Service Line - Business Intelligence &

Integrity Risk

Fraud Prevention & Investigation - Employee Kickback
Investigation
Industry Retail
When an international fashion house began noticing
discrepancies in their inter-office payment procedures between
an Asian city and their US headquarters, they initially suspected
little more than a lack of controls. Two locally employed
expatriate managers were installed in the Asian office by the US
headquarters to oversee operations but both were soon 'fired'
by the local director. Soon it became apparent that there was
more to the problem than a simple lack of controls or cultural
misunderstanding.
H&A Approach:
Subsequent investigations carried out by Hill & Associates
investigators revealed that the local director, who was the
purchasing manager, had been taking significant kickbacks from
quota brokers and had been embezzling money for several
years through an intricate network of concealed factory
ownerships and partnerships. In an ill-fated attempt to 'keep
sweet' the local office staff, the director even distributed an
extra bonus of approximately US$2,000 to each person.
Benefits to the Client:
It was identified and estimated that the company lost several
million dollars over several years from the actions of this
individual alone.

Fraud Prevention & Investigation - Procurement Fraud
Investigation
Industry Retail
It was suspected that the client was facing purchasing
irregularities and kickbacks that involved its key employees and
managers in India.
H&A Approach:
Hill & Associates conducted a covert investigation for this large
retail chain in India. A task force approach was implemented
that included investigations involving review of documentation,
scrutiny of transactions with the suppliers, computer forensic
recovery and examination of suspects' computers, forensic
auditing of accounting ledgers and investigative interviews.
Benefits to the Client:
The investigation successfully established existence of large
scale procurement fraud by some of the key employees.
Employees were found to be submitting quotes from fictitious
companies and falsified invoices. Further, Hill & Associates
recommended changes in the internal controls and auditing
procedures with a view to protect the client from internal fraud
in future.

Fraud Prevention & Investigation - Insurance Fraud
Industry - Insurance
One of the leading insurance majors in India wanted to
ascertain credibility of the life insurance claim by father of the
deceased (the Subject). The Claimant had stated that the
Subject had died in a road accident while driving a vehicle.
Further, the claimant had submitted relevant documents to
support his claim.
H&A Approach & Benefits to the Client:
During the course of the investigation conducted by Hill &
Associates, it was uncovered that the Subject was mentally
retarded and was incapable of driving. Interviews with the
locals confirmed the findings and a detailed report was
submitted to the client. Based on the findings, Hill & Associates
also recommended that the legal team of the client should
interview the claimant again. Other than providing necessary
supportive documents, we also cited the issues to be explored
during the interview. Our team also informed the client that the
claimant was likely to turn hostile and recommended a number
of precautionary measures.

Fraud Prevention & Investigation - Supply Chain Fraud
Industry - Mining
A Client of Hill & Associates received anonymous allegation that
their product was illegitimately traded in the India market and
also that some of the senior employees were party to the fraud.
The main objective of this investigation was to uncover the
modus of operandi as well as names of employees involved in
fraud.
H&A Approach:
Hill & Associates investigation team studied the distribution
network and supply chain of Clients product and conducted
discrete enquiries at various levels to ascertain the truth behind
the allegation. Investigations revealed that during
transportation, drivers in collaboration with the local
transporters were stealing product in small quantities each
time they travelled and stored the same in warehouses hired
specially for those products. When the quantity was large
enough to be sold in the market, the product was made
available for sale at a price much lesser price than the actual. In
some instances low quality local product was substituted with
the Clients high quality product as well.
Benefits to the Client:
Investigative interviews of key sources indicated names of two
senior level employees in the Clients organization to be
involved in this fraudulent practice. Further, focused
investigation was carried out on the two suspected employees
during which both were found to be guilty of fraud.