Real Cases

Real Cases

We can provide guidance on how to conduct business in an ethical, fair, and legal manner across the globe. As responsible business leaders, intent is not enough to get things right—we must also do things the right way. That means making business decisions and taking appropriate actions that are ethical and compliant with applicable legal requirements.

Its important to recognize that corruption comes in many different forms. A few examples of where Verracy professionals have helped clients uncover non-compliant business practices.

Lima, Peru: Occupational Fraud

A new general manager finds a shocking amount of capital equipment to be nonexistent or in complete disrepair and asks for help finding out what happened. We identified $7 million in Inventory and Asset Misappropriation fraud, and serious collusion.

Brussels, Belgium: Trade Compliance

A routine internal audit identifies items being shipped to embargoed countries under falsified sales orders. Our fraud investigation determined this export fraud cost the company not only millions but also led to a federal investigation that ultimately led to a $232 million Department of Justice settlement.

Austin, Texas: Occupational Fraud

A customer incentive program quickly spirals out of control, costing the company tens of thousands of dollars when the employees find a way to circumvent controls and cash in. Our early detection data analytics program quickly identified the offenders and quantified the dollars, resolving the issue quickly and resulting in only a $35k loss.

Perth, Australia: Kickbacks

A critical part outsourced to a vendor is built using subpar materials and overlooked by a company quality inspector receiving a kickback. The falsified quality control reports and the inferior parts ultimately resulted in the death of an employee

Salt Lake City, Utah: Occupational Fraud

On a tip from a former employer, we were asked to investigate a fleet asset manager in charge of reducing the car and truck fleet though auctions. We found a significant cash skimming scheme resulting in a $1.8 million fraud due to lack of appropriate segregation of duties. We were able to create a very clear case for the authorities.

Singapore: Customer Overbilling

A new CFO takes the reigns of the Asia Pacific region and quickly discovers that the former team was falsely marking up the costs on a cost-plus contract and passing them through to the customer for two years. We quantified the overbilling and worked with the company to go to the customer and explain, saving the business relationship and the $30 million per year contract.

London, England: Financial Statement Misstatement

Financial targets and associated bonus incentives lead to the CIO and CEO of an organization manipulating operation results, providing them with $5 million in unearned bonuses. Data analytics enabled us to identify, quantify, and provide the board with concrete evidence of the fraud, which facilitated the return of the bonus money and termination of the executives.