Larry W. Schaedel, CPA, CFE
Managing Principal
Equitable Advisory Services, LLC
350 West Hubbard Street, Suite 210
Chicago, Illinois 60654
email Larryschaedel@equitableadvisory.com
Phone (312) 806-4729
Summary of Experience
Larry Schaedel is a Certified Public Accountant, a Certified Fraud Examiner and the Managing Principal of Equitable Advisory Services, LLC (EAS), an accounting and business advisory firm that specializes in providing construction advisory services related to construction projects, programs and disputes. Mr. Schaedel has over 30 years of forensic accounting experience focusing on the review and assessment of adherence to the financial, performance and compliance terms and conditions of construction, construction management and other professional services contracts. Mr. Schaedel is also highly trained and experienced in providing services related to the investigation and detection of fraud and fraudulent activities.
As Managing Principal for EAS, Mr. Schaedel is responsible for the management, oversight and performance of Equitable Advisory Services, LLC’s construction advisory, construction cost review, dispute advisory and forensic accounting engagements. In his role for EAS, Mr. Schaedel also manages and oversees EAS dispute and damage analysis engagements, serves as a consulting expert, and provides expert testimony in litigation matters. Mr. Schaedel also manages forensic accounting and investigative engagements focused on the detection, documentation and quantification of damages resulting from fraud, fraudulent conveyances, embezzlement, and misappropriation of assets, concealment, and other types of fraudulent activities.
From 1988 through July 2015, Mr. Schaedel was a Partner, or employee, of RSM US LLP or its predecessors (RSM). During these years, Mr. Schaedel worked within the Financial Advisory Services (Litigation) Practice, was the National Lead of McGladrey’s Contract Compliance Services and was the Great Lakes Regional Leader of McGladrey’s Construction Cost Review and Advisory Services practice. While at RSM, Mr. Schaedel performed in excess of one thousand construction contract and cost review, construction dispute and other construction advisory services engagements. During these years, Mr. Schaedel also assisted clients by performing project and program risk assessments, project and program audits, establishing construction and capital programs and by establishing construction management controls, processes and procedures for construction programs and projects.
Throughout his career, Mr. Schaedel has regularly provided services related to matters both, outside of, and within, the context of litigation or dispute. Throughout his career, Mr. Schaedel has also routinely provided services to private and public sector clients involved in various disputes, defalcations or other civil or criminal matters.
Prior to joining RSM, Mr. Schaedel was a Supervisor with the accounting firm of Matson Driscoll and Damico and specialized in the calculation of losses covered under property damage, business income and surety and fidelity insurance contracts for the property and casualty insurance carriers. Within this role, Mr. Schaedel focused on calculating losses based upon property damage, lost profits, extra expenses and expenses to reduce loss. Prior to joining Matson Driscoll & Damico, Mr. Schaedel prepared financial projections, performed financial analysis, and performed general accounting and auditing functions for Fortune 500 company, Chicago Pneumatic Tool Company.
Construction Cost Review, Dispute and Advisory Service Experience
Examples of assignments for which Mr. Schaedel has served as a consulting or testifying expert and/or engagement lead focusing on the review of construction costs, construction claims, adherence to contract terms, performance, disputes or the detection and quantification of fraud (and other types white collar crime) for the following various industries, include the following projects:
Higher Education and School Construction Project Experience
University of Connecticut, UConn 2000 Construction Program, Storrs, Connecticut – An audit and agreed upon procedures of “named” projects and deferred capital maintenance projects in excess of $500,000 completed by The University of Connecticut, through their UConn 2000 Construction Program over a five-year period ended in 2016. Scope of work included over 200 projects completed, or in process, over a four-year contract term.
University of North Texas, New Student Union, Denton, Texas - The review of costs incurred to demolish, expand and construct a New Student Union Building located on the UNT’s Denton, Texas campus. The project consisted of the demolition of the existing structure down to the superstructure and the expansion of space of approximately two and a half times the existing square footage. The scope of work consisted of the review and verification of approximately $85 million dollars of hard construction costs, submitted by a national contractor, incurred over an approximately 24-month period.
George Mason University, New Student Housing, Fairfax, Virginia – The Review of approximately $22 million of construction project related to the construction of a new student apartment and retail building being constructed George Mason University located in Virginia. Review focused on identifying the causation and quantifying the amount of cost over runs incurred over an anticipated $13 million project budget.
University House Student Housing Project, Georgia Technical Institute, Atlanta, Georgia – The review of construction costs arising from the construction of an $85 million, 19 floor, luxury student apartment building located in Midtown Atlanta, Georgia.
Chicago Board of Education Capital Program Review, Chicago, Illinois – Performed an organizational and process review of Chicago Public Schools existing capital program structure in place to facilitate, manage and oversee CPS’ capital construction projects. The review included recommendations for the structural and process changes to CPS’ existing capital program.
Chicago Board of Education/Chicago Public Schools, Construction Cost Review of New School and Addition Costs, Chicago, Illinois – The review and analysis of project management, construction management, general contractor, specific project, change order and other construction costs incurred by the Chicago Public Schools within their Capital Improvements Program over a 4-year period. Work included the review of approximately $1 billion of construction costs incurred by the Program Manager, Construction Managers, Property Advisors, general contractors, contractors and subcontractors. Contract costs were initiated under Fixed Price/Lump Sum, Cost Plus/GMP, T & M and contracting methods.
Health Care and Hospital Construction Project Experience
Rush University Medical Center Phase I Construction, Chicago, Illinois – The review of approximately $100 million of Phase I Demolition, excavation, foundation, steel and superstructure construction costs incurred under a Fixed price/Lump Sum Contract and arising from the construction of the Rush University Medical Center located in Chicago, Illinois.
University of Chicago Medical Center, Chicago, Illinois – The review of approximately 557 change orders executed as a result of construction of the new University of Chicago Medical Center building being built for the University of Chicago located in Chicago, Illinois.
Gillette Children’s Specialty Hospital, Minneapolis, Minnesota - The review of costs and determination of amounts in excess of contract terms related to the construction of a $21 million hospital building located in Minneapolis, Minnesota.
Rush University Medical Center Phase II Construction, Chicago, Illinois - The review of approximately $200 million of Phase II exterior envelope, glazing and mechanical systems construction costs arising from the construction of the Rush University Medical Center located in Chicago, Illinois.
University of Connecticut Medical Center, University of Connecticut, Stoors, Connecticut – Performed an Audit and Agreed Upon Procedures on the University of Connecticut’s approximately $500 million of construction costs arising from the construction of the University’s New Medical Center.
Transportation Construction Project Experience
Colorado Department of Transportation, Denver, Colorado - Concession contract monitoring services related to a public private partnership entered into by the Colorado Department of Transportation related to monitoring the Concessionaire’s adherence and performance under a fifty (50) year concession agreement to construct, operate and manage toll operations of the I25 / US 30 Managed Lanes located between Denver, Colorado and Boulder, Colorado. Construction costs for the project exceeded $570 million obtained from Federal and State funding sources. The scope of work included developing and performing Concessionaire monitoring services focused on compliance to agreement terms and conditions as well as developing performance measures against which to monitor Concessionaire performance for the subsequent 50 years.
Chicago Department of Transportation, Chicago, Illinois - The review of approximately 350 federal, state and locally funded transportation construction projects funded through the Illinois Department of Transportation and managed by the Chicago Department of Transportation.
Illinois Department of Transportation, Springfield, Illinois - A review of approximately 80 State funded highway and bridge construction projects funded and managed by the Illinois Department of Transportation. The reviews typically included a review of contract costs and quantities, as well as, a review of adherence to IDOT’s project management process, procedures and controls.
Northeast Illinois Commuter Rail System (METRA), Chicago, Illinois - Monitoring contractor performance and approximately $480 million of billings related to contracts to construct 300 Bi-Level Railcars and 27 Locomotives for the Metra commuter rail service in Chicago, Illinois. Included in the scope of the project was to verify and monitor the financial capacity of approximately 80 major subcontractors participating in the project.
Midway Airport Transformation/MTH, Inc., City of Chicago, Department of Aviation, Chicago, Illinois - Review and analysis of a construction claim submitted by a supplier of doors and door hardware required for the Chicago Midway Airport Terminal Expansion Program.
Chicago Department of Transportation/City of Chicago, Chicago, Illinois - Financial, forensic and fraud investigations related to several construction programs, specific projects and contracts including cement supply, asphalt resurfacing, street and highway construction, utilities adjustment, curb and gutter, and sidewalk programs for the City of Chicago, Illinois Department of Transportation.
Sound Transit Program Management Contract Reviews, Seattle, Washington – Performed several reviews of Sound Transit light rail program and project management contract managed by Parsons Brinkerhoff. Reviews included reviews of costs billed and adherence to project management terms and conditions.
Hotel, Resort, Casino and Restaurant Construction Project Experience
Cosmopolitan Resort and Casino, Las Vegas, Nevada - The identification and review of approximately $900 million of construction and soft costs arising from the construction of a $3.7 million new resort casino being built on Las Vegas Boulevard in Las Vegas, Nevada. Work also included the determination (forecasting) of final project costs, the identification of committed costs and contracts, an analysis of sales, sales commitments and various other tasks needed to provide the lender with sufficient financial information related to the project to evaluate divesture and ownership options subsequent to a failed equity deal.
Capella Pedregal Resort, Cabo St. Lucas, Mexico - The review and analysis of construction costs arising from the construction of an approximately $105 million resort development and construction project located Cabo St. Lucas, Mexico. The review included a detailed review of General conditions cost which carried a separate contractual limit.
The Cromwell Resort and Casino, Las Vegas, Nevada – The review of an approximately $80 million Cost Plus/Guaranteed Maximum Price agreement for the demolition and conversion of Bill’s Gambling Hall into The Cromwell Resort, located in Las Vegas, Nevada.
Harrah’s Resort and Casino, Las Vegas, Nevada – The review of approximately $65 million dollars of renovation and remodeling costs under a Cost Plus/Guaranteed Maximum Price Contract for the renovation of guest rooms at Harrah’s Resort and Casino located in Las Vegas, Nevada.
Fort Mojave Indian Tribe, FMIT Event Center and Casino, Needles, California - A review and investigation into contracts, costs and fraudulent activities involved in the construction of an event center and casino being built by the Fort Mojave Indian Tribe, located in Needles, California.
Nobu Hotel, Caesars Palace, Las Vegas, Nevada – The review of approximately $85 million of Hotel renovation and remodeling costs arising from the conversion and construction of a Caesars Palace Resort’s Nobu Hotel.
Construction Program Risk Assessment, Shakopee Mdewakanton Sioux Community/SMSC Gaming - Performed a review and risk assessment of SMSC’s construction program organization, processes, procedures and controls in place to initiate, manage and execute large capital projects.
Bacchanal Buffet, Caesars palace, Las Vegas, Nevada – The review of approximately $15 million of construction costs arising from the construction of the Bacchanal Buffet located in Caesars Palace in Las Vegas Nevada.
Nobu Restaurant, Caesars Palace, Las Vegas, Nevada – The review of approximately $25 million of construction costs arising from the construction of Nobu Restaurant located in Caesars Palace in Las Vegas, Nevada.
Multi-Family and Mixed Use Residential Construction Project Experience
Heritage Millennium Building/ Mesa Development, Chicago, Illinois - A review and identification of amounts billed in excess of agreement terms arising from the construction of a $200 million mixed use residential, retail and commercial building being built within the Chicago Loop located in Chicago, Illinois.
CH Silverado Ranch, JV. Las Vegas, Nevada - The calculation of damages incurred by a limited partner resulting from diversion and misuse of partnership assets that led to the default and failure of an approximately 240 unit residential development project located in Las Vegas, Nevada.
Prairie District Homes Condominium Association, Chicago, Illinois - Review and analysis of the financial capacity and solvency of the developer of an approximately $80 million condominium building located in Chicago, Illinois in support of an action against the developer and contractors related to an approximately $8 million construction defects claim. The primary focus of work on this matter was on the on the financial capacity and solvency of the developer, who also held an equity stake in the property before, during and subsequent to the performance period of the developer’s contract.
Public Infrastructure Construction Project Experience
City of San Francisco, Sunol Valley Water Treatment Center, San Francisco, California - Review of a contractor’s claim for extended, expanded and additional general conditions costs resulting from changes made to an $84 million upgrade and expansion of the Sunol Valley Water Treatment Plant located in Sunol Valley, California. Project included a review of change orders costs and the review of a construction delay claim submitted by a national contractor.
iFiber, Fiber Optic Network, Northern Illinois University, Dekalb, Illinois – Assistance with contracting method selection, contract terms and conditions formulation, bid review, contract negotiations and contractor selection. Assisted owner in reducing contract cost from $85 million to approximately $70 million.
Ozinga Cement Supply Contract, City of Chicago, Chicago, Illinois - A financial investigation into the billing practices of cement supply contractor/vendor billing cement costs to the City of Chicago under a city-wide cement supply agreement. The focus of the work included a review of the Supplier’s billing practices for cement purportedly delivered to the City under the terms of the City-wide supply agreement.
Utilities Adjustment Program, Chicago Department of Transportation, Chicago, Illinois – A review of the City of Chicago’s Utility Adjustment Program, including a review of Program processes procedures and controls. Review also included a review for compliance with program requirements and a review of pricing of work procured under the Program.
City Curb and Gutter Program, Chicago Department of Transportation, Chicago, Illinois – A review of the City of Chicago’s Curb and Gutter Program, including a review of Program processes procedures and controls. Review also included a review for compliance with program requirements and a review of pricing of work procured under the Program.
City Sidewalk Program, Chicago Department of Transportation, Chicago, Illinois – A review of the City of Chicago’s Citywide Sidewalk Program, including a review of Program processes procedures and controls. Review also included a review for compliance with program requirements and a review of pricing of work procured under the Program.
Commercial and Industrial Construction Project Experience
30 Rockefeller Center Office Fit Out/Deloitte LLP, New York, New York – Review of contractor billings for approximately $80 million of office fit out work performed by a general contractor related to the construction of Deloitte Office space construction within the Rockefeller Center located in New York, New York.
First Industrial I83 Warehouse, Indianapolis, Indiana - The review of approximately $23 million of construction costs incurred to construct a “tilt up” warehouse building, with approximately 20,000 square feet of office space located in New Jersey.
Duke Realty Construction Program Review, Duke Realty, Indianapolis, Indiana – Performed a review of adherence to Duke Realty’s standard operating procedures in place for its capital construction program. Project reviewed included its Gateway I and II, HH Craig, Kuehne & Nagel, Facet, RR Donnelley Phase I and RR Donnelley Phase II.
Phillips 66/Matrix, Inc., Eddystone, Pennsylvania – Engaged as a neutral intermediary to review, assess and determine costs incurred and payable under a large construction project related to petroleum refinery improvements performed by Matrix, Inc. for Phillips 66.
PCB Treatment, Inc., Kansas City, Kansas – Performed an accounting, review and cost certification of remediation costs arising from the cleanup of an industrial site by a consortium of respondents under an Administrative Order predicated by The United States Environmental Protection Agency.
City of North Chicago, North Chicago, Illinois - Forensic/fraud investigation into the negligence of the construction manager of a $9 million retail commercial building being developed and built by the City of North Chicago. The project involved the use of federal, state and local funds as well as public financing of the project. In addition to determining the misuse of funds and related damages, also worked with the Illinois State’s Attorney in coordination with concurrent criminal proceedings related to the matter.
Construction Claim, Dispute and Litigation Experience
Capella Pedregal Resort, Cabo St. Lucas, Mexico - The review, analysis and testimony related to a construction delay claim arising from the construction of an approximately $105 million resort development and construction project located Cabo St. Lucas, Mexico. The dispute, which was resolved through arbitration, included an analysis of general conditions costs, the identification of non-project costs, the review and analysis of contractor’s schedule, additional overhead costs and a business interruption claim submitted by a national contractor as a result of a construction delay resulting from an unforeseen condition.
Ganna Construction, Inc., Construction Delay Claim, Chicago, Illinois - Review and analysis of a construction delay claim submitted by a general contractor hired to perform road construction work related to redirecting Central Avenue in preparation for the Chicago Midway Airport Terminal Expansion Program. The delay claim involved mostly damages resulting for project delay arising from additional home office and extended overhead.
Sunol Valley Water Treatment Center Improvement Project, City of San Francisco - Review of a contractor’s claim for extended, expanded and additional general conditions costs resulting from changes made to an $84 million upgrade and expansion of the Sunol Valley Water Treatment Plant located in Sunol Valley, California. Project included a review of change orders costs and the review of a construction delay claim submitted by a national contractor.
MTH, Inc./City of Chicago Department of Aviation, Chicago, Illinois - Review and analysis of a construction claim submitted by a supplier of doors and door hardware required for the Chicago Midway Airport Terminal Expansion Program.
Nantucket Island Luxury Residence, Nantucket, Connecticut – Provided financial, cost, damage and financial solvency analysis related to a breach of construction contract action initiated by an owner of a residential construction project, against a General Contractor/luxury home builder who purportedly defaulted on the construction of a $24 million residence.
Eurocon, Inc./City of Chicago, Department of Aviation, Chicago, Illinois - The review and analysis of a construction claim submitted by a concrete contractor performing street, fly over bridge, parking lot, curb and gutter and other concrete work related to the Chicago Midway Airport Terminal Expansion Program.
Forensic Accounting and Fraud Investigation Experience
Performed approximately 40 forensic accounting and or fraud engagements focused on detecting, quantifying and proving fraud, embezzlement, theft, diversion of assets, concealment and other white collar crimes committed by individuals and entities.
Property Damage, Business Interruption and Fidelity Loss Review and Calculation Experience
Performed over 50 property damage, business interruption and fidelity loss calculations arising from of insured’s claims on behalf of property and casualty insurance carriers. Loss review and claim calculations performed ranged from approximately $100,000 to $250,000,000 in a wide variety of industries.
Breach of Contract Damage Calculation Experience
Performed over 25 commercial loss calculations arising from breach of contract actions in litigation matters. Matters included breach of contract, breach of fiduciary duty, patent and territory infringement, tortious interference, breach of warranty, partnership dissolution and other dispute matters. Was typically engaged as a consulting expert, then was engaged as a testifying expert in litigation.
Lost Income / Lost Earnings Calculation Experiences
Performed over 65 lost earnings and/or lost income calculations resulting from personal injury, wrongful death and wrongful termination on behalf of Defendants and Plaintiffs in conjunction with litigation matters.
Commercial Damage Calculation Experience
Performed approximately 25 commercial damage calculations arising from breach of contract, breach of fiduciary duty, breach of warranty, patent, territory or franchise infringements, partnership dissolution and other various other litigation actions.
Education and Certifications
Illinois State University - Bachelor of Science Degree in Accounting
Certified Public Accountant - Illinois
Certified Fraud Examiner – National Association of Certified Fraud Examiners
Professional Memberships and Additional Training
American Institute of Certified Public Accountants – AICPA’s Role in Litigation Support Services
American Institute of Certified Public Accountants – Advanced Litigation Services
National Association of Certified Fraud Examiners – Fraud Investigation Symposium
Illinois CPA Society – Fraud Conference
Institute of Internal Auditors – Fraud Conference
American Society for Industrial Security – Insurance Fraud Workshop
Hundreds of hours of fraud and fraud related training courses
Illinois Institute for Continuing Education - “Effective Use of Expert Witnesses in Personal Injury Litigation”
American Society of Appraisers – Business Valuations BV201, 202, 203 & 204
Publications
“Proposed Technical Consulting Practice Aid for Calculation of Damages from Personal Injury, Wrongful Termination, Wrongful Death and Discrimination” - 1998, Task Force Member, American Institute of Certified Public Accountants.
Contact Information
Larry W. Schaedel, CPA, CFE
Managing Principal
Equitable Advisory Services LLC
350 West Hubbard Street, Suite 210
Chicago, Illinois 60654
Phone (312) 806-4729
Email larryschaedel@equitableadvisory.com
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