David Nolte

I am a founding principal of Fulcrum Inquiry, an accounting and economic consulting firm that performs damage analysis for commercial litigation, forensic accountings, financial investigations, and business valuations. I am a Certified Public Accountant (CPA) and an Accredited Senior Appraiser (ASA), as well as having other professional credentials. I regularly serve as an expert witness involving damages measurement. My litigation-oriented resume is on Fulcrum's website.

Most commented posts

  1. Federal health care fraud enforcement efforts recover record amounts — 2 comments
  2. Perhaps $2 Billion Owed Under Music Contracts — 1 comment
  3. Huge Patent Damage Award Reversed — 1 comment
  4. Bear Stearns’ Defendants and Deloitte Face Significant Exposure — 1 comment
  5. House votes to reduce GRATs – Act before the effective date — 1 comment

Author's posts

Disgorgement remedy potentially broadened by Second Circuit

In a sharply-divided 2-1 vote, the Second Circuit Court of Appeals found that a civil disgorgement amount can exceed the profit that the defendant received. Although the case facts and Opinion directly involved insider trading in an action brought by the Securities and Exchange Commission, the rationale could presumably be applied in other wrongful conduct. …

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Permanent link to this article: https://betweenthenumbers.net/2014/04/disgorgement-remedy-potentially-broadened-by-second-circuit/

Severance payments remain FICA taxable

On March 25, the U.S Supreme Court ruled in favor of the IRS over whether certain severance compensation is subject to payroll taxes. My prior blog post on this Sixth Circuit case is here. The Supreme Court ruled 8-0 to overturn the Sixth Circuit decision. This case would have had huge tax impact had the …

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Permanent link to this article: https://betweenthenumbers.net/2014/03/severance-payments-remain-fica-taxable/

Estate tax penalty occurs because of a lack of a professional appraisal

In Estate of Helen P. Richmond et al. vs. vs. Commissioner T.C. Memo. 2014-26, February 11, 2014, the Tax Court addressed reasonably straightforward estate tax valuation questions in a reasonably predictable manner. The additional tax imposed because of a higher valuation was not particularly surprising to me, and probably not to others who regularly practice …

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Permanent link to this article: https://betweenthenumbers.net/2014/03/estate-tax-penalty-occurs-because-of-a-lack-of-a-professional-appraisal/

An example of a proper expert exclusion under Daubert

In an unpublished opinion in re: Craig Moore vs. International Paint, L.L.C., (No. 13-30281, November 15, 2013) the Fifth Circuit upheld the District Court’s exclusion of an expert witness and the related Summary Judgment Order. The case provides a worthwhile primer on when a Daubert motion should be successful. Too often, judges go beyond the …

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Permanent link to this article: https://betweenthenumbers.net/2013/12/an-example-of-a-proper-expert-exclusion-under-daubert/

Use an independent service to help protect against California’s new $10,000 penalty for whistleblowers

Employees have protection as whistleblowers from a wide variety of federal and state laws. Effective January 1, 2014, California added SB 486 to this list of legal protections. The new California law broadens an employee’s right to pursue legal action if retaliated against for reporting suspected wrongdoing. Perhaps most importantly, the law creates a civil …

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Permanent link to this article: https://betweenthenumbers.net/2013/12/use-an-independent-service-to-help-protect-against-californias-new-10000-penalty-for-whistleblowers/

Update your buy-sell agreement as part of your end-of-year duties

Buy-sell agreements are an important business continuity tool that can assist a business in difficult transition times. Usually, the buy-sell agreement either contains a formula, or requires an annual determination of the price to be employed. All too frequently, the business owners do not revisit the formula to ensure that it remains sensible in light …

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Permanent link to this article: https://betweenthenumbers.net/2013/12/update-your-buy-sell-agreement-as-part-of-your-end-of-year-duties/

Ernst & Young gets settlement deal of the decade

E&Y just settled the Lehman Brothers class action against them for $99 million. It made little news. The 2008 Lehman Brothers bankruptcy was at least partially caused by accounting malfeasance. This article describes the bankruptcy examiner’s report on this wrongdoing. Arthur Andersen was entirely destroyed for a bad audit of Enron that was no worse …

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Permanent link to this article: https://betweenthenumbers.net/2013/12/ernst-young-gets-settlement-deal-of-the-decade/

Goodwill accounting simplified for private businesses

Last week, the Financial Accounting Standards Board (FASB) approved two exceptions in Generally Accepted Accounting Principles (GAAP) for private companies. Proponents of simplified accounting rules have suggested that private companies be exempted from certain of the more complicated and costly rules. In making these two exceptions, the FASB approved the concept that private companies can …

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Permanent link to this article: https://betweenthenumbers.net/2013/12/goodwill-accounting-simplified-for-private-businesses/

Most SEC Whistleblowers are Waiting, Probably for Good Reason

In a report required by Dodd-Frank, the Securities Exchange Commission issued its 2013 (fiscal year ended September 30) annual report. This is second full year report, thus allowing easy comparisons. A post on last year’s report appears here. The SEC continues to receive large numbers of complaints from a wide range of geographies and involving …

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Permanent link to this article: https://betweenthenumbers.net/2013/11/most-sec-whistleblowers-are-waiting-probably-for-good-reason/

Dodd-Frank Whistleblowers must file their complaint with the SEC

In a disappointing ruling, the Fifth Circuit concluded in Asadi v. G.E. Energy (No. 12-20522) that a whistleblower who does not file a complaint with the Securities Exchange Commission (SEC) is not a “whistleblower” under Dodd-Frank, and thus does not have standing to obtain the protections under this law. As directly acknowledged in the Opinion, …

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Permanent link to this article: https://betweenthenumbers.net/2013/11/dodd-frank-whistleblowers-must-file-their-complaint-with-the-sec/