Free Statement - District Court of Arizona - Arizona

Renee M. Jenkins, CPA, CFE
Email: reneeienkinscga@earthlink. net
Telephone: 602.550. 0123
Personal Fax: 602.375. 0994
Professional Qualifications
Professional Designations and Affiliations
Certified Public Accountant (CPA), State of Arizona (Certificate 2962-E)
American Institute of Certified Public Accountants (AICPA) (l98 l -present)
Arizona Society of Certified Public Accountants (ASCPA) (l982-present)
ASCPA Business Valuation and Litigation Services Section Steering Committee (2003-present)
ASCPA Accounting and Auditing Services Section Steering Committee (2005-present)
Certified Fraud Examiner (CF E)
Association of Certified Fraud Examiners (ACFE)(l994-present)
Board of Directors, Arizona Chapter, Association of Certified Fraud Examiners (2003-2006)
Education and Teaching
Bachelor of Science in Accounting, University of Arizona (1976)
Master of Accounting, University of Arizona (l978)
Instructor, financial and managerial accounting, University of Arizona (l977-1978, l98l)
Judge lntemational Ethics Competition, Eller College of Management, University of Arizona (2004-2006)
Areas of Expertise
Renee Jenkins is a Certified Public Accountant (l980) and Certified Fraud Examiner (I994) in Phoenix,
Arizona. She has testified in both federal and state courts and has consulted with Federal and State agencies
including the FBI and FDIC Financial Crime Units. Ms. Jenkins has worked with attomeys, custodians,
receivers, and bankruptcy trustees and is considered to be an expert in forensic investigation and economic
crime.
Selected engagements include:
• Arbiter for financial damages in commercial disputes
• Forensic accounting, asset searches, and tracing of separate property for domestic relations cases
• Damages calculations for commercial disputes, business interruption, and lost profits cases
• Bankruptcy related investigations including fraud, reconstruction of events and transactions, and support for
debtors, tnrstees, and creditor committees
• High yield investment fraud (ponzi) schemes
• Cash theft and disbursement schemes (embezzlements)
• Financial statement fraud including earnings and asset manipulation, fictitious accounting entries, back-dating
of transaction records, unrecorded liabilities, dummy vendors, related party transactions, and asset parking
• Financial institution fraud and predatory lending practices
• Labor issues including management abuse of corporate assets, wrongful discharge defense
Professional Experience:
5/91 —· LG Consulting Group LLC -Phoenix, AZ
present Forensic accounting and litigation support for a variety of client matters. Bankruptcy and receivership
support. Grandjury support. Expert witness. Special financial master. Arbiter. (ILS. Bankruptcy
Court, State of Arizona Superior Court, Greene County Missouri Circuit Coury.
Temporary management and special financial projects. Due diligence and project evaluation. Contract
Project Manager for credit card, mortgage, and consumer finance implementations. (Bank of America).
Contract Project Manager for a variety of accounting and system related projects in higher education.
(T/tunderbirtk The American Graduate School of International Management).
8/87 -— 4/9l Transcontinental Properties, Inc. —Scottsdale, AZ
4/81 - 7/87 JNC Real Estate Development Corporation —Tucson, AZ
l2/78 — 3/8l Arthur Andersen & Co. -Chicago, IL and Phoenix, AZ
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Speaking Engagements:
• October I6, 2006 — Ponzi Schemes and the Auditor Kr Who Help, Arizona Society of CPA’s
• April 26, 2006 -— Recent Ponzi Schemes in the Arizona Court System, Association of Certified Fraud
Examiners, Arizona Chapter
• February 20, 2006 — How to Identyy and Avoid Unethical Employers in Your Business Career, W.P. Carey
School of Business, Arizona State University
• January I6, 2006 - Fraud and Forensic Accounting, Arizona Society of CPA’s
• April I6, 2005 - How to Prevent Small Business Fraud (Cash, Check and Disbursement Schemes}, Arizona
Association of Private Investigators
• October 28, 2004 - How to ldentyy and Avoid Unethical Employers in Your Business Career, Eller College of
Management, University of Arizona
• October l2, 2004 - How to Prevent Small Business Fraud (Cash, Check and Disbursement Schemes), Arizona
Association of Private Investigators
• June l, 2004 — Howto Prevent Small Business Fraud (Cash, Check and Disbursement Schemes), Arizona
Insurance Accountants and Systems Association (IASA)
Testimony (November 30, 2002-November 30, 2006):
• March l, 2006 — Arizona State Board of Accountancy v. Licensee File 2005.075 (State of Arizona, Office of
the Attomey General)(Administrative hearing)
• May 3, 2005 — Redord v. Redord FC2004·0904l 7 (Arizona Superior Court, Maricopa County)(Trial)
• September 20, 2004 - State of Mssouri v. Clarence W Stevens #1 03CF-01 73 (1) (State of Missouri, Greene
County) (Trial)
• August 9, 2004 - Undisclosed criminal target (State of Arizona, County of Maricopa)(Grand Jury appearance)
• February I2, 2004 - Donlann v. Macgurn DR97-155 72 (Arizona Superior Court, Maricopa County)(Trial)
• December 22, 2003 — Donlann v. Macgurn DR97-15572 (Arizona Superior Court, Maricopa
County)(Deposition)
• December I5, 2003 - Donlann v. Macgurn DR97-155 72 (Arizona Superior Court, Maricopa
County)(Deposition)
• February 27, 2003 — Stevens Financial Group, Inc. #01-03105-ECF-RTB (U.S. Bankruptcy Court, Arizona
Division)(Trial)
• February 25, 2003 —Arambula v. Arambula DR92-08389 (Arizona Superior Court, Maricopa County)(Trial)
• February I2, 2003 —Arambula v. Arambula DR92-08389 (Arizona Superior Court, Maricopa County)(Trial)
Selected Engagements:
• Routinely retained for variety of confidential forensic accounting assignments and investigations including
domestic relations court cases; especially asset searches, and tracing of separate property through financial records.
• Retained as an expert witness in a multi·party lawsuit filed in U.S. Bankruptcy Court against the insiders and
extemal legal and accounting consultants of a failed dot.com enterprise located in Phoenix, Arizona. Expert report
to measure the degree of insolvency in the organization at different points in time after adjustments for investor
claims . (Oct 2006 - present)
• Retained as the final arbiter of financial damages for a commercial dispute filed in Arizona Superior Court.
Reviewed reports and heard testimony from financial experts retained by both plaintiff and defendant. Plaintiff
testified but was unable to meet the burden of proof required to award damages. (Ruling issued Jun 2006)
• Contract investigator for the Arizona Attomey General for complaints filed against Arizona Certified Public
Accountants with the Arizona State Board of Accountancy. (Mar 2005 — present)
• Retained as expert witness by the Arizona Attorney General who was defending a suit filed by the driver of a
motorcycle injured in an accident involving a state owned vehicle. Expert report was a calculation of damages
incurred for the loss of income during the plaintif`f’s temporary physical disability. (Nov 2004 — Oct 2005)
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• Retained as consulting expert for multi million dollar partnership dispute, dissolution and division of assets.
Discovery stage. (May 2004 — July 2006) Settled out of court.
• Prepared case for Maricopa County Attorney to obtain a companion indictment for the same defendant involved in
the cash and check disbursement fraud below. Case involved smaller cash theft from daily deposits and
concealment in general ledger of company’s books. Testified before grandjury. Defendant pled. (July 2004 —
September 2004)
• Retained to prepare an independent report based upon the results of an on·going embezzlement investigation.
Company controller stole funds by making unauthorized ATM withdrawals and forging extra paychecks and other
disbursement checks to himself Theft was concealed by failing to transmit payroll taxes and transferring cash
from restricted bank accounts into the general operating accounts. Worked with local law enforcement and county
attomey’s office to prepare case for grand jury. Company controller currently in Maricopa county jail. Defendant
pled after being indicted on second theft. (November 2003 — September 2004)
• Retained to calculate the business incomes of both parties in a high-profile divorce case filed in l997.
Successfully tied one party to an undisclosed off-shore business interest. Deposition given in December of 2003.
Trial testimony completed February of 2004. (August 2003 - February 2004)
• Retained to investigate details of real estate loans made (to ultimate Chapter l l bankruptcy debtor) by lender under
investigation by Arizona Corporation Commission. Ponzi scheme. Report used to negotiate settlement with
creditor’s committee. Reorganization plan approved January 2004. Debtor emerged from bankruptcy effective
April 2004. (May 2003 — March 2004)
• Retained for the defense of a civil matter in Arizona Superior Court. Investigation (related to real estate
transactions) (December 2002 — April 2003) Settled October 2006.
• Forensic accountant for an embezzlement case involving the financial officer of a health care supplement
company. Absentee owner entrusted controller with a $1 million personal check to start a separate enterprise.
Employee used the funds to establish separate entity as his own recording funds received as a loan from the
employer. Funds were then disbursed to fund a third business venture which failed. The case also included an
examination of fraudulent expense reports submitted for reimbursement. Cross complaint in process against a
second employee of the firm. Case settled. (September 200] — December 2003 approx.)
• Special financial master appointed by the Arizona Superior Court for a domestic relations case. The case involved
the forensic investigation of husband’s off balance sheet business activities and required an estimation of the
current value of husband’s business. Business went completely "underground" during years before investigation
began precluding establishment of any value. Included report submitted to Superior court and deposition by wife’s
counsel. Testified at trial. (August 2001 - Febnrary 2003)
• Expert witness for an insurance defense case involving the unnecessary filing of a Chapter l l bankruptcy in order
to avoid the payment of ajury judgment gr·anted to a party injured on the insured’s premises. The insured sued the
policy writer claiming the omission of assault and battery coverage from the liability policy. The expert report
claimed the Chapter I l filing to be bogus and employed financial analysis to demonstrate that funds were
inadequate to pay thejudgment only because of large sums of preference payments distributed to investors in the
months sunounding the incident. Additional financial analysis prepared to refute claims of damages and lost
profits. Submitted expert report. Case settled prior to trial. (July 200l — November 2002)
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• Completed the forensic examination required to document the events of a Ponzi scheme leading to the loss of $70
million of private investor funding raised via a series of nine securities offerings over a six year period. The
deepening insolvency was created and disguised by management abuse, the manipulation of income, capitalization
of losses as assets, and fictitious entries recorded in the books and records and included in the audited financial
statements.
Prepared lengthy report for the counsel of the U.S. Bankruptcy Court appointed trustee including exhibits and
presentations for parties to the adversary complaint filings. Included interviews with state prosecutors and the U.S.
Attomey’s office and one grandjury appearance. Global settlement of approximately $9 from civil parties.
Company successfully reorganized as a publicly traded entity. Testified at one civil trial.
Two targets convicted on bank fraud related charges in Federal court. Testified at one criminal trial. CEO
defendant convicted and sentenced to two years prison time. The independent CPA auditor pled guilty to perjury
in November of 2004 and was sentenced to I0 days "shock time" with a four year suspended sentence. COO pled
to felony charges but refused to testify for the state. The securities lawyer who prepared the private offerings was
suspended from practicing law for three years. (May 200l — Nov 2005)
• Forensic accounting investigation for Arizona Superior Court appointed custodian related to disputed partnership
distributions. Reconstructed fiiieen years of accounting records and calculated the adjustments required to
equalize the distributions between two shareholders for a large multi-entity hospitality company. Prepared lengthy
report used as the basis for a final settlement. (August 2000 — May 200l)
• Expert witness for the defense of a terminated vice president sued for failing to meet the gross revenue
expectations of the corporate board of directors. Designed and produced the analysis required to show that the
business would have failed at any level of sales activity due to the composition of fixed and variable costs which
were outside the executive’s control. The case settled based on the prepared report. (l996 - 1997)
• Retained as a forensic expert in the defense of a company whose CEO sued for damages alleging wrongful
discharge. Analyzed board of directors actions, including contract issues. investigated financial mismanagement
cited as the reason for CEO termination, including documentation of expenditures and alteration of records.
Interviewed numerous witnesses and gathered relevant testimony used to generate a counter claim. The lawsuit
was dropped following a presentation to plaintiff counsel. (I994 - l995)
• Retained as a supporting consultant to assist with damages calculations for the defense of a class action lawsuit
against the State of Arizona by state law enforcement employees. The case involved off duty police officers who
were not paid the correct amount of overtime for hours worked at local sports and entertainment arenas as required
by the Fair Labor Standards Act. (1994)
• Retained as a supporting consultant for the examination of business policies and procedures of an Indian gaming
casino following widespread charges of fraud and mismanagement. (I 993)
• Retained as a consulting expert for Gallagher & Kennedy, Phoenix, Arizona. The case involved the State of
Arizona which was sued for $40 million in uncollected receivables by 33 hospitals alleging negligent supervision
of the Arizona Health Care Cost Containment System (AHCCCS) during its Start-up period. The case settled after
seven months of trial. Gave one deposition regarding the selection process for the special financial master.
(September l99l — December l992)
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