Fund-Level Forensic Audit
Fund-Level Forensic Audit
$20,000+
A comprehensive adversarial compliance audit of the fund itself for enforcement action exposure, adherence to management regulations, fiduciary duty, and the health of the fund to ensure it remains a viable vehicle for U.S. investors
Blind faith isn’t necessary when there are binding by-laws.
What We’ll Examine
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1. Management Regulations
Is the fund manager operating the fund in full compliance with its management regulations and by-laws?
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2. Financial Reports
Do the fund manager's financial reports fully reflect the reality of the fund's income, expenses, assets, and obligations?
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3. U.S. Tax Reporting
Does the fund's actual activity match the U.S. tax reporting it provides to investors? Where are the gaps and departures?
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4. Fiduciary Duty
Is the fund manager acting in the best interest of the fund and its investors? Are there deviations from fiduciary duty?
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5. Self-Dealing
Has the fund manager or any related party entered into transactions with the fund that benefit themselves at the expense of investors?
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6. Contracts and Transactions
Are all contracts, transactions, and leases in full alignment with prevailing laws, regulations, and fiduciary obligations?
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7. Commission Payments
Has the fund or fund manager paid commissions for investor introductions to unregulated broker-dealers in violation of local and U.S. law? Have such payments been obscured?
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8. SEC Compliance
Is the fund compliant with U.S. securities law? Most Golden Visa funds are not. Your fund will be tested for SEC compliance and associated recourse.
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9. Custody and Investor Assets
Are investor assets held in compliance with applicable custody requirements? Are fund units properly titled and accounted for at the individual investor level? Is FATCA reporting compliant?
Each Fund-Level Forensic Audit will contain:
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Fund Compliance Data
Management regulation adherence, by-law compliance, departures between fund activity and reporting provided to investors, and marketing claims tested against fund reality. -
Fund Viability Report
The financial health of the fund, the soundness of its portfolio, the fee load associated with operating the fund, and whether the fund remains a viable vehicle for U.S. investors. -
Fiduciary Duty Analysis
Self-dealing, related-party transactions, commission payments to unregulated broker-dealers, and whether the fund manager is acting in the interest of investors. -
Counsel Memo
The analytical foundation for civil litigation, regulatory submissions, or securities law rescission and damage claims. Suitable for use by U.S. or local jurisdiction counsel.
Fund-Level Forensic Audit Terms
Prices start at $20,000 per fund.
The Fund-Level Forensic Audit analysis will typically take 60 days from receipt of all relevant documents if the fund manager is prompt in answering questions raised in review. It has been our professional experience that fund managers position as more of an obstacle than a facilitator for Fund-Level Forensic Audits. There may be delays in obtaining documents, data, and answers to questions.
A Forensic Exposure Diagnostic is required before a Fund-Level Audit can be commissioned.
Cost-sharing: Unlike the Forensic Diagnostic Report (which is personal and cannot be shared), the Fund-Level Forensic Audit serves all investors in the same fund. Multiple investors can share the cost.
The Fund-Level Forensic Audit does not include accounting translation and is not an accounting audit.
The Fund-Level Forensic Audit is an analytical report. It is not tax advice, not investment advice, not legal advice, and is not a solicitation for the purchase or sale of securities.
Not Included in the Fund-Level Forensic Audit
Personalized reporting for any individual investor
Deep analysis of portfolio assets that are not readily classifiable
Deliverables suitable for use as a Reyes/Horowitz willfulness defense
The Triage Assessment identifies the questions. The Forensic Exposure Diagnostic answers them. The Fund-Level Audit assesses the health and viability of the fund and whether the fund manager is acting in the best interest of the investors.
Deep Fund Analysis, Powered by the Investor Registry
The deep fund analysis of a Fund-Level Forensic Audit serves all investors in the same fund. Multiple investors can share the cost to benefit from analysis that might be difficult to commission alone. The Investor Registry is designed to make this coordination possible.
You didn’t create this problem. Misleading marketing practices, fund structure, gaps in reporting, and the professional infrastructure around it created this problem. But under U.S. tax law, the consequences land on you unless you act. The window to mitigate them is limited.