ORRICK, HERRINGTON BACKGROUND & SUTCLIFFE INTELLIGENCE, INC. - PowerPoint PPT Presentation

Early Warning Signs… And Resources ORRICK, HERRINGTON BACKGROUND & SUTCLIFFE INTELLIGENCE, INC. 213/612-2204 213/243-0707 www.orrick.com www.backgroundintelligence.com

INITIAL BRIEFING  Start-up Surgery Center (not in operation)  Two primary Partners (70% and 10%)  Five other investors  The consultant “Bob”  Pattern of financial funny business

 Unsigned Agreement with Surgery Center  Marketing and management  Develop new physician contacts  Develop contracts with healthcare providers  Actual role (without Partner oversight)  Managed all aspects of Surgery Center start-up  Assisted in real estate lease negotiation  Oversaw space build-out/construction  Leased or purchased medical equipment/furnishings  Hired staff  Managed all financial and billing activity

01/14/14 OPEN HOUSE…celebrating grand opening of OPEN HOUSE…celebrating grand opening of Surgery Center Surgery Center 01/17/14 01/17/14 Bob fired Consultant fired Bob emptied out Surgery Center office, leaving “trash” Emptied out Surgery Center office, leaving “trash” 01/20/14 BRIEFING FROM PARTNERS 01/20/14 BRIEFING FROM PARTNERS

Chaos  Computers, financial records and vendor information taken by consultant  Muddled records  Everyone under suspicion (including bank)  Secure office (restrict access, change locks)  Partners tapped out  Refinanced homes  Loans (SBA loan)  Corporate attorney involvement  Limited funds to pay investigators 

 Current assets  Identify business entities  Liens, judgments, or factors that may affect collections  Identify the parties: complicit relationships and business interrelationships  Document others scammed by consultant  Facts: benefit negotiations or influence collections

 Proprietary databases  Public records  Court search in each jurisdiction  Recorder’s office  Social networking sites  Title searches  Telephone interviews

CFN (aliases; Bob’s wife) B VP RM (Bob’s dead dad) (multiple aliases) SLF T J. T MR (Bob’s former wife) “BOB” LV JG JN AC R F. N EKP KL (aliases; Bob’s fiancée) JO Nurse LB GS

GFA LBn, SSI, SSM NHM A, LLC LLC S LLC SCPA ARB GA Bob’s Companies Tied to Surgery Center SSI TLM ARB SSI BOB SSM SSI KRN KRN SCMSC SCSM, LLC SCS, LLC SCMSC SCS TLM GA SM GFA AAG SM A, LLC LBn, LLC SCS Bob’s Other Companies AAA, SCSC SCL, AAG PC LLC AAA , PC SCS, MCA, MCA, LLC SCSM, SCL, LLC LLC LLC LLC NHM EP S SCPA EP CCAM AH AH CCAM SCSC