VOIP Guardian
Supporting litigation counsel in efforts to recover nearly $200 million in fraudulent transfers. Litigation is pending.
Force 10 assisted the bankruptcy trustee and legal counsel by conducting a thorough forensic accounting investigation and funds tracing analysis for a VOIP traffic financial services company. This engagement involved identifying and analyzing international fund flows among numerous entities and examining voidable transfers to recover for the benefit of creditors.
VOIP Guardian was a telecom factoring company that supported the working capital needs of telecom carriers utilizing VoIP technology. The company specialized in providing trade finance and factoring services to small and mid-sized wholesale telecom carriers engaged in routing and terminating international calls and other communication services for larger carriers. VOIP Guardian operated with a line of credit from a lender, which it used to factor allegedly fraudulent invoices, contributing to significant financial exposure.
The Chapter 7 Trustee of VOIP Guardian pursued claims against certain former directors and officers for breaches of their fiduciary duties of care and loyalty, as well as the avoidance of transfers to specific defendants. These alleged breaches and fraudulent transactions directly contributed to the company’s collapse, resulting in losses exceeding $200 million and over $1 billion of transactions.
Force 10 was engaged to untangle the complexities of tens of thousands of financial transactions routed globally. Starting with thousands of pages of paper bank statements, we systematically created a programmatic database to support litigation efforts. Our work included producing litigation-ready sources and uses statements, comprehensive funds flow analyses, and identifying primary and secondary recipients of funds, providing critical clarity to support the Trustee’s causes of action.
