Jon is a Consulting Manager at HoganTaylor in the Advisory Services Practice. He has nearly 30 years of accounting, tax and consulting experience in a variety of industries, including manufacturing, auto parts supply, medical, publishing, financial services, and non-profit. Jon has served both small and mid-size corporate and non-profit organizations in various financial leadership positions including CFO, Controller and Finance Director. He also served as Vice President of Audit at a leading Royalty Management and Royalty Audit Services Consulting Firm in Nashville, Tennessee. He has performed multiple royalty audit/examinations of licensed products recovering more than three quarter million dollars for clients. Jon also has experience in operating receiverships and Merger & Acquisition consulting, including modeling and due diligence. Since 2010 he has served as Turnaround Consultant for distressed organizations, court appointed/approved bankruptcy financial advisor, debtor-in-possession representative, and bankruptcy administrator.
Jon is a Certified Fraud Examiner. His fraud/forensic experience have surrounded bankruptcy cases and receiverships, non-profit organizations and small to mid-sized corporations. Jon is also a Certified Internal Controls Auditor recognized by the Institute for Internal Controls and a Certified Insolvency & Restructuring Advisor recognized by the Association of Insolvency & Restructuring Advisors.
CERTIFICATIONS & HONORS
- Certified Fraud Examiner (CFE)
- Certified Internal Controls Auditor (CICA)
- Certified Insolvency & Restructuring Advisor (CIRA)
PROFESSIONAL & CIVIC AFFILIATIONS
- Association of Insolvency and Restructuring Advisors, member
- Association of Certified Fraud Examiners, member
- City of Owasso, Character Council, board member
- TEDC Creative Capital, former board member
- B.B.A., Accounting, Oklahoma State University, Stillwater, Oklahoma
SELECT CASE WORK
Out of Court Workout
Aviation Engineering & Manufacturing Firm in Dallas, Texas. Engaged by a local bank, lead the “boots on the ground” team of accountants to clean up and convert the books and records to a better suited accounting system. Put internal controls in place to separate duties of accounting staff and purchasing staff. Implemented operational procedures company- wide to address better departmental communication and other management concerns. Performed post project audits to determine proper profitability, made changes in cost structure thereby generating better overall company margins. Restructured the Balance Sheet by turning some debt into equity and was able to secure more collateral for the bank loans from additional equity holders, thereby helping the bank to become fully collateralized. By taking inventory, found Assets that were not included on the Balance Sheet and added those Assets to increase value. Reduced overall bank and trade debt by more than $500K. Worked with federal and local taxing authorities to structure payment plans for taxes owed.
Out of Court Workout
Industrial Refrigerated Cooler and Appliance Rebuilder. Engaged by a local bank, directed the clean-up of the accounting books and records. Inventoried equipment and parts located in a 100 thousand square foot building. Found equipment that was not on the Balance Sheet and added it. The additional Asset value added led to the bank having more collateral value, which stopped the bank’s foreclosure action. Additionally, negotiated better terms on the bank loans.
Chapter 11 Bankruptcy
Metal Finishers and Manufacturers. Employed by Debtor with Court approval as Financial Advisor. Prepared all schedules to accompany the bankruptcy petition. Prepared exhibits and analysis for the cash collateral hearing and first day motions. Prepared feasibility analysis, monthly operating reports for the court, projections for the plan of reorganization and plan analysis with the Debtors Attorney. Assisted the Debtors Attorney with gathering and analysis of payroll tax returns and payments for the lawsuit brought by the Internal Revenue Service as part of the bankruptcy case.
Chapter 11 Bankruptcy
Manufacturer and Distributor of Nutritional Products. Employed by Debtor with Court approval as Financial Advisor during the first year of the case. After year one, the President of the company resigned leaving the position of Debtor-in-Possession open. Was appointed as the DIP representative and Case Administrator by the court. As Financial Advisor, prepared all schedules to accompany the bankruptcy petition. Prepared exhibits and analysis for the Cash Collateral Hearing and first day motions. Prepared feasibility analysis, monthly operating reports for the court, projections for the Plan of Reorganization and Plan analysis and assisted the Debtors Attorney with a Section 363 sale of the business. As DIP representative and Case Administrator, continued daily operations after the sale, collected receivables, and wound down the remaining shell of the business.
Chapter 11 Bankruptcy
Wholesale/Retail Nursery and Landscape operation. Employed by Debtor with Court approval as Financial Advisor. Advised debtor regarding schedule preparation and monthly operating reports. Performed feasibility analysis and created financial projections for Plan of Reorganization. Advised Debtor Legal Team regarding financial matters for Plan of Reorganization.
During my nearly 30 years of experience I have served in a host of different types of engagements. Some include, assessing a company’s long-term viability, assessing the adequacy of the company’s financial reporting systems, evaluating the quality and value of the collateral, assessing and monitoring cash management, analyzing intercompany and related party transactions, preference actions, fraudulent conveyances, and advising start-up businesses.
Engaged by a Native American Tribe to review processes, procedures and internal controls. Initial investigation revealed some opportunities to improve processes and internal controls as well as a need for a deeper dive into some procedures/controls surrounding cash, check approval, and per capita distributions. While looking deeper, I uncovered tribal business office employees colluding and defrauding the tribe over a 5 year period for more than their per capita share of the distributions amounting to just under $100K.
Engaged by a non-profit organization to review suspicious credit card transactions appearing on the organizations monthly statements. Reviewed transactions going back three years uncovered thousands of dollars in personal related transactions including several personal vacations to popular vacation destinations by the Finance Director. Finance Director would create a report in excel showing only department totals for the Executive Director to sign off on. The review of credit card transactions also lead me to review other transactions relating to cash. While reviewing cancelled checks I uncovered a forgery scheme whereby the Finance Director would forge the signature of the Executive Director on checks written to the Finance Director or for the personal gain of the Finance Director.
Engaged by a Manufacturing company to review process/procedures over cash. While interviewing the company Controller an admission was made that a relative of the owner and General Manager of the company would instruct the Controller to write checks to him personally or write checks to cash for him to cash at the bank on a regular basis. The Controller was instructed to expense these checks to Cost of Goods Sold. Upon investigation of these transactions I uncovered where the Controller and the General Manager were colluding and defrauding the company as checks were written to the Controller signed by the General Manager as “hush money”. The owner of the company lived out of state and we not involved on a daily basis but had concern about the lack of profitability and how fast the cash was being used up. Over a 5 year period this embezzlement amount to more than $500K.
Engaged by local Legal Team for investigation of several individuals suspected of inventory embezzlement in an Aviation company. Evaluated process, procedures and internal controls surrounding inventory and consignment inventory. Traveled to consignment inventory warehouse in Texas to interview suspected individuals, document processes and observe inventory count. Found process, procedure and internal control issues locally and at the Texas warehouse and during the interview process was able to identify the individuals that alledgedly embezzled inventory. Three individuals were terminated including a senior vice president as a result of our engagement.