Ian Corzine, of West Corzine, LLP is not your stereotypical insurance litigator, nor is he your stereotypical attorney.

For those following him on social media, you’d think he’s a friend of an adventurer like Richard Branson. He’s often found skiing or hiking or traveling or spending time with his kids. But don’t let that fool you. Ian Corzine is a partner at a firm that is fast becoming a powerhouse in the insurance and business litigation world.

He’s an active networker and leads a Pro­Visors group in Calabasas. When he’s not doing that, he finds time to be an author on legal issues. Despite his busy schedule, we recently caught up with Ian long enough to find out what makes him tick, and what has made their firm successful with its growing list of clients.

SCP: Tell us a little about your background, your upbringing, and how you became a lawyer.

Corzine: I grew up in a small town—now a bigger one—called Pleasanton, Calif. It was kind a like a “Stand by Me” type childhood. Mostly outdoors, playing basketball until sunset, building forts and having dirt clod wars, having mini-Olympics for local kids in our neighborhoods. We never found a dead body, though.

I always say I have “dual citizenship” for Northern and Southern California. My parents moved in my junior year of high school to Thousand Oaks to start their dream: a retail furniture store called Thomasville Home Furnishings. It was tough making the trans­ition, but the adversity gave me my love of performance—which I have translated to the ­courtroom (and sometimes, ProVisors meetings). My parents’ business grew and grew. Eventually, they had stores in Encino, Northridge, Agoura and Santa Barbara. I earned my living during high school and college summers working as a maintenance man—fixing stuff that broke, doing construction work, and even vacuuming in the early morning, for hours on end, in dark commercial spaces. I would listen endlessly to Zeppelin CD’s. That’s when I learned that manual labor was not for me.

I did well in high school and attended U.C. Davis undergrad with my NorCal friends. I majored in Rhetoric & Communications, which I loved. Public speaking was what I really came to enjoy.

I also liked politics. My sister jokes that I was the only big brother in the world with photos of Ronald Reagan and LL Cool J on my wall. So, during undergrad, I started interning at Governor Pete Wilson’s Office. I eventually made my way up the ranks, and the Governor created a special job classification for me. I got paid about $40,000 a year to be Executive Assistant to the Chief of Staff Bob White. I thought I was rich!

After a year or two toiling as staff, I mentioned to the Governor that I wanted to be where he was. He said, “You need to go to law school.” He recommended McGeorge School of Law in Sacramento, which is where I ended up going.

During law school, I really loved courtroom instruction. Eventually, I worked my way into a program of the U.S. Attorney for the Eastern District of California (Sacramento) in which non-attorneys were hired from law school to act as Special Assistant U.S. Attorneys. They prosecuted low-grade federal crimes, like DUIs on military bases, theft of government property worth less than $1,000, and various Vehicle Code violations. During my time doing criminal trials, I met federal judge U.S. Magistrate Peter A. Nowinski. Over time, he agreed to hire me as a Federal Judicial Law Clerk, which was quite an honor. I was the only one in the Eastern District. Then I made $46,000 a year!

After my year term as a Judicial Law Clerk, I went back to the U.S. Attorneys Office. I wanted to be a full-fledged Assistant U.S. Attorney—or maybe someday, The U.S. Attorney. The office said I needed civil experience. So I looked into moving to the best place for that—Los Angeles!

SCP: How did you get into the insurance area of practice as an attorney?

Corzine: In L.A., I went to work for a mid-sized law firm called, Monteleone & McCrory. M&M practiced primarily construction civil law. However, often there was an interplay with insurance law, because Commercial General Liability (“CGL”) policies of contractors often covered various construction defects, which were at the heart of various disputes. Nobody at the firm liked insurance law work, except one partner. I wanted to make my way up the ladder. By this time, I had a family and was losing interest in having a U.S. Attorney badge. So, I worked my butt off to learn that area of the law, and soon became the “go to” associate for insurance law. I enjoyed it because I found I was always representing a client (i.e., the contractor or business) that had a good case. The insurance company was always trying to get out of paying a claim.

Well, after a few years passed, it was getting to the point where I was being considered for partnership. I did not want to spend my life working in downtown L.A. The commute was killing me. I met my current partner, Gene West, at a mediation. We were representing opposing sides. He liked what he saw and offered me a position. I started in 2002 and became his partner in 2007. The rest is history.

SCP: What are some of the trends you are seeing this area of law?

Corzine: There’s a lot going on. Here’s some of what we are currently seeing:

• We are starting to see cyber liability claims—new law is being created in this area.
• Steady rise in sale and claims regarding Representations & Warranties Insurance (i.e., M&A Insurance).
• Crime/theft claims are being litigated because of broad insurance policy language, focusing on “Computer Fraud” coverage.
• Heightened disputes among carriers about how to allocate paid losses.
• Claims by owners of large custom homes increasing.
• Softer market: broadening of policy terms.
• More insurance cases going to trial/arbitration.
• Unpredictable court/jury decisions—decrease in public resources means that neither gets sufficient time to make very consequential decisions.
• Mediations more focused on coverage versus liability and damage issues.

SCP: West Corzine is growing and the firm just moved into new offices. Is this a result of the market growing, or that you’re getting known as one of the leading law firms practicing in insurance litigation?

Corzine: Our firm is growing for two reasons. First, it’s because of the market for our services (i.e., large loss claims handling and “bad faith” litigation for insurance companies who fail to pay claims when they should). Second, our notoriety in the industry is getting us the big cases with multi-millions of dollars in the balance.

SCP: Tell us a little about your client base. Are they local, distant, large businesses, small, or individuals?

Corzine: The majority of our client base is small to medium-sized businesses, across the country (we even have a case now venued in Toronto) with cases valued at between $300,000 and $20 million.

SCP: What did the great recession of 2008/2009 do to your practice areas? Is litigation up since then? What are some of the hottest or most active areas right now?

Corzine: It increased business. The insurance industry is one of the true recession-resistant businesses. When people have no money, they look to other sources. Often times those sources are large insurance funds. They need West Corzine to represent them and access those funds.
I think the hottest area for me is D&O (Directors and Officers). These insurance policies are omnipresent with most businesses. They have fairly broad coverage. Negligent misrepresentation—in my experience, most business deal includes at least one “negligent misrepresentation.”

SCP: You’re an active guy, an adventure guy, and family man. How do you balance work and life?

Corzine: I guess I strive for context. I do a meditative practice as well as frequent exercise. This helps remind me that no matter what the clients’ trauma—it is not mine—I am just an adviser. They need to see that I am calm, results driven, but have boundaries. I find that if you take control in the situation, you can manage expectations so that the client does not manage you!

SCP: What are some of your non-work activities. What are your favorites?

Corzine: Maybe you should ask, “What are the things you don’t like to do?” I hate to rake leaves! My primary passion is spending time with my daughters, Maddy (14) and Charley (4). We love the outdoors—snowboarding, skiing, mountain biking, hiking, fly-fishing, scuba diving, paddle boarding, and kayaking. We have a bunch of outdoor toys.

SCP: You and your firm have received a lot of attention, awards, and accolades. What do those mean to the firm, and what words of advice would you give to new attorneys just coming out of law school?

Corzine: We are certainly proud of the awards, but they do not drive us. Our goal is do right by our families, our faith, our community, and our business, and let the chips fall where they may.

For new attorneys—being a lawyer is awesome! In what other profession do you bill by the 1/10 of an hour for thinking? You will do well financially as an attorney, but the flip side is that you have to really work hard. If you want to get to a place where others work for you, then major in business and get an MBA. Find a business niche no one is in, make a killing, and sell it.

I was taught by other stellar business professionals that you need to work into your business charitable time and contributions. It takes your passion to the next level, seeing how you can help people. Tom Means, one of those who taught me that, and I were some of the founders of Hope’s Haven. One of the best experiences of my life was taking an idea for a charity, discussing it in our living rooms, and turning it into multi-hundred thousand dollar donations for families with life-threatening diseases and ailments. •

About Hope’s Haven

Hope’s Haven Children’s Charity is a 501(c)3 non-profit organization in Ventura County that is dedicated to enriching the quality of lives of children facing life threatening illnesses and serious injuries. They work directly with County hospitals, clinics and social workers to provide financial and emotional support for families during treatment. One of their long-term programs is to deliver iPads to all of the pediatric hospital beds within Ventura County. This allows children to communicate, interact, be encouraged and entertained while undergoing medical care. Hope’s Haven is able to lighten the load during the most challenging times when children and their families need it most. www.hopes-haven.org.

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When you have a conversation with Yi Sun Kim, you quickly get the idea of what she is truly passionate about: her family, her pro-bono work, helping people, and the law. People who don’t know her would be mistaken to think she is a shy, demure, easily-swayed attorney that just sits at her desk pushing transactions and settling cases. Once you know her, she is anything but. She is outspoken, has a wicked sense of humor, works extremely hard at maintaining her relationships with friends, colleagues and family, and has just made partner at one of the San Fernando Valley’s premier law firms, Greenberg & Bass. She specializes in bankruptcy, business litigation, business formations and transactions.

In case her law practice is not keeping her busy enough, she volunteers at the Self Help Desk at the San Fernando Valley Bankruptcy Court. She helps individuals who need to file Chapter 7 by giving them free assistance on what the procedure is like and how to fill out their paperwork. This particular Self Help Desk is coordinated by Neighborhood Legal Services of Los Angeles. In 2015, she was the recipient of Public Counsel’s prestigious Lasarow Award for this pro bono service.

Her current involvement as Secretary on the Board of Directors for the San Fernando Valley Bar Association has her on track for what could be the first Asian American President of the SFVBA.

On the eve of her partnership celebration at the firm, we asked her some questions about her path to becoming partner.

You got out of law school just at the beginning of the great recession. Did this have any impact on your choosing bankruptcy as a primary practice area?

Absolutely. While I was awaiting my bar results, Greenberg & Bass hired me as a law clerk to assist with a new, large case in the litigation department. It required reviewing something like 50 boxes of documents, so it initially took up all of my time. Then the economy turned so quickly that the firm’s existing robust bankruptcy department suddenly needed even more assistance. Although I continued to work on business litigation matters, I spent an increasing amount of time focusing on bankruptcy matters, both from the debtor and creditor perspectives. Although the firm handled many business related filings, it was the individual or personal bankruptcy cases that really pulled me in. Helping people go through such a scary process, and seeing how relieved they are afterwards knowing they can move forward with a fresh start for themselves and their families, made me feel like I was actually doing something worthwhile. Therefore, although it started out by necessity, I found that I really enjoyed bankruptcy law and proactively inserted myself into more bankruptcy cases as they came in.

You have been recognized as a Rising Star by several organizations and publications. What do you attribute your success?

The number of people who have helped me and continue to mentor and support me. My family has been my biggest inspiration when it comes to hard work and integrity, which keeps me on the right path. And since Day One, fellow partners James Felton and David Adelman along with everyone at Greenberg & Bass, staff and attorneys, have taught, mentored and pushed me. Law school taught me about the written laws and procedures, but G&B is where I was trained on the practice of law, as well as how to communicate with people. They are also generous when it comes to highlighting me and my practice, making sure that I am seen, so much so that it is hard for people not to notice.

How are the bankruptcy cases you deal with today different from those during the worst of the recession years?

The bulk of the bankruptcy cases I handled during the recession was, understandably, related to real estate: Individuals who could not pay their mortgage, investors whose collateral rapidly depreciated, or vendors in related industries who suddenly lost their client base. There are significantly fewer bankruptcy filings today. The personal filings are usually persons who have experienced an unfortunate change in circumstances, such as a sudden injury or illness resulting in loss of employment and substantial medical bills. The trend in business filings is with retail stores, especially in the apparel industry.

You do business litigation, primarily in the areas of disputes arising from bankruptcy actions. What are some of the typical cases like that go to litigation in this area?

When an individual files for bankruptcy relief, his or her intention in doing so is to eliminate their liability or obligation to pay their existing debts (i.e. have their debts “discharged”). Not all debts can be discharged, and the individual will remain liable to pay those debts even after the bankruptcy case is completed. For example, if the debt was incurred by fraud (e.g. knowingly providing a false financial statement to obtain a loan), then the creditor can file a litigation case within the bankruptcy case to obtain judgment saying the debt cannot be discharged. Therefore, many of the bankruptcy litigation cases I have handled center on fraud.

In addition, if the debtor transfers money or property to a third party just before the debtor filed the bankruptcy case, the debtor or trustee may try to get that money or property back from the third party. In some circumstances, the trustee can lawfully unwind those transfers of money or property by filing a litigation action in the bankruptcy case.

You also work at the opposite end of the business spectrum from bankruptcy. You work on formations and startups. What words of advice do you have for today’s startup companies?

Today there are numerous lenders and investors who are willing to help fund exciting new ventures, especially in the technology field. However, having seen the downturn of the economy before, I would caution against being too overzealous with borrowing and to pay special attention to the penalties or personal exposure that can result if the business proves unsuccessful. One should always have an attorney draft or review an agreement before it is signed—even if (or actually, especially if) the agreement or business venture is amongst friends. There are many deficiencies in the form agreements that are floating around online. If the agreement is not complete, then formerly friendly business parties can face protracted and expensive litigation fighting over what the parties intended the contract to mean or say. If a contract is complete, then the parties cannot dispute what is written there and they can come to a quicker, less costly resolution. And even if a person is handed a well written agreement by a lender or investor, he or she should have an attorney review it since it may have provisions that put the ­person or his or her personal assets at more risk than the person realizes.

As someone who has risen quickly in the legal ranks, now as a partner of your firm and a trustee of the Bar Association, what advice do you have law school students and young attorneys just beginning their careers?

Generally I find that in your first couple of years, you make mistakes or take a long time trying to figure out what you are even doing. As frustrating as it may be, you remind yourself that you are a brand new attorney so it is expected. But in your third year, and forever after, you will continue to make mistakes or face issues or fact patterns that you do not know how to resolve. You no longer have the “excuse” that you are brand new, and it can be a humbling and stressful experience. You have to remind yourself that it’s okay, you’re going to make mistakes or come across challenging issues throughout your career. What makes you a good lawyer is knowing what to do next—how to fix the problem, or what resources to access to get the solution. You’re not meant to be perfect, let alone a walking encyclopedia. You’re expected to be resourceful and a problem solver.

I would encourage new lawyers to be social and open minded. Meet as many lawyers as they can in different fields. For years, I had no idea how many types of law or practices were available, or that each firm has its own unique culture and way of functioning. You may discover a field that you can be passionate about, or a type of firm that is compatible with your working style and particular skills. And even if you are already exactly where you want to be, you can find great mentors who will help you grow that practice or adjust as you progress. The San Fernando Valley Bar Association offers a number of opportunities for new lawyers, including sections that highlight different areas of law, networking and social activities with attorneys of various backgrounds and expertise, and community outreach programs where you can test out your skills while helping people in the community. •

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Don’t call Drew Grey an accountant. He hates that.

It’s not that he isn’t a CPA (he is), or that he is ashamed of it (he’s not). Quite the contrary, Grey is proud of his financial service background. But being a certified public accountant only scratches the surface of what Grey does, and therein lies the rub.

His unique C-level business experience in conjunction with his BIG eight audit and tax training puts him in the unique position of really being a business advisor a step above the average CPA. Grey’s business experience as a CEO and CFO has helped companies grow from infancy through public offerings and ultimately generating large profits or his companies and clients.

He has also developed an extensive audit and tax practice, specializing in tax minimization, financial statement optimization and sophisticated estate tax and asset protection planning for growing businesses and their owners. This one-two punch, of highly level business experience, combined with very practical financial, tax and audit experience, makes Grey a highly sought after advisor, working primarily with companies either in or seeking rapid grow and significant profitability.

We recently caught up with him long enough to get his thoughts and feelings on the state of financial affairs in California’s business marketplace.

SCP: How are income tax rate increases affecting your clients?

Grey: Successful clients are faced with paying more taxes on federal, state and local levels. We have assisted our clients with effective strategies to reduce or eliminate California taxation. Clients who have significant taxable income can use techniques such as captive insurance companies, which offer significant tax deductions and other benefits. Many clients are able to reduce their taxes from research and development credits and perform cost segregation studies on their real estate. Other tax minimization techniques include deferrals of taxable income by using cash
basis distribution companies to avoid being taxed on accounts receivable, disbursements to fiscal-year sales and marketing companies to defer income recognition, utilization of pension and profit sharing plans, and other techniques. Every client has unique characteristics. We study each client to determine the optimal strategy that meets specific goals. Paying less in federal, state and local taxes provides more cash flow for business or investment.

SCP: What are some of the top concerns of middle market CFOs today?

Grey: CFOs are concerned with many issues; however one of their primary issues is having sufficient debt
or equity to fund their business. We actively assist
our clients in the preparation of detailed financial projections to plan for their needs. We have developed strategic relationships with conventional and non-conventional financing sources that can provide the debt needed to expand their businesses. We have strategies that separate the financial statements from the income tax returns thus enabling our clients to pay less tax while not impacting the financial statements. Commercial lenders make borrowing decisions based on the company’s compiled reviewed or audited financial statement. Therefore our clients are able to increase their cash flow through paying less in income taxes and are able to obtain the maximum amounts available from lending sources.

SCP: How do business owners and clients handle the challenge of increasing their credit facilities while minimizing the taxes?

Grey: Clients preparing financial statements for financial institutions must find the balance between reducing federal and state taxes, and reporting strong earnings to the financial institutions that have provided credit facilities. Our strategies emancipate the clients’ financial statements from their tax reporting. How do we do this? Financial institutions require an accrual-based financial statement, while tax law differs significantly from accrual accounting. This difference can yield lower taxable income without impacting the accrual-based EBITDA of the company. We evaluate each company to identify areas where
the financial statement and tax reporting can be separated by applying different year-ends and methods of accounting. At SRG, we use the GAAP and tax rules to our clients’ advantage, while maintaining integrity in all aspects of our reporting. This is another example of our creative, value-added approach to solving our clients’ problems.

SCP: What is the biggest difference between the accounting profession today as opposed to 20 years ago?

Grey: The most significant change is the amount of new financial statement and income tax changes in the rules that impact the clients and our firm. Our services have evolved to meet the changing landscape of business operations today. We are active in strategic financial consulting, and act at a level of a Chief Financial Officer and, in some cases, as the Chief Executive Officer. Many of our partners and professional staff have been controllers, CFOs, or CEOs. This level of seasoned experience gives our firm a unique ability to meet our clients’ needs. We are actively involved in the Merger and Acquisition activities from the buy and sell side, selecting the appropriate investment banker, and assisting with long-term planning for tax minimization and succession planning. We have developed effective strategies to eliminate or substantially reduce estate taxes and regular taxes from the sale. Asset protection is another benefit that flows from an effective structure. Our firm has become global to meet the needs our clients who cover the world.

SCP: Is your firm offering more or different services than you have offered in the past?

Grey: Our firm has developed value-oriented services that increase our clients’ net after-tax cash flow. We provide tax strategies that reduce taxable income and do not impact the financial statements that commercial banks rely upon to provide credit facilities. We separate tax planning from financial reporting in a responsibly creative manner. We are trusted advisors serving at top levels in management. Our expertise
as Controllers, CFOs and CEOs offers our clients knowledge and experience, which other CPA firms
do not possess. Our services have evolved to meet the changing landscape of business operations today. We are active in strategic financial consulting, and act at a level of a Chief Financial Officer and, in some cases, as the Chief Executive Officer. Many of our partners and professional staff have been controllers, CFOs, or CEOs. This level of seasoned experience gives our firm a unique ability to meet our clients’ needs.

SCP: What are some of the biggest mistakes companies make in managing cash, taxes, and financing?

Grey: Companies need to better plan for their financing needs, and more effectively project their covenant performance. This planning helps to confirm and maintain compliance and the conditions required to increase their credit facilities. Companies also need
to communicate more frequently with their lenders regarding both positive and negative situations. The biggest mistake companies make is that they try to reduce their tax obligation in the same entity that they are using to borrow from the bank. Tax minimization and financial statement optimization are mutually exclusive, and cannot be achieved in the same entity. The SRG Advantage is the emancipation of the financial statements from the tax returns, yielding our clients optimal results. Lower income taxes are paid and the financial statements are fairly stated; this enables the company to obtain the maximum amount of available financing.

SCP: What do CPA firms need to do to help growing companies in business today?

Grey: The CPA firm needs to identify growth opportunities and help clients implement strategies to optimize their market share. Short term, mid-term
and long-term planning contributes to achieving
these goals. Once a comprehensive business plan is developed, our firm will introduce lending institutions, private equity firms or private sources to achieve the goals. The accounting firm is an active partner with its clients in reaching their goals. Continual monitoring of results is a critical contribution of the accounting firm. The business plan and forecast should be monitored and revised regularly to properly plan for the company’s success.

SCP: What advice do you have for clients when it comes to future planning?

Grey: Clients need to adapt to continually changing circumstances. We meet regularly with our clients to review their goals and desires, and ensure that we are providing them with the maximum value possible. We recommend that our clients who own businesses plan their exit strategy well in advance, as they may need to transition family members or key employees into a succession plan. Exits can be costly; we have ways of reducing costs substantially. Our income tax and estate tax methods achieve the transfer while offering our clients maximum control and cash. Many clients want to maximize their entity value and then exit through a sale. We can assist with the sale. We recommend that exit-strategy planning be done many years before it is executed. Having a well-seasoned plan can ensure proper capital gains treatment, avoid inclusion in the client’s taxable estate, and often help avoid paying taxes to the state of California.

About Drew Grey

Grey began his career at Ernst and Whinney where he became an audit and tax manager. He became the Controller and Senior Vice President of a real estate company that grew from $2M to $250M per year before joining SRG. A partner at Los Angeles-based SRG since 1988, he has helped grow the firm as well as many of their clients’ businesses.  He has been the Chief Financial Officer of two publically traded companies and the Chief Executive Officer of a consumer product Company with products in 27,000 store doors in 22 countries. Most recently Drew was named one of the top “Trusted Advisors” by the San Fernando Valley Business Journal and received their award for “Client Service.” He can be reached at www.srgcpas.com. •

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