Congratulations to Managing Partner Deborah Dickson. Her expert witness testimony as a forensic CPA in U.S. District Court recently helped drive an $80M victory for our client.

Jury awards former Ameris employee $80 million in termination suit

By John Reosti

June 16, 2026

Ameris Bancorp plans to appeal a jury result awarding nearly $80 million to the former head of its equipment-finance subsidiary.

Patrick Byrne, who cofounded Balboa Capital in 1988 and sold it to Ameris in December 2021, sued the Atlanta-based company in U.S. District Court for the Central District of California in September 2024, claiming wrongful termination. Byrne alleged he was fired after complaining repeatedly that Ameris was miscalculating bonus payments owed to him and other Balboa colleagues.

The jury hearing the case agreed, returning a verdict last week that awarded Byrne $16.5 million in economic damages, along with $62.9 million in punitive damages.

But in a current-events report filed Friday with the Securities and Exchange Commission, the $28.1 billion-asset Ameris stated it believes the result "is not supported by the facts or applicable law." Ameris also declared its intent to appeal, though it acknowledged final resolution of the matter "could have a material adverse effect" on its financial results.

"We believe Mr. Byrne was paid all compensation to which he was entitled under his agreements with the company, and we plan to appeal the decision," Ameris told American Banker Monday in a statement."

In a press release Monday, Byrnes' attorneys, from the Los Angeles-based Allen Matkins law firm, stated that Ameris "systematically failed" to pay performance bonuses it promised when it acquired Balboa. The jury heard two weeks of testimony. Allen Matkins charged Ameris with "manipulating the metrics and methodology underlying the long-term incentive plan in ways that were inconsistent with the agreement's terms."

"I spent my career building Balboa and stood up for the people who built it with me," Byrne said in the press release. "I'm grateful the jury listened to the evidence and held Ameris accountable."

In a separate lawsuit filed in February, Ameris sued Byrne, claiming he transmitted thousands of pages of confidential documents to his unencrypted personal email account in violation of company policy. Ameris is seeking an unspecified amount of compensatory and punitive damages in the action, which is ongoing.

An attorney representing Byrne in the suit filed by Ameris had not responded to a request for comment at deadline.

Brean Capital analyst Chris Marinac wrote Monday in a research note that he anticipates Ameris will record a one-time charge against earnings of 21 to 25 cents per share "to cover the initial award and legal costs." Marinac added that Ameris' increasing levels of capital and earnings power give it the capacity to absorb the legal expenses without undue difficulty.

"This is a minor issue in the big picture," Marinac wrote.

Ameris reported first-quarter net income totaling $110.5 million, or $1.63 per share, up from $87.9 million, or $1.27 per share, a year earlier. The company reported $9.1 million in equipment-finance revenue for the three months ending March 31, up from $7 million for the same period in 2025. For all of 2025, Ameris' equipment-finance revenue totaled $30.56 million, up from $21.6 million a year earlier.

The Byrne verdict comes as a number of lenders have moved to limit involvement in the equipment-finance space. Some have scaled back originations while others have moved to sell off their leasing subsidiaries.

The $28.2 billion-asset United Community Banks in Greenville, South Carolina, announced plans earlier this month to sell its Navitas equipment-finance unit to Wafra, a New York-based asset-management firm, for $1.9 billion. The $6.6 billion-asset Midland State Bancorp in Effingham, Illinois made a similar move in December, agreeing to sell its equipment-finance loan portfolio to North Mill Equipment Finance in Norwalk, Connecticut, for $502 million in cash.

In its statement, Ameris indicated it has no plans to change strategy in the wake of the jury verdict. "We will continue to serve the needs of equipment-finance customers," the company stated.

The Byrne litigation wasn't Ameris' first legal tussle involving Balboa. In 2023 a federal judge in Dallas invalidated $11.5 million of loans, ruling the equipment-finance lender failed to include essential terms in borrowers' loan packages.

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Banking Dive

Ameris Bank owes former executive $80M, jury finds

By Caitlin Mullen

June 17, 2026

Dive Brief:

1. Ameris Bank intends to appeal a federal jury’s verdict that sided with a former bank executive who had sued the lender for wrongful termination, Ameris said Friday in a securities filing.
2. After a jury trial that began June 1, Atlanta-based Ameris was found liable June 12 for wrongful termination, whistleblower retaliation, unpaid wages and breach of contract. With the verdict, plaintiff Patrick Byrne will be awarded $16.525 million in compensatory damages and statutory penalties, and about $62.9 million in punitive damages.
3. The $28.1 billion-asset bank “disagrees with the verdict and believes that it is not supported by the facts or applicable law,” it said in the filing. “We believe Mr. Byrne was paid all compensation to which he was entitled under his agreements with the company, and we plan to appeal the decision,” an Ameris spokesperson said Wednesday.

Dive Insight:

Byrne was the co-founder and CEO of Costa Mesa, California-based Balboa Capital, an online lender for small and medium-size businesses, which Ameris acquired in December 2021 for $187 million. 

He was employed by Ameris from December 2021 through June 2024 as the CEO of the equipment finance division of the bank. 

Byrne sued the bank in September 2024 in U.S. District Court for the Central District of California. He alleged the bank was “improperly calculating” Balboa’s earnings so the bank wouldn’t have to pay performance-based cash bonuses under a long-term cash incentive plan, according to his initial complaint. He repeatedly complained about this to the bank, and was fired in June 2024 as a result, he said. 

In February, Ameris sued Byrne for breach of contract and misappropriation of trade secrets, which the bank said it discovered in September 2025. Ameris alleged Byrne sent thousands of pages of confidential, proprietary and trade secret information belonging to the bank from his Ameris email account to his personal email account. 

The Ameris spokesperson did not say when the bank plans to appeal the decision. In last week’s filing on the jury verdict, Ameris said it “is evaluating the potential impact of the verdict, including whether an accrual is required for financial reporting purposes and the amount thereof.”

“While the Company intends to continue to vigorously defend its position in this matter, the ultimate outcome of this matter is uncertain,” the bank said. “The final resolution of this matter could have a material adverse effect on the Company’s results of operations, financial condition and liquidity.” 

The bank’s first-quarter net income jumped 26%, to $110.5 million, according to an April earnings release. 

In a Monday press release, Byrne’s attorneys with the law firm Allen Matkins said Ameris “willfully and maliciously failed to pay what was owed under the [long-term cash incentive plan] and then fired Mr. Byrne when he communicated his corrections to Ameris’s leadership.”  

“I spent my career building Balboa Capital and stood up for the people who built it with me. I’m grateful the jury listened to the evidence and held Ameris accountable,” Byrne said in the release.

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As a heads up, AmLaw’s litigation team (Ross Todd and Alaina Lancaster) is out until Monday, so we’ll follow up with them first thing next week. We’re also targeting Law360’s Kevin Penton, The Daily Journal’s Matthew Sasaki and ABA Banking Journal’s Christopher Delporte.

In addition to the American Banker piece, Banking Dive’s Caitlin Mullen covered the case, linking to the website release. The text and link are below.

Leah Schloss | Director of Marketing & Communications | Allen Matkins

Pronouns: she/her/hers

lschloss@allenmatkins.com | Direct 310-788-2485

Key Filing Requirements and Deadlines for Wage Statements and Information Returns

As tax season approaches, the IRS is reminding businesses of the critical deadline for submitting wage statements and information returns by January 31. Timely and accurate filings are essential to avoid penalties and ensure compliance.

What Forms Are Required?:
Form W-2: Employers are required to file Form W-2 (Wage and Tax Statement) and Form W-3 (Transmittal of Wage and Tax Statements) with the Social Security Administration.

Form 1099-NEC: Form 1099-NEC (Nonemployee Compensation) with the IRS.

Additionally, employers and payers must also provide copies of these forms to their recipients by January 31.

Electronic Filing Requirements

Businesses that file 10 or more information returns within a calendar year are required to file electronically. The Information Returns Intake System (IRIS) is an IRS-provided online portal that allows users to prepare forms, make corrections, and request extensions.

To avoid penalties, it is essential to ensure that these forms are filed accurately and by the specified deadline. Late or incorrect filings can result in penalties, so double-checking the information before submission is highly recommended.

Who Needs a Form 1099?:

• Independent Contractors: If you've paid an independent contractor at least $600 for services during the year, you need to issue a Form 1099-NEC.
  
• Attorneys: Payments made to attorneys for legal services must be reported on a Form 1099-NEC, regardless of the attorney’s business structure.
  
• Real Estate Agents: Commissions paid to independent contractor real estate agents should be reported on a Form 1099-NEC.
  
• Rent Payments: Rent payments made to individuals or entities (excluding real estate agents) should be reported on Form 1099-MISC.
  
• Royalties: Payments for royalties must be reported on Form 1099-MISC.
  
• Other Income: Prizes, awards, and other income payments should also be reported on Form 1099-MISC.

Why Accurate Filing Matters:

Incorrect or late filings can result in penalties. To avoid this, work with a Certified Public Accountant (CPA) like Smith Dickson who specializes in tax compliance. With over 30 years of experience as experts in accounting, we can help ensure accurate filings and help businesses navigate complex reporting requirements.

Need Assistance?

Tax season can be overwhelming, but you don’t have to navigate it alone. Contact Smith Dickson CPAs today for expert guidance. Our experienced Certified Public Accountant’s and forensic accountants can assist with everything from accurate filings to identifying potential tax savings.

For more details, you can visit the IRS website and check out their forms, instructions, and other resources. You can also contact Smith Dickson CPAs at 949/533-1020 to discuss your specific needs.

Key Updates from CPAs and Forensic Accountants

In response to the devastating wildfires that have affected Los Angeles County, both federal and state governments have extended the income tax filing deadlines for 2024. This critical relief aims to assist individuals and businesses navigating the financial aftermath of this disaster.

New Deadlines for 2024 Tax Filings

The IRS and the California Franchise Tax Board (FTB) have extended key tax deadlines to October 15, 2025. This extension applies to various tax-related deadlines that fall between January 7, 2025, and October 15, 2025.

Who Qualifies for Relief?:

• Taxpayers who are either Individuals or businesses in Los Angeles County and those with necessary records in the disaster area will automatically receive filing and penalty relief.
  
• Individuals or businesses outside the disaster area but whose tax records are located within the area and who were affected, can contact the IRS to receive relief.

Key Tax Filings and Payments Affected:

- Individual income tax returns and payments typically due April 15, 2025.

- Quarterly estimated income tax payments usually due January 15, April 15, June 15, and September 15, 2025.

- Corporate and pass-through entity tax returns usually due March 15 and April 15, 2025.

- Partnership and S corporation returns for the calendar year, normally due March 17, 2025.

- Corporate and fiduciary returns and payments usually due April 15, 2025.

- Tax-exempt organization returns normally due May 15, 2025.

Payroll and Excise Tax Relief

Penalties for failing to make payroll and excise tax deposits due on or after January 7, 2025, and before January 22, 2025, will be waived if deposits are made by January 22, 2025.

How Can CPAs and Forensic Accountants Help?
Navigating disaster-related tax extensions can be complex. Certified Public Accountants (CPAs) and forensic accountants like Smith Dickson CPA's provide valuable expertise in ensuring compliance, documenting disaster-related losses, and optimizing financial strategies for affected individuals and businesses. Our guidance can help streamline your filings and safeguard your financial health during this challenging time.

For more details, affected taxpayers can visit the Governor's Office of Emergency Services website at https://www.gov.ca.gov or contact Smith Dickson at 949/533-1020.

Forensic accounting plays a pivotal role in the legal arena, particularly when financial disputes arise. Litigation support provided by forensic accountants goes far beyond basic number-crunching; it involves a deep dive into financial records to uncover evidence that can make or break a case. Here’s why their role is indispensable:

Expert Testimony: Forensic accountants often serve as expert witnesses, presenting their findings in a manner that is understandable to judges and juries. Their testimony can provide the necessary clarity on complex financial matters and influence the outcome of legal proceedings.
Economic Damage Assessment: In cases of business disputes, insurance claims, trust and estate conflicts, or personal injury, forensic accountants assess the economic impact of the events in question. They meticulously calculate monetary losses, including lost profits, which are crucial for quantifying the amount of an award needed to make an injured party whole.

Fraud and Embezzlement Investigation: When fraud is suspected, forensic accountants are called upon to conduct thorough investigations. They analyze transactions, supporting records, trace assets, conduct interviews, and use their expertise to detect any signs of manipulation and missing funds.

Dispute Resolution: Forensic accountants assist in resolving disputes before matters reach the courtroom. Their objective analysis can help disputing parties understand the financial aspects of their disagreement, often leading to settlements without the need for a trial.

The demand for forensic accountants in litigation support is reflective of their unique ability to navigate the intersection of finance, law, and investigation. As legal complexities increase, so does the reliance on these specialized professionals to provide clarity and resolve financial disputes with their analytical prowess and attention to detail. Call us today for a consultation.

Effective January 1, 2024, the CTA introduced a new filing requirement for various business entities, particularly smaller privately held companies. However, the legal landscape took an unexpected turn on March 1, 2024. In the U.S. District Court for the Northern District of Alabama, a federal judge declared the CTA unconstitutional as a matter of law.

While the recent court ruling has limited implications, it underscores the importance of staying informed about the CTA. Here’s what you need to know about this significant development:

Case Background: The case, titled National Small Business United v. Yellen, challenged the constitutionality of the CTA. The court concluded that the CTA exceeded the Constitution’s limits on congressional authority. Specifically, the court characterized the CTA as regulating incorporation—an area considered a “purely internal affair.”

The court found that incorporation is neither clearly economic nor commercial in nature and is too incidental to tax administration.

Narrow Impact: As a result of this court decision, the CTA currently remains in full effect except for members of the National Small Business Association (NSBA) and possibly reporting companies within the Northern District of Alabama.

For entities outside this specific scope, compliance with the CTA remains mandatory.

New reporting requirements under the Corporate Transparency Act (CTA) came into effect on January 1, 2024. The CTA requires certain business entities to file information on their beneficial owners with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury. The definition of a beneficial owner is an individual who either exercises substantial control over the reporting company or directly or indirectly owns or controls at least 25 percent of the ownership interest in the reporting company.

According to the Corporate Transparency Act (CTA), single-member LLCs are not exempt from filing beneficial ownership information reports with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury. If you have formed a single-member LLC by filing articles of organization or other formation documents with the Secretary of State in your state, then you fall within the BOI reporting requirements of the Corporate Transparency Act and are a reporting company.

Certain types of entities are exempt from the new reporting under the Corporate Transparency Act (CTA), including but not limited to banks, credit unions, public accounting firms registered with the PCAOB, and large entities that exceed $5 million in gross receipts and have 21 or more full-time employees.

We recommend that you contact legal counsel for additional information on how these requirements may affect your business. They can provide guidance on whether your business is required to file a report, what information must be reported, and when a report is due. Let us know if you need a referral.

Please note that FinCEN has been notified of recent fraudulent attempts to solicit information from individuals and entities who may be subject to reporting requirements under the Corporate Transparency Act. The fraudulent correspondence may be titled “Important Compliance Notice” and asks the recipient to click on a URL or to scan a QR code. Those e-mails or letters are fraudulent. FinCEN does not send unsolicited requests. Please do not respond to these fraudulent messages or click on any links or scan any QR codes within them.