A s part of a corporate strategic review, we were asked to examine the client’s accounting systems for any potential irregularities and fraudulent behaviour. We identified several exposures, including £300m to suppliers with unverifiable UK addresses.
UK Retail Magazine Publisher
A proactive review for our client resulted in the identification of a supplier and a employee colluding to disguise high-value transactions by breaking each large transaction into several smaller ones, all beneath the authorised limits, thereby circumventing established financial controls.
W e were engaged to review the client’s Polish operation, and the data matching process identified six companies located at the same address in Warsaw, with a combined expenditure of 95.3 million zloty (approximately £15.9 million). It appeared odd that six “unrelated” vendors of the client all operated from the same address in a predominantly residential area. Subsequent investigation identified that these companies had been unofficially set up by a Senior Director with no independent oversight. It had also been discovered that family members of the Director had a majority shareholding in these companies.
Multinational Business Information Provider
W e worked closely with our client in using fraud data mining to proactively review their accounting systems for evidence of impropriety, identifying potential £500,000 in recoverable duplicate payments and 68 suspicious payments, totaling £233,000 being paid into a Liechtenstein bank account.
Multinational Petrol Chemical Company
A s part of a proactive review, we were asked to examine the client’s accounting systems for any potential fraud and risk exposures. We identified a single invoice submitted by a supplier for a value of £70,000 to a Malta based company for work in North Africa that had no supporting documentation. Further analysis identified that this was a possible facilitation payment from a slush fund.