We tackle the biggest and most challenging financial fraud cases by applying advanced quantitative analytics. Our team of academic experts and data scientists serve government agencies and law firms, and our analysis has formed the basis for some of the largest settlements in finance litigation.
Forensic Data Analysis
We build models to detect and determine fraudulent activity with high statistical confidence. For example, our financial markets team has developed advanced econometric models where we were the first to detect manipulative trading practices. We have used our regression models to determine causal relationships between mortgage misrepresentation and the performance of affected securities backed by those loans. We also have experience in modeling Medicare abnormalities.
We are experienced in analyzing a wide range of data to detect fraud. For example, we have investigated detailed loan data tapes, origination files, and securitization and offering documents to reassess the quality and risk of mortgages. We have reviewed original loan applications to check whether borrower information such as income, employment, or assets were potentially misrepresented. We have also ensured that loans were underwritten in accordance with the originator’s public underwriting criteria as well as other representations and warranties found in the publicly disclosed securitization agreements.
Economic Damages Modeling
We build sensible models to calculate losses that arise due to financial fraud. These models vary across contexts but must have a careful awareness for the market externalities. We track data from a variety of different sources to form our analysis. For example, we have been able to track losses from individual mortgages to those experienced by mortgage-backed securities and collateralized debt obligations over time. We use causal regression methods to establish both the statistical probability and causality of a relation.
We have developed proprietary methodologies and algorithms to detect misrepresentation in mortgage-backed securities (MBS). Combining loan level data and county property records, we are able to perform a detailed forensic loan review and reevaluate the representations and risk profiles for individual MBS.
We have experience working with big data methods to detect any abnormal trading patterns. We have experience using trade and quote tick data that have allowed us to be the first to detect market manipulation. Our experts can separate normal behaviors from more nefarious activities intended to defraud and manipulate markets.
Our experts have researched insider trading in the U.S. and international stock markets. Their findings are directly applicable to models that can detect and quantify insider trading across different financial markets and products.
Our team leverages Medicare, Medicaid, and private insurance data to detect fraudulent billing practices that may reveal financial abuse by healthcare providers.
Our team has extensive experience with high profile cases involving many terabytes of complex data. By streamlining the discovery process that methodically catalogues the information, we help our clients by bringing the relevant discoveries to light efficiently.
We provide accurate and independent analysis by drawing from the academic and domain expertise needed for your case. We will only work on cases where we believe in the positions of the case and where we believe the party is on the side seeking justice. Our testimony will be factual and truthful. We primarily interface with top academics who are the leading experts in their respective fields.
Publication is one of the pillars of our firm, and expert reports are no exception. Coupling domain expertise with detailed and accurate analysis, we provide defensible financial and statistical reports.
Our affiliated academic experts are prominent faculty leaders in economics and finance, with direct experience examining structured securities and credit ratings in large-scale federal and state government examinations. We have also performed forensic analysis in areas related to public financial and healthcare markets. Our experts have published papers on many of these topics in top finance journals.
Jun Wen Ph.D.
Director of Structured Finance
Our team of data scientists and forensic analysts work directly with our experts to serve our government and private sector clients. we have a wide array of technical and domain expertise, with strong quantitative backgrounds and analytical experience. Our team includes phds and others with advanced degrees from the nation’s top schools. Furthermore, our location adjacent to the University of Texas at Austin enables us to closely interface with the academic environment and gives us access to the university’s top intellectual talent.
John M. Griffin Ph.D.
Chief Consulting Expert President of IntergraFEC
Professor John Griffin is a Chaired Professor at the University of Texas. He has also served on the faculty at Arizona State University, Yale University, Hong Kong University of Science and Technology, and Harvard Business School. He has published numerous papers in the top finance journals. Dr. Griffin’s research focuses on forensic finance and the examination of potential fraud. He is an expert in the structured finance field with respect to mortgage backed securities and collateralized debt obligations. Topics of his papers include: mortgage misreporting, credit ratings, market manipulation, insider trading, investment banking reputation, hedge fund performance, pricing models, and anomalies. Dr. Griffin’s recent research focuses on understanding the role that conflicts of interest and misreporting by credit rating agencies and investment banks played in the financial crisis.
Link to Papers
Carlos M. Carvalho Ph.D.
Testifying and Consulting Expert
Professor Carlos Carvalho is an Associate Professor of Statistics at the University of Texas McCombs School of Business. He received a PhD in Statistics from Duke University. His research primarily focuses on Bayesian statistics in complex, high-dimensional problems with many applications in finance. Some of his current projects include work on large-scale factor models, graphical models, Bayesian model selection, particle filtering and stochastic volatility models. He has published research articles in top peer-review statistics journals including the Journal of the American Statistical Association, Journal of Royal Statistical Society, and the Annals of Statistics. Before moving to Texas, Professor Carvalho was part of the faculty at The University of Chicago Booth School of Business and, in 2009, he was awarded The Donald D. Harrington Fellowship by the University of Texas.
Link to Papers
Alessio Saretto Ph.D.
Testifying and Consulting Expert
Professor Saretto is an Assistant Professor of Finance at the University of Texas Dallas. He received a PhD in Applied Mathematics from the University of Brescia in 2002, and a PhD in Finance from UCLA in 2006. He previously held positions at Purdue University and at the University of Texas Austin. His areas of interest and expertise are in derivative securities, credit risk, and structured finance. He has written and published several finance research articles in leading peer-review finance journals. He has served as a consultant for government agencies and law firms on various aspects of financial markets and securities, such as auction rate securities and student loans asset backed securities.
Link to Papers
YongJun Tang Ph.D.
Testifying and Consulting Expert in Asia
Dr. Tang received a PhD in finance from the University of Texas at Austin in 2005. Before moving to HKU, Dr. Tang was an assistant professor of finance at Kennesaw State University (of the University of Georgia System). He taught both undergraduate and graduate Investments and Fixed Income Analysis at the University of Texas at Austin and Kennesaw State University. His main research interests include credit risk, CDOs, rating agency methodology, liquidity, mutual funds and Bayesian methods in finance. He has published research works in the Journal of Finance, American Economic Review, Journal of Financial Services Research and Journal of Financial Research. His research honors include the best paper award from Eastern Finance Association and grant from the Institute of Quantitative Research in Finance (Q-Group).
Link to Papers
Chief Strategic Officer
Our chief strategic officer Adam Johnson is a yale graduate who is able to connect the requirements of the legal arena to the skills and product of our highly trained quantitative team. He has extensive experience in distilling complex academic evidence into understandable, accurate, and defensible narratives. He creates the nexus between our highly technical material and the legal community to devise creative and often trail-blazing solutions for fraud recovery.
We seek to help restore integrity to the financial system. We will always be truthful in our analysis and work only with those of whose cause we are convinced.
Who We Are
We are a financial and economic litigation consulting firm located in close proximity to the University of Texas at Austin, where we closely interface with the academic environment and leading intellectual talent.