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April 2020's Converge Newsletter
Forensic Focus on COVID-19:
Financial Statement Fraud
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April 18, 2020 via ConvergeBlog
The coronavirus disease (COVID-19) outbreak has quickly advanced on a global scale and responses to it continue to rapidly evolve. The financial impact of COVID-19 will likely put enormous pressure on corporations’ financial results and present potential challenges for individual employees. This pressure may increase the temptation for individuals to engage in improper acts in order to address their immediate financial needs or resort to financial statement manipulation to meet stakeholder expectations.

For some, as these financial pressures mount, the line separating acceptable from unacceptable behavior can become blurred. At the same time, controls such as segregation of duties may be weakened due to work force displacement or distraction. Organizations need to be sensitive to the pressures that could result in financial statement manipulations at the corporate or operating subsidiary level. Further, management should recognize that the environment created by adverse events such as COVID-19 could lead to increased fraud by employees (e.g., asset misappropriation or bonus maximization schemes).

Deloitte's ConvergeBlog
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Key Considerations for a Hotel Contemplating to House Healthcare Workers And/Or Transitioning into a Temporary Healthcare Facility

April 2, 2020 via ConvergeBlog
At this time hotels seem to be one of the preferred asset types with the most rapid potential to be converted or adapted to temporarily serve at some capacity as a medical facility. Hotel owners / operators would need to consider a few things.
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Eminent Domain, Police Power and Pandemics: When Does the Government Have to Pay?

April 15, 2020 via Holland & Knight

But the line between eminent domain and the exercise of police power starts to blur in connection with pandemic orders. Whereas eminent domain involves the taking of property for public use, the police power involves regulating the use of property to prevent harm to the public interest.
Holland & Knight
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Hotel Closures Due to COVID-19: What to Consider
April 20, 2020 via Hospitality Net

As social distancing is becoming the new normal, airlines cancel flights and state and local governments impose travel restrictions and institute quarantines, many hotels are dealing with unprecedented turmoil and are confronting a decision that was unthinkable just a few weeks ago - whether to shut down.

Hotel closures raise many issues and need to be implemented carefully to avoid creating additional adverse consequences.
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