SOURCE: LECG

August 11, 2008 16:56 ET

LECG Adds 16-Member Group to Its Finance and Accounting Services Practice

Group Joins From Financial Advisory and Litigation Consulting Practice of Aon Consulting, Brings Stellar Credentials and Experience in Forensic Accounting, Corporate Investigations, Auditing and Litigation Consulting; Professionals Split Largely Between LECG's New York and Houston Offices -- Includes Five Managing Directors, Five Directors, and Three Principals

NEW YORK, NY and HOUSTON, TX--(Marketwire - August 11, 2008) - In a major infusion of audit, investigative, and litigation consulting talent to its ranks, global expert services firm LECG (NASDAQ: XPRT) announced that it has hired a group of 16 experienced professionals formerly with the financial advisory and litigation consulting services practice of Aon Consulting.

The group is largely split between LECG's growing New York and Houston offices. They are led by Roger Siefert, who was one of the co-global practice leaders of the Aon FAS practice, and also served as an Aon executive vice president since 2006.

A certified public accountant, Mr. Siefert has had an accomplished career in forensic accounting, public company auditing, and litigation consulting, including a major role in the investigation of the Enron bankruptcy. Prior to Aon, Mr. Siefert was the North American leader of the forensic and litigation consulting group at investigative firm Kroll International; he previously had been a partner at Deloitte & Touche, where he spent nearly 20 years and led Deloitte's East Coast securities litigation practice and also worked in the office of the general counsel. "Based on his experience directing scores of major forensic and financial fraud investigations, and as a frequent expert witness in high-profile securities, fraud, and other cases, we anticipate that Mr. Siefert will play a critical role in elevating the practice and expanding the service offerings to our East Coast clients. A strong presence on the East Coast will complement our thriving practice on the West Coast with strongholds in San Diego, Los Angeles, and San Francisco under the leadership of Cary Mack, Joe Anastasi and Ed Westerman," said Richard Boulton, head of LECG's finance and accounting services (FAS) segment.

"We are delighted to welcome such a powerhouse group into the firm. They bring stellar accomplishments and credentials in a number of important disciplines," said LECG Chief Executive Officer Michael Jeffery. "Their collaborative skill set and experience tracks extremely well with our FAS group, some of whom have worked with Mr. Siefert and others in previous companies -- we expect them to integrate quickly and to contribute to our future growth."

"These professionals continue our momentum in building a world-class forensic accounting and investigation practice and give us a stronger presence in the strategic New York and Texas markets," Mr. Boulton added. "Their addition further positions LECG to take on large-scale forensic investigations and litigation assignments tied to the credit crisis and ongoing wave of sub-prime related litigation."

Joining Mr. Siefert as managing director in the New York office is Mark Winston, a former federal prosecutor who spent 14 years investigating and trying major financial fraud and other white-collar crimes while an assistant US attorney in New Jersey. Prior to working at Aon, Mr. Winston was a litigation partner for Baker McKenzie, handling white-collar criminal matters, internal investigations and complex civil trials. In addition to his expertise in financial crime -- including money laundering, bank fraud, securities and healthcare fraud -- Mr. Winston has extensive experience in environmental matters. He is a former vice-chair of the International Criminal Law Committee of the American Bar Association.

Also arriving to LECG as a managing director in New York is Vijay S. Sampath. A certified public accountant, Mr. Sampath specializes in forensic and fraud investigations, purchase price disputes, and investigations alleging violations of the Foreign Corrupt Practices Act, as well as accounting irregularities and malpractice. Before working at Aon, Mr. Sampath was senior director in the FAS practice of an international consulting firm, and previously a senior manager of forensic and dispute services at Deloitte & Touche. Mr. Sampath has also served as CFO and director of finance for several medical services companies. As a litigation consultant, Mr. Sampath has worked with clients in retail, manufacturing, financial services, healthcare, technology, and media/publishing, among other industries.

LECG's Houston office will be led by managing director K. Scott Van Meter. Mr. Van Meter is an attorney and a CPA, as well as a certified insolvency and restructuring advisor, with rare combined experience as a civil litigator and bankruptcy lawyer who has also audited public companies and performed accounting services. As a litigation consultant, Mr. Van Meter has managed large-scale assignments and testified as an expert in matters ranging from bankruptcy and solvency to antitrust, accounting malpractice, directors & officers malfeasance and economic damages. He has appeared in federal and state courts working on large class actions as well as multi-district litigation. Mr. Van Meter is a member of the American Bankruptcy Institute, as well as the Association of Insolvency and Restructuring Advisors and the Turnaround Management Association.

Brad Baturka becomes a managing director in LECG's Wayne, Pa., office. Mr. Baturka gained more than 20 years of experience in accounting, auditing, and finance at Deloitte & Touche, and later served as CFO of a GE Capital/Penske Capital portfolio company. As a managing director at consulting firm Reynolds & Reynolds, he directed consulting services beyond North America and served as finance director of the services and CRM technology practices. He also was a director in the forensic accounting and litigation consulting practice of another international consulting firm. Mr. Baturka's work has dealt with a broad array of corporate transactional matters, particularly involving M&As, and includes substantial work in financial investigations and dealings with GAAP and GAAS.

"The addition of this group strengthens our New York presence enormously," said Chris Osborne, managing director of the New York office. Mr. Osborne, who until recently was LECG's European managing director and led the firm's highly successful London office, is focused on replicating that success in New York. "We have tremendous potential for making New York a true flagship office for LECG -- the work is there and we have the talent, the skill set and the track record to perform large engagements with our law firm, corporate and institutional clients," Mr. Osborne explained.

LECG's FAS head Mr. Boulton noted the gain that comes with acquiring such a large group of professionals who've worked together for years. "We know that many of our competitors were pursuing this team for their outstanding investigative and analytical skills and experience," he said. "We are gratified that they decided to join LECG and lend their collective expertise to our finance and accounting services practice."

LECG Revised 2008 Fiscal Year Outlook

For the full year 2008, the company anticipates revenues will still be slightly above our first half of the year revenues and our second half earnings will be modestly below our first half earnings as the team integrates and ramps up its revenues and profit contributions.

FAS Segment Largest Unit of LECG

In coming to LECG, the group joins a recently restructured FAS practice that is now the largest segment of the firm and includes such disciplines as damages and intellectual property consulting, electronic discovery, financial services, forensic accounting, and healthcare. Marking its 20th anniversary, LECG is one of the world's leading litigation advisors whose professionals frequently serve as experts in high-stakes securities, IP, antitrust, employment, healthcare, and other types of disputes.

"It's true that many of us have worked with a number of LECG professionals from our prior days at Big 4 and other consulting firms, so there was an automatic comfort level of reuniting with former colleagues whose work and credentials we trust," Mr. Siefert said.

"More importantly, LECG has established itself among the world's elite litigation consultants and expert services firms, with an extraordinary client base among leading law firms, corporations, government agencies and institutions and associations," he added. "The firm is committed to growing a broad offering of financial advisory services and I hope I speak for all of us in saying we couldn't be happier at the opportunity to help LECG take its FAS practice to the next level."

Below are backgrounds for the other professionals in the group joining from Aon:

New York Office

--  Michael K. Archibald, Senior Consultant - Since beginning his career
    at Deloitte & Touche, Mr. Archibald has worked on financial advisory,
    auditing, and public accounting projects for companies in the energy,
    commercial banking, retail, and financial services industries.
    
--  Jamal Ahmad, Principal - Mr. Ahmad, a lawyer and certified public
    accountant, specializes in forensic accounting in cases of potential fraud,
    and litigation consulting in white-collar crime matters with extensive
    experience as well in investigating Foreign Corrupt Practices Act
    violations.
    
--  Dorothee Grubert-Arndt, Senior Consultant - Ms. Grubert-Arndt is a
    licensed certified fraud examiner whose background in business intelligence
    and forensic accounting includes international fraud investigations in both
    the U.S. and Germany, as well as Sarbanes-Oxley Section 404
    implementations.
    
--  Michael Mager, Senior Consultant - Mr. Mager began his career in
    Deloitte & Touche's assurance and advisory practice, before becoming a
    senior director in the dispute consulting practice. He has conducted
    financial analyses and advised on GAAP and GAAS in the financial services,
    insurance, and energy industries.
    
--  Mary J. Kreidell, Director - A CPA and certified fraud examiner, Ms.
    Kreidell formerly directed the forensic accounting and litigation
    consulting practices at an international consulting firm, as well as served
    as CFO of a holding company and as interim president of four of its
    subsidiaries.
    
--  Gareth Lea, Director - Mr. Lea has extensive accounting and consulting
    experience, notably in fraud investigations, civil and criminal cases, and
    financial matters. He has worked in China and India and throughout Asia,
    often with SEC registrants to ensure compliance with U.S. GAAP and GAAS
    standards.
    
--  Scott M. Richter, Director - Mr. Richter, a CPA and CPE, has held high-
    level finance positions at two of the largest advertising agencies, the
    Interpublic Group and McCann-Erickson Worldwide, after beginning his career
    at PricewaterhouseCoopers, advising multinational entertainment, media, and
    IS companies.
    

Houston Office

--  Ron E. Baker, Director - Mr. Baker, a certified public accountant,
    specializes in forensic accounting and insolvency issues, and was involved
    in more than 100 transactions related to the Enron bankruptcy. He has
    extensive experience in M&As and litigation support related to fraud,
    accounting, and bankruptcy issues.
    
--  Walter A. Storie, Director - Mr. Storie is an auditor and financial
    consultant with extensive experience dealing with distressed companies,
    Chapter 11 matters, and bankruptcy litigation. He guided one company
    through bankruptcy as interim CFO, and has advised and given expert
    testimony in complex commercial litigation.
    
--  Charles A. Philpott, Principal - Mr. Philpott, a CPA specializing in
    financial analysis and reporting, managed the entire data collection and
    analysis efforts connected with the litigation that followed the Enron
    bankruptcy. He has done substantial analysis and accounting investigations
    in connection with state and federal litigation.
    
--  Kevin J. Townsend, Principal - A certified insolvency and
    restructuring adviser (CIRA) and former CFO and COO with several
    companies, Mr. Townsend advises individual clients and companies in
    commercial litigation, bankruptcy, fraud, and white-collar matters,
    including senior Enron executives during its bankruptcy. As CFO, he
    oversaw the roll-up of a fragmented niche within the mortgage servicing
    business, which led to the creation of a $10.5 billion servicing
    portfolio of FHA-insured, multi-family project loans.
    

LECG's New York forensic accounting practice will be co-led by Roger Siefert and Ken Yormark, another recent managing director hire, who was previously head of financial investigations at Protiviti and who had worked with Mr. Siefert and others during a prior stint at Kroll International. The incoming group to LECG includes five managing directors, five directors, three principals, and three senior consultants, plus a marketing manager and administrative staff. These new hires will build on the firm's momentum of adding top talent to the New York office such as the recent additions of electronic discovery and computer forensics experts Kenneth Leissler and Joel Wuesthoff and forensic accounting and investigative consultant Peter Kyviakidis.

About LECG

LECG, a global expert services firm with approximately 800 experts and professionals in 30 offices around the world, provides independent expert testimony, original authoritative studies, and strategic advisory services to clients including Fortune Global 500 corporations, major law firms, and local, state, and federal governments and agencies worldwide. LECG's highly credentialed experts and professional staff conduct economic and financial analyses to provide objective opinions and advice regarding complex disputes and inform legislative, judicial, regulatory, and business decision makers. LECG's experts are renowned academics, former senior government officials, experienced industry leaders, and seasoned consultants. (NASDAQ: XPRT). For more information, go to www.lecg.com.

Statements in this press release concerning the future business, operating and financial condition of the company, including expectations regarding revenues and net income for 2008, and statements using the terms "believes," "expects," "will," "could," "plans," "anticipates," "estimates," "predicts," "intends," "potential," "continue," "should," "may," or the negative of these terms or similar expressions are "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon management's current expectations. These statements are subject to risks and uncertainties that may cause actual results to differ materially from those expectations. Risks that may effect actual performance include dependence on key personnel, the cost and contribution of acquisitions, risks inherent in international operations, management of professional staff, dependence on growth of the company's service offerings, the company's ability to integrate new experts successfully, intense competition, and potential professional liability. Further information on these and other potential risk factors that could affect the company's financial results is included in the company's filings with the Securities and Exchange Commission. The company undertakes no obligation to update any of its forward-looking statements after the date of this press release.

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