Forensic Accountant's Role in High-Profile Criminal Defense

New York, July 19, 2005

Last month's acquittal of New York's hottest night club, The Sound Factory, and its owner, Richard Grant, provided an unusually high-profile view of the role of the forensic accountant in a criminal trial.

Lynn A. Mitchell, CPA, a Shareholder in the firm of Campos & Stratis, was retained by Grant's legal team to review and analyze the books, records and tax returns of the defendants and to testify at trial. During her testimony, Ms. Mitchell presented twelve charts to the jury, summarizing all aspects of the finances of the Sound Factory over a period of five years.

During his closing statement, Kevin Claffey, attorney for The Sound Factory, told the jury that "the legitimacy of a corporation is revealed through its books and records." He then invited the jury to again review Ms. Mitchell's summary charts in their deliberations. In fact, the jury did just that and requested all twelve charts while deliberating.

Both Grant and The Sound Factory were acquitted of all charges, which included providing a premises for the use and distribution of narcotics, aiding and abetting the use and distribution of narcotics, and several conspiracy counts, which could have resulted in a sentence of 40 to 100 years, plus an $18 million fine.

After the trial, Mr. Claffey pointed out that "Ms. Mitchell's testimony was so clear and concise that the government never even mentioned the testimony of its own forensic accountant during closing." He also stated, "In all my years of practice, I have never worked with a more professional and prepared expert than Ms. Mitchell. Her rapport with the jury was extraordinary." Mr. Grant was represented at trial by Camille M. Abate of New York's Abate & Preuss.

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