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SERVICES


Expert Witness Work

Honeycomb’s expert witness provision forms the backbone of our forensic accounting service, offering assistance in litigation, arbitration and other dispute resolution processes. We work with lawyers, regulators, law enforcement agencies and other professional clients. Our team provides expert information, analysis and reports on the financial, accounting, economic and fiscal aspects of disputes.

Our services include but are not limited to advising on quantum and financial analysis, engaging with specialists and preparing for trial and giving oral evidence under cross examination. We also provide expert reports, joint statements and supplemental reports.

We are happy to engage as either a party appointed expert or a single joint expert. In all circumstances, we deliver expertise with independence and impartiality to assist the Court or tribunal with technical and professional matters.

Honeycomb’s main expert is Jeffrey Davidson, a leading London forensic accountant with more than 20 years’ experience. He has authored many hundreds of expert reports and given legal evidence on 48 separate occasions. Jeffrey is supported by Richard Bates, who has more than 15 years’ experience as a forensic accountant and runs a team of qualified specialists.

In this practice area Honeycomb provides expert financial analysis and opinion on contentious civil and business matters, including:

• Contractual and tortious business claims

• Shareholder, partnership and joint venture disputes

• Warranty claims

• Loss of profits and earnings

• Business interruption

• Professional negligence

• Civil fraud and dishonesty claims

• Contentious valuations

• Matrimonial disputes

• Employment disputes

• Personal injury

The team also specialises in intellectual property matters, including infringement actions and royalty determinations. Nearly all our cases include an international element, often involving overseas clients and businesses. We have a particular expertise in Eastern Europe/Commonwealth of Independent States (CIS) and the Middle East, and possess the necessary language skills to work effectively in these regions.

Expert Witness Case Studies

Shopping and Leisure Centre Expenditure Analysis

Jeffrey Davidson was instructed as an expert to establish the correct outcome of a joint venture concerned with the development of a shopping and leisure centre. This involved a very detailed analysis of the records, including distinguishing between relevant and unconnected expenditure, including expenditure with connected parties which had nothing to do with the business of the joint venture. It also involved a reconciliation of income to ensure that all income was accounted for. We also had to review the capital and income accounts of the joint venture parties. We were able to set out in a report a comprehensive review of the affairs of the joint venture, give an opinion as to profits made and say who was entitled to that profit. The other side’s expert was of the opinion that the JV had been loss making. The matter came to Court, the evidence of Mr Davidson was preferred and the court determined the level of and entitlement to profit broadly along the lines stated by Mr Davidson.

Director Fraudulently Inflating Company Profits

Jeffrey Davidson was instructed as an expert in a case where it was claimed following the purchase of a company that the previous directors had fraudulently misstated the company’s profits. An extensive review of the sales records, reconciling them to purchases and stock, analysing work in progress and long term contracts, modelling customer purchasing patterns, and an analytical review of debtors and creditors, showed that the directors had fraudulently inflated sales by recording sales before goods despatched, hid increases in debtors in fixed assets and other balance sheet items, and had double counted invoices and proformas relating to the same sales. The profits were found to have been overstated by £11 million, leading to a material reduction in the purchase price of the business.

For further reading:

•   Contentious Valuations  •   Asset Tracing  •  Data Analytics  •  Information and Intelligence Gathering