We have investigated a variety of the schemes as classified above. In our investigations we have worked jointly with investigation units, internal audit and law enforcement agencies, as well as, on our own. The following are a few case capsules:

Economic Extortion

A corporate director extorted thousands of dollars from a service provider to renew a lucrative contract. Working with corporate investigations, Financial Investigative Services analyzed travel and expense reports of the director identifying new leads in the investigation, developing a personal travel profile, and comparing expenses of the service provider's sales representative to the director. The analysis also identified false expenses submitted by the director and led to a major break in the case.

Bribery

Director of operations of a manufacturing facility received hundreds of thousands of dollars in a bribery scheme involving numerous company vendors. The director maintained a false company that invoiced the vendors for services that were never performed. Working with the company’s internal auditors, law enforcement and corporate counsel, Financial Investigative Services analyzed the director's company and personal bank accounts constructing the proof required for the director's indictment.

Cash Misappropriation

Chief executive officer of a professional service firm and spouse embezzled over a million dollars in false disbursements. The CEO submitted false expense reports and disbursement requests that were used to pay family personal expenses. Thousands of documents were examined and analyzed by Financial Investigative Services. Using a database application developed for the case, Financial Investigative Services provided the evidence needed to obtain the CEO's guilty plea.

Substitution of Materials Scheme

Manufacturer's vendor substituted materials resulting in hundreds of thousands of dollars of overcharges for the materials provided. Manufacturer's purchase orders specified source of materials to be shipped by the vendor. Instead materials shipped were from a lesser quality source resulting in the overpayment by our client. Financial Investigative Services analyzed thousands of invoices and receiving records electronically identifying the substituted materials within hours. Using the manufacturer's "right to audit" clause, Financial Investigative Services confirmed the earlier findings and negotiated a settlement of the overcharges in excess of $310,000.

Vendor Return Credit Scheme

Vendor took advantage of a control weakness in a company's accounting system to withhold over $11.5 million in return credits due the company. Working jointly with the company's investigation unit, Financial Investigative Services identified the records needed to prove the withheld credits. Upon demand of the records, the vendor cooperated with the investigation and refunded the company's money.

Many of our investigative techniques center on our grasp of technology. Over the years, we have gained a national reputation in using creative techniques that result in the successful conclusion of our client's cases. Technology allows us to develop specific database applications that analyze thousands of documents in our investigations. Use of client electronic data and custom applications often significantly reduce the time spent in the investigation.

Financial Investigative Services can help your organization recover from the fraudster too. Our investigators are experienced in locating hidden assets. Should your investigation result in litigation our specialists have qualified as expert witnesses in federal, state and local court.

© 2010 McGovern & Greene LLP