Case Study – Crisis Resolution


A midsize manufacturer with two principal owners in the Dallas-Fort Worth Metroplex appeared on solid footing, with financial statements reflecting steady growth and revenues. The company had one bank loan outstanding, and Owner A presumed that Owner B made principal and interest payments dutifully each month. In reality, Owner B only paid the interest on the loan and, with the aid of a bookkeeper, falsified the company’s financial statements by creating fictitious receivables, and overstating inventory and work in progress. Upon learning of this, Owner A, a longtime Goldin Peiser & Peiser, LLP client, called Allan Peiser, CPA, for help.

Our Approach/Solution

Owner A was very concerned about the present viability and future prospects of the business, given the fact that the loan principal had not been paid down, as well as implications of the falsified financial records. Allan immediately stepped in and was able to reconstruct the business’ actual financial statements. By doing so, he determined that, while the business wasn’t as profitable as the falsified statements showed it to be, it nonetheless was viable and could be profitably operated in the future, given steady leadership and sound financial processes.

Moreover, by constructing accurate financial statements for the company, Allan was able to file amended tax returns on behalf of the company that reflected its true tax position, including proportionate losses. As a result, Allan informed Owner A that, far from losing the business, he actually could utilize cash the company received from those amended returns to repay the bank and, through strategic steps, own 100 percent of the company.


Allan worked with Owner A to devise an agreement whereby Owner A purchased Owner B’s company stock for $1, Owner B ceded his refunds from the amended returns back to the company and also distributed his company pension plan assets to the company.

Within the space of a year, the agreement was fully implemented, the loan was paid back, and Owner A took sole ownership of the business, which he and his family retain to this day.

As for the business itself, today it is a streamlined, efficient, cash-flowing operation.