Forensic Accounting Expert of the Year or arbitrator doesn’t understand them, they’re useless. I focus on explaining things clearly, using simple words and real-life examples so everyone in the courtroom can follow along. It’s also reinforced the importance of being prepared—opposing counsel will always look for ways to challenge your findings, so you need to know the evidence and your work inside and out. Can you share a memorable case that highlighted the critical role of forensic accounting in uncovering fraud or resolving a dispute? One case that stands out involved a stock loss claim made after an arson fire destroyed a business’s premises. A significant stock loss claim was made that could not be supported with physical evidence, as it was destroyed in the fire. We were provided with voluminous digital records suggesting the premises was fully stocked with inventory. However, when reviewing the business’s sales and financial statements, the inventory amount claimed did not make sense. Invoices provided supported greater sales than were reported on the business’s financial statements. It became clear that the business did not accurately report its sales and had evaded taxation on its profits. Furthermore, upon requesting details of shipping costs and documentation supporting inventory that moved through customs, we found invoices to support the shipment of many containers of inventory overseas with no reported sales. Ultimately, we could evidence that the stock loss claim was fraudulent, and the majority of the business’s inventory had been moved from the premises prior to the fire. 37 LAWYER MONTHLY EXPERT WITNESS AWARDS 2025 With over three decades in the insurance and litigation industry, what key changes have you observed in forensic accounting practices? Forensic accounting has evolved significantly, particularly in how we use technology. When I started, much of the work was done manually—spreadsheets, calculators, and stacks of paper files. Now, automation, software, and data analytics play a huge role in streamlining loss quantification and can speed up the timing of our work. Our clients are often under time pressures that we strive to accommodate while maintaining the quality of our forensic accounting work. There’s also been a shift in the legal landscape, with courts expecting a higher level of clarity and transparency in expert reports. The types of cases we work on have also expanded beyond traditional insurance cases to areas like cyber fraud and large commercial loss claims, especially post-pandemic. How has your experience as an expert witness in the Ontario Superior Court and the Financial Services Commission of Ontario shaped your approach to presenting evidence? Testifying teaches you one key lesson: simplicity wins. You can have the most airtight calculations, but if a lawyer, judge, jury, Gary Phelps CPA, CMA, CFF, CFE | Partner, Insurance Claims & Litigation Davis Martindale LLP CANADA
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