Allen D. Applbaum is a senior managing director in the FTI Consulting Forensic and Litigation Consulting Practice and is the global practice leader of FTI Consulting’s Global Risk and Investigations Practice (GRIP). Mr. Applbaum has extensive experience serving as an independent monitor and offers 25 years of litigation and investigative consulting experience. Throughout his career, Mr. Applbaum has managed numerous high-profile investigations and business intelligence assignments, uniquely integrating investigative skills with technology and financial expertise to provide clients with seamless solutions to solve critical problems. He provides domestic and international clients with expert consulting services in matters involving internal investigations, fraud investigations, investigative due diligence, Foreign Corrupt Practices Act investigations, global compliance program development, implementation and monitoring, anti-money laundering investigations, corporate governance and integrity advisory services. Mr. Applbaum specializes in independent monitorships and receiverships, providing needed independent oversight to the Government and Judiciary.
In 2011, Mr. Applbaum was selected by the United States Attorney’s Office for the Southern District of New York to be the independent monitor for PokerStars, the world’s largest online poker website, following the Government’s filing of a civil suit to seize its domain names, effectively putting that company out of business. Subsequently, PokerStars reached a ”domain name use agreement” (the Agreement) with the Government that allowed it to reopen around the world on the condition that PokerStars block players from the United States from accessing the site to play for real money. Mr. Applbaum was appointed to monitor PokerStars’ compliance with the agreement. He assembled a multidisciplinary team comprised of former prosecutors, investigators, technology experts, financial and enterprise data analytics experts and forensic accountants to assist him in monitoring the company and traveled regularly to the UK and to PokerStars’ headquarters in the Isle of Man to analyze PokerStars’ systems and measure its compliance with the Agreement in order to ensure the company’s continued compliance.
In 2010, Mr. Applbaum was appointed by the United States District Court for the Southern District of New York to be the receiver for Mount Vernon Money Center (MVMC) and all of its related businesses after the owner was arrested for conspiring to commit mail and wire fraud. The MVMC group of companies specialized in the service and cash stocking of 6,200 ATM machines throughout the New York metropolitan area and included an armored car division as well as a central alarm monitoring company. Mr. Applbaum was appointed on a Friday night and by Saturday had mobilized a full staff including former prosecutors, economic consultants, accountants, security personnel and computer forensic specialists on site to take control of the Mount Vernon Money Center and its related businesses. Mr. Applbaum quickly evaluated the financial condition of the businesses, safeguarded the businesses’ assets, and put in place a regimen of procedures to pay existing staff and critical suppliers, transfer servicing of ATMs to another vendor on an interim basis, and assess and document the losses to victims that ran into the tens of millions. In addition, Mr. Applbaum supervised a parallel investigation of the Ponzi scheme perpetrated by the sole owner of the business. Ultimately, Mr. Applbaum determined that the business needed to be placed into bankruptcy, hired bankruptcy counsel and worked with FTI Consulting’s restructuring team to reorganize the business, and later with the appointed bankruptcy trustee to insure the orderly distribution of assets to creditors.
In 2007, Mr. Applbaum was appointed to be a third party administrator for a $53 million victim restitution fund which was established in connection with a Deferred Prosecution Agreement (DPA) between the United States Department of Justice and BP America. In the DPA, approved by the United States District Court for the Northern District of Illinois, BP admitted to conspiring to manipulate the February 2004 propane market and agreed to establish a victim restitution fund, including for possible settlement of any pending claims asserted in class action lawsuits brought by direct purchasers or indirect purchasers of February 2004 TET propane. The DPA also required Mr. Applbaum to prepare and submit a restitution plan setting forth the procedures governing the activities of the third party administrators, including but not limited to (a) the procedures by which victims eligible to seek reimbursement from the restitution fund will be identified; and (b) the procedures by which the financial losses of such victims will be determined and restitution for such losses will be paid. He led this effort for more than two years through the entire claims process and oversaw the complex distribution process.
Prior to joining FTI Consulting, Mr. Applbaum was the head of the Corporate Investigations Practice at Kroll, where he was a senior managing director and regional counsel in the firm’s headquarters in New York.
From 1990 to 1999, Mr. Applbaum was a federal prosecutor in the United States Attorney’s Office for the Southern District of New York, where he handled a wide variety of criminal investigations and jury trials involving a broad range of criminal conduct, including bank fraud, mail fraud, wire fraud, securities fraud, racketeering, extortion, organized crime, drug trafficking, immigration fraud, gambling, credit card fraud and international money laundering. His investigative work in two separate organized crime prosecutions earned him the Department of Justice Director’s Award for Superior Performance (1996) and the Attorney General’s Award for Distinguished Service (1997).
During his tenure in the Southern District, Mr. Applbaum served as Deputy Chief of the Criminal Division, where he supervised and directed numerous investigations with local, state and federal law enforcement agencies; participated in policy-making and management of the United States Attorney’s Office; and served as the Office’s International Affairs Coordinator in charge of all requests for international legal assistance from foreign governments. Prior to his appointment as Deputy Chief of the Criminal Division, Mr. Applbaum was Chief of the General Crimes unit and was responsible for training and supervising all new assistant United States attorneys in the Southern District in substantive and procedural aspects of the Office.
Mr. Applbaum began his career as a law clerk to the Honorable Lowell A. Reed, Jr., U.S. District Judge in the Eastern District of Pennsylvania. While in Philadelphia, he taught as an Adjunct Professor of Law at Temple University School of Law.
Mr. Applbaum is a cum laude graduate of Queens College and received his J.D. from the Benjamin N. Cardozo School of Law, where he was the managing editor of the Law Review and published his Law Review Note. He is a member of the New York and New Jersey Bars and is a member of the Federal Bar Council, the American Bar Association and the Association of the Bar of the City of New York.