Receivership Petition Based on Alleged Misuse of Funds
When a group of investors in a company alleged mismanagement and misuse of company funds by its CEO, counsel for the group retained Axium to assist in assessing and substantiating the claims. Axium conducted a review of the company’s bank statements, check registers, and financing documents and documented numerous transactions that supported the allegations. Counsel for the group moved forward with a petition to have a receiver appointed to run the company. As the litigation progressed and based on documents obtained in discovery, Axium performed further analyses to document improper expenditures, ineffective use of credit facilities, and other mismanagement of company funds, as well as a comprehensive interview of a cooperating former employee of the company. Axium provided affidavits to support the petition and testimony during the federal court proceedings.