'Risk Advisory provides us with essential factual background information about selected clients we are considering taking on and about the situation in many of the more difficult countries in which we operate. "

Richard Blackburn, Chief Operating Officer, European Investment Bank, Citigroup

 

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Investigation of fraud by business manager



A multinational manufacturer reported significant losses in their distribution division. It was not clear if this was simply a result of an inequitable transfer pricing policy within the group or whether the company had been defrauded. Our forensic accountants set out to investigate how the losses had been incurred, reconstructing incomplete records and unraveling a confusing series of transactions.

They discovered that other companies within the group had transferred products to the division at over market value to maintain their own profitability. More disturbingly, the division had sold on much of its product at inexplicably low prices to a number of key customers. The business manager was dismissed after we discovered that he had concealed ownership interests in some of these customers and evidence came to light indicating that he had accepted kickback payments. Poor and missing records prevented legal action from being commenced. The division is now on track to report profits following tighter controls over transfer pricing and sales invoicing.
The Risk Advisory Group (Holdings) plc Registered Office: 10-12 Russell Square London WC1B 5EH Place of Registration: England and Wales Company Number: 5188468