A major wholesaler retained Stroz Friedberg to investigate a $2 million theft of inventory. Our investigation led to the arrest of a trusted supervisor—and his brother—and the subsequent seizure of $300,000 in stolen property. Stroz Friedberg determined that the employee had not only stolen the inventory but had also resold it to the client’s competitors. We further identified a second criminal scheme, in which the suspect regularly submitted fictitious invoices and received $600,000 in payments from his employer. He had succeeded in these activities because the company lacked basic checks and balances and essential inventory controls.
Subsequent to the arrests, Stroz Friedberg interviewed approximately 50 current and former employees (in Spanish and English), analyzed inventory records, and produced an internal report. During the course of the investigation, Stroz Friedberg also performed a security survey and risk assessment of the interior and exterior of the company’s 680,000 square foot warehouse facilities and made several security recommendations that are being implemented by the client. Stroz Friedberg internal report and the evidence developed during the investigation are being used in criminal and civil proceedings against the employee and his brother.