Financial Fraud Investigations
case study

Synopsis

A director of a limited company enlisted the services of Blackhawk Intelligence having suspected his fellow director of fraud. After falling ill and leaving the management of the company to the other director, our client’s business account reached zero, subsequently leading to our investigation of the other director and their business operations and accounts.

Scope of investigation

Ambition is instinctual, and wanting more is an innate part of human nature. Blackhawk understands this tendency and its impact on business decision-making. Unfortunately for some, this instinct can lead to a misuse of power that is both unethical and illegal – in cases such as this, greed isn’t always good.

When it comes to corporate fraud and financial manipulation, Blackhawk has a proven track record for being able to identify, locate and analyse the warning signs and signals of potential fraud. In these circumstances, there were a number of red flags that indicated that the company was operating under false pretences.

The procedure for investigating a claim of this magnitude requires a considered and careful operation. Here we implemented an exacting, comprehensive process for collecting, collating, extracting, preserving and analysing the business’s financial data that would allow any materials gathered to be admissible in court.

The fact that our client could not access the company’s accounts and books, despite still being registered as a director, meant that our investigation process was much more difficult, and had to operate outside of normal accountancy protocols and measures.

Outcome

Our client was aware that his account had reached zero, and the fact that he was aware of this meant that our job was a straightforward task of identifying where and by what means it had done so. We approached the current director who agreed to give us access to the company’s accounts and operational details in return for compensation from our client.

It must be said that the company’s accountants had not recognised any misconduct, as they were not auditing the accounts. However, upon investigation by Blackhawk’s forensic accountants, the company’s finances were found to have a number of inconsistencies and anomalies including, but not limited to, dubious admin charges, consultancy charges and a salary increase for the current director.

Following such findings, legal proceedings are expected to follow shortly.

Challenges presented

Our most difficult challenge here was coming to an agreement regarding access to the accounts.

Also, the fact that their accountants had not found any wrongdoings meant our forensic accounting team must look deeper to uncover the truth, before making an air-tight case against the director who has been defrauding the company.

Client Testimonial

Case Leader