AI-Driven Digital Investigations Workflow In investigations requiring eDiscovery and digital forensics, AI can be a powerful complementary tool. It enables the analysis of digital information in ways that are both efficient and insightful. This article explores practical recommendations and processes for implementing AI in digital investigations and their workflows. Introduction When most people think of Ar ...

Joined by More Cockroaches The recent collapses of First Brands, Tricolor, and other financially distressed companies remind appraisers that inaccuracies in financial reporting can impact the credibility of the calculation or conclusion of value. When industries undergo rapid change, the appraiser’s role could be not only to interpret market data, but also to verify the truth of the financial foundation upo ...

And the Cockroach Theory The recent bankruptcies of First Brands, a large auto parts supplier, and Tricolor, a car dealership chain, have renewed concerns about lending practices more than two years after the collapse of Silicon Valley Bank. That earlier failure was driven by rising interest rates that reduced the value of its bond holdings and caused panic across the banking sector.  Appraisers may regard ...

What Might an Investigation Look Like The First Brands Chapter 11 filing, the questions raised regarding its use of off-balance sheet financing and its new leadership, is setting the stage for an investigation. In this article, the author shares what may ensue at this early stage of the controversy. Introduction Automotive News[1] reported that, on October 13, 2025, First Brands reported its founder, Patric ...

How Exactly Did $2.3 Billion Vanish? First Brands Group Holdings has filed for Chapter 11 bankruptcy, capping weeks of turmoil sparked by creditor concern over the auto-supplier’s use of opaque off-balance sheet financing. The U.S. Department of Justice has launched an investigation into the circumstances leading to this company’s collapse. In late September 2025, U.S. auto parts maker, First Brands, filed ...

The Hidden Risk Behind the Hype Among the most pressing concerns is the phenomenon of AI washing, which can be the practice of overstating or misrepresenting a company’s AI capabilities or can be the increased acceptance of low-quality output. While it may be a trendy marketing tactic, AI washing can also carry significant legal liabilities and valuation distortions that demand scrutiny. The author discusse ...

The Use of Structured Data and Information Systems This article provides a hypothetical case study that walks readers through the process of a financial investigation in which the data extraction, analysis, and forensic reconciliation are integrated seamlessly by accounting and data experts who understand both sides of an investigation. Introduction Structured data and information systems are increasingly u ...

Increased Misuse and Sophistication of AI to Commit Digital Fraud The level of sophistication used by fraudsters continues to increase. Fraudsters are using voice recognition and voice swapping, as well as other generative AI tools that continue to evolve. It is critical to constantly reassess internal controls and understand how AI is used and misused. In this article, the author shares some of the schemes ...

Navigating Climate Risks, Financial Forensics, and Innovative Solutions Forensic accounting plays a crucial role in modernizing climate risk insurance models. As climate change intensifies extreme weather events, insurers are struggling to accurately price risk, detect fraudulent claims, and maintain financial stability. This article explores how fraud, forensic accounting, and innovative risk management pr ...

A Case Study In this article, the author uses a case study to explore how forensic accountants used analytics to identify discrepancies in financial records and support financial investigations. Introduction While we traditionally think of forensic accounting as the specialized area of accounting that focuses primarily on the investigation of financial crimes, forensic accountants are also well equipped to ...

Conversations with ChatGPT In this article, the author discusses the conversation she had with ChatGPT regarding Bitcoin and Ponzi schemes. This question has been around nearly as long as Bitcoin itself (without the Charles Ponzi qualifier). How could I have a conversation with Charles Ponzi? Perhaps ChatGPT has ingested enough material about the historical figure to do it for me. I initiated a new conversa ...

(With the Help of ChatGPT) In this article, the author provides three versions of a data retention policy that appears compliant with GDPR or NIST. After taking NACVA’s cybersecurity course, a student reached out to me asking for a Data Retention Policy template that would be compliant with the statutes and frameworks discussed in the course, such as the National Institute for Standards and Technology (NIST ...

Utilizing Data Analytics to Investigate Ponzi Schemes This article examines how data analytics combined with other forensic accounting tools can help investigators uncover how investors in both traditional and newer types of Ponzi schemes were victimized, and how data can be compiled to locate stolen assets and create an analytical report that aids regulators and in legal proceedings focused on recovering f ...

Effective Use of AI in Complex Investigations Investigators need better ways to sift through vast quantities of data to find the information at the heart of the matter. This article examines a more efficient approach to complex investigations with Generative AI. The information in this article is intended to assist in determining the effectiveness of using GenAI in fraud and other complex investigations. In ...

The Role of the Expert in 21st Century Dispute Resolution Almost five years ago, the author penned an article published in NACVA’s QuickRead April 14, 2022. In that article, he described what was his perspective as a “recovering judge” of the role of the “expert” in the 21st century profession of dispute resolution. In this article, the author revisits, and in some cases revises, the observations and predic ...

From $600 to Over $1 Billion The EU General Data Protection Regulation (GDPR) and other data protection regulations apply to the smallest sole practitioner firm among us to the largest and each must take steps to implement a cybersecurity plan, to follow it, and to respond when an incident occurs. The failure to provide protection can result in fines. In this article, the author describes why Amazon and Goo ...

Part II of II In the previous article, we posed a series of questions to consider when purchasing cyber insurance. In Part II, the authors identify not only how to answer some of the questions posed initially, but also, what value those answers bring. Moreover, the authors identify some of the common gaps and how to address them. Introduction In the previous article, we posed a series of questions to consid ...

Part I of II When companies suffer a cyber incident, they often look to their insurance policy for coverage to help mitigate financial exposure. Additional external resources also help the insured get back to normal operations. Part I of this series poses several questions to assist insureds or policyholders in thinking through the common issues. Part II will present some strategies to help organizations fu ...

A Forensic Investigation Opens IRS-Floodgate! In this article, the author critiques the IRS Participant Guide for Marijuana Companies. This 200-page guide provides general instructions to the service on the valuation of cannabis farms. The author argues that the compliance guide is completely inaccurate concerning the audit of cannabis cultivation. The author proposes that forensic and valuation professiona ...

From a Forensic Accountant’s Viewpoint Forensic accountants are frequently retained to evaluate economic damages arising from a multitude of circumstances. These engagements require a set of specialized knowledge unique to the facts of the case. In many cases, a forensic accountant will be retained to evaluate lost income arising from a business interruption loss. This article compares a forensic accountant ...