White Collar Investigations & Litigation
Our consultants and experts use our multidisciplinary expertise and data analytics capabilities to answer key questions, develop evidence, and provide testimony in white collar investigations.
Our multidisciplinary expertise includes economics, finance, accounting, custom and practice, and data analytics, which enables us to ably support legal teams of prosecutors, claimants, and defendants in all phases of white collar investigations. We develop empirical analysis to explain the conduct at issue through mapping communications, tracing financial flows, conducting forensic and financial analysis, and assessing accounting treatment.
Brattle experts also provide summary witness and expert testimony. In the trial and sentencing hearing phases, we work closely with counsel to translate complex evidence into simple messages and demonstratives for the jury.
In largescale and data-intensive investigations, our data analytics capabilities help us in answering key questions without the need for manual review. We integrate multiple sources of data and documents into a cloud-based platform, which we use to develop interactive timelines of relevant facts, trace the use of funds, and analyze suspected collusive communications. We customize and share access to these resources to foster effective collaboration with client teams.
Areas of Expertise
Analysis of alleged fraudulent trading practices
Our work on trading practices includes analyses related to alleged front running, spoofing, or misuse of customer information. In recent years, there has been a trend towards criminal prosecution of individual traders when large trades for certain market participants have an apparent effect on market prices. Brattle works with former traders and other industry practitioners in analyzing the trading conduct at issue, and investigating whether traders made any false statements, or conducted disruptive trading with adverse effects on market integrity and prices.In cases involving financial misrepresentations and false claims, Brattle experts assist counsel by determining precisely how the misrepresentation arose and the threshold facts that led to the alleged misrepresentation, omission, or financial violation. We analyze the involvement of specific individuals in communicating relevant facts, and determine actions taken through a review of the relevant documents and communications between corporate actors and outside auditors and regulators. We also assess the economic materiality of any misrepresentations, misreporting or illegal activity.
Economic impact and causation to establish materiality
In criminal cases that proceed to sentencing, counsel may ask us to estimate the financial or economic impact of the illicit conduct, which is a consideration of the court. Particularly in securities and finance cases there are precedents for loss calculations that govern related testimony. However, defense and prosecution experts will generally have different views of the economic materiality of the conduct, often resulting in contentious hearing testimony and cross-examination.
Insider trading and fraudulent schemes
Economic analysis of insider trading and other fraudulent schemes typically involves evaluating patterns of economic activity for signs of alleged misconduct. Brattle experts use data analytics and statistical analysis of trading patterns and forensic analysis to examine allegations, trace proceeds, and test alternative hypotheses for the observed activity. Penny stock pump-and-dump schemes, Ponzi-style investment schemes, and money laundering shell company activities are typical patterns of alleged financial activity that we analyze and explain to the court at trial.
Investigation of false claims and financial fraud
In cases involving financial misrepresentations and false claims, Brattle experts assist counsel by determining precisely how the misrepresentation arose and the threshold facts that led to the alleged misrepresentation, omission, or financial violation. We analyze the involvement of specific individuals in communicating relevant facts, and determine actions taken through a review of the relevant documents and communications between corporate actors and outside auditors and regulators. We also assess the economic materiality of any misrepresentations, misreporting or illegal activity.
Public corruption and consumer protection
Consumers may face harm from industry practices that are discriminatory, negligent, unfair, deceptive, or abusive acts (UDAAP). These may include loan servicing failures, improper debt collection, financial fraud, predatory and excessive fees, as well as fair-lending violations. In these cases, Brattle has deep experience applying economic analysis to financial markets and institutions through the lens of financial principles and industry customs and practices. Our analytic skills allow us to efficiently ingest, organize, and review large volumes of data such as customer account-level information. We work closely with counsel to identify and analyze potential regulatory violations. In addition, we develop robust econometric models to determine restitution for harmed consumers.
Tracing and forensic analysis of money laundering and sanctions evasion
In cases involving money laundering, FCPA, duties and sanctions we play several complementary roles, including as forensic analysts to identify and trace money flows; as big data analysts to extract and summarize the relevant information from discovery sources; and as economic experts to determine the effect of alleged misconduct and provide expert testimony. We work closely with counsel, adding technical and economic expertise, to answer key questions by developing empirical evidence and economic opinions.
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Contact our Practice Leaders
Mr. Hinton has over 20 years of experience directing projects and providing expert testimony in securities litigation and enforcement.
Dr. Sarro is Principal and Director of The Brattle Group, and a leader of its practice in cases involving “big data” and document analytics.