An international commodity trading company had suspicions that one of its employees had created a scheme designed to make fraudulent payments to brokers presumably from which the employee would benefit. Further schemes, by the same employee, designed to divert funds by installing unnecessary levels of cost, with inflated rates, into transactions, as well as others requiring collaboration with other staff were also suspected and required investigation.
Stroz Friedberg forensically imaged two of the suspects’ hard drives, their company network files and their email files. This data was then hosted on a review platform and made available to the Stroz Friedberg Financial Investigators for interrogation. The Financial Investigations team cross-checked time periods, commercial transaction details and various associated parties to determine whether there was any substance to the claim that these brokers provided services to the client.
Stroz Friedberg conducted due diligence into the brokers to ascertain the nature of the businesses, the officers of these businesses, and their likely involvement in these schemes. Interviews were also conducted with junior staff, peers and management level staff of the client to understand the expected behaviours of the suspect, the company protocols and controls.
Having identified a fraudulent scheme to siphon additional funds by way of rate and commission manipulation, Stroz Friedberg Financial Investigators undertook a detailed analysis to calculate the quantum of both elements of the fraud. The relevant company and third party documents required to evidence this wrongdoing were identified and collated.
The client received confirmation that their suspicion with regard to the initial suspect was correct. In addition, further fraudulent schemes and further suspects were identified. A realistic quantum of the losses incurred by the client was established and evidenced with supporting documentation.
Stroz Friedberg provided the client with factual reports, together with documented evidence, giving them a range of options as to avenues of restitution, as well as suggested controls and procedures which would reduce the likelihood of these frauds arising in the future.