologies (such as cloud services and competitive/complimentary products) as well as joint venture opportunities were incorporated into valuations.  Howard researched comparable valuations, made adjustments to multiples, modeled existing and expected contracts, and incorporated internal operations considerations to adjust valuations.

Howard led the evaluation of a market potential study for an oilfield services company who had developed a much superior technology than what their suppliers had been providing.  The analysis included other customers in oilfield services as well as non-energy industries, competing products, and potential manufacturing and distribution channels.  Howard Howard makes contact directly with potential partners on behalf of the confidential client, and eventually assisted in brokering a face-to-face meeting with companies’ leadership and facilitated the discussion of arrangement terms. …

A Texas for-profit hospital purchased another hospital in a rural community of Texas based on representations from the prior owner, including hospital census data, number of admitted patients and their method of payment.  In addition, the prior owner represented that the rural hospital had implemented Electronic Health Record (“EHR”) technology resulting in the receipt of incentive payments from the federal government. However, the hospital was unable to confirm these representations following its purchase.  After the purchase, the number of patient admissions…

A construction company was contracted to move and erect a drilling rig owned and operated by a land drilling contractor. During the erection of the drilling rig the construction company dropped a section of the derrick causing damage to the derrick, substructure and one electrical house. This resulted in loss of dayrate and repair cost to the drilling rig. The construction company was sued for $3,261,372 in addition to payments made by its insurance company. The drilling contractor elected to…

An employee of a welding company was injured while assisting a welder make repairs to a dump line associated with the oil and gas processing system on an oil company’s offshore platform. During the welding of the line an explosion occurred injuring the plaintiff. The oil company had contracted a third party offshore operating company to operate its offshore platform where the accident occurred. It was determined that prior to welding the line the operating company’s supervisor failed to properly…

A Company formed to acquire undeveloped real property executed a purchase agreement and paid earnest money based on a number of representations and agreements made by a third party that never materialized. The Company had plans to develop and construct a franchise hotel if it could finalize all terms, covenants and conditions of the purchase agreement. The Company engaged in efforts to close the transaction, but the third party refused to comply with the terms of the purchase agreement. As…

A Company formed to provide pharmacy benefits management (PBM) services issued convertible promissory notes to a third party in accordance with a note purchase agreement.  The third party had the option of converting the entire principal balance of the notes to equity any time prior to the notes maturity date, but never did. The Company attempted several times to settle the notes, but the third party refused to accept payment and release its liens on the Company’s assets impacting the…

The suitability of and extent to which an international contractor’s quality management system was executed for the engineering, procurement and construction of a pipeline project was evaluated by examining forensic evidence during a contract dispute. A comprehensive system to ensure the effective execution of the planned project management, engineering, procurement, construction, and quality assurance activities was required to be in place for a multi-million-dollar capital project, which is not uncommon in the EPC industry. Quality management system standards typically mandate…

A quality control inspector working alone on a section of pipeline was found dead by a co-worker. He had been inspecting for defects in the pipe coating prior to backfilling. After burial of the deceased without an autopsy, an Accumyn director conducted a review of the local operating company’s incident investigation which had concluded the inspector had been electrocuted by a holiday detector capable of producing 35,000 volts of electricity. The review followed a standard investigation methodology: gather evidence, develop…

Expert consulting services were provided to a Louisiana attorney in support of litigation involving alleged violations of OSHA Standards and standard construction practice by contractors managing construction of a high rise office building in Shreveport.  The falling object case involved a ten foot 4x4 formwork support striking an employee at ground level after being jarred loose from an upper floor under construction. After review of case documents an Accumyn director identified issues with the classification of the incident in the…

Litigation Support- Lawsuit involving breach of fiduciary duty by asset manager for a large domestic asset management firm Assisted expert in providing expert testimony and calculated damages to pension plan. Work involved review of manager adherence to policies and procedures, fair and equitable treatment of clients, asset pricing, duty to inform, adherence to client’s written investment policy statement, prudence in portfolio management, and portfolio diversification. Additional work involved reconstructing thousands of transactions and developing proprietary software to analyze data.

Assisted various experts retained by the Italian government in connection with its claim that a multinational bank had knowingly participated with insiders to defraud the company and its investors by structuring transactions as equity rather than debt, contributing to the largest bankruptcy in European history and referred to as the “Enron of Europe.” Work included an analysis of five complex financing transactions structured by the bank to avoid debt recognition by the Italian food and dairy giant.  The financing transactions involved the…

Accumyn’s expert provided testimony in a dispute between a commercial real estate developer and a publicly traded REIT regarding an alleged breach of contract for the development of a first class, 1,000 room, multi-story convention-oriented hotel, and related improvements. The Accumyn team prepared a valuation analysis based on the income approach using hotel revenue projections and the related tax incentives and abatements to be provided by state and municipalities, and the analysis of financing options available given general market conditions…

Provided support to a major international bank in protest over the assessed value of a $20 Million office building in Santa Monica, California. Assistance included valuation services and expert witness testimony before a property tax arbitration board in Los Angeles County.

Assisted expert in connection with the business relationship between a health system and a medical doctor’s group partnership. Analysis included a business valuation of the health system with multiple locations and the value of economic benefits obtained from the partnership, and valuation of the partnership and its acute care facility. The engagement further required detailed analysis of guaranty fees paid by the partnership and the interest expenses charged on the credit facility between the parties.

Mr. Tormo provided expert analysis and testimony regarding the value of a minority ownership interest in an oil and gas drilling rig business in connection with a shareholder dispute involving the alleged failure to disclose asset transfers to outside entities and diversion of business opportunities. Work performed included business valuation under various crude and natural gas price assumptions and various asset configurations.

Engagement was with a large industrial company whose business requires as large volumes of dry natural gas over many years as part of its processes.   The client was considering purchase of natural gas reserves in the ground as a physical hedge against long term increases in the price of natural gas. Dan was engaged to help company evaluate alternatives ranging from purchasing royalty trust interests to working interests with producers.   The physical location of the client’s facilities and regulatory considerations…

Provided analysis showing reasonable certainty that financing regarding the development of a collection of shallow water Gulf of Mexico oil and gas lease assets could be obtained. The lease assets were evaluated as to having 85 BCF of high Probable Reserves with an associated estimated capital development cost of $169 million. Determined, with reasonable certainty, that the likely future rates of returns expected from developing such lease properties consistently exceeded the typical investor hurdle rate in a variety of forward…

This paper provides evidence that the positive relation between firm-level stock returns and firm-level return volatility is due to real options that firms possess. Consistent with the theoretical prediction that the value of a real option should be increasing in the volatility of the underlying asset, we find that the positive volatility-return relation is much stronger for firms that are more likely to have more real options. We also find that the sensitivity of firm values to changes in volatility…

Designed and developed a valuation model to price the real options embedded in a firm’s investment projects. The model was designed to allow the firm’s managers to value different types of real options, such as the option to delay, abandon, switch, and expand.

As part of a multibillion dollar transaction currently being negotiated, Dan was engaged to examine the optionality of long term contracts existing between the two parties and place a value on the contracts when viewing their terms as those of options. The complexity of the options arose from the presence of strike price reset based upon an agreed upon formula, a floating strike price, and monthly exercise dates extending decades into the future. In addition the term of the option…

Accumyn’s team of economists and valuation professionals valued a successful haute couture fashion company. A start-up designer teamed up with a pair of Houston-based investors and fashion industry experts to secure funding. In the first year, sales to retail stores reached seven figures.   However, as soon as orders for the second season were booked, the designer no longer wanted the involvement of her Houston partners. The designer backed away from her commitments to them, cutting off further involvement and…

Accumyn refuted dilution claims made by a shareholder of a private entity when the entity issued additional shares of stock under an employee stock ownership plan and a long-term incentive plan.   The Accumyn team analyzed the increase in value of the shareholder’s holdings over time and the benefits to the company and its shareholders in establishing employee stock ownership plans and long term incentive plans. The team also included a critique of opposing expert’s claims of dilution and overall methodology…

Accumyn’s expert provided testimony refuting a claim for over $60 Million in lost profits and value arising from potential hedging of natural gas production sales as part of a contemplated debt financing. The enterprise would have hedged natural gas price risk by means of forward fixed price sales of physical natural gas or swaps that would have extended over a multi-year period. Accumyn addressed the plausibility of the claimed economic damages in the context of actual forward market conditions at…

Provided expert deposition testimony and prepared expert report on the fair market value of a large business jet aircraft.  Valuation analysis of the aircraft involved detailed review of completion work performed on the aircraft, its maintenance and operating records, and an analysis of the functionality of the cabin management system (“CMS”). Valuation was based on cost and market approaches and relied mainly on the analysis of sale transactions involving similarly luxury aircraft with and without deficiencies observed in the subject…

Prepared expert report on the subject of diminution of value of a small transport category aircraft. Analysis involved the impact of improper engine maintenance on the value of the aircraft. Detailed analysis of the aircraft and its available record showed that the engine change did not result in any value loss of the aircraft.   Analysis showed that the aircraft had suffered damages not disclosed in the marketing material and had an incomplete and poor record that would indicate a…

Outlined the disposition strategy for the Greater Kelly Development Corporation (GKDC) in San Antonio, Texas to identify federal, state and regulatory issues associated with disposition of the utility systems. Assistance included developing a financial strategy that maximizes the best combination of cash payments, lower utility rates, risk reduction, capital upgrades, and operating cost avoidance. Also conducted Rapid Prototyping (rapid activity based costing) to quickly and accurately capture the true cost of utilities on both Kelly AFB and Lackland AFB.

Assisted the Mayor of Dallas examine the benefits of supporting a Tax Increment Financing Proposal for the development of a mixed-use retail and residential facility near the City’s basketball arena. The City needed to know if their support (a bond issue for public improvements) of the project would yield a net benefit to the taxpayers, or if it served only to enhance the developer’s yield.

Assisted in the acquisition due diligence efforts for a 200-plus international hotel portfolio. Worked for several months in conjunction with the client's operational, accounting, and acquisition personnel to gauge each property's market potential. Several properties were candidates for re-flagging, so we compared increases in ADR, occupancy and operating efficiencies to expenditures (hard and soft) necessary to reposition many of the properties. We interfaced with the legal team in interpreting ground leases, management agreements, franchise agreements and other documents. We also…

Accumyn Consulting was hired to provide drilling and safety management expertise for the legal team of a defendant in a case involving a personal injury claim arising from a drilling rig accident in Texas. Accumyn was asked to review documents related to the incident, and the plaintiff’s expert reports, and render opinions, including relevant oil and gas industry best practice for safety management and also concerning applicable OSHA regulations. In the area of safety management, an expert report was written…

Led fundraising to finance research and development activities for an early stage investment to develop and exploit a new platform technology of converting natural gas into liquid fuels and higher alcohol's in a highly efficient patented process. Served as Chairman and President and on the Board of Directors. Identified and attracted strategic partner, negotiated and closed a Short Term Research (STR) agreement with Shell Ventures, achieving targeted objectives and moving into subsequent STR agreements with Shell while negotiating similar arrangements…

Engaged by the chemical division of the US affiliate of a $120 Billion/yr sales Asian raw material and commodity trading company to advise upon the pending $600 Million merger of two US-based petrochemical liquid terminal companies, having a total storage capacity over 23 Million Bbls. Worked with client’s investment banker to create and critique financial models of both merging companies. Performed and Summarized Due Diligence activities for both parties and made negotiation recommendations regarding valuation, control of business processes, and…

Accumyn assisted a state regulatory agency representing ratepayers in a proceeding to address the rising cost of construction for an electricity generating facility. The matter involved management of engineering and construction for a 630 megawatt Integrated Gasification Combined Cycle (IGCC) power plant, the first of its kind of its size. The owner had received approval to construct the facility in 2007 based on an estimated project cost of $1.98 billion. The estimated cost soon increased to $2.53 billion for which…

This paper investigates whether product market competition affects managers' decision to distribute cash to shareholders. Using a large sample of manufacturing firms, we find that firms in less competitive industries have significantly lower payout ratios than firms in more competitive markets. Further, we find that this negative relation between industry concentration levels and corporate payouts is much stronger among those firms whose overall characteristics make them (a) more likely to have high agency costs of free cash flows and (b)…

Accumyn assisted a Houston based home automation system provider that specializes in delivering an out‐of‐the‐box solution to home builders, integrators and homeowners, offering control and customization through easy to use controls. Although the system developed revolutionary software to make home automation possible, it still required the leadership of a financial professional to transition it to its next phase ‐‐ revenue generation. Based on the strength of prior services provided, Accumyn was asked to assist the company through our Strategic Outsourced CFO services under…

Assisted a large corporation to identify four mid-size jets that would meet the client’s transportation requirements.   Requirements included range, payload capability, and seating. Provided fair market value on the aircraft selected by the client, and advised client on the initial offer-to-purchase.

Accumyn’s expert provided testimony in connection with the dissolution of a commercial real estate development and management partnership, based on the minority partner’s claims of breach of contract, breach of fiduciary duties, and other causes of action. Accumyn analyzed the company’s internally developed financial models and subsequent project appraisals to determine the fair value of the partnerships’ carried profit interests in nine joint-venture projects related to cargo warehouses and related office space. Additional damages were based on the expected value…

Accumyn’s experts analyzed a hospital’s economic damages from the additional construction costs and rent paid on an unfinished diagnostic imaging facility. Shortly after the non-profit Texas hospital entered a long-term commercial lease, began construction and ordered the necessary equipment, expansion was halted when the hospital learned that an existing ground lease with the landowner had restrictive covenants in place that prohibited diagnostic imaging and signage rights. The hospital continued to pay rent on the unfinished space, incurred significant construction delay…

Accumyn’s expert provided deposition testimony valuing damages in connection with an alleged breach of contract and tortious interference claim between a major radiology practice and one of its contracted physicians regarding the provision of services to a third party hospital. Accumyn’s expert analyzed historical financial results in connection with the hospital services contract and determined an appropriate valuation matrix based on a review of guideline professional practices, clinics and medical facilities.

Accumyn analyzed a Loss of Production Income (LOPI) claim against underwriters related to a shut-in of production from deep water offshore wells allegedly due to a hurricane in the Gulf of Mexico. The wells were in varying stages of production at the time of the hurricane so Accumyn had to determine the LOPI for each well, depending upon insurance policy provisions, factual circumstances, and stage of production.   Accumyn obtained information from third party sources, including the Minerals Management Service,…

Accumyn’s expert analyzed the existing evidence concerning the alleged agreement between a non-profit hospital system and a retail affiliate of a natural gas utility company, comparing the execution of the alleged agreement to standard industry practices.   In its haste to lock-in a two-year fixed price natural gas contract with the hospital system, the retail affiliate neglected to send out a written confirmation of the alleged sale in a timely manner and in accordance with industry standards. A written contract…

Accumyn’s expert investigated and analyzed the flow of funds between a series of companies holding the ownership interests in an electrical power plant supplying one of the largest cooperatives in the United States. The Accumyn team assessed the profitability and the economic and financial implications of the ownership structure which included off-balance sheet holdings of one of the world's former leading energy companies.   Accumyn also traced profits and cash flows between entities in light of financing arrangements, option agreements…

Retained by the Chilean subsidiary of one of the world’s leading Tobacco companies, Mr. Tormo provided expert analysis and trial testimony regarding damages resulting from alleged long-term anticompetitive conduct of a competitor. Work included econometric analysis of sales and product prices in Latin American markets and determination of damages including lost profits over a 20 year period.

Accumyn’s expert valued a buyer’s damages incurred due to receipt of a sub-standard luxury aircraft that was repeatedly delayed and when finally delivered by the seller, did not meet the buyer’s expectations. The seller failed to remedy the mistakes in a timely manner and the buyer relied upon the seller’s representation that the aircraft was being made to the buyer’s expectation and therefore did not exercise their right to terminate the purchase agreement. The expert’s damage analysis had to include…

We were asked to prepare an expert report and provide testimony in court regarding damages and liability in a trade dress and trademark infringement matter. The dispute between a manufacturer and a distributor of rooftop support systems involved the design and appearance of hard rubber supports for use under heavy rooftop equipment. The distributor had purchased and sold the manufacturer’s product for several years prior to the infringement, in which the distributor arranged for alternative manufacture of supports virtually identical…

We were asked to prepare expert reports and provide testimony in connection with an intellectual property dispute between a leading international manufacturer of uninterruptable power supply systems and several independent service organizations, regarding the fraudulent acquisition and use by the ISOs of proprietary software and trade secrets developed by the manufacturer to facilitate field customer service of the manufacturer’s equipment. We provided an opinion in two preliminary injunction hearings on plaintiffs motion to compel the defendants to cease using the…

Accumyn's expert was the Project QA Director on a 3.5 billion dollar petrochemical complex being built in Indonesian. With overall responsibility for quality on the entire project, he was also responsible for the development and implementation of the Project Quality Plan applicable to all members of the consortium. As the project involved eight organizational entities located around the world, the International Organization Standardization’s ISO 9001 International Standard was selected as the governing quality management system specification to be implemented throughout…

Accumyn was asked to prepare an expert report on damages in a patent infringement matter involving LED semiconductor design and manufacturing technology. The effort required incorporation of conclusions presented in highly technical liability testimony into a Georgia-Pacific based determination of a reasonable royalty.   As such, our opinion was based on thorough analysis of the relevant economic factors, most especially existing licenses, the market for LED light bulbs, the benefits of the patent-in-suit and the relative bargaining power of the…

This project involved the role of geophysical operations manager for a major international operator during a wide azimuth towed streamer marine seismic acquisition survey. This application of new technology was an industry changing event for the seismic industry. Co-inventor for the US patent awarded for this method.

While Senior Quality Control Consultant and assistant to the U.S. Army Chemical Materials Agency’s Risk Management Directorate, QA Office and U.S. Army Element Assembled Chemical Weapons Alternatives, Mr. Oland conducted performance-based management systems assessments of government organizations and contractors’ quality activities. Mr. Oland led independent assessment teams of subject matter experts assigned to determine the level of government and contractors’ performance when implementing quality management systems addressing the control of the destruction of chemical weapons. Assessments, which required an extensive…

Accumyn’s expert provided trial testimony regarding disgorgement of alleged unlawful profits, based on historic sales patterns by customers’ accounts in connection with an alleged theft of trade secrets between two manufacturers of multifrac toe valves used in wellbores. Accumyn’s expert also prepared a lost profit analysis as an alternative measure of economic damages which included an evaluation of the competing tools in the marketplace which would have limited the ability of the original manufacturer to make any sales, but-for the…

Accumyn’s expert provided testimony regarding a reasonable royalty in connection with the alleged infringement of a patent by a Taiwanese manufacturer of notebook computers. The patent at issue, owned by a Korean multinational, involved a method of implementing certain keyboard functionality in the notebook computer. The analysis included quantification of the alleged royalty base by model over time, comparison of profitability and incremental production costs, and determination of a reasonable royalty under U.S. statute and case precedent. The royalty was…

Accumyn’s expert provided testimony regarding the lost profits, under various valuation approaches, of a publicly traded software company resulting from the alleged misappropriation of trade secrets of another publicly traded software company.   The analysis included the determination of “but for” and actual sales, the review of competitive factors and other companies in the relevant market, incremental costs, and present value calculations. Accumyn’s expert also critiqued the opposing expert’s report in which critical assumptions were identified and tested against facts…

Not all experts can navigate the difficult and often uncharted waters of Construction Litigation. When faced with such a challenge, our Clients need a team that is responsive, objective and thorough; a team that can provide reliable and defensible results. In 2012, Accumyn created such a team to assist a law firm in a long standing lawsuit involving its Client, the Houston office of a national architecture firm. After being briefed about a major water damage dispute on a 234…

The 9/11 terrorist attack on the World Trade Center also caused massive damage to surrounding office buildings, hotels and retail complexes nearby. Our professionals helped our client determine its losses from several business units in the complex. We built extensive databases to administer the claims functions and avoid duplication, and we were instrumental in all aspects of loss identification, claims preparation, and coordination with insurance companies’ representatives.

Accumyn prepared a detailed damage analysis for an employee of the U.S. Department of Homeland Security who was severely injured after being struck by a bus while attempting to cross a downtown intersection.   The testimony of a medical expert established that the injuries sustained from the accident hastened a pre-existing kidney disease, requiring a premature kidney transplant and reducing the individual’s life expectancy. Accumyn projected long-term growth for future medical costs and wages from federal government agencies.   Accumyn…

Accumyn audited the internal control policies of an independent refiner and marketer of petroleum products (the “Company”), operating several refineries in the United States, to determine if its senior management breached the Company’s policy on extending credit.   The Company’s senior management, pursuant to internal control policies and procedures, extended credit to a wholesale customer on an open account basis based on letters of credit the customer provided as collateral and statements made by the Company’s external auditors. After analyzing…

Provided expert testimony for a major oilfield services company regarding a failure running tubulars as to the cause of a drilling incident in which 6,800 feet of intermediate casing were irretrievably dropped into the well hole.

John worked with the defense on a matter involving a construction dispute between a homeowner and her contractor. The homeowner (plaintiff) had received an insurance settlement for flood damage to her home and hired a contractor (the defendant) to perform the restoration and well as some improvements. Near the end of the job, the homeowner and contractor had reached a point where they could no longer work together. The two parted ways with unresolved financial and work-in-place issues which resulted…

John worked with the plaintiff in a matter involving severe damage to a home due to water entering a fourth floor door during Hurricane Ike. Hundreds of gallons of water entered and flooded the home all the way through to the first floor. The insurance company issued a denial based upon the assertion that the door was not broken and suffered no visible permanent physical damage. John noted that there was physical evidence along with witness testimony that the force…

An Accumyn expert provided in-depth analysis and critique of an apartment owner's claim that a hail storm which purportedly had caused more than one million dollars damage to the property. The property owner claimed a total loss of all of the roofs, awnings and HVAC units. The plaintiff’s experts calculated the roofing values with very little depreciation and no allowance for any preexisting issues. John used historical aerial photography as well as historical weather data and other documents in the…

Accumyn reviewed and critiqued a dispute involving sale of a business – and it’s existing self-funded employee benefits plan - to an unrelated third party. The entity was sold in the middle of a multiyear funding approach for the self-funded plan, in which the seller had established significant deposit reserves, as required by the insurance carrier. Some months later, as the self-funded plan came to an end, the calculations by the insurance carrier generated a significant refund of premium to…

Accumyn prepared detailed analyses and provided expert services for a commercial insurance client in a business interruption and extra expense dispute with its insurance carrier following a fire at a funeral home. The client operated more than one funeral home facility, and was able to shift work to alternate facilities to process and prepare deceased for final disposition. The insurance carrier involved sought to minimize the loss of income and extra expense experienced to keep the client operational during reconstruction. Accumyn's work included a review of insurance…

Accumyn’s expert provided insurance claim consulting services to a financial institution that suffered extensive property damage at over 50 branch locations, business interruption, and extra expenses as a result of one of the worst hurricanes on record. Accumyn documented and presented all claim components to the financial institution’s insurance carrier, identified additional losses, determined lost income, prepared advance requests and interim claims, and consulted regarding financial disclosures and proper accounting under Generally Accepted Accounting Principles.

Accumyn’s forensic accounting analysis traced funds among two locations of a magnetic resonance imaging (“MRI”) business and its management company. The MRI business allegedly attempted to avoid paying its lease obligations for one of its locations because of poor performance. Each location was a separate legal entity, but they were being managed and operated as a single business enterprise by a management company. One entity was receiving a disproportionate amount of the scanning revenue from its management company, while the…

Accumyn’s expert provided testimony on the dissolution of a commercial real estate development of a prominent hospital system and management partnership of physicians, based on the minority partner’s claims of breach of contract, breach of fiduciary duties, and other causes of action. The Accumyn team determined the fair value of the partnerships’ carried profit interests in nine joint-venture projects related to cargo warehouses and related office space. Fair value was determined through consideration of the company’s internally developed financial models…

Provided expert analysis, reports and testimony, resulting in a judgment of over $300 million, in connection with the fraudulent redemption of an ownership interest in an independent oil and gas company, in which the company operator induced the other interests to redeem their ownership at below market value. Work performed included the analysis of the asset valuation that was the basis for the redemption, as well as analyzing comparable sales proximate to the redemption. Additional analysis included developing valuations for…

Accumyn’s expert provided deposition testimony on the economic benefits to the owners of an offshore production facility pursuant to the False Claims Act, 31 U.S.C. § 3729(a)(1) and to an incident of noncompliance determined by the Bureau of Ocean Energy Management, Regulation and Enforcement. Accumyn’s team analyzed historical production of hydrocarbons reported to the government for royalty purposes; historical costs of lease payments, royalty production payments, and capital additions; annual volumes summarized by resource and reserve category; and the operator’s…

Accumyn’s expert provided a report and deposition testimony regarding the value of amounts received as consideration for the redemption of equity interest of an independent exploration and production company operating in the Barnett Shale of North Texas. Accumyn critiqued the opposing market value opinion and prepared forensic accounting analysis to determine damages under recession and disgorgement theories.

Provided expert testimony in connection with damages resulting from the alleged fraud, misrepresentations, and breach of contract from the failure of a software vendor to properly integrate a customer relationship management (CRM) system for a $2.5 billion revenue provider of integrated enterprise communication services. Valuation analysis included projected sales revenue and related costs savings lost from the failure to complete the implementation. Determined other additional hardware and software license fees and out-of-pocket costs associated with the failed implementation.

Accumyn’s expert provided forensic accounting, funds tracing, and a valuation analysis to a high net-worth professional athlete in connection with the investment and cash management services performed by the athlete’s former business manager.   Analysis included a comprehensive review and compilation of historical cash transactions, the determination of rates of return earned on various real estate investments, and a detailed analysis of the cost and related tax benefits associated with the ownership and use of a private jet aircraft.

Accumyn’s expert provided testimony regarding economic damages resulting from a shareholder dispute involving a closely held corporation which trades in refined petroleum products.   Accumyn’s expert also critiqued the opposing business valuation and economic damages analysis and provided an assessment of the accounting procedures and methods by which shareholders receive compensation. Accumyn considered working capital on the entity’s financial statement and the proper accounting treatment of shareholder notes as either liabilities or equity in accordance with generally accepted accounting principles,…

Accumyn’s expert calculated post-liquidation gains realized by certain officers/shareholders from hedging oil and gas production with collar and swap energy derivative instruments after induced liquidations of shareholder convertibles and redeemable preferred stock of non-officer/shareholders. The alleged failure to disclose the subsequent gains resulted in an alleged breach of fiduciary duty claim in a multi-million dollar shareholder dispute. Accumyn thoroughly examined market premiums and Black-Sholes option models, taking into consideration exposure to price and volume risk. Accumyn also compared post liquidation…

Accumyn assembled a team of engineers and forensic accountants to determine the profits earned by a sub-contractor from constructing two land-based drilling rigs for a Canadian exploration and production (“E&P”) company. The E&P company hired a contractor who sub-contracted the project to a land rig specialist. After more than $8 million was paid to the original contractor, the contractor ceased operating and entered chapter 7 bankruptcy. The sub-contractor said a delay in payments by the contractor had resulted in a…

Accumyn’s expert determined the economic benefits reported by an employee’s numerous affiliated businesses during his employment with a global enterprise data center. In 2008 the data center hired a new Director of New Construction who breached his employment agreement and his fiduciary duty to the data center when he owned, operated, or was connected to numerous affiliates which became vendors of the data center. Accumyn’s expert determined that the data center made substantial overpayments to the employee’s affiliated businesses in…

Accumyn prepared a detailed analysis of the deteriorating capital markets during the 2007 financial and credit meltdown and the impending sub-prime mortgage crisis to derive a but-for calculation that would represent what could have been done by a shopping center developer had they been informed in March 2007 of their anchor tenant’s intent not to lease. This analysis included a comparison of the value of the center based on spring 2007 market conditions and conditions at the time of trial…

Assisted expert in connection with calculating damages of an Italian dairy company resulting from the alleged assistance by one of the world’s largest financial institutions. The alleged assistance consisted of off-balance sheet financings utilizing special purpose entities; debt financings disguised as “equity” via minority interest holdings; and allowing culpable insiders to utilize institutional bank accounts to misappropriate Company funds through a web of complicated fraudulent transfers with no business purpose. Work included forensic quantification of various transactions, tracing misappropriations, proof…

The Accumyn team prepared a forensic analysis of transactions dating back to 1986 to determine a decease CEO’s Heirs’ and investors’ share in economic benefits from a patented technology. The technology was developed in 1990 and was the subject of patents filed in 1991. Subsequently, these patents were the subject of a lawsuit resulting in a settlement of $612.5 million in 2006. Accumyn determined the proportional distribution of the 2006 settlement proceeds the heirs and investors were entitled to as…

Provided trial testimony in Federal Court for The Southern District of New York as an expert. The case involved alleged water contamination of the cargo by the vessel “Oshima Spirit”.

Provided testimony at New York arbitration hearings as an expert. The case involved the salt water contamination of cargo belonging to an industrial client by a vessel belonging to shipping company.

An Accumyn expert documented and instructed energy company personnel on the subject of well control practices and requirements, and casing and tubing practices both domestically and overseas.

Provided expert testimony for an international oil and gas firm as to the cause of a drilling incident which resulted in a blowout.

Retained by a global leader in the energy and oil marketing and distribution industry, Mr. Tormo provided expert arbitration testimony regarding damages and the reasonableness of mitigation efforts in a breach of contract dispute involving the transportation of crude and ethanol by rail. Analysis involved determination of damages under Texas Uniform Commercial Code provisions, review and critique of opinions of defendant’s expert, evaluation of shale oil economics during the 2012-2015 timeframe, evaluation of crude by rail economics in the transport…

Utilizing the same forensic examination methods, numerous geophysical contractor and sub-contractor corporate Health, Safety and Environmental (HSE) Management Systems have been audited to oil and gas industry and OHSAS 18001:2007 standards.

Submitted an affidavit in the Federal Court for The Southern District of New York as an expert. The case involved alleged breach of a petroleum sales contract for delivery in New York Harbor.

Provided expert testimony in deposition and during arbitration on a federal court case involving Breach of Contract litigation. Provided analysis on the revenue and marketing margins of gas processing and marketing agreements, forecasted production volumes and marketing margins though the end of the contracts, and delivered an expert opinion of the contract damages attributable to the breach of contract.

Accumyn project management specialist Robert James and chemical engineer Carl Bradow were hired by counsel for a major surety to provide an expert opinion of its position in a matter involving contractor liens on materials and equipment.  After the bankruptcy of the owner of a High Purity Isobutylene (“HPIB”) unit constructed in Pasadena, Texas, several contractors had claimed removal of their installed improvements. .  Accumyn’s research, analysis, and testimony in deposition and at court, resulted in denial of more than 80% of…

Provided expert testimony involving claims against a private lender in a leveraged buyout transaction. Issues involved disputes over lender’s right to exercise remedies under the credit agreement, covenant defaults, payment defaults, alleged mismanagement by the owner of the acquired entity and borrower, negotiation between the parties prior to acquisition, due diligence, negotiation of the credit agreement and security agreement, appropriate disclosure of material facts, content and structure of post-acquisition negotiations, borrower’s adherence to the credit agreement and security agreement, and…

Provided expert reports and testimony on behalf of the FDIC in settlement negotiations involving claims against former directors and officers of several failed banks. Issues involved unsafe and unsound banking practices, violations of law, failure to heed and respond to regulatory criticism, failure to properly evaluate and respond to real estate market conditions, failure to adhere to and abide by bank loan policies and/or failure to adopt appropriate loan policies, imprudent lending, concentrations of credit, breach of fiduciary duty, and…

Provided expert report in connection with claims made by the receiver for a failed financial advisory group against a large multi-state bank for negligence, violation of account integrity, and conversion, by allowing an individual to improperly deposit of an official check purchased by an LLC (the financial advisory group) into an unrelated account of the individual at the same bank. Issues included industry standards of ordinary care, deposit account integrity, conversion, commercially reasonable standards on deposit account activity, teller operation…

A litigation support team was assembled to successfully address resolution of a lawsuit turned mediation involving a major Chicago based engineering contractor and its client, the builder/operator of a gas fired power plant. Background. The Chicago law firm Mechler, Bulger & Tilson, LLP engaged Robert James, PE, now director of Accumyn’s capital project management practice, to provide dispute resolution support in a mediation arising out of an error and omissions lawsuit. Expert witness services including reports and mediation testimony were…

Accumyn’s expert determined and detailed the economic benefits reported by an employee’s affiliated company during his employment with a global cosmetic producer. In 2010 the cosmetic producer hired a new Vice President of Technology who later secretly formed and operated an IT support company which became a vendor of the cosmetic producer. This employee/vendor relationship violated the cosmetic producer’s employee handbook, which the employee signed, prohibiting conflicts of interest. The employee utilized his officer position to channel a significant amount…

Accumyn assisted a receiver for a failed financial advisory group by evaluating claims against a bank for negligence, violation of account integrity, and conversion, in which the bank improperly allowed a check purchased by the financial advisory group to be deposited into an unrelated account at the same bank. Accumyn examined standards of ordinary care, deposit account integrity, conversion, commercially reasonable standards on deposit account activity, adherence to the bank’s own internal policies, and customary procedures for cancellation of an…

Evaluated the merits of a bank’s claims against another bank in connection with a loan participation agreement and related refinancing transaction. Issues involved disputes over facts known about the borrower and guarantor, fund first obligations of the lead bank, and adequacy of disclosure

Accumyn’s expert assisted in the recovery of amounts due under provisions of a credit facility agreement with a public financial institution engaged in the origination and servicing of residential mortgages in the United States. The financial institution was experiencing difficulties in 2007 due to the market downturn related to subprime mortgages. The financial institution was acquired and made private by a private equity company based in Texas, which specialized in investing in distressed companies. A provision in the credit facility…

Particle Drilling Technologies, Inc., based in Houston, Texas, is an oilfield service company in the process of commercializing its patented advanced drilling technology known as Particle Impact Drilling (PID). The purpose of the PID System is to significantly reduce the time and cost of drilling hard rock or other difficult to drill formations. The company was publicly‐held from 2004 through May of 2009, and has operated since 1993. Deteriorating capital markets, costly financing and weak financial management were driving Particle’s cash burn and the Lehman bankruptcy…

Accumyn represented one of the parties subject to federal government fines as a result of the Macondo oil spill.     One of the key issues in this proceeding was the probability that the client would either suffer a credit rating decrease or be forced into bankruptcy as a consequence of the proposed fines.   In support of the Accumyn’s testifying expert, Dan examined the client’s capital structure and determined that both downgrade and default were risks owing to the company’s…

Analyzed the financial condition, market position, capital resources and business history of a software company in Chapter 11 bankruptcy related to a breach of contract claim brought against a major software company. Work performed included liquidity and profitability analysis, review of business plans, pre-bankruptcy stock price analysis, marketing plan critique, product evaluation and the assessment of competitive products and companies.

In a lawsuit involving termination of a Managing General Agency agreement by an insurance carrier, Accumyn provided a review of the operating documents and transactions involved in a multi-state insurance program, and the impact of an insurance carriers untimely termination of the program had on commission income earnings by the MGA, insurance agency relationships that the MGA brought to the relationship, and profit contingency to be received by the MGA. In this ongoing case, Accumyn has made extensive calculations and…

Provided expert analysis and consultation to secured creditor regarding accounting and financial issues of a debtor in possession, the manufacturer of heavy equipment designed for commercial use. Analysis included a determination of gross profit margins pre and post petition, cash flow analysis, and a review of the debtor’s use of percentage of completion accounting methodology.