Real estate construction and development oversight appears to be one of the areas where demand for a highly specialized, preventive approach to regulatory compliance and fraud management is picking up.
At least one law firm is trying to stay ahead of the curb through top talent hires and a better-structured partnership with its affiliate firms.
New York-based LePatner & Associates LLP, one of the very few law firms in the nation specialized in construction law, said it is restructuring its services by enhancing its relationship with Proactive Integrity Associates LLC, an affiliated firm that provides investigative consulting, forensic, due diligence, oversight and monitoring services.
According to LePatner & Associates’ founder Barry B. LePatner, it is “well documented” that the country’s construction industry wastes over $120 billion annually “in avoidable cost overruns.”
Beyond the need to control costs related to overall construction, management and potential fraud in times of crisis, executives find it is important for owners and developers to ensure they are not forced “to bear unnecessary costs arising from improper construction management as well as the unwarranted diversion of project funding from owners," he added.
Since its creation in 1980 the law firm has leveraged real estate disputes for various clients including JPMorgan Chase, Cooper Union, Goldman Sachs, Starwood Hotels & Resorts and Colgate Development.
Responding to current market demand for specialized regulatory oversight services the firm appointed two new executives.
The firm said Joseph Jaffe and Jonathan Newcomb were hired help maximize the efficiency of the know-how in investigation, forensics and monitoring services provided by the Proactive Integrity Associates LLC team.
Upon his appointment Jaffe said, "In today's capital-constrained environment, owners must avail themselves of every available resource to ensure the legal and proper management and oversight of their construction projects."
As part of the New York-based law firm and its affiliate both executives and their team will oversee construction industry practices, construction cost management, and project management investigations on behalf of public agencies and private owners and developers.
Jaffe joined LePatner & Associates as partner. The 30-year-old firm expects to benefit from his expertise in investigative consulting, forensic litigation, and investigative due diligence, along with management experience both at the national and international level on behalf of state, federal, private entities and foreign governments.
Henry H. Korn, a senior partner at LePatner who worked with Jaffe at the Southern District of New York U.S. attorney’s office, says in his over 30 years of experience in successfully dealing with “very sensitive matters” Jaffe will bring “invaluable depth of experience and insights.”
Jaffe’s experience includes elected District Attorney of Sullivan County in New York, seven years in the United States attorney's office for the Southern District of New York as assistant United States attorney, deputy chief of the Criminal Division, chief of the Official Corruption Section, administrative assistant United States attorney and acting chief inspector for the U.S. Drug Enforcement Administration.
He is currently vice president of the International Association of the Independent Private Sector Inspectors General.
Jaffe’s new colleague Newcomb, a certified fraud examiner and a licensed private investigator, joined the firm from its affiliate Proactive Integrity Associates LLC, where he served as principal in charge of conducting and managing investigations for private and public sector clients for more than a decade. He also has experience as a senior manager in the global business intelligence and investigations practice at UHY Advisors FLVS Inc.
