Kevin P. Clancy, CPA, J.D., CIRA, CFF
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Functional Expertise
Kevin P. Clancy is a partner and co-practice leader of the Business Investigation Services Practice at J.H. Cohn LLP, where he provides financial advisory and litigation support services specializing in the areas of bankruptcy, debt restructuring, and investigative and forensic accounting. In this role, he engages in the financial and economic analysis of insolvent and troubled companies, provides advice in crisis and turnaround situations, counsels purchasers in the acquisition of assets within the bankruptcy arena, and provides expert advice to parties in both civil and criminal litigation matters.
Mr. Clancy has been involved in dozens of complex forensic accounting and financial investigatory matters. He has represented various official committees in bankruptcy proceedings including unsecured creditors, reclamation creditors, and asbestos property damage creditors. He has been qualified and testified as an expert in numerous bankruptcy courts throughout the United States as well as state courts.
Mr. Clancy has represented court appointed trustees, receivers, and examiners and has been involved in a large number of high-profile cases, including TOUSA, Yellowstone, Ginn/St. Lucie, Chemtura, Fleming Foods, Federal Mogul, Pittsburgh Corning, Wall Street Deli, ICH (Arby’s), Enron, and WorldCom. He has written articles on bankruptcy related topics and financial fraud issues, and has spoken before various professional organizations.
With an expertise in healthcare insolvency matters, Mr. Clancy has been involved in some of the most complex bankruptcies and restructuring cases in the industry, dealing with such issues as health insurance fraud investigations, sale-leaseback transactions, and bankruptcy remote vehicles. He also has significant experience in the Healthcare, Financial Services, Telecommunications, Distribution, and Real Estate Development industries. Additionally, he has more than 15 years of accounting and financial experience in both national and regional public accounting firms, as well as the private sector.
Mr. Clancy is a member of the American Institute of Certified Public Accountants, the New Jersey Society of Certified Public Accountants, the American Bankruptcy Institute (Healthcare Committee), the Association of Insolvency and Restructuring Advisors (Board member), the American Bar Association, and the Maryland Bar Association.
Experience Highlights
- J.H. Cohn served as financial advisors to the U.S. Court Bankruptcy Court-appointed Examiner in the WorldCom bankruptcy proceedings, one of the largest bankruptcies in U.S. history.
Mr. Clancy led the forensic team investigating the assets and investments related to the Company’s CEO; assisted the Examiner in investigating the relationships and inherent conflicts that existed between the Company and the Wall Street investment banking firms that not only provided transactional financial advisory services to the telecom carrier, but also covered the Company through their analyst reports. Our findings included the following: WorldCom’s CEO breached his duties of loyalty and good faith by awarding investment banking work to a Wall Street firm in return for disproportionate allocations of IPO and secondary shares, thus placing his own interests above those of the Company; the same Wall Street firm aided and abetted the CEO by awarding the shares; the CEO sought and received loans from the Company with interest rates far below those that were commercially reasonable at the time; the CEO violated the terms of his separation agreement by defaulting on over $400 million in loans from the Company.
- J.H. Cohn was the financial advisor to the Committee of Reclamation Creditors and the Reclamation Creditors Trust in the Fleming Companies bankruptcy case. Fleming was one of the largest distributors of consumable goods in the U.S., which supplied food, food related, and general merchandise products to approximately 45,000 retail locations. This was the first case in U.S. bankruptcy history where an official committee of reclamation creditors was appointed. Collectively, the reclamation creditors had asserted claims against the Company of almost $250 million. The Reclamation Creditors Trust had the primary obligation of satisfying all reclamation claims asserted against the Company. The resources utilized to pay these claims were derived from the reclamation creditors themselves through the recovery of preference actions, creditor obligations owed to Fleming and miscellaneous actions the Company may have had against the reclamation creditors.
- J.H. Cohn provided financial advisory services to the Unsecured Creditors Committee of TOUSA, a major home builder. We assisted the Committee in reviewing and analyzing the Debtors’ business plan and transactions regarding real estate assets and investments. The Firm also advised the Committee as to plan negotiations and provided forensic accounting services related to pending litigation.
- J.H. Cohn's collateral examination of Impath, a medical testing provider, resulted in the detection of fraudulent billing practices and the overstatement of accounts receivable reported in the Bank’s borrowing bases. Our procedures precipitated criminal and civil investigations asserted by the SEC and other authorities.
- The Firm’s assignment with University of Medicine and Dentistry of New Jersey (UMDNJ), the nation's largest free-standing public health sciences university, began as part of the Deferred Prosecution Agreement (“DPA”) between the university and the Department of Justice. The Federal Monitor retained J.H. Cohn to assist him in fulfilling his role. In our capacity as healthcare advisors and forensic accountants to UMDNJ, we performed cost report and system reviews, billing and coding compliance reviews, and also provided guidance on certain aspects of the procurement process.
- J.H. Cohn participated in the forensic analysis in connection with the largest insurance fraud case in New Jersey’s history involving National Premium Financing Services. The Firm’s analysis uncovered a scheme whereby an insurance company’s management was grossly overstating the value of its eligible collateral (i.e. insurance policies).
Accreditations
Certified Public Accountant, New Jersey, 2006
Certified Public Accountant, Maryland, 1993
Maryland State Bar Association, 1995
Certified Insolvency and Restructuring Advisor, 2001
Certified in Financial Forensics, 2008
Education
Juris Doctor, Catholic University of America, Washington, D.C., 1994
Bachelor of Science, Accounting, Catholic University of America, Washington, D.C., 1990