International Procurement Fraud and Money Laundering ($500m+)

Major Multi-national Manufacturer

A subsidiary of a major multi-national manufacturer decided to pay kickbacks to obtain contracts. The scheme failed when the company’s officers diverted portions of the money to private accounts.

As a result, the company made losses on the corruptly obtained contracts because it failed to pay the agreed bribes and the client refused to authorise the contract amendments it needed to make a profit.

We worked with internal audit to determine the cause of the company’s losses and quickly uncovered the officers’ fraud and money laundering scheme which extended from Germany to Switzerland and Spain. Our enquiries broadened and we interviewed key witnesses in Spain and Germany and uncovered a web of corruption involving information brokering, kickbacks and threats of physical violence. The client was able to extricate itself from the situation and it dismissed the subsidiary and main board members involved in the scheme.

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