Bankruptcy Services Uncover Ponzi Scheme

Client Profile

Annual Revenue: $8 million
Industry: Wholesale Services
Entity Structure: LLC
Geographic Footprint: New York

CBIZ assists with Chapter 7 bankruptcy services.Issue

A wholesaler of janitorial supplies and party entertainment services filed for Chapter 7 bankruptcy. There were no available books or records at the onset of the case. As such, the Chapter 7 Panel Trustee could not readily identify assets available for distribution to creditors.


Our corporate recovery team served as special forensic accountants and experts to the Chapter 7 Trustee. We worked alongside the legal team to investigate the company’s operations to facilitate the identification of assets. Our investigation led us to the conclusion that there were no real operations within the company’s claimed core business, which was one of the factors that indicated the presence of a Ponzi scheme.

We helped identify and quantify recoveries, which became the source of distribution to the company’s creditors.


The recoveries were sufficient for the Trustee to make a distribution to the company’s creditors in what appeared to be a “no asset” case. As a result, victims of the Ponzi scheme received benefits when it first appeared that they would not recover any of their claims.

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Bankruptcy Services Uncover Ponzi SchemeWhile assisting with bankruptcy proceedings, CBIZ uncovered a Ponzi scheme and helped the Trustee make distributions to the company's creditors....2016-10-24T13:56:00-05:00While assisting with bankruptcy proceedings, CBIZ uncovered a Ponzi scheme and helped the Trustee make distributions to the company's creditors.Risk MitigationCorporate Recovery Services