Until retirement in 2014, Frank Hydoski served as national leader of the Analytic & Forensic Technology (“AFT”) practice of Deloitte Transactions and Business Analytics LLP. During his tenure as leader, Mr. Hydoski scaled the team to almost 1,000 professionals. He was also Co-Founder and Co-Director of the Deloitte Forensic Center. As leader of the AFT practice area, he was responsible for guiding the development of new technology oriented forensic products and services for private and public sector clients. Internationally recognized for his work in complex investigations, Mr. Hydoski has extensive experience managing large forensic investigations and in developing analytical and discovery databases used in litigations, investigations, settlements, and complex claims processes. He is co-author, with Toby Bishop, of “Corporate Resiliency: Managing the Growing Risk of Fraud and Corruption,” published in 2009 by Wiley. He is also co-author, with Yogesh Bahl, of “Forensic Accounting in Litigation Consulting Services, Investigations, and Compliance Matters,” in the 11th and 12th Editions of The Accountant’s Handbook, published in 2009 and 2011 by Wiley.
As chief forensic investigator examining the United Nations Oil-for-Food Program, Mr. Hydoski was responsible for forensic accounting tasks as well as the development of analytical databases designed to combine all available information about contracts and transactions underlying the Program. These databases documented billions of dollars of misused Program funds. He was also responsible for electronic discovery and for the selection and organization of documents relevant to the investigation. His strategic direction of the investigation helped yield a series of five reports documenting the manner in which Iraq manipulated the Program to gain political influence and to derive illicit payments from the companies that obtained oil and humanitarian goods contracts. The reports also addressed the adequacy of the program’s management by the United Nations. Mr. Hydoski was particularly responsible for the report chapters dealing with accounting treatments, the effectiveness of the oversight functions, the banking function, and the quantification of illicit income gained by Iraq.
Mr. Hydoski led a crucial part of the massive investigation of Holocaust era accounts held by Swiss banks. The forensic investigation pieced together information created over a 60-year period from customer records, accounting department records, records from the legal offices of the banks, customer correspondence, records from banking regulators in several countries, records of the identities of Holocaust Victims, and publicly available information located in historical archives in the U.S. and Europe. One of the largest investigations of its kind, Mr. Hydoski’s team expended approximately 400,000 professional hours reconstructing a picture of more than 800,000 Holocaust-era accounts at one of the largest banks in Switzerland. Of these, tens of thousands were identified as possibly belonging to Victims of Nazi persecution. The Swiss banks agreed to a settlement of $1.25 billion to compensate claimants in various classes, of which up to $800 million were set aside for awards to Swiss bank account holders and their heirs. Mr. Hydoski also consulted with the Special Masters in the case on the establishment of a claims mechanism and helped guide the development of the claims system used to judge claims and make awards.
Mr. Hydoski helped create the process for making and assessing government claims against Iraq resulting from Iraq’s invasion and occupation of Kuwait. Working for the State of Kuwait and the United Nations Compensation Commission, Mr. Hydoski was part of a consortium which developed the forms of claims, statements of claim, types of losses, and assessment methodologies eventually used by many governments to assert claims in the amount of $210 billion, the bulk of which were for direct losses and environmental damage. The consortium also created the claims Kuwait’s 50 government ministries asserted.
Earlier in his career, Mr. Hydoski was the founding partner of the Forensic Technology Solutions practice at PricewaterhouseCoopers, from which he retired in 2002, where he is credited with establishing the first client-facing technology practice in the context of disputes, investigations and reorganizations. While at PwC, he led a number of significant bankruptcy claims matters, including Dow Corning, Federated Stores, and TWA among others.