DSI'S Role

Consulting Expert to the Liquidating Trustee

Services Provided

  • Expert Witness
  • Forensic Accounting


Case Highlights

  • Provided financial analysis to support allegations of breaches of fiduciary duty against directors and officers
  • Assisted counsel in developing litigation/mediation tactics to bring the matter to successful resolution

Case Narrative

DSI was retained by the Trustee of the Liquidating Trust of Vineyard National Bancorp to provide litigation consulting expertise in connection with claims focusing on the directors’ conduct as Vineyard National Bancorp’s (“VNB”) board, and the CEO and President’s conduct as a director and officer of VNB.  The two primary claims involved imprudent lending and the improper acquisition of a national bank and 1031 exchange companies without reasonable inquiry.

DSI worked closely with counsel to demonstrate a pattern of reckless behavior by the directors and officers.  Additionally, DSI provided tactical and strategic advice and attendant financial analysis during mediation sessions.  Further complicating matters was the FDIC’s position that as receiver of the bank, they were entitled to settlement proceeds.  DSI worked closely with the Trustee, FDIC, insurance carriers and defendants to craft a settlement resulting in a significant return to the estate.