A long debated and yet unsettled nuance in the valuation of a Business Interruption Loss, the concept of Depreciation is almost as old as the accounting profession itself, yet its impact in time element losses is not widely understood. It is ubiquitous, affecting almost every engagement in Property Damage and Time Element claims, but often overlooked despite its potential material impact.
Is Depreciation a continuing cost? Is it an actual loss suffered by the insured?
Please join us as we address a concept that, even today, continues to be debated in meeting rooms, underwriting departments, and in courts around the world; a concept that challenges the very principles of insurance and indemnity.
Date: September 22th 2015
5:15 pm Registration
5.30 pm Conference
6:00 Informal discussion
Where: Malbec Room of Novecento 1414 Brickell Ave, MIAMI, FL 33131
Registration deadline: September 21th 2015 at 1:00PM. Only 40 available tickets.
To register, please send an email to: firstname.lastname@example.org
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Casual attire. Cost for this event: Free
Topic to be presented by Marcos R. López and Juan López-Santini
Mr. Marcos R. López is the manager of the Fort Lauderdale office of the forensic accounting firm QLDG – Quintana, López, Donoghue & González, LLP. From this location he has trained and worked with vastly experienced professionals since 2006.
From their Fort Lauderdale office, Mr. López and the firm primarily attend instructions in the Latin-America region. Additionally, handling instructions on matters located in North America, Europe and other international markets through this office as well.
Born in New Jersey in 1982, Mr. López has been a resident of Florida since 1995. He attended the University of Florida where he achieved his Bachelors of Science Degree in Accounting with minors in Economics and Criminology as well as his postgraduate Masters Degree in Accounting. He is a Certified Public Accountant (CPA) and is a member of the American Institute of Certified Public Accountants (AICPA) and the Florida Institute of Certified Public Accountants (FICPA).
Mr. López showed an interest in Forensic Accounting very early on, gathering experience in federal law enforcement, litigation support, investigative accounting, auditing and computer forensics before joining the team at QLDG.
Some of Mr. Lopez’ professional experience includes investigative accounting, transaction tracing, support in federal criminal investigations and reporting, evidence handling, federal & state regulatory compliance audit as well as securing, duplicating, indexing, searching and extracting data and evidence from computer systems.
Working alongside the professionals that form part of the network of offices of QLDG, Mr. López has gained further experience in the review and analysis of time element insurance claims, inventory losses, overall valuation of damages, and international litigation and dispute resolutions. He has excelled in the analysis of large & complex claims, detailed modeling and calculation of lost earnings, breach of contracts and international treaties, and damage projections for presentation to tribunals.
His experience also extends to Specie and Fidelity related claims including Cash-In-Transit and Financial Institutions which require a deep understanding of the accounting and operations in order to reconstruct and trace transactions whilst working with a high volume of transaction data.
During his career with QLDG, Mr. López has gained considerable experience across a myriad of industries including manufacturing & assembly, commercialization, retail, banking & finance, electric generation, import/export, mining & exploration, hospitality, and agriculture.
He has worked in countries throughout North, Central, and South America and Europe, many times cooperating and working alongside local experts including engineers, attorneys, adjusters and other CPAs.
Mr. López has also dealt with and participated in “rapid response teams” during catastrophic situations that require resourcefulness and swift calculation and determination of damages.
Taking full advantage of his bilingual background, Mr. López has worked together with and led teams in the determination of lost earnings and financial damages at and for entities located in the following countries:
United States of America Mexico
Puerto Rico Venezuela
Dominican Republic England
Honduras El Salvador
Due to the highly confidential nature involved in the engagements entered into, specific identification of entities, dates of incidents or reference to related litigation proceedings cannot be disclosed.
Following is an extract of some of the matters that Mr. López has addressed as a general illustration of the extent of his professional expertise acquired during his many years of experience in the forensic accounting field:
- Valuation of lost inventory and verification of extra expenses incurred in an airbag manufacturing and assembly facility;
- Determination of business interruption and inventory losses suffered in vineyards and winery operations of leaders in the vinification industry;
- Investigation of the nature of loss, reconstruction of historical transactions, and determination of amount of loss suffered due to the disappearance and shortage of cash in Cash-In-Transit operations;
- Calculation of lost earnings and modelling of market impacts due to damage of a combined cycle steam turbine used in an electric generation facility;
- Determination of lost earnings and extra expenses incurred by a nitrogen production and delivery facility;
- Calculation of damages suffered and projection of possible future damages under a breach of a Bilateral Investment Treaty for presentation to a tribunal;
- Valuation of assets and the determination of the present value of financial damages suffered due to an abandonment of a long term concession contract as presented in court;
- Litigation support and calculation of damages under a breach of a Commercial Contract
- Calculation of lost earnings, determination of lost inventory, and verification of increased cost incurred in an overlapping, multi-loss event scenario of a vertically integrated multinational manufacturing conglomerate;
- Determination of financial losses suffered due to the inaccessibility and temporary interruption of a tourism port owned by a cruise ship operator;
- Determination of the production impacts and related consequential damages to a textile plant due to the interruption of the supply of electricity from a local electric generation plant.
Mr. Juan E. López-Santini is the resident partner of the forensic accounting firm QLDG – Quintana, López, Donoghue & González, LLP office in Fort Lauderdale, Florida. From that location, the firm mainly attends instructions on the Latin-America region. In addition to this, instructions on matters located in North America, Europe and other international markets are handled by professionals out of this location.
Born in Puerto Rico in 1966, Mr. López holds a bachelors degree in Business Administration with a major in Accounting from the University of Puerto Rico. He has also taken postgraduate level courses in forensic accounting and auditing. He is Certified Public Accountant, a Certified Fraud Examiner, is Certified in Financial Forensics and is a member of the American Institute of Certified Public Accountants (AICPA), the Florida Institute of Certified Public Accountants (FICPA) and the Association of Certified Fraud Examiners.
Mr. López has conducted extensive investigative, forensic, accounting and analytical research to assist litigation, claims and other professionals in the determination of damages. He also has extensive experience in the development of detailed calculation models for the determination of lost earnings in highly complicated advanced technology industries like power generation and commercialization, telecommunications, mining and petrochemical exploration.
He has also prepared detailed reviews and analysis related to material damages and related lost earnings on mining and exploration, mass transit projects, petrochemical operations and electric power generation concerns on an international basis. Mr. López has provided expert testimony in claims related legal proceedings related to lost earnings on mass transit projects, electric generation power plants and mining operations.
He is recognized as an expert on his field and has served as expert witness in accounting, claims, damages, international treaties and insurance related matters in the United States, Europe, the Caribbean, Latin-America and at the Permanent Court of Arbitration in The Hague.
During his years on the forensic accounting field, he has also assisted insurance companies and their attorneys in insurance related litigation proceedings.
Mr. López is highly experienced on energy related and other technical fields having been involved in a multitude of electrical generation, petrochemical, mining, exploration and advanced loss of profit scenarios in addition to transportation, hospitality, manufacturing and retail related engagements. On these, he has analyzed losses in all Latin-American countries as well as in North America, the Caribbean, Europe and the Pacific.
He is very knowledgeable in computer and software packages and has prepared computer applications to help insurance companies and other claims professionals handle complex situations including calculation and payment of claims, catastrophe reports and statistics, and reserve and reinsurance databases.
He has also presented seminars in on insurance subjects for technical risks and damage analysis in the USA, the Caribbean, England and Latin-American. His knowledge of the operation of energy and exploration markets has been called upon by insurers and reinsurers in the development of insurance policies for energy related risks and for training of their claims professionals.
Mr. López has also prepared analysis and determination of damages as well as presented related expert testimony on damage, business valuation and commercial disputes outside of the realm of the insurance industry.
He is one of the founding partners of Quintana, López, Donoghue & González and works out of the partnership’s office in Fort Lauderdale, Florida from which he attends Latin America, United States, Europe, Asia and other international markets.
Before then, he was one of the founding partners of Quintana & Lewis, LLP for whom he established their office in Fort Lauderdale in 1996. Previously he worked for Matson Driscoll & Damico, CPA’s from 1988 to 1996 where he reached the manager level at both the San Juan, Puerto Rico and Fort Lauderdale, Florida offices from where he handled international instructions for that firm.
Throughout his twenty seven year experience exclusively in the forensic accounting field, Mr. López has trained for and specialized in all areas of losses and commercial insurance; in particular:
Business Interruption Property Damage
Inventory/Stock Losses Financial Condition Analysis
Environmental Cleanup Construction and Fidelity Bonds
Accounting Expert Witness Litigation Support
Experienced in the following specialized industries:
Electric Power Generation and Distribution Oil and Gas
Mass Transportation Retail and Wholesale Operations
Mining and Exploration Telecommunications
Manufacturing Hotels and Tourism
Construction Metal Processing
Food Processing and Packaging Electronics
Agriculture, Aquaculture and Livestock Pharmaceutical
Textiles and Garments Paper and Pulp
On industrial and/or commercial matters, he has been involved in the determination of values and losses in all North, Central and South American countries (except for French Guiana and the Republic of Suriname) as well as in the Caribbean, Europe, Asia and Australia.
In power generation claims, Mr. López has prepared determinations of damages on thermal (including geothermal, nuclear and fossil fueled operations), hydroelectric and wind driven power plants. On these our analysis has included the determination of potential impacts to traditional sources of revenue (sales of energy and power) and also to emerging non-traditional sources like carbon credit schemes.
He has also provided expert testimony on damages to power related enterprises, and has performed analysis of damages at generation, distribution and commercialization entities in the following countries:
United States of America Chile Guyana
Perú Argentina Micronesia
México Colombia Jamaica
Ecuador Costa Rica Brazil
Guatemala Honduras Venezuela
El Salvador Nicaragua Dominican Republic
Panamá Bolivia Puerto Rico
On mining and exploration matters, Mr. López has been directly involved on the analysis of operations located in Chile, Argentina, Colombia, Peru, Bolivia, Brasil, Venezuela, Mexico, Zambia and the United States of America.
On oil and gas operations, Mr. López has prepared analysis and calculations of damages at operations located in Chile, Perú, Colombia, Argentina, México, the United States of America (including Puerto Rico) and Venezuela.
On metal processing plants, Mr. López has performed analysis of values and damages on operations located in Argentina, Chile, Venezuela, Brasil, México and the Dominican Republic.
On loss of profits matters in general, Mr. López has formed part (usually as the leader of the analysis team) in the determination of damages at entities located in the following countries:
United States of America Chile Paraguay
Perú Argentina Haiti
México Colombia Phillipines
Ecuador Costa Rica Trinidad and Tobago
Guatemala Honduras Zambia
El Salvador Nicaragua Guyana
Panamá Bolivia Micronesia
Spain England Jamaica
Puerto Rico Dominican Republic Venezuela
Mr. López’s work is supported by QLDG’s in-house team of forensic accounting specialists which have over 20 years of experience on average.
Due to the highly confidential nature which involves the engagements entered into, specific identification of entities, dates of incidents or reference to related litigation proceedings cannot be disclosed.
Following is an extract of some of the matters that Mr. López has addressed as a general illustration of the extent of his professional expertise acquired during his 25 years of experience in the forensic accounting field:
- Determination of increased costs, lost profits and other financial damages related to breaches of contract on a barge mounted electric power plant as part of the provision of expert testimony on arbitration proceedings
- Determination of lost profits and other financial damages related to damages to a delay the startup of an electrical generation project being developed under the Clean Development Mechanism as defined on the Kyoto Protocol
- Determination of reduced production, loss mitigation options and related lost profits at a petrochemical facility due to physical damages to their facilities
- Determination of lost profits and other financial damages related to a delay in startup (advanced loss of profits) of a cogeneration scheme part of a chemical plant
- Determination of increased costs, lost profits and other financial damages related to delay in startup of power transmission lines
- Assistance to insurance underwriters and claims personnel on the development of policies to cover for business interruption risks of power plants
- Determination of damages and presentation of related expert testimony on a dispute under a bilateral trade agreement related to lost revenues and values at risk of a power plant
- Determination of lost profits and increased costs related to material damages to a gas fired combined cycle power plant
- Determination of lost profits and increased costs of a power plant and presentation of related expert testimony on subrogation proceedings against a manufacturer
- Presentation of expert testimony on accounting and insurance matters on an arbitration related to a business interruption claim at a thermal power plant
- Determination of lost profits and increased costs related to physical damages to a geothermal power generation plant
- Determination of lost profits and other financial damages related to a delay in startup at a petrochemical plant
- Determination of lost profits due to the delay in startup of a hydroelectric power plant
- Determination of lost product volumes and related impacts on profits related to malicious damages to an oil and gas pipeline
- Determination of lost profits due to the delay in startup of a wind driven power generation facility
- Determination of increased costs and other financial damages related to the supply of contaminated fuel to power generation facilities
- Determination of increased costs, lost profits and other financial damages related to breaches of contract in a mining operation
- Determination of lost profits, increased costs of operating and other financial damages related to damages to a toll road due to a catastrophic event
- Determination of lost profits and increased costs of operation related to physical damages to the equipment at a major mining operation
- Determination of lost profits related to a delay in startup in a chemical products manufacturing plant
- Determination of lost profits, calculation of loss mitigating options and accounting for repair charges related to physical damages at a siderurgical operation
- Determination of lost profits, repair costs and other financial damages related to terrorist attacks to the facilities of a petrochemical extraction entity
- Determination of fraud and related damages on a manufacturing operation including recommendations for prevention of future instances of fraud
- Determination of financial damages to a chemical operation related to an incident which caused damages to the environment
- Determination of lost profits, inventories and other financial damages to a multi-departmental retailer due to a fire at their facilities
- Determination of lost profits and other financial damages (and presentation of related expert testimony) on a breach of contract claim related to a long term multinational concession contract of a port operator