How We Help
Identify & Assess
Compliance & Risk Assessments
StoneTurn assists companies and counsel to identify and mitigate risks related to customers, employees, and third parties; test compliance controls; and prevent recurrence of misconduct by identifying root causes and implementing corrective measures.
A large mutual fund company engaged StoneTurn to determine if traders misused certain cash accounts. We interviewed multiple employees, reviewed accounting records, and performed data analytics to identify potential anomalies in the timing, amounts and nature of cash transactions. Our work allowed the company to correct the accounting issue, as well as to implement internal controls and compliance procedures to prevent future issues.
StoneTurn’s experts evaluate, format and structure large amounts of information from multiple structured and unstructured data sources to help our clients understand relationships, trends and outliers.
A large broker-dealer engaged StoneTurn to review customer accounts for excess trades aimed at increasing fees and commissions for an adviser. Our team conducted data analytics on multiple years of detailed trading records and used data visualization techniques to identify problematic trading patterns.
StoneTurn and its experts can assess pricing methodologies for reasonableness and consistency, analyze pricing for variability, outliers, and other indicators of risk, as well as review operational processes, internal controls and training governing pricing procedures.
The DOJ engaged StoneTurn to review and assess three separate third-party valuation reports provided in support of a prior transaction involving certain investments facilitated by the Small Business Administration. The assessment included an analysis of the conclusion of value, supporting analyses, underlying assumptions, and application of generally accepted business valuation standards.
Investigate & Evaluate
StoneTurn’s experienced professionals have helped companies around the world to access the complex issues surrounding anti-corruption risk management, internal controls, compliance and training. In addition, along with our experienced forensic accountants, we conduct robust investigations of allegations of bribery and other corrupt practices.
A multinational commodities broker looked to StoneTurn to investigate whistleblower allegations of bribery of foreign officials by its foreign employees. We reviewed company records to determine whether employees made payments to expedite shipments of commodities into foreign countries.
Our professionals have experience in conducting internal investigations at financial services companies, including allegations raised by whistleblowers and concerns raised by regulators. We have conducted hundreds of internal reviews covering a wide range of topics, including money laundering, market abuse, whistle blower allegations and third-party misconduct.
StoneTurn assisted counsel to a large financial services corporation with an investigation of alleged asset misappropriation and breach of fiduciary duty claims involving the management of assets under a corporate benefit plan. We traced the flow of funds between the plan sponsor, related employee benefit plans, individuals and multiple shell corporations set up as part of the scheme. We analyzed banking, insurance and brokerage records, reviewed company and benefit plan financials, and performed data modeling for related entities. We also assisted the company in identifying the improper conduct and recommend remedial action.
Government Inquiries & Regulatory Exams
We are experienced in helping companies and counsel prepare for and navigate government inquiries, regulatory exams and responses.
Counsel to a hedge fund engaged StoneTurn to assist in an SEC investigation of “spoofing,” (a high volume of “bid / pull” trades to intended to inflate prices). We designed and developed procedures to review all buy, sell and offer transactions over a 30-month period, including hundreds of thousands of transactions. StoneTurn prepared models to identify potential spoofing cycles and determined the impact on the fund. In addition, our experts conducted analyses on allegations of artificial inflation of fund assets at quarter-end that boosted fund values as reported to investors.
Remediate & Monitor
StoneTurn’s Compliance & Monitoring team has worked with organizations to remediate compliance programs after misconduct is discovered and to establish effective internal controls to ensure wrongdoing does not recur. We also serve as a court- or government-appointed monitor to oversee and assess remediation efforts.
StoneTurn serves as the DOJ-appointed Independent Compliance and Business Ethics Monitor to a top European investment bank. Our team of banking, compliance and risks and controls experts is assessing design and testing the operating effectiveness of the bank’s ethics program and controls to prevent and detect fraud and antitrust violations.