David Liu

Associate Director



David is an associate director of the JLA Asia forensic team specializing in forensic accounting investigation, fraud investigation and litigation support services.

David specializes in forensic accounting investigation, fraud investigation and litigation support services. Prior to joining JLA Asia, David had been involved in various financial due diligence assignments both in Hong Kong and the PRC, as well as several administrations including court liquidations, creditors’ voluntary liquidations, members’ voluntary liquidations and receiverships in the specialists advisory department of an international accounting firm. Before that, David worked in a bank in the PRC and was responsible to handle corporate banking, international settlement and foreign exchange transactions.

David has also worked on several Court appointed administrations pursuant to the Securities & Futures Ordinance. Following the appointment of JLA as administrators of a segregated portfolio company, which in operation is an umbrella fund holding various sub-funds, and three other associated companies, David has been involved in conducting fund / asset tracing exercises by reviewing and analyzing previous trading records and major transactions entered into by the directors of these companies.

David has also been engaged in matrimonial cases, business valuations and various litigation support assignments including tracing dissipated assets, investigating accounting transactions / misappropriation of funds, assisting in preparation of expert reports for trial and providing assistance to counsel and solicitors in the Court proceedings both during pre-trial and trial. In addition, he has been involved in several financial due diligence assignments and has assisted clients with damage calculations, asset tracing, internal reviews and the financial analysis of companies.

David’s extensive experience in the various engagements covers clients involved in diverse industries such as, bus companies, government agencies, logistics, manufacturing (e.g. dentist equipment, health supplements, iron ore, paper products, etc.), natural gas suppliers, wholesale and retailing, securities broking and sewage treatment plants.

David is fluent in English and Chinese (Cantonese and Putonghua).

Recent Engagements

LITIGATION AGAINST NON-EXEC DIRECTOR OF ONE OF THE WORLD’S LARGEST OPTICAL MANUFACTURERS

Litigation Support
In High Court Proceedings in relation to Claims against a Former Non-executive Director by one of the World’s Largest Optical Manufacturers (a Hong Kong Listed Company, but is now in liquidation), David

  • Assisted the lawyers acting for the Defendant in the High Court Proceedings in relation to claims against the Defendant involving allegations of breaches of duties as a director and accounting irregularities of the Hong Kong listed company and its PRC subsidiaries identified by the Liquidators; and
  • Conducted forensic review into allegations of accounting irregularities including falsification of sales, purchases, expenses and trade finance fraud identified by the Liquidators

QUANTIFICATION OF LOSSES IN RELATION TO LIABILITY ISSUES

Litigation Support
Quantum of Loss
In High Court Proceedings in relation to an Acquisition of a Hong Kong Listed Company’s shares from the Founder / Major Shareholder (the Seller) by another Hong Kong Listed Company (the Purchaser), David

  • Assisted the lawyers acting for the Purchaser in the High Court Proceedings in relation to counterclaims against the Seller;
  • Conducted a forensic investigation into the alleged breaches of the sale and purchase agreements in relation to the liability issues (e.g. undisclosed transactions, undisclosed litigations, failure to maintain proper accounts / records and misstatements in the target company’s PRC subsidiaries, etc.); and
  • Assessed the quantum of losses in relation to the liability issues (i.e. approximately RMB238 million of the total estimated losses and approximately RMB270 million of total potential future claims)


MISAPPROPRIATION OF FUNDS

Litigation Support
Corporate Investigations
Misappropriation of funds by a staff member of an Outdoor / Sports Gear Company with over 100 PRC Outlets. David,

  • Conducted a forensic investigation into the alleged misappropriation of funds by a staff in the Beijing office to determine how the fraud had been conducted and quantify the funds misappropriated; and
  • Conducted a computer forensic review of the staff members’ computers in the accounting and finance department of the Beijing office (through the use of our in-house forensic technology tools) to identify the staff members who were involved in the scam


SFC, DOJ AND POLICE MATTERS

Litigation Support
Investigations
Anti-money Laundering

  • Assist the Department of Justice and the Hong Kong Police in relation to the money laundering;
  • Conduct an anti-money laundering investigation on the combined deposit and withdrawal transactions totaling approximately HK$3.4 billion in 23 bank accounts of (i) the Defendant, (ii) a company [solely owned by the Defendant’s husband who was arrested and convicted in the PRC for pyramid selling activities] and (iii) a staff member

Damages claimed in relation to the Government Contracts

  • Assessed the quantum of losses suffered by the Hong Kong Government for separate DOJ assignments involved claims against the respective contractors for breach of contracts in excess of HK$98 million and HK$120 million

Claims against a Bank in relation to the Accumulator Contracts and Decumulator Contracts

  • Assess the quantum of losses suffered by an individual in relation to the accumulator contracts and decumulator contracts with total estimated losses of approximately HK$178 million

Financial Review of a PRC Manufacturer

  • Review the cash flows and profitability of a PRC manufacturer of iron and steel in Shanxi with monthly revenue of approximately RMB500 million


PRC LOGISTICS COMPANY SPA DISPUTE

Arbitration
David assisted the lawyers acting for the Respondents in an arbitration proceedings in relation to an acquisition of a PRC logistic company by a US listed corporation involving allegations of fraudulent revenue and assets in the PRC companies’ books and records which inflated the value of the company