Corporate Fraud Investigations

Analysis

All relevant documents and data must be secured at the earliest possible stage of a corporate fraud investigation, retained and handled properly thereafter. The significance of all the documents that could be relevant to the suspected fraud should be considered. During our investigations, we will:

• identify and locate critical evidence
• secure, schedule, interrogate and analyse evidence legally obtained from the client’s communication records, data entry logs, audit and financial statement reviews and personnel files
• review evidence gathered from digital forensics, CCTV footage, surveillance, interviews and profiling research
• identify evidence from Open Source Intelligence (OSINT) and Human Source Intelligence (HUMINT) methods
• interrogate online media and press databases, court documents, global business filings, property records, web-based communities and social networks to support the evidence gathering process
• summarise the key facts, with supporting evidence, in an easily presented manner
• map out relevant findings, corporate structures and assets in network diagrams (such as i2).

Interviews

The objectives of each interview will be determined by the investigation plan and evidence already collected. Interviews with witnesses can be conducted at any stage of an investigation. The aim is to collect supporting evidence which can be used in legal proceedings, tribunal or for making a claim under insurance.

Our investigations Team and network of Certified Fraud Examiners have experience in interviewing obstructive witnesses, co-conspirators and the suspects themselves. We apply professional techniques and principles to seek out the truth.

It is not essential that a guilty suspect does not admit their responsibility for the fraud. Deliberate lies, continued deceit and denials in the face of overwhelming evidence, will be just as condemning. Before interviewing a suspect or witness, we ensure that we rehearse, prepare and plan for every eventuality, including confessions, counter-attacks and denials.

We assist organisations prevent, detect and reduce fraud exposure to help them mitigate losses.  As part of our corporate fraud investigations and prevention reviews, we will:

• Design, develop and implement written fraud policies and procedures to promote consistency and mutual understanding between the organisation and stakeholders
• Conduct security audits across the organisation to review, identify and assess known and unknown fraud risks
• Develop and monitor the procurement regime of supply chains and their compliance to fraud policies
• Examine whether corruption schemes exist within an organisation, procurement functions and supply chains
• Review existing contractual terms with employees, clients and supply chains to ensure compliance with anti-bribery legislation and “adequate procedures” requirements
• Provide new and updated background checks on all employees, including senior hires and external contractors
• Identify behavioural red flags displayed by fraud perpetrators

Organisations lose between 2% and 5% of annual revenue to fraud. This is a significant figure. By undertaking our Anti-Fraud Assessment, your organisation can “Profit From Loss.”

• Our Anti-Fraud Assessment is the first step to recognising vulnerabilities that an organisation faces and sets the tone to implementing an effective Fraud Risk Management (FRM) Framework.
• As part of our Anti-Fraud Assessment, a series of questions are asked to help understand the organisation’s policies and procedures regarding the following key anti-fraud indicators.

Our Anti-Fraud Assessment consists of modules, each containing a series of questions designed to help an organisation focus on areas of fraud risk.  The key focus points in this assessment include employees, management, physical controls, financial reporting and payment transactions.

• Establishing Standards
• Assigning Responsibility
• Audit Committees
• Due Diligence
• Communication
• Training
• Achieving Compliance
• Disciplinary Action
• Appropriate Response
• Periodic Assessment

Fraud prevention requires a system of rules, which collectively, will help minimise the likelihood of fraud occurring while maximising the possibility of detecting any fraudulent activity that may transpire.

The effectiveness of internal controls can be determined by implementing a controlled environment, which includes risk assessment, control activities, communication and monitoring.

A controlled environment sets the moral tone of an organisation, helps influence the control perception and provides a foundation for all management, employees and third parties to follow.

Corruption takes many forms, including bribery, kickbacks, illegal gratuities, economic extortion and collusion.  It is an illegal practice and places law-abiding companies at a competitive disadvantage.  Anti-corruption investigations, audits and awareness will identify such practices and improve your organisation’s culture.

Legislation

Legislation issued in the UK Bribery Act 2010 and the US Foreign Corrupt Practices Act FCPA provide organisations with a clear warning against corrupt business activities.

In particular, the UK Bribery Act 2010 introduced a new “strict liability” offence for corporate entities that fail to prevent bribery by their employees, agents or subsidiaries (both domestic and foreign).  The only defence available in the UK is that the corporate entity had in place “adequate procedures” to prevent bribery; anti-corruption investigations, audits and reviews will improve an organisation’s defence. This corporate liability is wide and far-reaching and has grave consequences for corporate entities and their executives, including unlimited fines.

Whilst in the USA, the FCPA requests that companies implement anti-corruption investigations and maintain an effective compliance and ethics program to prevent, detect, remediate and report misconduct, including FCPA violations.

Despite various legislative measures, corruption is still a significant problem for organisations, particularly due to growing financial pressures and opportunities in unregulated markets.

How we can help with anti-corruption investigations:

• Our anti-corruption investigations will examine whether corruption schemes exist within your organisation, procurement functions and supply chains
• We help implement robust anti-bribery and corruption provisions and policies, as well as guiding you through any subsequent investigations
• Review existing contractual terms with employees, agents and other parties in supply chains to ensure compliance
• Provide Enhanced Due Diligence and ongoing monitoring into an organisations’ supply chain and third parties
• Conduct internal investigations and gather the evidence required for private prosecution or disciplinary procedures
• Implement an effective FCPA compliance programme tailed to your organisation to help prevent, detect and report corruption